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 1000    Houston, Texas   77046

(Address of principal executive offices)        (Zip code)

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

(Name and address of agent for service)

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

Date of fiscal year end:            12/31                  

Date of reporting period:         06/30/20          

Item 1. Reports to Stockholders.

	Semiannual Report to Shareholders	June 30, 2020
	Invesco V.I. American Franchise Fund

Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, the insurance company that offers your variable annuity or variable life insurance contract may no longer send you paper copies of the Fund’s shareholder reports by mail, unless you specifically request paper copies of the reports from the insurance company or your financial intermediary. Instead of delivering paper copies of the report, the insurance company may choose to make the reports available on a website, and will notify you by mail each time a report is posted and provide you with a website link to access the report. Instructions for requesting paper copies will be provided by your insurance company.

    If the insurance company offers electronic delivery, you may elect to receive shareholder reports and other communications about the Fund electronically by following the instructions provided by the insurance company or by contacting your financial intermediary. If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action.

    You may elect to receive all future reports in paper free of charge from the insurance company. You can inform the insurance company or your financial intermediary that you wish to continue receiving paper copies of your shareholder reports by following the instructions provided by the insurance company or by contacting your financial intermediary. Your election to receive reports in paper will apply to all portfolio companies available under your contract with the insurance company.

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) as an exhibit to its reports on Form N-PORT. The Fund’s Form N-PORT filings are available on the SEC website, 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-PORT, 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 most recent 12-month period ended June 30 is available at invesco.com/proxysearch. The information is also available on the SEC website, sec.gov.

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

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.

NOT FDIC INSURED  |  MAY LOSE VALUE  |  NO BANK GUARANTEE

Invesco Distributors, Inc. VK-VIAMFR-SAR-1                                 

Fund Performance

Performance summary
Fund vs. Indexes
Cumulative total returns, 12/31/19 to 6/30/20, excluding variable product issuer charges. If variable product issuer charges were included, returns would be lower.
Series I Shares	11.60	%
Series II Shares	11.47
S&P 500 Indexq (Broad Market Index)	–3.08
Russell 1000 Growth Indexq (Style-Specific Index)	9.81
Lipper VUF Large-Cap Growth Funds Index∎ (Peer Group Index)	10.80
Source(s): qRIMES Technologies Corp.; ∎Lipper Inc.
The S&P 500® Index is an unmanaged index considered representative of the US stock market.
The Russell 1000® Growth Index is an unmanaged index considered representative of large-cap growth stocks. The Russell 1000 Growth Index is a trademark/service mark of the Frank Russell Co. Russell® is a trademark of the Frank Russell Co.
The Lipper 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) described here, and consequently, the performance of the Fund may deviate significantly from the performance of the index(es).
A direct investment cannot be made in an index. Unless otherwise indicated, index results include reinvested dividends, and they do not reflect sales charges. Performance of the peer group, if applicable, reflects fund expenses; performance of a market index does not.

Average Annual Total Returns
As of 6/30/20
Series I Shares
Inception (7/3/95)	10.17	%
10 Years	15.09
5 Years	14.44
1 Year	24.33
Series II Shares
Inception (9/18/00)	3.57	%
10 Years	14.80
5 Years	14.16
1 Year	24.02

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 (renamed Invesco V.I. American Franchise Fund on April 29, 2013). Returns shown above, prior to June 1, 2010, for Series I and Series II shares are those of the Class I shares and Class II shares of the predecessor fund. Share class returns will differ from the predecessor fund because of different expenses.

    The performance data quoted represent past performance and cannot guarantee future results; current performance may be lower or higher. Please 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. Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares. Investment return and principal value will fluctuate so that you may have a gain or loss when you sell shares.

    Invesco V.I. American Franchise 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 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.

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

Invesco V.I. American Franchise Fund

Liquidity Risk Management Program

The Securities and Exchange Commission has adopted Rule 22e-4 under the Investment Company Act of 1940 (the “Liquidity Rule”) in order to promote effective liquidity risk management throughout the open-end investment company industry, thereby reducing the risk that funds will be unable to meet their redemption obligations and mitigating dilution of the interests of fund shareholders. The Fund has adopted and implemented a liquidity risk management program in accordance with the Liquidity Rule (the “Program”). The Program is reasonably designed to assess and manage the Fund’s liquidity risk, which is the risk that the Fund could not meet redemption requests without significant dilution of remaining investors’ interests in the Fund. The Board of Trustees of the Fund (the “Board”) has appointed Invesco Advisers, Inc. (“Invesco”), the Fund’s investment adviser, as the Program’s administrator, and Invesco has delegated oversight of the Program to the Liquidity Risk Management Committee (the “Committee”), which is composed of senior representatives from relevant business groups at Invesco.

As required by the Liquidity Rule, the Program includes policies and procedures providing for an assessment, no less frequently than annually, of the Fund’s liquidity risk that takes into account, as relevant to the Fund’s liquidity risk: (1) the Fund’s investment strategy and liquidity of portfolio investments during both normal and reasonably foreseeable stressed conditions; (2) short-term and long-term cash flow projections for the Fund during both normal and reasonably foreseeable stressed conditions; and (3) the Fund’s holdings of cash and cash equivalents and any borrowing arrangements. The Liquidity Rule also requires the classification of the Fund’s investments into categories that reflect the assessment of their relative liquidity under current market conditions. The Fund classifies its investments into one of four categories defined in the Liquidity Rule: “Highly Liquid,” “Moderately Liquid,” “Less Liquid” and “Illiquid.” Funds that are not invested primarily in “Highly Liquid Investments” that are assets (cash or investments that are reasonably expected to be convertible into cash within three business days without significantly changing the market value of the investment) are required to establish a “Highly Liquid Investment Minimum” (“HLIM”), which is the minimum percentage of net assets that must be invested in Highly Liquid Investments. Funds with HLIMs have procedures for addressing HLIM shortfalls, including reporting to the Board and the SEC (on a non-public basis) as required by the Program and the Liquidity Rule. In addition, the Fund may not acquire an investment if, immediately after the acquisition, over 15% of the Fund’s net assets would consist of “Illiquid Investments” that are assets (an investment that cannot reasonably be expected to be sold or disposed of in current market conditions in seven calendar days or less without the sale or disposition significantly changing the market value of the investment). The Liquidity Rule and the Program also require reporting to the Board and the SEC (on a non-public basis) if a Fund’s holdings of Illiquid Investments exceed 15% of the Fund’s assets.

At a meeting held on March 30-April 1, 2020, the Committee presented a report to the Board that addressed the operation of the Program and assessed the Program’s adequacy and effectiveness of implementation (the “Report”). The Report covered the period from December 1, 2018 through December 31, 2019 (the “Program Reporting Period”).

The Report stated, in relevant part, that during the Program Reporting Period:

∎ The Program, as adopted and implemented, remained reasonably designed to assess and manage the Fund’s liquidity risk and was operated effectively to achieve that goal;

∎ The Fund’s investment strategy remained appropriate for an open-end fund;

∎ The Fund was able to meet requests for redemption without significant dilution of remaining investors’ interests in the Fund;

∎ The Fund did not breach the 15% limit on Illiquid Investments; and

∎ The Fund primarily held Highly Liquid Investments and therefore has not adopted an HLIM.

Invesco V.I. American Franchise Fund

Schedule of Investments^(a)

June 30, 2020

(Unaudited)

	Shares		Value
Common Stocks & Other Equity Interests–100.33%
Aerospace & Defense–1.28%
L3Harris Technologies, Inc.		19,540	$    3,315,352
Lockheed Martin Corp.		5,116	1,866,931
Textron, Inc.		103,830	3,417,045
			8,599,328
Application Software–7.47%
Adobe, Inc.(b)		20,553	8,946,927
RingCentral, Inc., Class A(b)		13,221	3,768,117
salesforce.com, inc.(b)		83,776	15,693,758
Splunk, Inc.(b)		62,797	12,477,764
Synopsys, Inc.(b)		42,001	8,190,195
Zoom Video Communications, Inc., Class A(b)(c)		4,991	1,265,418
			50,342,179
Asset Management & Custody Banks–3.95%
Apollo Global Management, Inc.		350,997	17,521,770
KKR & Co., Inc., Class A		294,277	9,087,274
			26,609,044
Automotive Retail–0.54%
CarMax, Inc.(b)		40,803	3,653,909
Biotechnology–2.20%
Alnylam Pharmaceuticals, Inc.(b)		22,804	3,377,500
Argenx SE, ADR (Netherlands)(b)		11,369	2,560,640
BeiGene Ltd., ADR (China)(b)		19,636	3,699,422
Moderna, Inc.(b)		81,122	5,208,844
			14,846,406
Consumer Electronics–1.01%
Sony Corp. (Japan)		99,000	6,779,651
Data Processing & Outsourced Services–8.62%
Fiserv, Inc.(b)		56,184	5,484,682
FleetCor Technologies, Inc.(b)		13,499	3,395,403
Mastercard, Inc., Class A		26,254	7,763,308
PayPal Holdings, Inc.(b)		111,775	19,474,558
Visa, Inc., Class A		113,733	21,969,804
			58,087,755
Diversified Support Services–0.46%
Cintas Corp.		11,535	3,072,463
Environmental & Facilities Services–0.54%
GFL Environmental, Inc. (Canada)(b)		122,988	2,308,485
Republic Services, Inc.		16,491	1,353,086
			3,661,571
Financial Exchanges & Data–0.46%
London Stock Exchange Group PLC (United Kingdom) 3,321			343,537
S&P Global, Inc.		8,409	2,770,598
			3,114,135
Food Distributors–0.91%
US Foods Holding Corp.(b)		311,176	6,136,391

	Shares		Value
Health Care Equipment–4.52%
Abbott Laboratories		18,761	$    1,715,318
Boston Scientific Corp.(b)		57,536	2,020,089
DexCom, Inc.(b)		17,130	6,944,502
Intuitive Surgical, Inc.(b)		10,194	5,808,847
Teleflex, Inc.		24,328	8,854,905
Zimmer Biomet Holdings, Inc.		42,549	5,078,649
			30,422,310
Health Care Technology–0.10%
Teladoc Health, Inc.(b)		3,466	661,451
Home Improvement Retail–3.47%
Lowe’s Cos., Inc.		173,199	23,402,649
Industrial Conglomerates–0.66%
Roper Technologies, Inc.		11,423	4,435,094
Industrial Gases–0.44%
Air Products and Chemicals, Inc.		12,327	2,976,477
Interactive Home Entertainment–5.85%
Activision Blizzard, Inc.		225,487	17,114,463
Electronic Arts, Inc.(b)		61,014	8,056,899
Nintendo Co. Ltd. (Japan)		23,900	10,634,663
Take-Two Interactive Software, Inc.(b)		25,561	3,567,549
			39,373,574
Interactive Media & Services–10.20%
Alphabet, Inc., Class A(b)		22,742	32,249,293
Facebook, Inc., Class A(b)		144,583	32,830,462
ZoomInfo Technologies, Inc., Class A(b)		70,973	3,621,752
			68,701,507
Internet & Direct Marketing Retail–17.57%
Alibaba Group Holding Ltd., ADR (China)(b)		123,635	26,668,070
Amazon.com, Inc.(b)		25,670	70,818,909
Booking Holdings, Inc.(b)		7,716	12,286,495
Farfetch Ltd., Class A (United Kingdom)(b)		350,250	6,048,818
HelloFresh SE (Germany)(b)		48,250	2,561,555
			118,383,847
Life & Health Insurance–1.33%
Athene Holding Ltd., Class A(b)		286,255	8,928,293
Life Sciences Tools & Services–3.09%
Avantor, Inc.(b)		263,583	4,480,911
Illumina, Inc.(b)		11,580	4,288,653
IQVIA Holdings, Inc.(b)		50,485	7,162,812
Thermo Fisher Scientific, Inc.		13,461	4,877,459
			20,809,835
Managed Health Care–1.58%
UnitedHealth Group, Inc.		36,097	10,646,810
Movies & Entertainment–1.08%
Netflix, Inc.(b)		15,921	7,244,692
Oil & Gas Equipment & Services–0.56%
Baker Hughes Co., Class A		244,779	3,767,149

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

Invesco V.I. American Franchise Fund

	Shares		Value
Oil & Gas Refining & Marketing–0.36%
Marathon Petroleum Corp.		65,709	$  2,456,202
Packaged Foods & Meats–1.26%
Tyson Foods, Inc., Class A		141,676	8,459,474
Pharmaceuticals–0.66%
MyoKardia, Inc.(b)		20,128	1,944,767
Zoetis, Inc.		18,419	2,524,140
			4,468,907
Railroads–0.39%
Union Pacific Corp.		15,461	2,613,991
Research & Consulting Services–0.64%
CoStar Group, Inc.(b)		6,099	4,334,376
Semiconductor Equipment–2.54%
Applied Materials, Inc.		231,040	13,966,368
ASML Holding N.V., New York Shares (Netherlands)		8,489	3,124,207
			17,090,575
Semiconductors–2.61%
NVIDIA Corp.		32,838	12,475,485
QUALCOMM, Inc.		56,225	5,128,282
			17,603,767
Specialty Chemicals–0.27%
Sherwin-Williams Co. (The)		3,193	1,845,075
Systems Software–7.61%
Microsoft Corp.		173,307	35,269,708
Palo Alto Networks, Inc.(b)		30,020	6,894,693
ServiceNow, Inc.(b)		22,398	9,072,534
			51,236,935
Technology Hardware, Storage & Peripherals–3.35%
Apple, Inc.		61,905	22,582,944
Tobacco–0.57%
Philip Morris International, Inc.		54,977	3,851,689

	Shares		Value
Trading Companies & Distributors–1.15%
Fastenal Co.		73,447	$    3,146,469
United Rentals, Inc.(b)		30,947	4,612,341
			7,758,810
Trucking–1.03%
J.B. Hunt Transport Services, Inc.		17,074	2,054,685
Knight-Swift Transportation Holdings, Inc.		40,882	1,705,188
Lyft, Inc., Class A(b)		55,684	1,838,129
Uber Technologies, Inc.(b)		42,712	1,327,489
			6,925,491
Total Common Stocks & Other Equity Interests (Cost $316,003,870)			675,884,756
Money Market Funds–0.00%
Invesco Government & Agency Portfolio, Institutional Class, 0.09%(d)(e)		201	201
Invesco Treasury Portfolio, Institutional Class, 0.08%(d)(e)		230	230
Total Money Market Funds (Cost $431)			431
TOTAL INVESTMENTS IN SECURITIES (excluding investments purchased with cash collateral from securities on loan)-100.33% (Cost $316,004,301)			675,885,187
Investments Purchased with Cash Collateral from Securities on Loan
Money Market Funds–0.17%
Invesco Private Government Fund, 0.05%(d)(e)(f)		854,020	854,020
Invesco Private Prime Fund, 0.11%(d)(e)(f)		284,616	284,673
Total Investments Purchased with Cash Collateral from Securities on Loan (Cost $1,138,693)			1,138,693
TOTAL INVESTMENTS IN SECURITIES–100.50% (Cost $317,142,994)			677,023,880
OTHER ASSETS LESS LIABILITIES–(0.50)%			(3,365,856)
NET ASSETS–100.00%			$673,658,024

Investment Abbreviations:

ADR – American Depositary Receipt

Notes to Schedule of Investments:

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

^(b)  Non-income producing security.

^(c)  All or a portion of this security was out on loan at June 30, 2020.

^(d)  Affiliated issuer. The issuer and/or the Fund is a wholly-owned subsidiary of Invesco Ltd., or is affiliated by having an investment adviser that is under common control of Invesco Ltd. The table below shows the Fund’s transactions in, and earnings from, its investments in affiliates for the six months ended June 30, 2020.

	Value December 31, 2019			Purchases at Cost			Proceeds from Sales			Change in Unrealized Appreciation			Realized Gain (Loss)				Value June 30, 2020			Dividend Income
Investments in Affiliated Money Market Funds:
Invesco Government & Agency Portfolio, Institutional Class		$	293,529		$	26,104,833		$(26,398,161)			$	-		$	-			$	201		$	3,863
Invesco Liquid Assets Portfolio, Institutional Class			209,582			18,831,724		(19,039,759	)			-			(1,547	)			-			4,401
Invesco Treasury Portfolio, Institutional Class			335,461			29,834,095		(30,169,326	)			-			-				230			3,981

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

Invesco V.I. American Franchise Fund

	Value December 31, 2019			Purchases at Cost			Proceeds from Sales				Change in Unrealized Appreciation			Realized Gain (Loss)				Value June 30, 2020			Dividend Income
Investments Purchased with Cash Collateral from
Securities on Loan:
Invesco Government & Agency Portfolio, Institutional Class		$	-		$	5,182,077		$	(5,182,077	)		$	-		$	-			$	-		$	270
Invesco Liquid Assets Portfolio, Institutional Class			-			969,176			(969,306	)			-			130				-			810
Invesco Private Government Fund			-			2,410,930			(1,556,910	)			-			-				854,020			8
Invesco Private Prime Fund			-			297,248			(12,575	)			-			-				284,673			4
Total		$	838,572		$	83,630,083		$	(83,328,114	)		$	-		$	(1,417	)		$	1,139,124		$	13,337

^(e) The rate shown is the 7-day SEC standardized yield as of June 30, 2020.

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

Portfolio Composition

By sector, based on Net Assets

as of June 30, 2020

Information Technology	32.20	%
Consumer Discretionary	22.60
Communication Services	17.12
Health Care	12.15
Industrials	6.14
Financials	5.74
Consumer Staples	2.74
Other Sectors, Each Less than 2% of Net Assets	1.64
Money Market Funds Plus Other Assets Less Liabilities	(0.33	)

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

Invesco V.I. American Franchise Fund

Statement of Assets and Liabilities

June 30, 2020

(Unaudited)

Assets:
Investments in securities, at value (Cost $316,003,870)*	$	675,884,756
Investments in affiliated money market funds, at value (Cost $1,139,124)		1,139,124
Foreign currencies, at value (Cost $232,310)		230,945
Receivable for:
Investments sold		3,268,157
Fund shares sold		112,196
Dividends		109,283
Investment for trustee deferred compensation and retirement plans		323,626
Total assets		681,068,087
Liabilities:
Payable for:
Investments purchased		2,094,680
Fund shares reacquired		2,642,355
Amount due custodian		870,458
Collateral upon return of securities loaned		1,138,693
Accrued fees to affiliates		255,731
Accrued trustees’ and officers’ fees and benefits		2,379
Accrued other operating expenses		61,002
Trustee deferred compensation and retirement plans		344,765
Total liabilities		7,410,063
Net assets applicable to shares outstanding	$	673,658,024
Net assets consist of:
Shares of beneficial interest	$	231,771,866
Distributable earnings		441,886,158
	$	673,658,024
Net Assets:
Series I	$	502,820,804
Series II	$	170,837,220
Shares outstanding, no par value, with an unlimited number of shares authorized:
Series I		6,709,662
Series II		2,398,497
Series I:
Net asset value per share	$	74.94
Series II:
Net asset value per share	$	71.23

* At June 30, 2020, securities with an aggregate value of $1,116,283 were on loan to brokers.

Statement of Operations

For the six months ended June 30, 2020

(Unaudited)

Investment income:
Dividends (net of foreign withholding taxes of $29,332)	$	2,566,550
Dividends from affiliated money market funds (includes securities lending income of $1,365)		13,610
Total investment income		2,580,160
Expenses:
Advisory fees		2,083,067
Administrative services fees		495,841
Custodian fees		16,839
Distribution fees - Series II		195,045
Transfer agent fees		36,722
Trustees’ and officers’ fees and benefits		10,082
Reports to shareholders		4,353
Professional services fees		16,732
Other		6,574
Total expenses		2,865,255
Less: Expenses reimbursed		(1,944	)
Net expenses		2,863,311
Net investment income (loss)		(283,151	)
Realized and unrealized gain (loss) from:
Net realized gain (loss) from:
Investment securities		35,444,585
Foreign currencies		(1,762	)
		35,442,823
Change in net unrealized appreciation (depreciation) of:
Investment securities		32,820,882
Foreign currencies		(1,492	)
		32,819,390
Net realized and unrealized gain		68,262,213
Net increase in net assets resulting from operations	$	67,979,062

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

Invesco V.I. American Franchise Fund

Statement of Changes in Net Assets

For the six months ended June 30, 2020 and the year ended December 31, 2019

(Unaudited)

	June 30,			December 31,
	2020			2019
Operations:
Net investment income (loss)	$	(283,151	)	$	502,933
Net realized gain		35,442,823			54,063,192
Change in net unrealized appreciation		32,819,390			132,918,929
Net increase in net assets resulting from operations		67,979,062			187,485,054
Distributions to shareholders from distributable earnings:
Series I		–			(64,492,029	)
Series II		–			(21,911,152	)
Total distributions from distributable earnings		–			(86,403,181	)
Share transactions–net:
Series I		(38,069,825	)		8,287,794
Series II		(8,837,991	)		4,809,729
Net increase (decrease) in net assets resulting from share transactions		(46,907,816	)		13,097,523
Net increase in net assets		21,071,246			114,179,396
Net assets:
Beginning of period		652,586,778			538,407,382
End of period	$	673,658,024		$	652,586,778

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

Invesco V.I. American Franchise Fund

Financial Highlights

(Unaudited)

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

	Net asset value, beginning of period			Net investment income (loss)(a)				Net gains (losses) on securities (both realized and unrealized)				Total from investment operations				Dividends from net investment income				Distributions from net realized gains				Total distributions				Net asset value, end of period			Total return (b)			Net assets, end of period (000’s omitted)			Ratio of expenses to average net assets with fee waivers and/or expenses absorbed			Ratio of expenses to average net assets without fee waivers and/or expenses absorbed			Ratio of net investment income (loss) to average net assets			Portfolio turnover (c)
Series I
Six months ended 06/30/20		$	67.15		$	(0.01	)		$	7.80			$	7.79			$	–			$	–			$	–			$	74.94		11.60	%		$	502,821		0.87	%(d)		0.87	%(d)		(0.03	)%(d)		33	%
Year ended 12/31/19			57.15			0.10				19.86				19.96				–				(9.96	)			(9.96	)			67.15		36.76				490,366		0.86			0.87			0.15			40
Year ended 12/31/18			62.97			(0.00	)			(1.50	)			(1.50	)			–				(4.32	)			(4.32	)			57.15		(3.62	)			405,192		0.88			0.88			(0.00	)		42
Year ended 12/31/17			53.58			(0.04	)			14.50				14.46				(0.05	)			(5.02	)			(5.07	)			62.97		27.34				491,271		0.89			0.89			(0.06	)		45
Year ended 12/31/16			57.30			0.07				1.33				1.40				–				(5.12	)			(5.12	)			53.58		2.27				420,824		0.93			0.93			0.12			59
Year ended 12/31/15			54.88			(0.03	)			2.76				2.73				–				(0.31	)			(0.31	)			57.30		5.01				479,298		0.96			0.96			(0.05	)		68
Series II
Six months ended 06/30/20			63.90			(0.09	)			7.42				7.33				–				–				–				71.23		11.47				170,837		1.12	(d)		1.12	(d)		(0.28	)(d)		33
Year ended 12/31/19			54.90			(0.07	)			19.03				18.96				–				(9.96	)			(9.96	)			63.90		36.43				162,221		1.11			1.12			(0.10	)		40
Year ended 12/31/18			60.79			(0.16	)			(1.41	)			(1.57	)			–				(4.32	)			(4.32	)			54.90		(3.88	)			133,216		1.13			1.13			(0.25	)		42
Year ended 12/31/17			51.95			(0.19	)			14.05				13.86				–				(5.02	)			(5.02	)			60.79		27.03				170,956		1.14			1.14			(0.31	)		45
Year ended 12/31/16			55.85			(0.06	)			1.28				1.22				–				(5.12	)			(5.12	)			51.95		2.00				151,599		1.18			1.18			(0.13	)		59
Year ended 12/31/15			53.63			(0.16	)			2.69				2.53				–				(0.31	)			(0.31	)			55.85		4.75				175,919		1.21			1.21			(0.30	)		68

^(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 $463,356 and $157,036 for Series I and Series II shares, respectively.

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

Invesco V.I. American Franchise Fund

Notes to Financial Statements

June 30, 2020

(Unaudited)

NOTE 1—Significant Accounting Policies

Invesco V.I. American Franchise 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. Information presented in these financial statements pertains only to the Fund. Matters affecting the Fund or each class will be voted on exclusively by the shareholders of the Fund or each class. 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 Fund is an investment company and accordingly follows the investment company accounting and reporting guidance in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 946, Financial Services – Investment Companies.

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

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

A security listed or traded on an exchange (except convertible securities) is valued at its last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded, or lacking any sales or official closing price on a particular day, the security may be valued at the closing bid price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued by an independent pricing service they may be considered fair valued. Futures contracts are valued at the final settlement price set by an exchange on which they are principally traded. Listed options are valued at the mean between the last bid and asked 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 asked prices. For purposes of determining net asset value (“NAV”) per share, futures and option contracts generally are valued 15 minutes after the close of the customary trading session of the New York Stock Exchange (“NYSE”).

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

Debt obligations (including convertible securities) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. Pricing services generally value debt obligations assuming orderly transactions of institutional round lot size, but a fund may hold or transact in the same securities in smaller, odd lot sizes. Odd lots often trade at lower prices than institutional round lots. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.

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

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

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

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

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

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

Invesco V.I. American Franchise Fund

share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and the Statement of Changes in Net Assets, or the net investment income per share and the ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.

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

C. Country Determination – For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues 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 net investment income and net realized capital gain, if any, are generally declared and paid to separate accounts of participating insurance companies annually and recorded on the ex-dividend date.

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

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

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

F. Expenses – Fees provided for under the Rule 12b-1 plan of a particular class of the Fund and which are directly attributable to that class are charged to the operations of such class. All other expenses are allocated among the classes based on relative net assets.

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

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

I. 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. The Fund bears the risk of loss with respect to the investment of collateral. It is the Fund’s policy to obtain additional collateral from or return excess collateral to the borrower by the end of the next business day, following the valuation date of the securities loaned. Therefore, the value of the collateral held may be temporarily less than the value of the securities on loan. When loaning securities, the Fund retains certain benefits of owning the securities, including the economic equivalent of dividends or interest generated by the security. Lending securities entails a risk of loss to the Fund if, and to the extent that, the market value of the securities loaned were to increase and the borrower did not increase the collateral accordingly, and the borrower failed to return the securities. The securities loaned are subject to termination at the option of the borrower or the Fund. Upon termination, the borrower will return to the Fund the securities loaned and the Fund will return the collateral. Upon the failure of the borrower to return the securities, collateral may be liquidated and the securities may be purchased on the open market to replace the loaned securities. The Fund could experience delays and costs in gaining access to the collateral and the securities may lose value during the delay which could result in potential losses to the Fund. Some of these losses may be indemnified by the lending agent. The Fund bears the risk of any deficiency in the amount of the collateral available for return to the borrower due to any loss on the collateral invested. Dividends received on cash collateral investments for securities lending transactions, which are net of compensation to counterparties, are included in Dividends from affiliated money market funds on the Statement of Operations. The aggregate value of securities out on loan, if any, is shown as a footnote on the Statement of Assets and Liabilities.

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

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

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

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

Invesco V.I. American Franchise Fund

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

NOTE 2—Advisory Fees and Other Fees Paid to Affiliates

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

Average Daily Net Assets	Rate
First $ 250 million		0.695%
Next $250 million		0.670%
Next $500 million		0.645%
Next $550 million		0.620%
Next $3.45 billion		0.600%
Next $250 million		0.595%
Next $2.25 billion		0.570%
Next $2.5 billion		0.545%
Over $10 billion		0.520%

For the six months ended June 30, 2020, the effective advisory fee rate incurred by the Fund was 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 Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Canada Ltd. and separate sub-advisory agreements with Invesco Capital Management LLC and Invesco Asset Management (India) Private Limited (collectively, the “Affiliated Sub-Advisers”) the Adviser, not the Fund, will pay 40% of the fees paid to the Adviser to any such Affiliated Sub-Adviser(s) that provide(s) discretionary investment management services to the Fund based on the percentage of assets allocated to such Affiliated Sub-Adviser(s).

The Adviser has contractually agreed, through at least June 30, 2021, 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 2.00% and Series II shares to 2.25% of average daily net assets (the “expense limits”). In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause the total annual fund operating expenses after fee waiver and/or expense reimbursement to exceed the numbers reflected above: (1) interest; (2) taxes; (3) dividend expense on short sales; (4) extraordinary or non-routine items, including litigation expenses; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Unless Invesco continues the fee waiver agreement, it will terminate on June 30, 2021. During its term, the fee waiver agreement cannot be terminated or amended to increase the expense limits or reduce the advisory fee waiver without approval of the Board of Trustees. The Adviser did not waive fees and/or reimburse expenses during the period under these expense limits.

Further, the Adviser has contractually agreed, through at least June 30, 2022, 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, 2020, the Adviser waived advisory fees of $1,944.

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 fees paid to insurance companies that have agreed to provide certain administrative services to the Fund. These administrative services provided by the insurance companies may include, among other things: maintenance of master accounts with the Fund; tracking, recording and transmitting net purchase and redemption orders for Fund shares; maintaining and preserving records related to the purchase, redemption and other account activity of variable product owners; distributing copies of Fund documents such as prospectuses, proxy materials and periodic reports, to variable product owners, and responding to inquiries from variable product owners about the Fund. Pursuant to such agreement, for the six months ended June 30, 2020, Invesco was paid $48,197 for accounting and fund administrative services and was reimbursed $447,644 for fees paid to insurance companies. Invesco has entered into a sub-administration agreement whereby State Street Bank and Trust Company (“SSB”) serves as fund accountant and provides certain administrative services to the Fund. Pursuant to a custody agreement with the Trust on behalf of the Fund, SSB also serves as the Fund’s custodian.

The Trust has entered into a transfer agency and service agreement with Invesco Investment Services, Inc. (“IIS”) pursuant to which the Fund has agreed to pay IIS a fee for providing transfer agency and shareholder services to the Fund and reimburse IIS for certain expenses incurred by IIS in the course of providing such services. For the six months ended June 30, 2020, 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. The fees are accrued daily and paid monthly. 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, 2020, expenses incurred under the Plan are detailed in the Statement of Operations as Distribution fees.

For the six months ended June 30, 2020, the Fund incurred $1,639 in brokerage commissions with Invesco Capital Markets, Inc., an affiliate of the Adviser and IDI, for portfolio transactions executed on behalf of the Fund.

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

NOTE 3—Additional Valuation Information

GAAP defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, under current market conditions. GAAP establishes a hierarchy that prioritizes the inputs to valuation methods, giving the highest priority to readily available unadjusted quoted prices in an active market for identical assets (Level 1) and the lowest priority to significant unobservable inputs (Level 3), generally when

Invesco V.I. American Franchise Fund

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, 2020. The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

	Level 1		Level 2		Level 3		Total
Investments in Securities
Common Stocks & Other Equity Interests	$	655,565,350	$	20,319,406		$–	$	675,884,756
Money Market Funds		431		1,138,693		–		1,139,124
Total Investments	$	655,565,781	$	21,458,099		$–	$	677,023,880

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, 2020, the Fund engaged in securities purchases of $204,510.

NOTE 5—Trustees’ and Officers’ Fees and Benefits

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

NOTE 6—Cash Balances

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

NOTE 7—Tax Information

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

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

The Fund did not have a capital loss carryforward as of December 31, 2019.

NOTE 8—Investment Transactions

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, 2020 was $202,487,749 and $248,420,336, respectively. Cost of investments, including any derivatives, on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end.

Unrealized Appreciation (Depreciation) of Investments on a Tax Basis

Aggregate unrealized appreciation of investments	$	358,480,798
Aggregate unrealized (depreciation) of investments		(1,457,591	)
Net unrealized appreciation of investments	$	357,023,207

Cost of investments for tax purposes is $320,000,673.

Invesco V.I. American Franchise Fund

NOTE 9—Share Information

	Summary of Share Activity
	Six months ended						Year ended
	June 30, 2020(a)						December 31, 2019
	Shares			Amount			Shares			Amount
Sold:
Series I		147,505		$	9,950,884			288,463		$	19,234,264
Series II		159,568			10,124,944			178,715			11,199,246
Issued as reinvestment of dividends:
Series I		-			-			1,061,073			64,492,029
Series II		-			-			378,562			21,911,152
Reacquired:
Series I		(740,145	)		(48,020,709	)		(1,137,749	)		(75,438,499	)
Series II		(299,572	)		(18,962,935	)		(445,184	)		(28,300,669	)
Net increase (decrease) in share activity		(732,644	)	$	(46,907,816	)		323,880		$	13,097,523

^(a)  There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 34% 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 Fund 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—Coronavirus (COVID-19) Pandemic

During the first quarter of 2020, the World Health Organization declared COVID-19 to be a public health emergency. COVID-19 has led to increased short-term market volatility and may have adverse long-term effects on U.S. and world economies and markets in general. COVID-19 may adversely impact the Fund’s ability to achieve its investment objective. Because of the uncertainties on valuation, the global economy and business operations, values reflected in these financial statements may materially differ from the value received upon actual sales of those investments.

The extent of the impact on the performance of the Fund and its investments will depend on future developments, including the duration and spread of the COVID-19 outbreak, related restrictions and advisories, and the effects on the financial markets and economy overall, all of which are highly uncertain and cannot be predicted.

Invesco V.I. American Franchise 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, 2020 through June 30, 2020.

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.

		ACTUAL		HYPOTHETICAL (5% annual return before expenses)		Annualized     Expense Ratio
	Beginning     Account Value     (01/01/20)	Ending     Account Value     (06/30/20)1	Expenses     Paid During     Period2	Ending     Account Value     (06/30/20)	Expenses     Paid During     Period2
Series I	$1,000.00	$1,116.00	$4.58	$1,020.54	$4.37	0.87%
Series II	1,000.00	1,114.70	5.89	1,019.29	5.62	1.12

¹  The actual ending account value is based on the actual total return of the Fund for the period January 1, 2020 through June 30, 2020, 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 182/366 to reflect the most recent fiscal half year.

Invesco V.I. American Franchise Fund

Approval of Investment Advisory and Sub-Advisory Contracts

meetings held on June 3, 2020, the Board of Trustees (the Board or the Trustees) of AIM Variable Insurance Funds (Invesco Variable Insurance Funds) as a whole, and the independent Trustees, who comprise over 75% of the Board, voting separately, approved the continuance of the Invesco V.I. American Franchise Fund’s (the Fund) Master Investment Advisory Agreement with Invesco Advisers, Inc. (Invesco Advisers and the investment advisory agreement) and the Master Intergroup Sub-Advisory Contract for Mutual Funds with Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Canada Ltd. and separate sub-advisory contracts with Invesco Capital Management LLC and Invesco Asset Management (India) Private Limited (collectively, the Affiliated Sub-Advisers and the sub-advisory contracts) for another year, effective July 1, 2020. After evaluating the factors discussed below, among others, the Board approved the renewal of the Fund’s investment advisory agreement and the sub-advisory contracts and determined that the compensation payable thereunder by the Fund to Invesco Advisers and by Invesco Advisers to the Affiliated Sub-Advisers is fair and reasonable.

The Board’s Evaluation Process

The Board’s Investments Committee has established Sub-Committees, which meet throughout the year to review the performance of funds advised by Invesco Advisers (the Invesco Funds). The Sub-Committees meet regularly with portfolio managers for their assigned Invesco Funds and other members of management to review detailed information about investment performance and portfolio attributes of these funds. The Board took into account evaluations and reports that it received from the Investments Committee and Sub-Committees, as well as the information provided to such committees and the Board throughout the year, in considering whether to approve each Invesco Fund’s investment advisory agreement and sub-advisory contracts.

As part of the contract renewal process, the Board reviews and considers information provided in response to detailed requests for information submitted to management by the independent Trustees with assistance from legal counsel to the independent Trustees. The Board receives comparative investment performance and fee data regarding the Invesco Funds prepared by Invesco Advisers and Broadridge Financial Solutions, Inc. (Broadridge), an independent mutual fund data provider, as well as information on the composition of the peer groups provided by Broadridge and its methodology for determining peer groups. The Board also receives an independent written evaluation from the Senior Officer, an officer of the Invesco Funds who reports directly to the independent Trustees. 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. In addition to meetings with Invesco Advisers and fund counsel throughout the year, the independent Trustees also

discuss the continuance of the investment advisory agreement and sub-advisory contracts in separate sessions with the Senior Officer and with independent legal counsel.

The discussion below is a summary of 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. The Trustees’ review and conclusions are based on the comprehensive consideration of all information presented to them during the course of the year and in prior years and are not the result of any single determinative factor. Moreover, one Trustee may have weighed a particular piece of information or factor differently than another Trustee. This information is current as of June 3, 2020.

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 nature, extent and quality of the advisory services provided to the Fund by Invesco Advisers under the Fund’s investment advisory agreement, and the credentials and experience of the officers and employees of Invesco Advisers who provide these services, including the Fund’s portfolio manager(s). The Board’s review included consideration of Invesco Advisers’ investment process oversight and structure, credit analysis, investment risk management and research capabilities. The Board also considered non-advisory services that Invesco Advisers and its affiliates provide to the Invesco Funds, such as various back office support functions, third party oversight, internal audit, valuation, portfolio trading and legal and compliance. The Board also received and reviewed information about Invesco Advisers’ role as administrator of the Invesco Funds’ liquidity risk management program. The Board reviewed and considered the benefits to shareholders of investing in a Fund that is part of the Invesco family of funds under the umbrella of Invesco Ltd., Invesco Advisers’ parent company, and noted Invesco Ltd.’s depth and experience in conducting an investment management business, as well as its commitment of financial and other resources to such business. The Board also reviewed and considered information regarding the benefits to the Fund resulting from Invesco Ltd.’s acquisition of OppenheimerFunds, Inc. and its subsidiaries (the Transaction) and the resources that Invesco Advisers has committed to managing the Invesco family of funds following the Transaction. The Board concluded that the nature, extent and quality of the services provided to the Fund by Invesco Advisers are appropriate and satisfactory.

The Board reviewed the services that may be 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 the Affiliated Sub-Advisers’ expertise with respect to certain asset classes and that the Affiliated Sub-Advisers have offices and personnel that are located in financial centers around the world.

As a result, the Board noted that the Affiliated Sub-Advisers can provide research and investment analysis on the markets and economies of various countries in which the Fund may invest, make recommendations regarding securities and assist with security trades. The Board concluded that the sub-advisory contracts may 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 that may be provided by the Affiliated Sub-Advisers are appropriate and satisfactory.

B. Fund Investment Performance

The Board considered Fund investment performance as a relevant factor in considering whether to approve the investment advisory agreement. The Board did not view Fund investment 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 investment performance over multiple time periods ending December 31, 2019 to the performance of funds in the Broadridge performance universe and against the Russell 1000^® Growth Index. The Board noted that performance of Series I shares of the Fund was in the first quintile of its performance universe for the one year period, the fourth quintile for the three year period, and the fifth quintile for the five year period (the first quintile being the best performing funds and the fifth quintile being the worst performing funds). The Board noted that performance of Series I shares of the Fund was reasonably comparable to the performance of the Index for the one year period and below the performance of the Index for the three and five year periods. The Board noted that the Fund’s underweight and overweight exposures to certain sectors detracted from Fund performance. The Board recognized that the performance data reflects a snapshot in time as of a particular date and that selecting a different performance period could produce different results. The Board also reviewed more recent Fund performance as well as other performance metrics and this review did not change their conclusions.

C. Advisory and Sub-Advisory Fees and Fund Expenses

The Board compared the Fund’s contractual management fee rate to the contractual management fee rates of funds in the Fund’s Broadridge expense group. The Board noted that the contractual management fee rate for Series I shares of the Fund was reasonably comparable to the median contractual management fee rate of funds in its expense group. The Board noted that the term “contractual management fee” for funds in the expense group may include both advisory and certain non-portfolio management administrative services fees, but that Broadridge does not provide information on a fund by fund basis as to what is included. The Board also reviewed the methodology used by Broadridge in providing expense group information, which includes using each fund’s contractual management fee schedule (including any applicable breakpoints) as reported in the most recent prospectus or statement of additional information for each fund in the expense group. The

Invesco V.I. American Franchise Fund

Board also considered comparative information regarding the Fund’s total expense ratio and its various components. The Board noted that the Fund’s actual and contractual management fees were in the fourth quintile of its expense group and discussed with management reasons for such relative actual and contractual management fees.

The Board noted that Invesco Advisers has contractually agreed to waive fees and/or limit expenses of the Fund for the term disclosed in the Fund’s registration statement 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 Invesco Advisers and the Affiliated Sub-Advisers do not manage other similarly managed mutual funds or client accounts.

The Board also considered the services that may be provided by the Affiliated Sub-Advisers pursuant to the sub-advisory contracts, as well as the fees payable by Invesco Advisers to the Affiliated Sub-Advisers pursuant to the sub-advisory contracts.

D. Economies of Scale and Breakpoints

The Board considered the extent to which there may be economies of scale in the provision of advisory services to the Fund. The Board also considered that the Fund benefits from economies of scale through contractual breakpoints in the Fund’s advisory fee schedule, which generally operate to reduce the Fund’s expense ratio as it grows in size. The Board 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. The Board noted that the Fund may also benefit from economies of scale through initial fee setting, fee waivers and expense reimbursements. The Board also considered Invesco’s reinvestment in its business, including investments in business infrastructure, technology and cybersecurity.

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 Invesco Funds and the profitability of Invesco Advisers and its affiliates in providing these services in the aggregate and on an individual Fund-by-Fund basis. The Board considered the methodology used for calculating profitability and noted the periodic review and enhancement of such methodology. The Board noted that Invesco Advisers continues to operate at a net profit from services Invesco Advisers and its affiliates provide to the Invesco Funds in the aggregate and to certain Funds on an individual fund level. The Board did not deem the level of profits realized by Invesco Advisers and its affiliates from providing such services to be excessive given the nature, extent and quality of the services provided. The Board received information from Invesco Advisers demonstrating that Invesco Advisers and the Affiliated Sub-Advisers are financially sound and have the resources necessary to perform their obligations under the investment advisory agreement and sub-advisory contracts.

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 providing administrative, transfer agency and distribution services to the Fund. The Board considered comparative information regarding

fees charged for these services, including information provided by Broadridge and other independent sources. 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; and that the services are required for the operation of the Fund.

The Board considered the benefits realized by Invesco Advisers and the Affiliated Sub-Advisers as a result of portfolio brokerage transactions executed through “soft dollar” arrangements. The Board noted that soft dollar arrangements may result in the Fund bearing costs to purchase research that may be used by Invesco Advisers or the Affiliated Sub-Advisers with other clients and may reduce Invesco Advisers’ or the Affiliated Sub-Advisers’ expenses. The Board also considered that it receives periodic reports from Invesco representing that these arrangements are consistent with regulatory requirements. The Board did not deem the soft dollar arrangements to be inappropriate.

The Board considered that the Fund’s uninvested cash and cash collateral from any securities lending arrangements may be invested in registered money market funds or, with regard to securities lending cash collateral, unregistered funds that comply with Rule 2a-7 (collectively referred to as “affiliated money market funds”) advised by Invesco Advisers pursuant to procedures approved by the Board. The Board considered information regarding the returns of the affiliated money market funds relative to comparable overnight investments, as well as the costs to the Fund of such investments. 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 with respect to certain investments in the affiliated money market 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 amount of advisory fees received by Invesco Advisers from the Fund’s investment of cash collateral from any securities lending arrangements in the affiliated money market funds is fair and reasonable.

The Board also considered that an affiliated broker may receive commissions for executing certain trades for the Fund. Invesco Advisers and the Affiliated Sub-Advisers may use the affiliated broker to, among other things, control order routing and minimize information leakage, and the Board was advised that such trades are executed in compliance with rules under the federal securities laws and consistent with best execution obligations.

Invesco V.I. American Franchise Fund

	Semiannual Report to Shareholders	June 30, 2020
	Invesco V.I. American Value Fund

Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, the insurance company that offers your variable annuity or variable life insurance contract may no longer send you paper copies of the Fund’s shareholder reports by mail, unless you specifically request paper copies of the reports from the insurance company or your financial intermediary. Instead of delivering paper copies of the report, the insurance company may choose to make the reports available on a website, and will notify you by mail each time a report is posted and provide you with a website link to access the report. Instructions for requesting paper copies will be provided by your insurance company.

If the insurance company offers electronic delivery, you may elect to receive shareholder reports and other communications about the Fund electronically by following the instructions provided by the insurance company or by contacting your financial intermediary. If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action.

You may elect to receive all future reports in paper free of charge from the insurance company. You can inform the insurance company or your financial intermediary that you wish to continue receiving paper copies of your shareholder reports by following the instructions provided by the insurance company or by contacting your financial intermediary. Your election to receive reports in paper will apply to all portfolio companies available under your contract with the insurance company.

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) as an exhibit to its reports on Form N-PORT. The Fund’s Form N-PORT filings are available on the SEC website, 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-PORT, 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 most recent 12-month period ended June 30 is available at invesco.com/proxysearch. The information is also available on the SEC website, sec.gov.

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

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.

NOT FDIC INSURED  |  MAY LOSE VALUE  |  NO BANK GUARANTEE

Invesco Distributors, Inc. VK-VIAMVA-SAR-1                                 

Fund Performance

Performance summary

Fund vs. Indexes

Cumulative total returns, 12/31/19 to 6/30/20, excluding variable product issuer charges. If variable product issuer charges were included, returns would be lower.

Series I Shares	-19.97	%
Series II Shares	-20.08
S&P 500 Indexq (Broad Market Index)	-3.08
Russell Midcap Value Indexq (Style-Specific Index)	-18.09
Lipper VUF Mid Cap Value Funds Index∎ (Peer Group Index)	-19.57
Source(s): qRIMES Technologies Corp.; ∎Lipper Inc.

The S&P 500^® Index is an unmanaged index considered representative of the US 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) described here, and consequently, the performance of the Fund may deviate significantly from the performance of the index(es).

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

Average Annual Total Returns
As of 6/30/20
Series I Shares
Inception (1/2/97)	8.16	%
10 Years	7.97
5 Years	-0.85
1 Year	-13.92
Series II Shares
Inception (5/5/03)	8.08	%
10 Years	7.74
5 Years	-1.10
1 Year	-14.11

Effective June 1, 2010, Class I and Class II shares of the predecessor fund, The Universal Institutional Funds, Inc. U.S. 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 (renamed Invesco V.I. American Value Fund on April 29, 2013). Returns shown above, prior to June 1, 2010, for Series I and Series II shares are those of the Class I shares and Class II shares of the predecessor fund. Share class returns will differ from the predecessor fund because of different expenses.

    The performance data quoted represent past performance and cannot guarantee future results; current performance may be lower or higher. Please 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. Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares. Investment return and principal value will fluctuate so that you may have a gain or loss when you sell shares.

    Invesco V.I. American 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 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.

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

Invesco V.I. American Value Fund

Liquidity Risk Management Program

The Securities and Exchange Commission has adopted Rule 22e-4 under the Investment Company Act of 1940 (the “Liquidity Rule”) in order to promote effective liquidity risk management throughout the open-end investment company industry, thereby reducing the risk that funds will be unable to meet their redemption obligations and mitigating dilution of the interests of fund shareholders. The Fund has adopted and implemented a liquidity risk management program in accordance with the Liquidity Rule (the “Program”). The Program is reasonably designed to assess and manage the Fund’s liquidity risk, which is the risk that the Fund could not meet redemption requests without significant dilution of remaining investors’ interests in the Fund. The Board of Trustees of the Fund (the “Board”) has appointed Invesco Advisers, Inc. (“Invesco”), the Fund’s investment adviser, as the Program’s administrator, and Invesco has delegated oversight of the Program to the Liquidity Risk Management Committee (the “Committee”), which is composed of senior representatives from relevant business groups at Invesco.

As required by the Liquidity Rule, the Program includes policies and procedures providing for an assessment, no less frequently than annually, of the Fund’s liquidity risk that takes into account, as relevant to the Fund’s liquidity risk: (1) the Fund’s investment strategy and liquidity of portfolio investments during both normal and reasonably foreseeable stressed conditions; (2) short-term and long-term cash flow projections for the Fund during both normal and reasonably foreseeable stressed conditions; and (3) the Fund’s holdings of cash and cash equivalents and any borrowing arrangements. The Liquidity Rule also requires the classification of the Fund’s investments into categories that reflect the assessment of their relative liquidity under current market conditions. The Fund classifies its investments into one of four categories defined in the Liquidity Rule: “Highly Liquid,” “Moderately Liquid,” “Less Liquid” and “Illiquid.” Funds that are not invested primarily in “Highly Liquid Investments” that are assets (cash or investments that are reasonably expected to be convertible into cash within three business days without significantly changing the market value of the investment) are required to establish a “Highly Liquid Investment Minimum” (“HLIM”), which is the minimum percentage of net assets that must be invested in Highly Liquid Investments. Funds with HLIMs have procedures for addressing HLIM shortfalls, including reporting to the Board and the SEC (on a non-public basis) as required by the Program and the Liquidity Rule. In addition, the Fund may not acquire an investment if, immediately after the acquisition, over 15% of the Fund’s net assets would consist of “Illiquid Investments” that are assets (an investment that cannot reasonably be expected to be sold or disposed of in current market conditions in seven calendar days or less without the sale or disposition significantly changing the market value of the investment). The Liquidity Rule and the Program also require reporting to the Board and the SEC (on a non-public basis) if a Fund’s holdings of Illiquid Investments exceed 15% of the Fund’s assets.

At a meeting held on March 30-April 1, 2020, the Committee presented a report to the Board that addressed the operation of the Program and assessed the Program’s adequacy and effectiveness of implementation (the “Report”). The Report covered the period from December 1, 2018 through December 31, 2019 (the “Program Reporting Period”).

The Report stated, in relevant part, that during the Program Reporting Period:

∎ The Program, as adopted and implemented, remained reasonably designed to assess and manage the Fund’s liquidity risk and was operated effectively to achieve that goal;

∎ The Fund’s investment strategy remained appropriate for an open-end fund;

∎ The Fund was able to meet requests for redemption without significant dilution of remaining investors’ interests in the Fund;

∎ The Fund did not breach the 15% limit on Illiquid Investments; and

∎ The Fund primarily held Highly Liquid Investments and therefore has not adopted an HLIM.

Invesco V.I. American Value Fund

Schedule of Investments^(a)

June 30, 2020

(Unaudited)

	Shares		Value
Common Stocks & Other Equity Interests-97.70%
Aerospace & Defense-0.95%
Textron, Inc.		66,440	$	2,186,540
Agricultural & Farm Machinery-1.78%
AGCO Corp.		73,897		4,098,328
Apparel, Accessories & Luxury Goods-1.53%
Tapestry, Inc.(b)		265,798		3,529,797
Asset Management & Custody Banks-1.41%
Ares Management Corp., Class A		81,973		3,254,328
Automotive Retail-2.75%
Advance Auto Parts, Inc.		44,603		6,353,697
Broadcasting-0.86%
Nexstar Media Group, Inc., Class A		23,768		1,989,144
Building Products-4.45%
Johnson Controls International PLC		197,489		6,742,275
Owens Corning		63,132		3,520,240
				10,262,515
Communications Equipment-4.26%
Ciena Corp.(b)		140,947		7,633,690
Motorola Solutions, Inc.		15,727		2,203,824
				9,837,514
Consumer Finance-1.57%
Santander Consumer USA Holdings, Inc.(c)		196,707		3,621,376
Copper-2.07%
Freeport-McMoRan, Inc.(b)		413,483		4,783,998
Distributors-2.18%
LKQ Corp.(b)		191,653		5,021,309
Diversified Chemicals-2.25%
Eastman Chemical Co.		74,708		5,202,665
Electric Utilities-6.00%
Edison International		100,316		5,448,162
Evergy, Inc.		58,992		3,497,636
FirstEnergy Corp.		126,598		4,909,470
				13,855,268
Electronic Equipment & Instruments-2.47%
Keysight Technologies, Inc.(b)		56,676		5,711,807
Food Distributors-1.71%
Performance Food Group Co.(b)		135,552		3,949,985
Food Retail-3.91%
Casey’s General Stores, Inc.		17,302		2,586,995
Kroger Co. (The)		190,314		6,442,129
				9,029,124
Health Care Facilities-2.89%
Encompass Health Corp.		107,727		6,671,533

	Shares		Value
Health Care Services-1.51%
AMN Healthcare Services, Inc.(b)		76,989	$	3,482,982
Health Care Technology-1.26%
Cerner Corp.		42,436		2,908,988
Hotels, Resorts & Cruise Lines-2.35%
Wyndham Hotels & Resorts, Inc.		127,401		5,429,831
Industrial Machinery-1.79%
Kennametal, Inc.		144,156		4,138,719
Industrial REITs-2.14%
First Industrial Realty Trust, Inc.		128,518		4,940,232
Insurance Brokers-6.80%
Arthur J. Gallagher & Co.		80,411		7,839,268
Willis Towers Watson PLC		39,928		7,863,820
				15,703,088
Interactive Home Entertainment-1.61%
Take-Two Interactive Software, Inc.(b)		26,661		3,721,076
Investment Banking & Brokerage-1.85%
Stifel Financial Corp.		90,064		4,271,736
IT Consulting & Other Services-2.74%
Science Applications International Corp.		81,576		6,336,824
Life & Health Insurance-1.59%
Athene Holding Ltd., Class A(b)		117,427		3,662,548
Managed Health Care-3.44%
Centene Corp.(b)		124,922		7,938,793
Marine-1.98%
Kirby Corp.(b)		85,179		4,562,187
Office REITs-2.07%
Hudson Pacific Properties, Inc.		189,710		4,773,104
Oil & Gas Exploration & Production-3.31%
Noble Energy, Inc.		408,219		3,657,642
Parsley Energy, Inc., Class A		372,774		3,981,227
				7,638,869
Other Diversified Financial Services-2.33%
Voya Financial, Inc.		115,516		5,388,821
Regional Banks-6.72%
KeyCorp		344,525		4,196,315
TCF Financial Corp.		140,213		4,125,066
Wintrust Financial Corp.		78,537		3,425,784
Zions Bancorporation N.A.		111,062		3,776,108
				15,523,273
Residential REITs-2.35%
American Homes 4 Rent, Class A		202,057		5,435,333
Semiconductor Equipment-2.66%
KLA Corp.		31,610		6,147,513

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

Invesco V.I. American Value Fund

	Shares		Value
Specialized REITs-1.83%
Life Storage, Inc.		44,373	$	4,213,216
Specialty Chemicals-2.25%
W.R. Grace & Co.		102,182		5,191,867
Trucking-2.08%
Knight-Swift Transportation Holdings, Inc.		115,328		4,810,331
Total Common Stocks & Other Equity Interests (Cost $205,361,793)				225,578,259
Money Market Funds-2.34%
Invesco Government & Agency Portfolio, Institutional Class, 0.09%(d)(e)		1,810,483		1,810,483
Invesco Liquid Assets Portfolio, Institutional Class, 0.39%(d)(e)		1,523,792		1,524,859
Invesco Treasury Portfolio, Institutional Class, 0.08%(d)(e)		2,069,124		2,069,124
Total Money Market Funds (Cost $5,402,581)				5,404,466
TOTAL INVESTMENTS IN SECURITIES (excluding investments purchased with cash collateral from securities on loan)-100.04% (Cost $210,764,374)				230,982,725

	Shares		Value
Investments Purchased with Cash Collateral from Securities on Loan
Money Market Funds-1.47%
Invesco Private Government Fund, 0.05%(d)(e)(f)		2,546,159	$	2,546,159
Invesco Private Prime Fund, 0.11%(d)(e)(f)		848,550		848,720
Total Investments Purchased with Cash Collateral from Securities on Loan (Cost $3,394,730)				3,394,879
TOTAL INVESTMENTS IN SECURITIES-101.51% (Cost $214,159,104)				234,377,604
OTHER ASSETS LESS LIABILITIES-(1.51)%				(3,493,122	)
NET ASSETS-100.00%			$	230,884,482

Investment Abbreviations:

REIT - Real Estate Investment Trust

Notes to Schedule of Investments:

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

^(b)  Non-income producing security.

^(c)  All or a portion of this security was out on loan at June 30, 2020.

^(d)  Affiliated issuer. The issuer and/or the Fund is a wholly-owned subsidiary of Invesco Ltd., or is affiliated by having an investment adviser that is under common control of Invesco Ltd. The table below shows the Fund’s transactions in, and earnings from, its investments in affiliates for the six months ended June 30, 2020.

	Value December 31, 2019		Purchases at Cost		Proceeds from Sales			Change in Unrealized Appreciation		Realized Gain		Value June 30, 2020		Dividend Income
Investments in Affiliated Money Market Funds:
Invesco Government & Agency Portfolio, Institutional Class		$2,646,182		$ 8,972,030		$ (9,807,729	)		$       -		$    -		$1,810,483		$ 7,444
Invesco Liquid Assets Portfolio, Institutional Class		2,085,220		6,442,901		(7,005,520	)		1,920		338		1,524,859		8,491
Invesco Treasury Portfolio, Institutional Class		3,024,207		10,253,748		(11,208,831	)		-		-		2,069,124		8,040
Investments Purchased with Cash Collateral from Securities on Loan:
Invesco Private Government Fund		-		9,396,921		(6,850,762	)		-		-		2,546,159		85
Invesco Private Prime Fund		-		1,087,795		(239,223	)		148		-		848,720		42
Total		$7,755,609		$36,153,395		$(35,112,065	)		$2,068		$338		$8,799,345		$24,102

^(e)  The rate shown is the 7-day SEC standardized yield as of June 30, 2020.

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

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

Invesco V.I. American Value Fund

Portfolio Composition

By sector, based on Net Assets

as of June 30, 2020

Financials	22.27%
Industrials	13.02
Information Technology	12.14
Health Care	9.10
Consumer Discretionary	8.81
Real Estate	8.39
Materials	6.57
Utilities	6.00
Consumer Staples	5.62
Energy	3.31
Communication Services	2.47
Money Market Funds Plus Other Assets Less Liabilities	2.30

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

Invesco V.I. American Value Fund

Statement of Assets and Liabilities

June 30, 2020

(Unaudited)

Assets:
Investments in securities, at value (Cost $ 205,361,793)*	$	225,578,259
Investments in affiliated money market funds, at value (Cost $ 8,797,311)		8,799,345
Receivable for:
Investments sold		1,403,721
Fund shares sold		125,069
Dividends		222,545
Investment for trustee deferred compensation and retirement plans		56,507
Total assets		236,185,446
Liabilities:
Payable for:
Investments purchased		1,383,168
Fund shares reacquired		314,532
Collateral upon return of securities loaned		3,394,730
Accrued fees to affiliates		123,868
Accrued trustees’ and officers’ fees and benefits		2,039
Accrued other operating expenses		18,185
Trustee deferred compensation and retirement plans		64,442
Total liabilities		5,300,964
Net assets applicable to shares outstanding	$	230,884,482
Net assets consist of:
Shares of beneficial interest	$	236,839,103
Distributable earnings (loss)		(5,954,621	)
	$	230,884,482
Net Assets:
Series I	$	65,826,506
Series II	$	165,057,976
Shares outstanding, no par value, with an unlimited number of shares authorized:
Series I		5,167,202
Series II		13,121,709
Series I:
Net asset value per share	$	12.74
Series II:
Net asset value per share	$	12.58

* At June 30, 2020, securities with an aggregate value of $3,324,160 were on loan to brokers.

Statement of Operations

For the six months ended June 30, 2020

(Unaudited)

Investment income:
Dividends	$	2,133,207
Dividends from affiliated money market funds (includes securities lending income of $127)		24,102
Total investment income		2,157,309
Expenses:
Advisory fees		885,072
Administrative services fees		207,302
Distribution fees - Series II		222,631
Transfer agent fees		12,276
Trustees’ and officers’ fees and benefits		8,868
Professional services fees		12,391
Other		(2,112	)
Total expenses		1,346,428
Less: Fees waived		(3,429	)
Net expenses		1,342,999
Net investment income		814,310
Realized and unrealized gain (loss) from:
Net realized gain (loss) from investment securities		(21,119,402	)
Change in net unrealized appreciation (depreciation) of investment securities		(42,706,347	)
Net realized and unrealized gain (loss)		(63,825,749	)
Net increase (decrease) in net assets resulting from operations	$	(63,011,439	)

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

Invesco V.I. American Value Fund

Statement of Changes in Net Assets

For the six months ended June 30, 2020 and the year ended December 31, 2019

(Unaudited)

	June 30, 2020			December 31, 2019
Operations:
Net investment income	$	814,310		$	1,733,036
Net realized gain (loss)		(21,119,402	)		(3,087,063	)
Change in net unrealized appreciation (depreciation)		(42,706,347	)		59,462,462
Net increase (decrease) in net assets resulting from operations		(63,011,439	)		58,108,435
Distributions to shareholders from distributable earnings:
Series I		–			(6,549,244	)
Series II		–			(16,801,199	)
Total distributions from distributable earnings		–			(23,350,443	)
Share transactions–net:
Series I		(2,313,044	)		(4,634,059	)
Series II		(22,480,488	)		42,039,405
Net increase (decrease) in net assets resulting from share transactions		(24,793,532	)		37,405,346
Net increase (decrease) in net assets		(87,804,971	)		72,163,338
Net assets:
Beginning of period		318,689,453			246,526,115
End of period	$	230,884,482		$	318,689,453

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

Invesco V.I. American Value Fund

Financial Highlights

(Unaudited)

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

	Net asset value, beginning of period			Net investment income(a)			Net gains (losses) on securities (both realized and unrealized)				Total from investment operations				Dividends from net investment income				Distributions from net realized gains				Total distributions				Net asset value, end of period			Total return (b)			Net assets, end of period (000’s omitted)			Ratio of expenses to average net assets with fee waivers and/or expenses absorbed			Ratio of expenses to average net assets without fee waivers and/or expenses absorbed			Ratio of net investment income to average net assets			Portfolio turnover (c)
Series I
Six months ended 06/30/20		$	15.92		$	0.05		$	(3.23	)		$	(3.18	)		$	–			$	–			$	–			$	12.74		(19.97	)%		$	65,827		0.91	%(d)		0.91	%(d)		0.84	%(d)		19	%
Year ended 12/31/19			13.86			0.12			3.24				3.36				(0.11	)			(1.19	)			(1.30	)			15.92		25.03				84,799		0.92			0.92			0.78			68
Year ended 12/31/18			18.38			0.10			(1.87	)			(1.77	)			(0.09	)			(2.66	)			(2.75	)			13.86		(12.65	)			77,491		0.93			0.93			0.52			39
Year ended 12/31/17			17.06			0.08			1.59				1.67				(0.14	)			(0.21	)			(0.35	)			18.38		9.96				104,510		0.94			0.94			0.48			56
Year ended 12/31/16			15.69			0.13			2.23				2.36				(0.06	)			(0.93	)			(0.99	)			17.06		15.49				116,762		0.97			0.97			0.84			50
Year ended 12/31/15			19.92			0.06			(1.82	)			(1.76	)			(0.06	)			(2.41	)			(2.47	)			15.69		(9.13	)			125,686		0.99			0.99			0.33			26
Series II
Six months ended 06/30/20			15.74			0.04			(3.20	)			(3.16	)			–				–				–				12.58		(20.08	)			165,058		1.16	(d)		1.16	(d)		0.59	(d)		19
Year ended 12/31/19			13.71			0.08			3.21				3.29				(0.07	)			(1.19	)			(1.26	)			15.74		24.71				233,890		1.17			1.17			0.53			68
Year ended 12/31/18			18.19			0.05			(1.83	)			(1.78	)			(0.04	)			(2.66	)			(2.70	)			13.71		(12.82	)			169,036		1.18			1.18			0.27			39
Year ended 12/31/17			16.90			0.04			1.56				1.60				(0.10	)			(0.21	)			(0.31	)			18.19		9.62				294,598		1.19			1.19			0.23			56
Year ended 12/31/16			15.55			0.09			2.21				2.30				(0.02	)			(0.93	)			(0.95	)			16.90		15.22				284,043		1.22			1.22			0.59			50
Year ended 12/31/15			19.75			0.02			(1.80	)			(1.78	)			(0.01	)			(2.41	)			(2.42	)			15.55		(9.36	)			210,354		1.24			1.24			0.08			26

^(a)  Calculated using average shares outstanding.

^(b)  Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. 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 $68,359 and $178,845 for Series I and Series II shares, respectively.

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

Invesco V.I. American Value Fund

Notes to Financial Statements

June 30, 2020

(Unaudited)

NOTE 1–Significant Accounting Policies

Invesco V.I. American 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. Information presented in these financial statements pertains only to the Fund. Matters affecting the Fund or each class will be voted on exclusively by the shareholders of the Fund or each class. 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 above-average total return over a market cycle of three to five years by investing in common stocks and other equity securities.

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

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

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

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

A security listed or traded on an exchange (except convertible securities) is valued at its last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded, or lacking any sales or official closing price on a particular day, the security may be valued at the closing bid price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued by an independent pricing service they may be considered fair valued. Futures contracts are valued at the final settlement price set by an exchange on which they are principally traded. Listed options are valued at the mean between the last bid and asked 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 asked prices. For purposes of determining net asset value (“NAV”) per share, futures and option contracts generally are valued 15 minutes after the close of the customary trading session of the New York Stock Exchange (“NYSE”).

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

Debt obligations (including convertible securities) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. Pricing services generally value debt obligations assuming orderly transactions of institutional round lot size, but a fund may hold or transact in the same securities in smaller, odd lot sizes. Odd lots often trade at lower prices than institutional round lots. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.

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

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

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

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

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

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

Invesco V.I. American Value Fund

securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the net realized and unrealized gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and the Statement of Changes in Net Assets, or the net investment income per share and the ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.

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

    The Fund recharacterizes distributions received from REIT investments based on information provided by the REIT into the following categories: ordinary income, long-term and short-term capital gains, and return of capital. If information is not available on a timely basis from the REIT, the recharacterization will be based on available information which may include the previous year’s allocation. If new or additional information becomes available from the REIT at a later date, a recharacterization will be made in the following year. The Fund records as dividend income the amount recharacterized as ordinary income and as realized gain the amount recharacterized as capital gain in the Statement of Operations, and the amount recharacterized as return of capital as a reduction of the cost of the related investment. These recharacterizations are reflected in the accompanying financial statements.

C. Country Determination - For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues 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 net investment income and net realized capital gain, if any, are generally declared and paid to separate accounts of participating insurance companies annually and recorded on the ex-dividend date.

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

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

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

F. Expenses - Fees provided for under the Rule 12b-1 plan of a particular class of the Fund and which are directly attributable to that class are charged to the operations of such class. All other expenses are allocated among the classes based on relative net assets.

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

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

I. 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. The Fund bears the risk of loss with respect to the investment of collateral. It is the Fund’s policy to obtain additional collateral from or return excess collateral to the borrower by the end of the next business day, following the valuation date of the securities loaned. Therefore, the value of the collateral held may be temporarily less than the value of the securities on loan. When loaning securities, the Fund retains certain benefits of owning the securities, including the economic equivalent of dividends or interest generated by the security. Lending securities entails a risk of loss to the Fund if, and to the extent that, the market value of the securities loaned were to increase and the borrower did not increase the collateral accordingly, and the borrower failed to return the securities. The securities loaned are subject to termination at the option of the borrower or the Fund. Upon termination, the borrower will return to the Fund the securities loaned and the Fund will return the collateral. Upon the failure of the borrower to return the securities, collateral may be liquidated and the securities may be purchased on the open market to replace the loaned securities. The Fund could experience delays and costs in gaining access to the collateral and the securities may lose value during the delay which could result in potential losses to the Fund. Some of these losses may be indemnified by the lending agent. The Fund bears the risk of any deficiency in the amount of the collateral available for return to the borrower due to any loss on the collateral invested. Dividends received on cash collateral investments for securities lending transactions, which are net of compensation to counterparties, are included in Dividends from affiliated money market funds on the Statement of Operations. The aggregate value of securities out on loan, if any, is shown as a footnote on the Statement of Assets and Liabilities.

NOTE 2–Advisory Fees and Other Fees Paid to Affiliates

The Trust has entered into a master investment advisory agreement with Invesco Advisers, Inc. (the “Adviser” or “Invesco”). Under the terms of the investment advisory agreement, the Fund accrues daily and pays monthly an 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		0.720	%
Over $1 billion		0.650	%

For the six months ended June 30, 2020, the effective advisory fee rate incurred by the Fund was 0.72%.

Under the terms of a master sub-advisory agreement between the Adviser and each of Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Canada Ltd. and separate sub-advisory agreements with Invesco Capital Management LLC and Invesco Asset Management (India) Private Limited (collectively, the “Affiliated Sub-Advisers”) the

Invesco V.I. American Value Fund

Adviser, not the Fund, will pay 40% of the fees paid to the Adviser to any such Affiliated Sub-Adviser(s) that provide(s) discretionary investment management services to the Fund based on the percentage of assets allocated to such Affiliated Sub-Adviser(s).

    The Adviser has contractually agreed, through at least June 30, 2021, 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 2.00% and Series II shares to 2.25% of average daily net assets (the “expense limits”). In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause the total annual fund operating expenses after fee waiver and/or expense reimbursement to exceed the numbers reflected above: (1) interest; (2) taxes; (3) dividend expense on short sales; (4) extraordinary or non-routine items, including litigation expenses; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Unless Invesco continues the fee waiver agreement, it will terminate on June 30, 2021. During its term, the fee waiver agreement cannot be terminated or amended to increase the expense limits or reduce the advisory fee waiver without approval of the Board of Trustees. The Adviser did not waive fees and/or reimburse expenses during the period under these expense limits.

    Further, the Adviser has contractually agreed, through at least June 30, 2022, 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, 2020, the Adviser waived advisory fees of $3,429.

    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 fees paid to insurance companies that have agreed to provide certain administrative services to the Fund. These administrative services provided by the insurance companies may include, among other things: maintenance of master accounts with the Fund; tracking, recording and transmitting net purchase and redemption orders for Fund shares; maintaining and preserving records related to the purchase, redemption and other account activity of variable product owners; distributing copies of Fund documents such as prospectuses, proxy materials and periodic reports, to variable product owners, and responding to inquiries from variable product owners about the Fund. Pursuant to such agreement, for the six months ended June 30, 2020, Invesco was paid $22,668 for accounting and fund administrative services and was reimbursed $184,633 for fees paid to insurance companies. Invesco has entered into a sub-administration agreement whereby State Street Bank and Trust Company (“SSB”) serves as fund accountant and provides certain administrative services to the Fund. Pursuant to a custody agreement with the Trust on behalf of the Fund, SSB also serves as the Fund’s custodian.

    The Trust has entered into a transfer agency and service agreement with Invesco Investment Services, Inc. (“IIS”) pursuant to which the Fund has agreed to pay IIS a fee for providing transfer agency and shareholder services to the Fund and reimburse IIS for certain expenses incurred by IIS in the course of providing such services. For the six months ended June 30, 2020, 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. The fees are accrued daily and paid monthly. 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, 2020, expenses incurred under the Plan are detailed in the Statement of Operations as Distribution fees.

    For the six months ended June 30, 2020, the Fund incurred $225 in brokerage commissions with Invesco Capital Markets, Inc., an affiliate of the Adviser and IDI, for portfolio transactions executed on behalf of the Fund.

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

NOTE 3–Additional Valuation Information

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

Level 1 -	Prices are determined using quoted prices in an active market for identical assets.
Level 2 -	Prices are determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk, yield curves, loss severities, default rates, discount rates, volatilities and others.
Level 3 -	Prices are determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. 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, 2020. The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

	Level 1		Level 2		Level 3		Total
Investments in Securities
Common Stocks & Other Equity Interests	$	225,578,259	$	–		$–	$	225,578,259
Money Market Funds		5,404,466		3,394,879		–		8,799,345
Total Investments	$	230,982,725	$	3,394,879		$–	$	234,377,604

NOTE 4–Trustees’ and Officers’ Fees and Benefits

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

Invesco V.I. American Value Fund

NOTE 5–Cash Balances

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

NOTE 6–Tax Information

The amount and character of income and gains to be distributed are determined in accordance with income tax regulations, which may differ from GAAP.

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

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

    The Fund did not have a capital loss carryforward as of December 31, 2019.

NOTE 7–Investment Transactions

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, 2020 was $46,526,549 and $68,011,634, respectively. Cost of investments, including any derivatives, on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end.

Unrealized Appreciation (Depreciation) of Investments on a Tax Basis
Aggregate unrealized appreciation of investments	$	31,800,842
Aggregate unrealized (depreciation) of investments		(21,719,485	)
Net unrealized appreciation of investments	$	10,081,357

    Cost of investments for tax purposes is $224,296,247.

NOTE 8–Share Information

		Summary of Share Activity
	Six months ended June 30, 2020(a)						Year ended December 31, 2019
	Shares			Amount			Shares			Amount
Sold:
Series I		244,835		$	2,992,968			160,277		$	2,482,112
Series II		1,147,091			12,416,051			7,353,290			115,776,084
Issued as reinvestment of dividends:
Series I		-			-			444,318			6,549,244
Series II		-			-			1,152,345			16,801,199
Reacquired:
Series I		(403,417	)		(5,306,012	)		(867,811	)		(13,665,415	)
Series II		(2,883,325	)		(34,896,539	)		(5,973,505	)		(90,537,878	)
Net increase (decrease) in share activity		(1,894,816	)	$	(24,793,532	)		2,268,914		$	37,405,346

^(a)  There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 60% of the outstanding shares of the Fund. The Fund and the Fund’s principal underwriter or 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 Fund has no knowledge as to whether all or any portion of the shares owned of record by these entities are also owned beneficially.

NOTE 9–Coronavirus (COVID-19) Pandemic

During the first quarter of 2020, the World Health Organization declared COVID-19 to be a public health emergency. COVID-19 has led to increased short-term market volatility and may have adverse long-term effects on U.S. and world economies and markets in general. COVID-19 may adversely impact the Fund’s ability to achieve its investment objective. Because of the uncertainties on valuation, the global economy and business operations, values reflected in these financial statements may materially differ from the value received upon actual sales of those investments.

    The extent of the impact on the performance of the Fund and its investments will depend on future developments, including the duration and spread of the COVID-19 outbreak, related restrictions and advisories, and the effects on the financial markets and economy overall, all of which are highly uncertain and cannot be predicted.

Invesco V.I. American 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, 2020 through June 30, 2020.

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.

	Beginning   Account Value     (01/01/20)	ACTUAL		HYPOTHETICAL (5% annual return before expenses)		Annualized     Expense Ratio
		Ending   Account Value     (06/30/20)1	Expenses     Paid During      Period2	Ending         Account Value     (06/30/20)	Expenses   Paid During     Period2
Series I	$1,000.00	$800.30	$4.07	$1,020.34	$4.57	0.91%
Series II	1,000.00	799.20	5.19	1,019.10	5.82	1.16

¹  The actual ending account value is based on the actual total return of the Fund for the period January 1, 2020 through June 30, 2020, 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 182/366 to reflect the most recent fiscal half year.

Invesco V.I. American Value Fund

Approval of Investment Advisory and Sub-Advisory Contracts

At meetings held on June 3, 2020, the Board of Trustees (the Board or the Trustees) of AIM Variable Insurance Funds (Invesco Variable Insurance Funds) as a whole, and the independent Trustees, who comprise over 75% of the Board, voting separately, approved the continuance of the Invesco V.I. American Value Fund’s (the Fund) Master Investment Advisory Agreement with Invesco Advisers, Inc. (Invesco Advisers and the investment advisory agreement) and the Master Intergroup Sub-Advisory Contract for Mutual Funds with Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Canada Ltd. and separate sub-advisory contracts with Invesco Capital Management LLC and Invesco Asset Management (India) Private Limited (collectively, the Affiliated Sub-Advisers and the sub-advisory contracts) for another year, effective July 1, 2020. After evaluating the factors discussed below, among others, the Board approved the renewal of the Fund’s investment advisory agreement and the sub-advisory contracts and determined that the compensation payable thereunder by the Fund to Invesco Advisers and by Invesco Advisers to the Affiliated Sub-Advisers is fair and reasonable.

The Board’s Evaluation Process

The Board’s Investments Committee has established Sub-Committees, which meet throughout the year to review the performance of funds advised by Invesco Advisers (the Invesco Funds). The Sub-Committees meet regularly with portfolio managers for their assigned Invesco Funds and other members of management to review detailed information about investment performance and portfolio attributes of these funds. The Board took into account evaluations and reports that it received from the Investments Committee and Sub-Committees, as well as the information provided to such committees and the Board throughout the year, in considering whether to approve each Invesco Fund’s investment advisory agreement and sub-advisory contracts.

As part of the contract renewal process, the Board reviews and considers information provided in response to detailed requests for information submitted to management by the independent Trustees with assistance from legal counsel to the independent Trustees. The Board receives comparative investment performance and fee data regarding the Invesco Funds prepared by Invesco Advisers and Broadridge Financial Solutions, Inc. (Broadridge), an independent mutual fund data provider, as well as information on the composition of the peer groups provided by Broadridge and its methodology for determining peer groups. The Board also receives an independent written evaluation from the Senior Officer, an officer of the Invesco Funds who reports directly to the independent Trustees. 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. In addition to meetings with Invesco Advisers and fund counsel throughout the year, the independent Trustees also

discuss the continuance of the investment advisory agreement and sub-advisory contracts in separate sessions with the Senior Officer and with independent legal counsel.

The discussion below is a summary of 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. The Trustees’ review and conclusions are based on the comprehensive consideration of all information presented to them during the course of the year and in prior years and are not the result of any single determinative factor. Moreover, one Trustee may have weighed a particular piece of information or factor differently than another Trustee. This information is current as of June 3, 2020.

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 nature, extent and quality of the advisory services provided to the Fund by Invesco Advisers under the Fund’s investment advisory agreement, and the credentials and experience of the officers and employees of Invesco Advisers who provide these services, including the Fund’s portfolio manager(s). The Board’s review included consideration of Invesco Advisers’ investment process oversight and structure, credit analysis, investment risk management and research capabilities. The Board also considered non-advisory services that Invesco Advisers and its affiliates provide to the Invesco Funds, such as various back office support functions, third party oversight, internal audit, valuation, portfolio trading and legal and compliance. The Board also received and reviewed information about Invesco Advisers’ role as administrator of the Invesco Funds’ liquidity risk management program. The Board reviewed and considered the benefits to shareholders of investing in a Fund that is part of the Invesco family of funds under the umbrella of Invesco Ltd., Invesco Advisers’ parent company, and noted Invesco Ltd.’s depth and experience in conducting an investment management business, as well as its commitment of financial and other resources to such business. The Board also reviewed and considered information regarding the benefits to the Fund resulting from Invesco Ltd.’s acquisition of OppenheimerFunds, Inc. and its subsidiaries (the Transaction) and the resources that Invesco Advisers has committed to managing the Invesco family of funds following the Transaction. The Board concluded that the nature, extent and quality of the services provided to the Fund by Invesco Advisers are appropriate and satisfactory.

The Board reviewed the services that may be 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 the Affiliated Sub-Advisers’ expertise with respect to certain asset classes and that the Affiliated Sub-Advisers have offices and personnel that are located in financial centers around the world.

As a result, the Board noted that the Affiliated Sub-Advisers can provide research and investment analysis on the markets and economies of various countries in which the Fund may invest, make recommendations regarding securities and assist with security trades. The Board concluded that the sub-advisory contracts may 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 that may be provided by the Affiliated Sub-Advisers are appropriate and satisfactory.

B. Fund Investment Performance

The Board considered Fund investment performance as a relevant factor in considering whether to approve the investment advisory agreement. The Board did not view Fund investment 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 investment performance over multiple time periods ending December 31, 2019 to the performance of funds in the Broadridge performance universe and against the Russell Midcap^® Value Index. The Board noted that performance of Series I shares of the Fund was in the fourth quintile of its performance universe for the one and three year periods and the fifth quintile for the five year period (the first quintile being the best performing funds and the fifth quintile being the worst performing funds). The Board noted that 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 Fund’s valuation bias and tilt toward cyclical and interest rate sensitive names, underweight exposure to certain defensive sectors and stock selection in multiple sectors detracted from Fund performance. The Board recognized that the performance data reflects a snapshot in time as of a particular date and that selecting a different performance period could produce different results. The Board also reviewed more recent Fund performance as well as other performance metrics and this review did not change their conclusions.

C. Advisory and Sub-Advisory Fees and Fund Expenses

The Board compared the Fund’s contractual management fee rate to the contractual management fee rates of funds in the Fund’s Broadridge expense group. The Board noted that the contractual management fee rate for Series I shares of the Fund was below the median contractual management fee rate of funds in its expense group. The Board noted that the term “contractual management fee” for funds in the expense group may include both advisory and certain non-portfolio management administrative services fees, but that Broadridge does not provide information on a fund by fund basis as to what is included. The Board also reviewed the methodology used by Broadridge in providing expense group information, which includes using each fund’s contractual management fee schedule (including any applicable breakpoints) as reported in the most recent prospectus or statement of additional information for each fund in the expense group. The Board also considered comparative information

Invesco V.I. American Value Fund

regarding the Fund’s total expense ratio and its various components.

The Board noted that Invesco Advisers has contractually agreed to waive fees and/or limit expenses of the Fund for the term disclosed in the Fund’s registration statement 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 Invesco Advisers and the Affiliated Sub-Advisers do not manage other similarly managed mutual funds or client accounts.

The Board also considered the services that may be provided by the Affiliated Sub-Advisers pursuant to the sub-advisory contracts, as well as the fees payable by Invesco Advisers to the Affiliated Sub-Advisers pursuant to the sub-advisory contracts.

D. Economies of Scale and Breakpoints

The Board considered the extent to which there may be economies of scale in the provision of advisory services to the Fund. The Board also considered that the Fund may benefit from economies of scale through contractual breakpoints in the Fund’s advisory fee schedule, which generally operate to reduce the Fund’s expense ratio as it grows in size. The Board 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. The Board noted that the Fund may also benefit from economies of scale through initial fee setting, fee waivers and expense reimbursements. The Board also considered Invesco’s reinvestment in its business, including investments in business infrastructure, technology and cybersecurity.

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 Invesco Funds and the profitability of Invesco Advisers and its affiliates in providing these services in the aggregate and on an individual Fund-by-Fund basis. The Board considered the methodology used for calculating profitability and noted the periodic review and enhancement of such methodology. The Board noted that Invesco Advisers continues to operate at a net profit from services Invesco Advisers and its affiliates provide to the Invesco Funds in the aggregate and to certain Funds on an individual fund level. The Board did not deem the level of profits realized by Invesco Advisers and its affiliates from providing such services to be excessive given the nature, extent and quality of the services provided. The Board received information from Invesco Advisers demonstrating that Invesco Advisers and the Affiliated Sub-Advisers are financially sound and have the resources necessary to perform their obligations under the investment advisory agreement and sub-advisory contracts.

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 providing administrative, transfer agency and distribution services to the Fund. The Board considered comparative information regarding fees charged for these services, including information provided by Broadridge and other independent sources. 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; and that the services are required for the operation of the Fund.

The Board considered the benefits realized by Invesco Advisers and the Affiliated Sub-Advisers as a result of portfolio brokerage transactions executed through “soft dollar” arrangements. The Board noted that soft dollar arrangements may result in the Fund bearing costs to purchase research that may be used by Invesco Advisers or the Affiliated Sub-Advisers with other clients and may reduce Invesco Advisers’ or the Affiliated Sub-Advisers’ expenses. The Board also considered that it receives periodic reports from Invesco representing that these arrangements are consistent with regulatory requirements. The Board did not deem the soft dollar arrangements to be inappropriate.

The Board considered that the Fund’s uninvested cash and cash collateral from any securities lending arrangements may be invested in registered money market funds or, with regard to securities lending cash collateral, unregistered funds that comply with Rule 2a-7 (collectively referred to as “affiliated money market funds”) advised by Invesco Advisers pursuant to procedures approved by the Board. The Board considered information regarding the returns of the affiliated money market funds relative to comparable overnight investments, as well as the costs to the Fund of such investments. 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 with respect to certain investments in the affiliated money market 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 amount of advisory fees received by Invesco Advisers from the Fund’s investment of cash collateral from any securities lending arrangements in the affiliated money market funds is fair and reasonable.

The Board also considered that an affiliated broker may receive commissions for executing certain trades for the Fund. Invesco Advisers and the Affiliated Sub-Advisers may use the affiliated broker to, among other things, control order routing and minimize information leakage, and the Board was advised that such trades are executed in compliance with rules under the federal securities laws and consistent with best execution obligations.

Invesco V.I. American Value Fund

	Semiannual Report to Shareholders	June 30, 2020
	Invesco V.I. Balanced-Risk Allocation Fund

Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, the insurance company that offers your variable annuity or variable life insurance contract may no longer send you paper copies of the Fund’s shareholder reports by mail, unless you specifically request paper copies of the reports from the insurance company or your financial intermediary. Instead of delivering paper copies of the report, the insurance company may choose to make the reports available on a website, and will notify you by mail each time a report is posted and provide you with a website link to access the report. Instructions for requesting paper copies will be provided by your insurance company.

If the insurance company offers electronic delivery, you may elect to receive shareholder reports and other communications about the Fund electronically by following the instructions provided by the insurance company or by contacting your financial intermediary. If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action.

You may elect to receive all future reports in paper free of charge from the insurance company. You can inform the insurance company or your financial intermediary that you wish to continue receiving paper copies of your shareholder reports by following the instructions provided by the insurance company or by contacting your financial intermediary. Your election to receive reports in paper will apply to all portfolio companies available under your contract with the insurance company.

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) as an exhibit to its reports on Form N-PORT. The Fund’s Form N-PORT filings are available on the SEC website, 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-PORT, 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 most recent 12-month period ended June 30 is available at invesco.com/proxysearch. The information is also available on the SEC website, sec.gov.

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

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.

NOT FDIC INSURED  |  MAY LOSE VALUE  |  NO BANK GUARANTEE

Invesco Distributors, Inc. VIIBRA-SAR-1                                 

Fund Performance

Performance summary

Fund vs. Indexes

Cumulative total returns, 12/31/19 to 6/30/20, excluding variable product issuer charges. If variable product issuer charges were included, returns would be lower.

Series I Shares	-4.12	%
Series II Shares	-4.19
MSCI World Indexq (Broad Market Index)	-5.77
Custom Invesco V.I. Balanced-Risk Allocation Index∎ (Style-Specific Index)	-0.21
Lipper VUF Absolute Return Funds Classification Average◆ (Peer Group)	2.87
Source(s): q RIMES Technologies Corp.; ∎Invesco, RIMES Technologies Corp.;◆ Lipper Inc.

The MSCI World Index^SM (Net) is an unmanaged index considered representative of stocks of developed countries. The index is computed using the net return, which withholds applicable taxes for non-resident investors.

  The Custom Invesco V.I. Balanced-Risk Allocation Index is composed of the MSCI World Index and Bloomberg Barclays U.S. Aggregate Bond Index. Prior to May 2, 2011, the index comprised the MSCI World Index, JP Morgan GBI Global Index and FTSE US 3-Month Treasury Bill Index. The Bloomberg Barclays U.S. Aggregate Bond Index is considered representative of the US investment-grade, fixed-rate bond market. The FTSE US 3-Month Treasury Bill Index is considered representative of three-month US Treasury bills. The JP Morgan GBI Global Index tracks the performance of fixed-rate issuances from high-income developed market countries.

  The Lipper VUF Absolute Return Funds Classification Average represents an average of all variable insurance underlying funds in the Lipper Absolute Return Funds Classification.

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

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

Average Annual Total Returns
As of 6/30/20
Series I Shares
Inception (1/23/09)	7.43	%
10 Years	6.57
5 Years	3.91
1 Year	–0.29
Series II Shares
Inception (1/23/09)	7.16	%
10 Years	6.30
5 Years	3.67
1 Year	–0.48

The returns shown above include the returns of Invesco Van Kampen V.I. Global Tactical Asset Allocation Fund (the first predecessor fund) for the period June 1, 2010, to May 2, 2011, the date the first predecessor fund was reorganized into the Fund, and the returns of Van Kampen Life Investment Trust Global Tactical Asset Allocation Portfolio (the second predecessor fund) for the period prior to June 1, 2010, the date the second predecessor fund was reorganized into the first predecessor fund. The second predecessor fund was advised by Van Kampen Asset Management. 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

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

    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 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.

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

Invesco V.I. Balanced-Risk Allocation Fund

Liquidity Risk Management Program

The Securities and Exchange Commission has adopted Rule 22e-4 under the Investment Company Act of 1940 (the “Liquidity Rule”) in order to promote effective liquidity risk management throughout the open-end investment company industry, thereby reducing the risk that funds will be unable to meet their redemption obligations and mitigating dilution of the interests of fund shareholders. The Fund has adopted and implemented a liquidity risk management program in accordance with the Liquidity Rule (the “Program”). The Program is reasonably designed to assess and manage the Fund’s liquidity risk, which is the risk that the Fund could not meet redemption requests without significant dilution of remaining investors’ interests in the Fund. The Board of Trustees of the Fund (the “Board”) has appointed Invesco Advisers, Inc. (“Invesco”), the Fund’s investment adviser, as the Program’s administrator, and Invesco has delegated oversight of the Program to the Liquidity Risk Management Committee (the “Committee”), which is composed of senior representatives from relevant business groups at Invesco.

As required by the Liquidity Rule, the Program includes policies and procedures providing for an assessment, no less frequently than annually, of the Fund’s liquidity risk that takes into account, as relevant to the Fund’s liquidity risk: (1) the Fund’s investment strategy and liquidity of portfolio investments during both normal and reasonably foreseeable stressed conditions; (2) short-term and long-term cash flow projections for the Fund during both normal and reasonably foreseeable stressed conditions; and (3) the Fund’s holdings of cash and cash equivalents and any borrowing arrangements. The Liquidity Rule also requires the classification of the Fund’s investments into categories that reflect the assessment of their relative liquidity under current market conditions. The Fund classifies its investments into one of four categories defined in the Liquidity Rule: “Highly Liquid,” “Moderately Liquid,” “Less Liquid” and “Illiquid.” Funds that are not invested primarily in “Highly Liquid Investments” that are assets (cash or investments that are reasonably expected to be convertible into cash within three business days without significantly changing the market value of the investment) are required to establish a “Highly Liquid Investment Minimum” (“HLIM”), which is the minimum percentage of net assets that must be invested in Highly Liquid Investments. Funds with HLIMs have procedures for addressing HLIM shortfalls, including reporting to the Board and the SEC (on a non-public basis) as required by the Program and the Liquidity Rule. In addition, the Fund may not acquire an investment if, immediately after the acquisition, over 15% of the Fund’s net assets would consist of “Illiquid Investments” that are assets (an investment that cannot reasonably be expected to be sold or disposed of in current market conditions in seven calendar days or less without the sale or disposition significantly changing the market value of the investment). The Liquidity Rule and the Program also require reporting to the Board and the SEC (on a non-public basis) if a Fund’s holdings of Illiquid Investments exceed 15% of the Fund’s assets.

At a meeting held on March 30-April 1, 2020, the Committee presented a report to the Board that addressed the operation of the Program and assessed the Program’s adequacy and effectiveness of implementation (the “Report”). The Report covered the period from December 1, 2018 through December 31, 2019 (the “Program Reporting Period”).

The Report stated, in relevant part, that during the Program Reporting Period:

∎ The Program, as adopted and implemented, remained reasonably designed to assess and manage the Fund’s liquidity risk and was operated effectively to achieve that goal;

∎ The Fund’s investment strategy remained appropriate for an open-end fund;

∎ The Fund was able to meet requests for redemption without significant dilution of remaining investors’ interests in the Fund;

∎ The Fund did not breach the 15% limit on Illiquid Investments; and

∎ The Fund primarily held Highly Liquid Investments and therefore has not adopted an HLIM.

Invesco V.I. Balanced-Risk Allocation Fund

Consolidated Schedule of Investments

June 30, 2020

(Unaudited)

	Interest Rate		Maturity Date		Principal Amount (000)		Value
U.S. Treasury Securities–11.97%(a)
U.S. Treasury Bills–11.97%
U.S. Treasury Bills		0.09%-1.52%		07/09/2020	$	43,800	$	43,788,115
U.S. Treasury Bills		0.12%-0.61%		08/27/2020		43,800		43,764,607
U.S. Treasury Bills		0.11%-0.12%		10/29/2020		11,100		11,094,728
U.S. Treasury Bills		0.18%		12/03/2020		11,500		11,493,068
Total U.S. Treasury Securities (Cost $110,139,626)								110,140,518
			Expiration Date
Commodity-Linked Securities–1.99%
Canadian Imperial Bank of Commerce EMTN, U.S. Federal Funds Effective Rate minus 0.02% (linked to the Canadian Imperial Bank of Commerce Custom 7 Agriculture Commodity Index, multiplied by 2) (Canada)(b)(c)				09/22/2020		7,370		6,768,587
Cargill, Inc., Commodity-Linked Notes, one mo. USD LIBOR minus 0.10% (linked to the Monthly Rebalance Commodity Excess Return Index, multiplied by 2)(b)				04/21/2021		11,180		11,555,365
Total Commodity-Linked Securities (Cost $18,550,000)								18,323,952
					Shares
Money Market Funds–80.02%(d)
Invesco Government & Agency Portfolio, Institutional Class, 0.09%(e)						188,047,095		188,047,095
Invesco Government Money Market Fund, Cash Reserve Shares, 0.01%(e)						80,240,523		80,240,523
Invesco Premier U.S. Government Money Portfolio, Institutional Class, 0.08%(e)						87,804,832		87,804,832
Invesco STIC (Global Series) PLC, U.S. Dollar Liquidity Portfolio (Ireland), Institutional Class, 0.36%(e)						64,223,977		64,223,977
Invesco Treasury Obligations Portfolio, Institutional Class, 0.10%(e)						171,324,067		171,324,067
Invesco Treasury Portfolio, Institutional Class, 0.08%(e)						128,064,406		128,064,406
Invesco V.I. Government Money Market Fund, Series I, 0.01%(e)						16,640,310		16,640,310
Total Money Market Funds (Cost $736,345,210)								736,345,210
TOTAL INVESTMENTS IN SECURITIES-93.98% (Cost $865,034,836)								864,809,680
OTHER ASSETS LESS LIABILITIES-6.02%								55,399,733
NET ASSETS-100.00%							$	920,209,413

Investment Abbreviations:

EMTN	- European Medium-Term Notes
LIBOR	- London Interbank Offered Rate
USD	- U.S. Dollar

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

Invesco V.I. Balanced-Risk Allocation Fund

Notes to Consolidated 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)  Security purchased or received in a transaction exempt from registration under the Securities Act of 1933, as amended (the “1933 Act”). The security may be resold pursuant to an exemption from registration under the 1933 Act, typically to qualified institutional buyers. The aggregate value of these securities at June 30, 2020 was $18,323,952, which represented 1.99% of the Fund’s Net Assets.

^(c)  The Reference Entity Components table below includes additional information regarding the underlying components of certain reference entities that are not publicly available.

^(d)  The rate shown is the 7-day SEC standardized yield as of June 30, 2020.

^(e)  Affiliated issuer. The issuer and/or the Fund is a wholly-owned subsidiary of Invesco Ltd., or is affiliated by having an investment adviser that is under common control of Invesco Ltd. The table below shows the Fund’s transactions in, and earnings from, its investments in affiliates for the six months ended June 30, 2020.

	Value December 31, 2019		Purchases at Cost		Proceeds from Sales			Change in Unrealized Appreciation		Realized Gain		Value June 30, 2020		Dividend Income
Investments in Affiliated Money Market Funds:
Invesco Government & Agency Portfolio, Institutional Class		$229,550,075		$144,790,684	$	(186,293,664	)		$-		$-		$188,047,095		$ 819,795
Invesco Government Money Market Fund, Cash Reserve Shares		82,795,364		23,616,490		(26,171,331	)		-		-		80,240,523		149,019
Invesco Premier U.S. Government Money Portfolio, Institutional Class		126,387,049		33,242,828		(71,825,045	)		-		-		87,804,832		398,708
Invesco STIC (Global Series) PLC, U.S. Dollar Liquidity Portfolio, Institutional Class		67,396,463		215,933,936		(219,106,422	)		-		-		64,223,977		255,753
Invesco Treasury Obligations Portfolio, Institutional Class		171,324,067		-		-			-		-		171,324,067		640,504
Invesco Treasury Portfolio, Institutional Class		141,286,416		179,556,738		(192,778,748	)		-		-		128,064,406		509,088
Invesco V.I. Government Money Market Fund, Series I		16,640,310		-		-			-		-		16,640,310		42,893
Total		$835,379,744		$597,140,676	$	(696,175,210	)		$-		$-		$736,345,210		$2,815,760

Open Futures Contracts^(a)

Long Futures Contracts	Number of Contracts		Expiration Month		Notional Value		Value			Unrealized Appreciation (Depreciation)
Commodity Risk
Brent Crude		494		November-2020	$	20,723,300	$	1,223,648		$	1,223,648
Gasoline Reformulated Blendstock Oxygenate Blending		441		July-2020		22,254,183		(301,017	)		(301,017	)
New York Harbor Ultra-Low Sulfur Diesel		81		November-2020		4,261,345		351,268			351,268
Silver		247		September-2020		23,016,695		955,972			955,972
WTI Crude		202		December-2020		8,035,560		616,950			616,950
Subtotal								2,846,821			2,846,821
Equity Risk
E-Mini Russell 2000 Index		920		September-2020		66,129,600		2,300,735			2,300,735
E-Mini S&P 500 Index		395		September-2020		61,031,450		(105,034	)		(105,034	)
EURO STOXX 50 Index		1,570		September-2020		56,850,314		661,624			661,624
FTSE 100 Index		810		September-2020		61,700,703		49,668			49,668
Hang Seng Index		370		July-2020		57,876,201		(694,559	)		(694,559	)
Tokyo Stock Price Index		706		September-2020		101,903,311		(4,677,352	)		(4,677,352	)
Subtotal								(2,464,918	)		(2,464,918	)
Interest Rate Risk
Australia 10 Year Bonds		2,467		September-2020		253,308,795		3,330,645			3,330,645
Canada 10 Year Bonds		2,102		September-2020		238,162,669		196,793			196,793
Long Gilt		222		September-2020		37,862,056		93,370			93,370
U.S. Treasury Long Bonds		529		September-2020		94,459,563		258,628			258,628
Subtotal								3,879,436			3,879,436
Total Futures Contracts							$	4,261,339		$	4,261,339

^(a)  Futures contracts collateralized by $69,295,000 cash held with Goldman Sachs & Co., the futures commission merchant.

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

Invesco V.I. Balanced-Risk Allocation Fund

Open Over-The-Counter Total Return Swap Agreements(a)(b)
Counterparty	Pay/ Receive		Reference Entity(c)	Fixed Rate		Payment Frequency		Number of Contracts		Maturity Date		Notional Value		Upfront Payments Paid (Received)	Value			Unrealized   Appreciation   (Depreciation)
Commodity Risk
Barclays Bank PLC		Receive	Barclays Commodity Strategy 1452 Excess Return Index		0.33%		Monthly		28,500		February–2021	$	12,870,312	$–	$	702,668		$ 702,668
Canadian Imperial Bank of Commerce		Receive	Canadian Imperial Bank of Commerce Dynamic Roll LME Copper Excess Return Index 2		0.30		Monthly		276,000		April–2021		19,489,712	–		788,891		788,891
Cargill, Inc.		Receive	Single Commodity Index Excess Return		0.12		Monthly		16,400		December–2020		18,142,926	–		1,015,062		1,015,062
JPMorgan Chase Bank, N.A.		Receive	S&P GSCI Gold Index Excess Return		0.09		Monthly		96,500		October–2020		12,930,614	–		249,626		249,626
Merrill Lynch International		Receive	Merrill Lynch Gold Excess Return Index		0.14		Monthly		77,000		June–2021		16,482,197	–		0		0
Merrill Lynch International		Receive	MLCX Natural Gas Annual Excess Return Index		0.25		Monthly		32,000		November–2020		1,328,698	–		0		0
Morgan Stanley Capital Services LLC		Receive	S&P GSCI Aluminum Dynamic Roll Index Excess Return		0.38		Monthly		113,000		October–2020		8,522,766	–		76,296		76,296
Subtotal –Appreciation														–		2,832,543		2,832,543
Commodity Risk
Cargill, Inc.		Receive	Monthly Rebalance Commodity Excess Return Index		0.47		Monthly		38,900		February–2021		24,359,900	–		(65,757	)	(65,757)
Goldman Sachs International		Receive	Goldman Sachs Commodity i-Select Strategy 1121		0.40		Monthly		231,000		October–2020		14,730,064	–		(69,360	)	(69,360)
JPMorgan Chase Bank, N.A.		Receive	J.P. Morgan Contag Beta Gas Oil Excess Return Index		0.25		Monthly		27,800		April–2021		3,722,017	–		(127,249	)	(127,249)
Subtotal														–		(262,366	)	(262,366)
Equity Risk
Goldman Sachs International		Receive	Hang Seng Index Futures		–		Monthly		26		July–2020		4,117,539	–		(50,460	)	(50,460)
Subtotal – Depreciation														–		(312,826	)	(312,826)
Total – Total Return Swap Agreements														$–	$	2,519,717		$2,519,717

^(a)  Open Over-The-Counter Total Return Swap Agreements are collateralized by cash held with the swap Counterparties in the amount of $4,960,596.

^(b)  The Fund receives or pays payments based on any positive or negative return on the Reference Entity, respectively.

^(c)  The table below includes additional information regarding the underlying components of certain reference entities that are not publicly available.

Reference Entity Components
Reference Entity	Underlying Components	Percentage

Canadian Imperial Bank of Commerce Custom 7 Agriculture

Commodity Index

Long Futures Contracts
Coffee ‘C’	5.46	%
Corn	5.72
Cotton No. 2	21.66
Lean Hogs	0.78
Live Cattle	1.13
Soybean Meal	20.88
Soybean Oil	5.46
Soybeans	20.36
Sugar No. 11	12.31
Wheat	6.24
Total	100.00	%

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

Invesco V.I. Balanced-Risk Allocation Fund

Reference Entity Components—(continued)
Reference Entity	Underlying Components	Percentage
Monthly Rebalance Commodity Excess Return Index

Long Futures Contracts
Coffee ’C’	5.46	%
Corn	5.72
Cotton No. 2	21.66
Lean Hogs	0.78
Live Cattle	1.13
Soybean Meal	20.88
Soybean Oil	5.46
Soybeans	20.36
Sugar No. 11	12.31
Wheat	6.24
Total	100.00	%

Barclays Commodity Strategy 1452 Excess Return Index

Long Futures Contracts
Copper	100.00	%

Canadian Imperial Bank of Commerce Dynamic Roll LME
Copper Excess Return Index 2

Long Futures Contracts
Copper	100.00	%

Single Commodity Index Excess Return

Long Futures Contracts
Gold	100.00	%

S&P GSCI Gold Index Excess Return

Long Futures Contracts
Gold	100.00	%

Merrill Lynch Gold Excess Return Index

Long Futures Contracts
Gold	100.00	%

MLCX Natural Gas Annual Excess Return Index

Long Futures Contracts
Natural Gas	100.00	%

S&P GSCI Aluminum Dynamic Roll Index Excess Return

Long Futures Contracts
Aluminium	100.00	%

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

Invesco V.I. Balanced-Risk Allocation Fund

	Reference Entity Components—(continued)
Reference Entity	Underlying Components	Percentage
Goldman Sachs Commodity i-Select Strategy 1121

Long Futures Contracts
Coffee ’C’	5.46	%
Corn	5.72
Cotton No. 2	21.66
Lean Hogs	0.78
Live Cattle	1.13
Soybean Meal	20.88
Soybean Oil	5.46
Soybeans	20.36
Sugar No. 11	12.31
Wheat	6.24
Total	100.00	%

J.P. Morgan Contag Beta Gas Oil Excess Return Index

Long Futures Contracts
Gas Oil	100.00	%

Target Risk Allocation and Notional Asset Weights as of June 30, 2020

By asset class

Asset Class	Target Risk Allocation*	Notional Asset Weights**
Equities	44.43%	44.37%
Fixed Income	27.40	61.68
Commodities	28.17	32.56
Total	100.00%	138.61%

* Reflects the risk that each asset class is expected to contribute to the overall risk of the Fund as measured by standard deviation and estimates of risk based on historical data. Standard deviation measures the annualized fluctuations (volatility) of monthly returns.

** Proprietary models determine the Notional Asset Weights necessary to achieve the Target Risk Allocations. Total Notional Asset Weight greater than 100% is achieved through derivatives and other instruments that create leverage.

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, 2020

(Unaudited)

Assets:
Investments in securities, at value (Cost $128,689,626)	$	128,464,470
Investments in affiliated money market funds, at value (Cost $736,345,210)		736,345,210
Other investments:
Variation margin receivable – futures contracts		2,011,125
Swaps receivable – OTC		540,785
Unrealized appreciation on swap agreements – OTC		2,832,543
Deposits with brokers:
Cash collateral – exchange-traded futures contracts		69,295,000
Cash collateral – OTC Derivatives		4,960,596
Cash		64,357
Foreign currencies, at value (Cost $1,436)		1,392
Receivable for:
Fund shares sold		112,398
Dividends		74,585
Investment for trustee deferred compensation and retirement plans		102,478
Total assets		944,804,939
Liabilities:
Other investments:
Swaps payable – OTC		51,200
Unrealized depreciation on swap agreements–OTC		312,826
Payable for:
Investments purchased		22,162,356
Fund shares reacquired		1,333,315
Accrued fees to affiliates		557,692
Accrued trustees’ and officers’ fees and benefits		3,138
Accrued other operating expenses		60,405
Trustee deferred compensation and retirement plans		114,594
Total liabilities		24,595,526
Net assets applicable to shares outstanding	$	920,209,413
Net assets consist of:
Shares of beneficial interest	$	853,668,596
Distributable earnings		66,540,817
	$	920,209,413
Net Assets:
Series I	$	43,060,106
Series II	$	877,149,307
Shares outstanding, no par value, with an unlimited number of shares authorized:
Series I		4,117,262
Series II		85,356,954
Series I:
Net asset value per share	$	10.46
Series II:
Net asset value per share	$	10.28

Consolidated Statement of Operations

For the six months ended June 30, 2020

(Unaudited)

Investment income:
Dividends from affiliated money market funds	$	2,815,760
Interest		786,226
Total investment income		3,601,986
Expenses:
Advisory fees		4,281,084
Administrative services fees		770,604
Custodian fees		10,032
Distribution fees - Series II		1,109,762
Transfer agent fees		12,387
Trustees’ and officers’ fees and benefits		11,708
Reports to shareholders		4,462
Professional services fees		27,350
Other		5,895
Total expenses		6,233,284
Less: Fees waived		(2,139,297	)
Net expenses		4,093,987
Net investment income (loss)		(492,001	)
Realized and unrealized gain (loss) from:
Net realized gain (loss) from:
Investment securities		(3,483,849	)
Foreign currencies		235,848
Futures contracts		(35,187,205	)
Swap agreements		(15,066,912	)
		(53,502,118	)
Change in net unrealized appreciation (depreciation) of:
Investment securities		(964,479	)
Foreign currencies		(102,406	)
Futures contracts		9,086,708
Swap agreements		1,046,790
		9,066,613
Net realized and unrealized gain (loss)		(44,435,505	)
Net increase (decrease) in net assets resulting from operations	$	(44,927,506	)

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, 2020 and the year ended December 31, 2019

(Unaudited)

	June 30, 2020			December 31, 2019
Operations:
Net investment income (loss)	$	(492,001	)	$	11,730,695
Net realized gain (loss)		(53,502,118	)		128,339,153
Change in net unrealized appreciation		9,066,613			2,732,689
Net increase (decrease) in net assets resulting from operations		(44,927,506	)		142,802,537
Share transactions–net:
Series I		(436,931	)		2,158,487
Series II		(56,330,414	)		(128,836,261	)
Net increase (decrease) in net assets resulting from share transactions		(56,767,345	)		(126,677,774	)
Net increase (decrease) in net assets		(101,694,851	)		16,124,763
Net assets:
Beginning of period		1,021,904,264			1,005,779,501
End of period	$	920,209,413		$	1,021,904,264

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

Invesco V.I. Balanced-Risk Allocation Fund

Consolidated Financial Highlights

(Unaudited)

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
								(losses)																																	net assets			assets without			investment
	Net asset			Net				on securities								Dividends				Distributions																					with fee waivers			fee waivers			income
	value,			investment				(both				Total from				from net				from net												Net asset						Net assets,			and/or			and/or			(loss)
	beginning			income				realized and				investment				investment				realized				Return of				Total				value, end			Total			end of period			expenses			expenses			to average			Portfolio
	of period			(loss)(a)				unrealized)				operations				income				gains				capital				distributions				of period			return (b)			(000’s omitted)			absorbed			absorbed			net assets			turnover (c)
Series I
Six months ended 06/30/20		$	10.91		$	0.01			$	(0.46	)		$	(0.45	)		$	-			$	-			$	-			$	-			$	10.46		(4.12	)%		$	43,060		0.64	%(d)(e)		1.10	%(d)		0.13	%(d)		50	%
Year ended 12/31/19			9.47			0.14				1.30				1.44				-				-				-				-				10.91		15.21				45,427		0.64	(e)		1.10			1.38			94
Year ended 12/31/18			11.31			0.11				(0.79	)			(0.68	)			(0.14	)			(0.99	)			(0.03	)			(1.16	)			9.47		(6.46	)			37,450		0.65	(e)		1.10			1.03			199
Year ended 12/31/17			11.35			0.01				1.08				1.09				(0.48	)			(0.65	)			-				(1.13	)			11.31		10.06				39,340		0.68	(e)		1.11			0.10			52
Year ended 12/31/16			10.20			(0.04	)			1.24				1.20				(0.05	)			-				-				(0.05	)			11.35		11.74				34,714		0.67	(e)		1.12			(0.33	)		120
Year ended 12/31/15			12.30			(0.07	)			(0.44	)			(0.51	)			(0.52	)			(1.07	)			-				(1.59	)			10.20		(4.10	)			26,854		0.69			1.15			(0.61	)		44
Series II
Six months ended 06/30/20			10.73			(0.01	)			(0.44	)			(0.45	)			-				-				-				-				10.28		(4.19	)			877,149		0.89	(d)(e)		1.35	(d)		(0.12	)(d)		50
Year ended 12/31/19			9.34			0.12				1.27				1.39				-				-				-				-				10.73		14.88				976,477		0.89	(e)		1.35			1.13			94
Year ended 12/31/18			11.17			0.08				(0.78	)			(0.70	)			(0.11	)			(0.99	)			(0.03	)			(1.13	)			9.34		(6.71	)			968,329		0.90	(e)		1.35			0.78			199
Year ended 12/31/17			11.22			(0.02	)			1.07				1.05				(0.45	)			(0.65	)			-				(1.10	)			11.17		9.83				1,158,077		0.93	(e)		1.36			(0.15	)		52
Year ended 12/31/16			10.08			(0.06	)			1.22				1.16				(0.02	)			-				-				(0.02	)			11.22		11.51				1,113,539		0.92	(e)		1.37			(0.58	)		120
Year ended 12/31/15			12.17			(0.10	)			(0.44	)			(0.54	)			(0.48	)			(1.07	)			-				(1.55	)			10.08		(4.40	)			939,354		0.94			1.40			(0.86	)		44

^(a)  Calculated using average shares outstanding.

^(b)  Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Total returns 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 $43,026 and $892,720 for Series I and Series II shares, respectively.

^(e)  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 were 0.16%, 0.16%, 0.16%, 0.15% and 0.12% for the six months ended June 30, 2020 and the years ended December 31, 2019, 2018, 2017 and 2016, respectively.

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

Invesco V.I. Balanced-Risk Allocation Fund

Notes to Consolidated Financial Statements

June 30, 2020

(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. Information presented in these consolidated financial statements pertains only to the Fund and the Subsidiary. Matters affecting the Fund or each class will be voted on exclusively by the shareholders of the Fund or each 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 and other securities that may provide leveraged and non-leveraged exposure to commodities. The Fund may invest up to 25% of its total assets in the Subsidiary.

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

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

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

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

Debt obligations (including convertible securities) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. Pricing services generally value debt obligations assuming orderly transactions of institutional round lot size, but a fund may hold or transact in the same securities in smaller, odd lot sizes. Odd lots often trade at lower prices than institutional round lots. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.

A security listed or traded on an exchange (except convertible securities) is valued at its last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded, or lacking any sales or official closing price on a particular day, the security may be valued at the closing bid price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued by an independent pricing service they may be considered fair valued. Futures contracts are valued at the final settlement price set by an exchange on which they are principally traded. Listed options are valued at the mean between the last bid and asked 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 asked prices. For purposes of determining net asset value (“NAV”) 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, if available, provided by an independent pricing service. Evaluated quotes provided by the pricing service are valued based on a model which may include end-of-day net present values, spreads, ratings, industry, company performance and returns of referenced assets. Centrally cleared swap agreements are valued at the daily settlement price determined by the relevant exchange or clearinghouse.

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

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

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

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

Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the issuer’s assets, general market conditions which are not specifically related to the particular issuer, such as real or perceived adverse economic conditions, changes in the general outlook for revenues or corporate earnings, changes in interest or currency rates, regional or global instability, natural or environmental disasters, widespread disease or other public health issues, war, acts of terrorism or adverse investor sentiment generally 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 (net of withholding tax, if any) is recorded on an accrual basis from

Invesco V.I. Balanced-Risk Allocation Fund

settlement date. Bond premiums and discounts are amortized and/or accreted over the lives of the respective securities. Pay-in-kind interest income and non-cash dividend income received in the form of securities in-lieu of cash are recorded at the fair value of the securities received. Dividend income (net of withholding tax, if any) is recorded on the ex-dividend date.

The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements.Any proceeds received are included in the 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 the Consolidated Statement of Changes in Net Assets, or the net investment income per share and the ratios of expenses and net investment income reported in the 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 net investment income and net realized capital gain, if any, are generally declared and paid to separate accounts of participating insurance companies annually and recorded on the ex-dividend date.

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

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

    The 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.

    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 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 the 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. Structured Securities – The Fund may invest in structured securities. Structured securities are a type of derivative security whose value is determined by reference to changes in the value of underlying securities, currencies, interest rates, commodities, indices or other financial indicators (“reference instruments”). Most structured securities are fixed-income securities that have maturities of three years or less. Structured securities may be positively or negatively indexed (i.e., their principal value or interest rates may increase or decrease if the underlying reference instrument appreciates) and may have return characteristics similar to direct investments in the underlying reference instrument.

    Structured securities may entail a greater degree of market risk than other types of debt securities because the investor bears the risk of the reference instruments. In addition to the credit risk of structured securities and the normal risks of price changes in response to changes in interest rates, the principal amount of structured notes or indexed securities may decrease as a result of changes in the value of the underlying reference instruments. Changes in the daily value of structured securities are recorded as unrealized gains (losses) in the Consolidated Statement of Operations. When the structured securities mature or are sold, the Fund recognizes a realized gain (loss) on the Consolidated Statement of Operations.

J. Foreign Currency Translations – Foreign currency is valued at the close of the NYSE based on quotations posted by banks and major currency dealers. Portfolio securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at the date of valuation. Purchases and sales of portfolio securities (net of foreign taxes withheld on disposition) and income items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. The Fund does not separately account for the portion of the results of operations resulting from changes in foreign exchange rates on investments and the fluctuations arising from changes in market prices of securities held. The combined results of changes in foreign exchange rates and the fluctuation of market prices on investments (net of estimated foreign tax withholding) are included with the net realized and unrealized gain or loss from investments in the Consolidated 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

Invesco V.I. Balanced-Risk Allocation Fund

unrealized foreign currency gains and losses arise from changes in the fair values of assets and liabilities, other than investments in securities at fiscal period end, resulting from changes in exchange rates.

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

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

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

    A forward foreign currency contract is an obligation between two parties (“Counterparties”) to purchase or sell a specific currency for an agreed-upon price at a future date. The use of forward foreign currency contracts 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 Consolidated Statement of Operations. The primary risks associated with forward foreign currency contracts include failure of the Counterparty to meet the terms of the contract and the value of the foreign currency changing unfavorably. These risks may be in excess of the amounts reflected in the Consolidated Statement of Assets and Liabilities.

L. Futures Contracts – The Fund may enter into futures contracts to equitize the Fund’s cash holdings or to manage exposure to interest rate, equity, commodity and market price movements and/or currency risks. A futures contract is an agreement between Counterparties to purchase or sell a specified underlying security, currency or commodity (or delivery of a cash settlement price, in the case of an index future) for a fixed price at a future date. The Fund currently invests only in exchange-traded futures and they are standardized as to maturity date and underlying financial instrument. Initial margin deposits required upon entering into futures contracts are satisfied by the segregation of specific securities or cash as collateral at the futures commission merchant (broker). During the period the futures contracts are open, changes in the value of the contracts are recognized as unrealized gains or losses by recalculating the value of the contracts on a daily basis. Subsequent or variation margin payments are received or made depending upon whether unrealized gains or losses are incurred. These amounts are reflected as receivables or payables on the 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.

M. Swap Agreements – The Fund may enter into various swap transactions, including interest rate, total return, index, currency and credit default swap contracts (“CDS”) for investment purposes or to manage interest rate, currency, commodity or credit risk. Such transactions are agreements between Counterparties. These agreements may contain among other conditions, events of default and termination events, and various covenants and representations such as provisions that require the Fund to maintain a pre-determined level of net assets, and/or provide limits regarding the decline of the Fund’s NAV over specific periods of time. If the Fund were to trigger such provisions and have open derivative positions at that time, the Counterparty may be able to terminate such agreement and request immediate payment in an amount equal to the net liability positions, if any.

    Interest rate, total return, index, and currency swap agreements are two-party contracts entered into primarily to exchange the returns (or differentials in rates of returns) earned or realized on particular predetermined investments or instruments. The gross returns to be exchanged or “swapped” between the parties are calculated with respect to a notional amount, i.e., the return on or increase in value of a particular dollar amount invested at a particular interest rate or return of an underlying asset, in a particular foreign currency, or in a “basket” of securities representing a particular index.

    An interest rate swap is an agreement between Counterparties pursuant to which the parties exchange a floating rate payment for a fixed rate payment based on a specified notional amount.

    A total return swap is an agreement in which one party makes payments based on a set rate, either fixed or variable, while the other party makes payments based on the return of an underlying asset, which includes both the income generated and capital gains, if any. The unrealized appreciation (depreciation) on total return swaps includes dividends on the underlying securities and financing rate payable from the Counterparty. At the maturity date, a net cash flow is exchanged where the total return is equivalent to the return of the underlying reference less a financing rate, if any. As a receiver, the Fund would receive payments based on any positive total return and would owe payments in the event of a negative total return. As the payer, the Fund would owe payments on any net positive total return, and would receive payment in the event of a negative total return.

    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 cash or liquid securities having a value at least equal to the amount of the potential obligation of a Fund under any swap transaction. Cash held as collateral is recorded as deposits with brokers on the Consolidated Statement of Assets and Liabilities. Entering into these agreements involves, to varying degrees, lack of liquidity and elements of credit, market, and Counterparty risk in excess of amounts recognized on the 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. It is possible that developments in the swaps market, including potential government regulation, could adversely affect the Fund’s ability to terminate existing swap agreements or to realize amounts to be received under such agreements. Additionally, an International Swaps and Derivatives Association Master Agreement (“ISDA Master Agreement”) includes credit related contingent features which allow Counterparties to OTC derivatives to terminate derivative contracts prior to maturity in the event that, for example, the Fund’s net assets decline by a stated percentage or the Fund fails to meet the terms of its ISDA master agreements, which would cause the Fund to accelerate payment of any net liability owed to the Counterparty. A short position in a security poses more risk than holding the same security long. As there is no limit on how much the price of the security can increase, the Fund’s exposure is unlimited.

N. 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 and commodity-linked derivatives. The Subsidiary, unlike the Fund, may invest without limitation in commodities, commodity-linked

Invesco V.I. Balanced-Risk Allocation Fund

derivatives and other securities, such as exchange-traded and commodity-linked notes, that may provide leveraged and non-leveraged exposure to commodity markets. The Fund is indirectly exposed to the risks associated with the Subsidiary’s investments.

    The current low interest rate environment was created in part by the Federal Reserve Board (FRB) and certain foreign central banks keeping the federal funds and equivalent foreign rates near historical lows. Increases in the federal funds and equivalent foreign rates may expose fixed income markets to heightened volatility and reduced liquidity for certain fixed income investments, particularly those with longer maturities. In addition, decreases in fixed income dealer market-making capacity may also potentially lead to heightened volatility and reduced liquidity in the fixed income markets. As a result, the value of the Fund’s investments and share price may decline. Changes in central bank policies could also result in higher than normal shareholder redemptions, which could potentially increase portfolio turnover and the Fund’s transaction costs.

    In addition to risks associated with the underlying commodities, investments in commodity-linked notes may be subject to additional risks, such as non-payment of interest and loss of principal, counterparty risk, lack of a secondary market and risk of greater volatility than traditional equity and debt securities. The value of the commodity-linked notes the Fund buys may fluctuate significantly because the values of the underlying investments to which they are linked are themselves volatile. Additionally, certain commodity-linked notes employ “economic” leverage by requiring payment by the issuer of an amount that is a multiple of the price increase or decrease of the underlying commodity, commodity index, or other economic variable. Such economic leverage will increase the volatility of the value of these commodity-linked notes and the Fund to the extent it invests in such notes.

O. Leverage Risk – Leverage exists when the Fund can lose more than it originally invests because it purchases or sells an instrument or enters into a transaction without investing an amount equal to the full economic exposure of the instrument or transaction.

P. Collateral – To the extent the Fund has designated or segregated a security as collateral and that security is subsequently sold, it is the Fund’s practice to replace such collateral no later than the next business day.

NOTE 2– Advisory Fees and Other Fees Paid to Affiliates

The Trust has entered into a master investment advisory agreement with Invesco Advisers, Inc. (the “Adviser” or “Invesco”). Under the terms of the investment advisory agreement, the Fund accrues daily and pays monthly an advisory fee to the Adviser less the amount paid by the Subsidiary 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	0.950%
Next $250 million	0.925%
Next $500 million	0.900%
Next $1.5 billion	0.875%
Next $2.5 billion	0.850%
Next $2.5 billion	0.825%
Next $2.5 billion	0.800%
Over $10 billion	0.775%

    For the six months ended June 30, 2020, the effective advisory fee rate incurred by the Fund was 0.92%.

    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.

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

    The Adviser has contractually agreed, through at least April 30, 2021, 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 (including prior fiscal year-end Acquired Fund Fees and Expenses of 0.16% and excluding certain items discussed below) of Series I shares to 0.80% and Series II shares to 1.05% of average daily net assets (the “expense limits”). In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause the total annual fund operating expenses after fee waiver and/or expense reimbursement to exceed the numbers reflected above: (1) interest; (2) taxes; (3) dividend expense on short sales; (4) extraordinary or non-routine items, including litigation expenses; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Acquired Fund Fees and Expenses are not operating expenses of the Fund directly, but are fees and expenses, including management fees, of the investment companies in which the Fund invests. As a result, the total annual fund operating expenses after expense reimbursement may exceed the expense limits above. Unless Invesco continues the fee waiver agreement, it will terminate on April 30, 2021. During its term, the fee waiver agreement cannot be terminated or amended to increase the expense limits or reduce the advisory fee waiver without approval of the Board of Trustees. To the extent that the annualized expense ratio does not exceed the expense limits, the Adviser will retain its ability to be reimbursed for such fee waivers or reimbursements prior to the end of each fiscal year.

    Further, the Adviser has contractually agreed, through at least June 30, 2022, 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, 2020, the Adviser waived advisory fees of $2,139,297.

    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 fees paid to insurance companies that have agreed to provide certain administrative services to the Fund. These administrative services provided by the insurance companies may include, among other things: maintenance of master accounts with the Fund; tracking, recording and transmitting net purchase and redemption orders for Fund shares; maintaining and preserving records related to the purchase, redemption and other account activity of variable product owners; distributing copies of Fund documents such as prospectuses, proxy materials and periodic reports, to variable product owners, and responding to inquiries from variable product owners about the Fund. Pursuant to such agreement, for the six months ended June 30, 2020, Invesco was paid $72,731 for accounting and fund administrative services and was reimbursed $697,873 for fees paid to insurance companies. Invesco has entered into a sub-administration agreement whereby State Street Bank and Trust Company (“SSB”) serves as fund accountant and provides certain administrative services to the Fund. Pursuant to a custody agreement with the Trust on behalf of the Fund, SSB also serves as the Fund’s custodian.

Invesco V.I. Balanced-Risk Allocation 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, 2020, 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. The fees are accrued daily and paid monthly. 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, 2020, 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, 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, 2020. 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 consolidated financial statements may materially differ from the value received upon actual sale of those investments.

	Level 1			Level 2			Level 3		Total
Investments in Securities
U.S. Treasury Securities	$	–			$110,140,518			$–		$110,140,518
Commodity-Linked Securities		–			18,323,952			–		18,323,952
Money Market Funds		736,345,210			–			–		736,345,210
Total Investments in Securities		736,345,210			128,464,470			–		864,809,680
Other Investments - Assets*
Futures Contracts		10,039,301			–			–		10,039,301
Swap Agreements		–			2,832,543			–		2,832,543
		10,039,301			2,832,543			–		12,871,844
Other Investments - Liabilities*
Futures Contracts		(5,777,962	)		–			–		(5,777,962	)
Swap Agreements		–			(312,826	)		–		(312,826	)
		(5,777,962	)		(312,826	)		–		(6,090,788	)
Total Other Investments		4,261,339			2,519,717			–		6,781,056
Total Investments	$	740,606,549		$	130,984,187			$–	$	871,590,736

* Unrealized appreciation (depreciation).

NOTE 4–Derivative Investments

The Fund may enter into an ISDA Master Agreement under which a fund may trade OTC derivatives. An OTC transaction entered into under an ISDA Master Agreement typically involves a collateral posting arrangement, payment netting provisions and close-out netting provisions. These netting provisions allow for reduction of credit risk through netting of contractual obligations. The enforceability of the netting provisions of the ISDA Master Agreement depends on the governing law of the ISDA Master Agreement, among other factors.

For financial reporting purposes, the Fund does not offset OTC derivative assets or liabilities that are subject to ISDA Master Agreements in the Consolidated Statement of Assets and Liabilities.

Invesco V.I. Balanced-Risk Allocation Fund

Value of Derivative Investments at Period-End

The table below summarizes the value of the Fund’s derivative investments, detailed by primary risk exposure, held as of June 30, 2020:

	Value
Derivative Assets	Commodity Risk			Equity Risk			Interest Rate Risk			Total
Unrealized appreciation on futures contracts – Exchange-Traded(a)	$	3,147,838		$	3,012,027		$	3,879,436		$	10,039,301
Unrealized appreciation on swap agreements - OTC		2,832,543			-			-			2,832,543
Total Derivative Assets		5,980,381			3,012,027			3,879,436			12,871,844
Derivatives not subject to master netting agreements		(3,147,838	)		(3,012,027	)		(3,879,436	)		(10,039,301	)
Total Derivative Assets subject to master netting agreements	$	2,832,543		$	-		$	-		$	2,832,543
	Value
Derivative Liabilities	Commodity Risk			Equity Risk			Interest Rate Risk			Total
Unrealized depreciation on futures contracts – Exchange-Traded(a)	$	(301,017	)	$	(5,476,945	)	$	-		$	(5,777,962	)
Unrealized depreciation on swap agreements - OTC		(262,366	)		(50,460	)		-			(312,826	)
Total Derivative Liabilities		(563,383	)		(5,527,405	)		-			(6,090,788	)
Derivatives not subject to master netting agreements		301,017			5,476,945			-			5,777,962
Total Derivative Liabilities subject to master netting agreements	$	(262,366	)	$	(50,460	)	$	-		$	(312,826	)

^(a) The daily variation margin receivable at period-end is recorded in the Consolidated Statement of Assets and Liabilities.

Offsetting Assets and Liabilities

The table below reflects the Fund’s exposure to Counterparties subject to either an ISDA Master Agreement or other agreement for OTC derivative transactions as of June 30, 2020.

	Financial Derivative Assets		Financial Derivative Liabilities						Collateral (Received)/Pledged
	Swap		Swap			Net Value of								Net
Counterparty	Agreements		Agreements			Derivatives			Non-Cash		Cash			Amount
Fund
Goldman Sachs International	$	105,958	$	(50,460	)	$	55,498		$	-	$	-		$	55,498
Subtotal – Fund		105,958		(50,460	)		55,498			-		-			55,498
Subsidiary
Barclays Bank PLC		702,668		(1,888	)		700,780			-		-			700,780
Canadian Imperial Bank of Commerce		788,891		(3,238	)		785,653			-		-			785,653
Cargill, Inc.		1,015,062		(74,194	)		940,868			-		(280,000	)		660,868
Goldman Sachs International		-		(73,124	)		(73,124	)		-		73,124			-
JPMorgan Chase Bank, N.A.		249,626		(127,772	)		121,854			-		-			121,854
Merrill Lynch International		434,827		(32,001	)		402,826			-		-			402,826
Morgan Stanley Capital Services LLC		76,296		(1,349	)		74,947			-		(40,000	)		34,947
Subtotal – Subsidiary		3,267,370		(313,566	)		2,953,804			-		(246,876	)		2,706,928
Total	$	3,373,328	$	(364,026	)	$	3,009,302		$	-	$	(246,876	)	$	2,762,426

Effect of Derivative Investments for the six months ended June 30, 2020

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

	Location of Gain (Loss) on Consolidated Statement of Operations
	Commodity Risk			Equity Risk			Interest Rate Risk		Total
Realized Gain (Loss):
Futures contracts	$	(28,797,758	)	$	(43,787,246	)		$37,397,799	$	(35,187,205	)
Swap agreements		(14,937,108	)		(129,804	)		-		(15,066,912	)
Change in Net Unrealized Appreciation (Depreciation):
Futures contracts		(1,526,578	)		(5,156,443	)		15,769,729		9,086,708
Swap agreements		1,097,250			(50,460	)		-		1,046,790
Total	$	(44,164,194	)	$	(49,123,953	)		$53,167,528	$	(40,120,619	)

Invesco V.I. Balanced-Risk Allocation Fund

The table below summarizes the average notional value of derivatives held during the period.

	Futures Contracts		Swap Agreements
Average notional value	$	1,087,769,696	$	166,417,851

NOTE 5–Trustees’ and Officers’ Fees and Benefits

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

NOTE 6–Cash Balances

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

NOTE 7–Tax Information

The amount and character of income and gains to be distributed are determined in accordance with income tax regulations, which may differ from GAAP.

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

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

The Fund did not have a capital loss carryforward as of December 31, 2019.

NOTE 8–Investment Transactions

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, 2020 was $11,180,000 and $9,389,471, respectively. Cost of investments, including any derivatives, on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end.

Unrealized Appreciation (Depreciation) of Investments on a Tax Basis
Aggregate unrealized appreciation of investments	$	7,829,018
Aggregate unrealized (depreciation) of investments		(6,693,140	)
Net unrealized appreciation of investments	$	1,135,878

Cost of investments for tax purposes is $870,454,858.

NOTE 9–Share Information

	Summary of Share Activity
	Six months ended						Year ended
	June 30, 2020(a)						December 31, 2019
	Shares			Amount			Shares			Amount
Sold:
Series I		202,377		$	2,098,653			479,777		$	4,939,090
Series II		2,441,993			24,813,870			4,284,767			43,466,506
Reacquired:
Series I		(250,438	)		(2,535,584	)		(270,304	)		(2,780,603	)
Series II		(8,093,906	)		(81,144,284	)		(16,984,260	)		(172,302,767	)
Net increase (decrease) in share activity		(5,699,974	)	$	(56,767,345	)		(12,490,020	)	$	(126,677,774	)

^(a)  There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 81% of the outstanding shares of the Fund. The Fund and the Fund’s principal underwriter or adviser, are parties to participation agreements with these entities whereby these entities sell units of interest in separate accounts funding variable products that are invested in the Fund. The Fund, Invesco and/or Invesco affiliates may make payments to these entities, which are considered to be related to the Fund, for providing services to the Fund, Invesco and/or Invesco affiliates including but not limited to services such as, securities brokerage, third party record keeping and account servicing and administrative services. The Fund 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–Coronavirus (COVID-19) Pandemic

During the first quarter of 2020, the World Health Organization declared COVID-19 to be a public health emergency. COVID-19 has led to increased short-term market volatility and may have adverse long-term effects on U.S. and world economies and markets in general. COVID-19 may adversely impact the Fund’s ability to achieve its

Invesco V.I. Balanced-Risk Allocation Fund

investment objective. Because of the uncertainties on valuation, the global economy and business operations, values reflected in these consolidated financial statements may materially differ from the value received upon actual sales of those investments.

The extent of the impact on the performance of the Fund and its investments will depend on future developments, including the duration and spread of the COVID-19 outbreak, related restrictions and advisories, and the effects on the financial markets and economy overall, all of which are highly uncertain and cannot be predicted.

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, 2020 through June 30, 2020.

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.

	Beginning         Account Value       (01/01/20)	ACTUAL		HYPOTHETICAL (5% annual return before     expenses)
		Ending      Account Value       (06/30/20)1	Expenses       Paid During       Period2	Ending       Account Value       (06/30/20)	Expenses   Paid During     Period2	Annualized     Expense    Ratio
Series I	$1,000.00	$958.80	$3.12	$1,021.68	$3.22	0.64%
Series II	1,000.00	958.10	4.33	1,020.44	4.47	0.89

¹  The actual ending account value is based on the actual total return of the Fund for the period January 1, 2020 through June 30, 2020, 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 182/366 to reflect the most recent fiscal half year.

Invesco V.I. Balanced-Risk Allocation Fund

Approval of Investment Advisory and Sub-Advisory Contracts

At meetings held on June 3, 2020, the Board of Trustees (the Board or the Trustees) of AIM Variable Insurance Funds (Invesco Variable Insurance Funds) as a whole, and the independent Trustees, who comprise over 75% of the Board, voting separately, approved the continuance of the Invesco V.I. Balanced-Risk Allocation Fund’s (the Fund) Master Investment Advisory Agreement with Invesco Advisers, Inc. (Invesco Advisers and the investment advisory agreement) and the Master Intergroup Sub-Advisory Contract for Mutual Funds with Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Canada Ltd. and separate sub-advisory contracts with Invesco Capital Management LLC and Invesco Asset Management (India) Private Limited (collectively, the Affiliated Sub-Advisers and the sub-advisory contracts) for another year, effective July 1, 2020. After evaluating the factors discussed below, among others, the Board approved the renewal of the Fund’s investment advisory agreement and the sub-advisory contracts and determined that the compensation payable thereunder by the Fund to Invesco Advisers and by Invesco Advisers to the Affiliated Sub-Advisers is fair and reasonable.

The Board’s Evaluation Process

The Board’s Investments Committee has established Sub-Committees, which meet throughout the year to review the performance of funds advised by Invesco Advisers (the Invesco Funds). The Sub-Committees meet regularly with portfolio managers for their assigned Invesco Funds and other members of management to review detailed information about investment performance and portfolio attributes of these funds. The Board took into account evaluations and reports that it received from the Investments Committee and Sub-Committees, as well as the information provided to such committees and the Board throughout the year, in considering whether to approve each Invesco Fund’s investment advisory agreement and sub-advisory contracts.

As part of the contract renewal process, the Board reviews and considers information provided in response to detailed requests for information submitted to management by the independent Trustees with assistance from legal counsel to the independent Trustees. The Board receives comparative investment performance and fee data regarding the Invesco Funds prepared by Invesco Advisers and Broadridge Financial Solutions, Inc. (Broadridge), an independent mutual fund data provider, as well as information on the composition of the peer groups provided by Broadridge and its methodology for determining peer groups. The Board also receives an independent written evaluation from the Senior Officer, an officer of the Invesco Funds who reports directly to the independent Trustees. 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. In addition to meetings with Invesco Advisers and fund counsel throughout the year, the independent Trustees also

discuss the continuance of the investment advisory agreement and sub-advisory contracts in separate sessions with the Senior Officer and with independent legal counsel.

The discussion below is a summary of 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. The Trustees’ review and conclusions are based on the comprehensive consideration of all information presented to them during the course of the year and in prior years and are not the result of any single determinative factor. Moreover, one Trustee may have weighed a particular piece of information or factor differently than another Trustee. This information is current as of June 3, 2020.

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 nature, extent and quality of the advisory services provided to the Fund by Invesco Advisers under the Fund’s investment advisory agreement, and the credentials and experience of the officers and employees of Invesco Advisers who provide these services, including the Fund’s portfolio manager(s). The Board’s review included consideration of Invesco Advisers’ investment process oversight and structure, credit analysis, investment risk management and research capabilities. The Board also considered non-advisory services that Invesco Advisers and its affiliates provide to the Invesco Funds, such as various back office support functions, third party oversight, internal audit, valuation, portfolio trading and legal and compliance. The Board also received and reviewed information about Invesco Advisers’ role as administrator of the Invesco Funds’ liquidity risk management program. The Board reviewed and considered the benefits to shareholders of investing in a Fund that is part of the Invesco family of funds under the umbrella of Invesco Ltd., Invesco Advisers’ parent company, and noted Invesco Ltd.’s depth and experience in conducting an investment management business, as well as its commitment of financial and other resources to such business. The Board also reviewed and considered information regarding the benefits to the Fund resulting from Invesco Ltd.’s acquisition of OppenheimerFunds, Inc. and its subsidiaries (the Transaction) and the resources that Invesco Advisers has committed to managing the Invesco family of funds following the Transaction. The Board concluded that the nature, extent and quality of the services provided to the Fund by Invesco Advisers are appropriate and satisfactory.

The Board reviewed the services that may be 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 the Affiliated Sub-Advisers’ expertise with respect to certain asset classes and that the Affiliated Sub-Advisers have offices and personnel that are located in financial centers around the world.

As a result, the Board noted that the Affiliated Sub-Advisers can provide research and investment analysis on the markets and economies of various countries in which the Fund may invest, make recommendations regarding securities and assist with security trades. The Board concluded that the sub-advisory contracts may 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 that may be provided by the Affiliated Sub-Advisers are appropriate and satisfactory.

B. Fund Investment Performance

The Board considered Fund investment performance as a relevant factor in considering whether to approve the investment advisory agreement. The Board did not view Fund investment 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 investment performance over multiple time periods ending December 31, 2019 to the performance of funds in the Broadridge performance universe and against the Custom Invesco V.I. Balanced-Risk Allocation Index. The Board noted that performance of Series I shares of the Fund was in the second quintile of its 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 below the performance of the Index for the one, three and five year periods. The Board recognized that the performance data reflects a snapshot in time as of a particular date and that selecting a different performance period could produce different results. The Board also reviewed more recent Fund performance as well as other performance metrics and this review did not change their conclusions.

C. Advisory and Sub-Advisory Fees and Fund Expenses

The Board compared the Fund’s contractual management fee rate to the contractual management fee rates of funds in the Fund’s Broadridge expense group. The Board noted that the contractual management fee rate for Series I shares of the Fund was above the median contractual management fee rate of funds in its expense group. The Board noted that the term “contractual management fee” for funds in the expense group may include both advisory and certain non-portfolio management administrative services fees, but that Broadridge does not provide information on a fund by fund basis as to what is included. The Board also reviewed the methodology used by Broadridge in providing expense group information, which includes using each fund’s contractual management fee schedule (including any applicable breakpoints) as reported in the most recent prospectus or statement of additional information for each fund in the expense group. The Board also considered comparative information regarding the Fund’s total expense ratio and its various components. The Board noted that the Fund’s contractual management fees were in the fifth quintile of its expense group and discussed with

Invesco V.I. Balanced-Risk Allocation Fund

management reasons for such relative contractual management fees.

The Board noted that Invesco Advisers has contractually agreed to waive fees and/or limit expenses of the Fund for the term disclosed in the Fund’s registration statement 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 fees charged by Invesco Advisers and the Affiliated Sub-Advisers to other similarly managed client accounts. Invesco Advisers reviewed with the Board differences in the scope of services it provides to the Invesco Funds relative to certain other types of client accounts, including, among others: management of cash flows as a result of redemptions and purchases; necessary infrastructure such as officers, office space, technology, legal and distribution; oversight of service providers; costs and business risks associated with launching new funds and sponsoring and maintaining the product line; and compliance with federal and state laws and regulations.

The Board also compared the Fund’s effective advisory fee rate (the advisory fee rate after advisory fee waivers and before other expense limitations/ waivers) to the effective advisory fee rates of other similarly managed third-party mutual funds advised or sub-advised by Invesco Advisers and its affiliates, based on asset balances as of December 31, 2019.

The Board also considered the services that may be provided by the Affiliated Sub-Advisers pursuant to the sub-advisory contracts, as well as the fees payable by Invesco Advisers to the Affiliated Sub-Advisers pursuant to the sub-advisory contracts.

D. Economies of Scale and Breakpoints

The Board considered the extent to which there may be economies of scale in the provision of advisory services to the Fund. The Board also considered that the Fund benefits from economies of scale through contractual breakpoints in the Fund’s advisory fee schedule, which generally operate to reduce the Fund’s expense ratio as it grows in size. The Board 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. The Board noted that the Fund may also benefit from economies of scale through initial fee setting, fee waivers and expense reimbursements. The Board also considered Invesco’s reinvestment in its business, including investments in business infrastructure, technology and cybersecurity.

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 Invesco Funds and the profitability of Invesco Advisers and its affiliates in providing these services in the aggregate and on an individual Fund-by-Fund basis. The Board considered the methodology used for calculating profitability and noted the periodic review and enhancement of such methodology. The Board noted that Invesco Advisers continues to operate at a net profit from services Invesco Advisers and its affiliates provide to the Invesco Funds in the aggregate and to certain Funds on an individual fund level. The Board did not deem the level of profits realized by Invesco Advisers and its affiliates from providing such services to be excessive given the nature, extent and quality of the services provided. The Board received information

from Invesco Advisers demonstrating that Invesco Advisers and the Affiliated Sub-Advisers are financially sound and have the resources necessary to perform their obligations under the investment advisory agreement and sub-advisory contracts.

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 providing administrative, transfer agency and distribution services to the Fund. The Board considered comparative information regarding fees charged for these services, including information provided by Broadridge and other independent sources. 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; and that the services are required for the operation of the Fund.

The Board considered the benefits realized by Invesco Advisers and the Affiliated Sub-Advisers as a result of portfolio brokerage transactions executed through “soft dollar” arrangements. Invesco Advisers noted that the Fund does not execute brokerage transactions through “soft dollar” arrangements to any significant degree.

The Board considered that the Fund’s uninvested cash and cash collateral from any securities lending arrangements may be invested in registered money market funds or, with regard to securities lending cash collateral, unregistered funds that comply with Rule 2a-7 (collectively referred to as “affiliated money market funds”) advised by Invesco Advisers pursuant to procedures approved by the Board. Invesco Advisers noted that the Fund does not engage in securities lending arrangements to any significant degree.

The Board also considered that an affiliated broker may receive commissions for executing certain trades for the Fund. Invesco Advisers and the Affiliated Sub-Advisers may use the affiliated broker to, among other things, control order routing and minimize information leakage, and the Board was advised that such trades are executed in compliance with rules under the federal securities laws and consistent with best execution obligations.

Invesco V.I. Balanced-Risk Allocation Fund

	Semiannual Report to Shareholders	June 30, 2020
	Invesco V.I. Comstock Fund

Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, the insurance company that offers your variable annuity or variable life insurance contract may no longer send you paper copies of the Fund’s shareholder reports by mail, unless you specifically request paper copies of the reports from the insurance company or your financial intermediary. Instead of delivering paper copies of the report, the insurance company may choose to make the reports available on a website, and will notify you by mail each time a report is posted and provide you with a website link to access the report. Instructions for requesting paper copies will be provided by your insurance company.

    If the insurance company offers electronic delivery, you may elect to receive shareholder reports and other communications about the Fund electronically by following the instructions provided by the insurance company or by contacting your financial intermediary. If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action.

    You may elect to receive all future reports in paper free of charge from the insurance company. You can inform the insurance company or your financial intermediary that you wish to continue receiving paper copies of your shareholder reports by following the instructions provided by the insurance company or by contacting your financial intermediary. Your election to receive reports in paper will apply to all portfolio companies available under your contract with the insurance company.

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) as an exhibit to its reports on Form N-PORT. The Fund’s Form N-PORT filings are available on the SEC website, 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-PORT, 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 most recent 12-month period ended June 30 is available at invesco.com/proxysearch. The information is also available on the SEC website, sec.gov.

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

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.

NOT FDIC INSURED  |  MAY LOSE VALUE  |  NO BANK GUARANTEE

Invesco Distributors, Inc. VK-VICOM-SAR-1                                 

Fund Performance

Performance summary

Fund vs. Indexes

Cumulative total returns, 12/31/19 to 6/30/20, excluding variable product issuer charges. If variable product issuer charges were included, returns would be lower.

Series I Shares	-20.57	%
Series II Shares	-20.66
S&P 500 Indexq (Broad Market Index)	-3.08
Russell 1000 Value Indexq (Style-Specific Index)	-16.26
Lipper VUF Large-Cap Value Funds Index∎ (Peer Group Index)	-15.82
Source(s): qRIMES Technologies Corp.; ∎Lipper Inc.

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

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

    The Lipper 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) described here, and consequently, the performance of the Fund may deviate significantly from the performance of the index(es).

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

Average Annual Total Returns
As of 6/30/20
Series I Shares
Inception (4/30/99)	5.90	%
10 Years	9.30
5 Years	2.39
1 Year	-13.42
Series II Shares
Inception (9/18/00)	5.82	%
10 Years	9.03
5 Years	2.15
1 Year	-13.61

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 (renamed Invesco V.I. Comstock Fund on April 29, 2013). Returns shown above, prior to June 1, 2010, for Series I and Series II shares are those of the Class I shares and Class II shares of the predecessor fund. Share class returns will differ from the predecessor fund because of different expenses.

    The performance data quoted represent past performance and cannot guarantee future results; current performance may be lower or higher. Please 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. Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares. Investment return and principal value will fluctuate so that you may have a gain or loss when you sell shares.

    Invesco 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 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.

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

Invesco V.I. Comstock Fund

Liquidity Risk Management Program

The Securities and Exchange Commission has adopted Rule 22e-4 under the Investment Company Act of 1940 (the “Liquidity Rule”) in order to promote effective liquidity risk management throughout the open-end investment company industry, thereby reducing the risk that funds will be unable to meet their redemption obligations and mitigating dilution of the interests of fund shareholders. The Fund has adopted and implemented a liquidity risk management program in accordance with the Liquidity Rule (the “Program”). The Program is reasonably designed to assess and manage the Fund’s liquidity risk, which is the risk that the Fund could not meet redemption requests without significant dilution of remaining investors’ interests in the Fund. The Board of Trustees of the Fund (the “Board”) has appointed Invesco Advisers, Inc. (“Invesco”), the Fund’s investment adviser, as the Program’s administrator, and Invesco has delegated oversight of the Program to the Liquidity Risk Management Committee (the “Committee”), which is composed of senior representatives from relevant business groups at Invesco.

As required by the Liquidity Rule, the Program includes policies and procedures providing for an assessment, no less frequently than annually, of the Fund’s liquidity risk that takes into account, as relevant to the Fund’s liquidity risk: (1) the Fund’s investment strategy and liquidity of portfolio investments during both normal and reasonably foreseeable stressed conditions; (2) short-term and long-term cash flow projections for the Fund during both normal and reasonably foreseeable stressed conditions; and (3) the Fund’s holdings of cash and cash equivalents and any borrowing arrangements. The Liquidity Rule also requires the classification of the Fund’s investments into categories that reflect the assessment of their relative liquidity under current market conditions. The Fund classifies its investments into one of four categories defined in the Liquidity Rule: “Highly Liquid,” “Moderately Liquid,” “Less Liquid” and “Illiquid.” Funds that are not invested primarily in “Highly Liquid Investments” that are assets (cash or investments that are reasonably expected to be convertible into cash within three business days without significantly changing the market value of the investment) are required to establish a “Highly Liquid Investment Minimum” (“HLIM”), which is the minimum percentage of net assets that must be invested in Highly Liquid Investments. Funds with HLIMs have procedures for addressing HLIM shortfalls, including reporting to the Board and the SEC (on a non-public basis) as required by the Program and the Liquidity Rule. In addition, the Fund may not acquire an investment if, immediately after the acquisition, over 15% of the Fund’s net assets would consist of “Illiquid Investments” that are assets (an investment that cannot reasonably be expected to be sold or disposed of in current market conditions in seven calendar days or less without the sale or disposition significantly changing the market value of the investment). The Liquidity Rule and the Program also require reporting to the Board and the SEC (on a non-public basis) if a Fund’s holdings of Illiquid Investments exceed 15% of the Fund’s assets.

At a meeting held on March 30-April 1, 2020, the Committee presented a report to the Board that addressed the operation of the Program and assessed the Program’s adequacy and effectiveness of implementation (the “Report”). The Report covered the period from December 1, 2018 through December 31, 2019 (the “Program Reporting Period”).

The Report stated, in relevant part, that during the Program Reporting Period:

∎ The Program, as adopted and implemented, remained reasonably designed to assess and manage the Fund’s liquidity risk and was operated effectively to achieve that goal;

∎ The Fund’s investment strategy remained appropriate for an open-end fund;

∎ The Fund was able to meet requests for redemption without significant dilution of remaining investors’ interests in the Fund;

∎ The Fund did not breach the 15% limit on Illiquid Investments; and

∎ The Fund primarily held Highly Liquid Investments and therefore has not adopted an HLIM.

Invesco V.I. Comstock Fund

Schedule of Investments^(a)

June 30, 2020

(Unaudited)

	Shares		Value
Common Stocks & Other Equity Interests-96.28%
Aerospace & Defense-1.31%
Textron, Inc.		447,543	$	14,728,640
Agricultural Products-1.46%
Archer-Daniels-Midland Co.		411,417		16,415,538
Air Freight & Logistics-1.77%
FedEx Corp.		142,018		19,913,764
Asset Management & Custody Banks-2.91%
Bank of New York Mellon Corp. (The)		450,811		17,423,845
State Street Corp.		241,648		15,356,731
				32,780,576
Automobile Manufacturers-2.19%
General Motors Co.		974,211		24,647,538
Building Products-2.14%
Johnson Controls International PLC		479,046		16,354,630
Trane Technologies PLC		86,223		7,672,123
				24,026,753
Cable & Satellite-1.31%
Comcast Corp., Class A		378,082		14,737,636
Casinos & Gaming-0.64%
Las Vegas Sands Corp.(b)		157,505		7,172,778
Communications Equipment-1.93%
Cisco Systems, Inc.		464,713		21,674,214
Construction Machinery & Heavy Trucks-1.79%
Caterpillar, Inc.		158,860		20,095,790
Consumer Finance-0.56%
Ally Financial, Inc.		318,493		6,315,716
Diversified Banks-10.12%
Bank of America Corp.		1,655,027		39,306,891
Citigroup, Inc.		913,672		46,688,639
JPMorgan Chase & Co.		170,944		16,078,993
Wells Fargo & Co.		456,613		11,689,293
				113,763,816
Electric Utilities-1.61%
Exelon Corp.		500,267		18,154,689
Electrical Components & Equipment-3.60%
Eaton Corp. PLC		227,797		19,927,682
Emerson Electric Co.		332,185		20,605,435
				40,533,117
Fertilizers & Agricultural Chemicals-2.79%
CF Industries Holdings, Inc.		517,181		14,553,473
Corteva, Inc.		628,005		16,824,254
				31,377,727
Health Care Distributors-2.73%
Cardinal Health, Inc.		83,743		4,370,547
Henry Schein, Inc.(b)		127,711		7,457,045

	Shares		Value
Health Care Distributors-(continued)
McKesson Corp.		123,327	$	18,920,829
				30,748,421
Health Care Facilities-1.59%
HCA Healthcare, Inc.(b)		184,532		17,910,676
Health Care Services-1.47%
CVS Health Corp.		253,784		16,488,347
Health Care Supplies-0.49%
DENTSPLY SIRONA, Inc.		124,478		5,484,501
Hotel & Resort REITs-0.75%
Host Hotels & Resorts, Inc.		780,735		8,424,131
Independent Power Producers & Energy Traders-1.31%
Vistra Corp.		788,770		14,686,897
Industrial Conglomerates-1.06%
General Electric Co.		1,746,762		11,930,384
Integrated Oil & Gas-5.33%
BP PLC, ADR (United Kingdom)		781,084		18,214,879
Chevron Corp.		295,552		26,372,105
Suncor Energy, Inc. (Canada)		908,697		15,320,631
				59,907,615
Integrated Telecommunication Services-1.54%
AT&T, Inc.		574,354		17,362,721
Internet & Direct Marketing Retail-2.19%
Booking Holdings, Inc.(b)		6,447		10,265,816
eBay, Inc.		274,909		14,418,977
				24,684,793
Investment Banking & Brokerage-3.97%
Goldman Sachs Group, Inc. (The)		85,391		16,874,969
Morgan Stanley		575,362		27,789,985
				44,664,954
IT Consulting & Other Services-1.69%
Cognizant Technology Solutions Corp., Class A		333,527		18,951,004
Life & Health Insurance-0.97%
MetLife, Inc.		298,803		10,912,286
Managed Health Care-2.46%
Anthem, Inc.		105,025		27,619,475
Multi-line Insurance-1.91%
American International Group, Inc.		690,723		21,536,743
Oil & Gas Exploration & Production-5.78%
Canadian Natural Resources Ltd. (Canada)		544,746		9,449,594
Devon Energy Corp.		940,694		10,667,470
Hess Corp.		357,325		18,513,008
Marathon Oil Corp.		2,121,868		12,985,832
Noble Energy, Inc.		776,864		6,960,701

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

Invesco V.I. Comstock Fund

	Shares		Value
Oil & Gas Exploration & Production-(continued)
Pioneer Natural Resources Co.		65,338	$	6,383,523
				64,960,128
Paper Packaging-1.46%
International Paper Co.		464,875		16,368,249
Pharmaceuticals-5.64%
Bristol-Myers Squibb Co.		325,282		19,126,582
Johnson & Johnson		135,502		19,055,646
Sanofi, ADR (France)		494,436		25,240,958
				63,423,186
Property & Casualty Insurance-1.23%
Allstate Corp. (The)		143,110		13,880,239
Regional Banks-2.58%
Citizens Financial Group, Inc.		461,888		11,658,053
Fifth Third Bancorp		570,220		10,993,842
PNC Financial Services Group, Inc. (The)		60,582		6,373,832
				29,025,727
Semiconductors-5.76%
Intel Corp.		428,767		25,653,130
NXP Semiconductors N.V. (Netherlands)		137,604		15,692,360
QUALCOMM, Inc.		257,197		23,458,938
				64,804,428
Specialty Chemicals-0.80%
DuPont de Nemours, Inc.		169,009		8,979,448

	Shares		Value
Systems Software-2.43%
Microsoft Corp.		134,164	$	27,303,716
Tobacco-4.33%
Altria Group, Inc.		424,953		16,679,405
Philip Morris International, Inc.		456,652		31,993,039
				48,672,444
Wireless Telecommunication Services-0.68%
Vodafone Group PLC (United Kingdom)		4,778,047		7,618,883
Total Common Stocks & Other Equity Interests (Cost $1,056,126,658)				1,082,687,688
Money Market Funds-1.83%
Invesco Government & Agency Portfolio, Institutional Class, 0.09%(c)(d)		7,014,486		7,014,486
Invesco Liquid Assets Portfolio, Institutional Class, 0.39%(c)(d)		5,587,909		5,591,821
Invesco Treasury Portfolio, Institutional Class, 0.08%(c)(d)		8,016,555		8,016,555
Total Money Market Funds (Cost $20,617,595)				20,622,862
TOTAL INVESTMENTS IN SECURITIES–98.11% (Cost $1,076,744,253)				1,103,310,550
OTHER ASSETS LESS LIABILITIES–1.89%				21,224,318
NET ASSETS–100.00%			$	1,124,534,868

Investment Abbreviations:

ADR - American Depositary Receipt

REIT - Real Estate Investment Trust

Notes to Schedule of Investments:

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

^(b)  Non-income producing security.

^(c)  Affiliated issuer. The issuer and/or the Fund is a wholly-owned subsidiary of Invesco Ltd., or is affiliated by having an investment adviser that is under common control of Invesco Ltd. The table below shows the Fund’s transactions in, and earnings from, its investments in affiliates for the six months ended June 30, 2020.

	Value December 31, 2019			Purchases at Cost			Proceeds from Sales				Change in Unrealized Appreciation			Realized Gain (Loss)				Value June 30, 2020			Dividend Income
Investments in Affiliated Money Market Funds:
Invesco Government & Agency Portfolio, Institutional Class		$	21,797,514		$	66,924,839		$	(81,707,867	)		$	-		$	-			$	7,014,486		$	55,888
Invesco Liquid Assets Portfolio, Institutional Class			15,602,035			48,339,499			(58,362,762	)			5,267			7,782				5,591,821			55,604
Invesco Treasury Portfolio, Institutional Class			24,911,444			76,485,530			(93,380,419	)			-			-				8,016,555			60,522
Investments Purchased with Cash Collateral from Securities on Loan:
Invesco Government & Agency Portfolio, Institutional Class			-			18,534,173			(18,534,173	)			-			-				-			1,733
Invesco Liquid Assets Portfolio, Institutional Class			-			5,397,578			(5,396,007	)			-			(1,571	)			-			1,122
Invesco Private Government Fund			-			10,433,430			(10,433,430	)			-			-				-			94
Invesco Private Prime Fund			-			2,614,688			(2,614,688	)			-			-				-			48
Total		$	62,310,993		$	228,729,737		$	(270,429,346	)		$	5,267		$	6,211			$	20,622,862		$	175,011

^(d)  The rate shown is the 7-day SEC standardized yield as of June 30, 2020.

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

Invesco V.I. Comstock Fund

Portfolio Composition

By sector, based on Net Assets

as of June 30, 2020

Financials	24.27	%
Health Care	14.38
Information Technology	11.80
Industrials	11.67
Energy	11.10
Consumer Staples	5.79
Materials	5.04
Consumer Discretionary	5.03
Communication Services	3.53
Utilities	2.92
Real Estate	0.75
Money Market Funds Plus Other Assets Less Liabilities	3.72

Open Forward Foreign Currency Contracts

Settlement		Contract to				Unrealized Appreciation
Date	Counterparty	Deliver		Receive		(Depreciation)
Currency Risk
07/10/2020	Canadian Imperial Bank of Commerce	CAD	19,244,000	USD	14,362,382		$187,019
07/10/2020	Canadian Imperial Bank of Commerce	EUR	471,071	USD	531,529		2,193
07/10/2020	Deutsche Bank AG	EUR	11,134,282	USD	12,580,563		69,144
07/10/2020	Deutsche Bank AG	GBP	796,100	USD	1,005,463		18,968
07/10/2020	Deutsche Bank AG	USD	554,438	EUR	493,920		573
07/10/2020	Goldman Sachs & Co.	CAD	2,249,408	USD	1,675,051		18,110
07/10/2020	Goldman Sachs & Co.	GBP	11,448,230	USD	14,496,258		310,082
07/10/2020	Goldman Sachs & Co.	USD	624,654	CAD	852,183		3,075
07/10/2020	Royal Bank of Canada	USD	1,980,428	CAD	2,693,898		3,930
07/10/2020	Royal Bank of Canada	USD	297,443	GBP	240,533		615
07/10/2020	State Street Bank & Trust Co.	USD	468,214	CAD	636,839		889
Subtotal–Appreciation							614,598
Currency Risk
07/10/2020	Canadian Imperial Bank of Commerce	USD	398,152	GBP	320,914		(488	)
07/10/2020	Deutsche Bank AG	CAD	598,398	USD	439,493		(1,294	)
07/10/2020	Deutsche Bank AG	USD	430,443	CAD	575,101		(6,817	)
07/10/2020	Deutsche Bank AG	USD	1,135,209	GBP	906,224		(12,253	)
07/10/2020	Goldman Sachs & Co.	USD	436,227	CAD	590,367		(1,356	)
07/10/2020	Goldman Sachs & Co.	USD	373,754	EUR	332,208		(457	)
07/10/2020	Goldman Sachs & Co.	USD	555,244	GBP	440,826		(8,991	)
07/10/2020	Royal Bank of Canada	EUR	466,666	USD	523,314		(1,071	)
Subtotal–Depreciation							(32,727	)
Total Forward Foreign Currency Contracts							$581,871

Abbreviations:

CAD – Canadian Dollar

EUR – Euro

GBP – British Pound Sterling

USD – U.S. Dollar

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

Invesco V.I. Comstock Fund

Statement of Assets and Liabilities

June 30, 2020

(Unaudited)

Assets:
Investments in securities, at value (Cost $1,056,126,658)	$	1,082,687,688
Investments in affiliated money market funds, at value (Cost $20,617,595)		20,622,862
Other investments:
Unrealized appreciation on forward foreign currency contracts outstanding		614,598
Foreign currencies, at value (Cost $5,878)		5,906
Receivable for:
Investments sold		23,949,292
Fund shares sold		77,760
Dividends		2,380,461
Investment for trustee deferred compensation and retirement plans		197,656
Total assets		1,130,536,223
Liabilities:
Other investments:
Unrealized depreciation on forward foreign currency contracts outstanding		32,727
Payable for:
Investments purchased		1,854,174
Fund shares reacquired		3,229,917
Amount due custodian		7,402
Accrued fees to affiliates		653,618
Accrued trustees’ and officers’ fees and benefits		3,710
Trustee deferred compensation and retirement plans		219,807
Total liabilities		6,001,355
Net assets applicable to shares outstanding	$	1,124,534,868
Net assets consist of:
Shares of beneficial interest	$	1,102,407,265
Distributable earnings		22,127,603
	$	1,124,534,868
Net Assets:
Series I	$	153,498,129
Series II	$	971,036,739
Shares outstanding, no par value, with an unlimited number of shares authorized:
Series I		11,261,707
Series II		71,622,359
Series I:
Net asset value per share	$	13.63
Series II:
Net asset value per share	$	13.56

Statement of Operations

For the six months ended June 30, 2020

(Unaudited)

Investment income:
Dividends (net of foreign withholding taxes of $316,212)	$	18,861,261
Dividends from affiliated money market funds (includes securities lending income of $102,936)		274,950
Total investment income		19,136,211
Expenses:
Advisory fees		3,333,833
Administrative services fees		977,422
Distribution fees - Series II		1,259,893
Transfer agent fees		18,886
Trustees’ and officers’ fees and benefits		13,019
Professional services fees		11,074
Other		(13,735	)
Total expenses		5,600,392
Less: Fees waived		(25,635	)
Net expenses		5,574,757
Net investment income		13,561,454
Realized and unrealized gain (loss) from:
Net realized gain (loss) from:
Investment securities		(74,167,891	)
Foreign currencies		(15,812	)
Forward foreign currency contracts		636,216
		(73,547,487	)
Change in net unrealized appreciation (depreciation) of:
Investment securities		(225,056,260	)
Foreign currencies		(5,175	)
Forward foreign currency contracts		2,171,520
		(222,889,915	)
Net realized and unrealized gain (loss)		(296,437,402	)
Net increase (decrease) in net assets resulting from operations	$	(282,875,948	)

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

Invesco V.I. Comstock Fund

Statement of Changes in Net Assets

For the six months ended June 30, 2020 and the year ended December 31, 2019

(Unaudited)

	June 30, 2020			December 31, 2019
Operations:
Net investment income	$	13,561,454		$	26,005,428
Net realized gain (loss)		(73,547,487	)		42,110,638
Change in net unrealized appreciation (depreciation)		(222,889,915	)		238,104,732
Net increase (decrease) in net assets resulting from operations		(282,875,948	)		306,220,798
Distributions to shareholders from distributable earnings:
Series I		–			(27,866,941	)
Series II		–			(173,615,673	)
Total distributions from distributable earnings		–			(201,482,614	)
Share transactions–net:
Series I		(6,187,524	)		(32,488,395	)
Series II		(26,031,925	)		54,630,220
Net increase (decrease) in net assets resulting from share transactions		(32,219,449	)		22,141,825
Net increase (decrease) in net assets		(315,095,397	)		126,880,009
Net assets:
Beginning of period		1,439,630,265			1,312,750,256
End of period	$	1,124,534,868		$	1,439,630,265

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

Invesco V.I. Comstock Fund

Financial Highlights

(Unaudited)

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

																																				Ratio of			Ratio of
																																				expenses			expenses
							Net gains																													to average			to average net
							(losses)																													net assets			assets without			Ratio of net
	Net asset						on securities								Dividends				Distributions																	with fee waivers			fee waivers			investment
	value,			Net			(both				Total from				from net				from net								Net asset						Net assets,			and/or			and/or			income
	beginning			investment			realized and				investment				investment				realized				Total				value, end			Total			end of period			expenses			expenses			to average			Portfolio
	of period			income(a)			unrealized)				operations				income				gains				distributions				of period			return (b)			(000’s omitted)			absorbed			absorbed			net assets			turnover (c)
Series I
Six months ended 06/30/20		$	17.16		$	0.18		$	(3.71	)		$	(3.53	)		$	–			$	–			$	–			$	13.63		(20.57	)%		$	153,498		0.74	%(d)		0.74	%(d)		2.54	%(d)		28	%
Year ended 12/31/19			16.12			0.37			3.45				3.82				(0.37	)			(2.41	)			(2.78	)			17.16		25.30				199,521		0.74			0.74			2.09			21
Year ended 12/31/18			20.62			0.33			(2.41	)			(2.08	)			(0.36	)			(2.06	)			(2.42	)			16.12		(12.16	)			214,084		0.75			0.75			1.63			19
Year ended 12/31/17			18.69			0.28			2.94				3.22				(0.44	)			(0.85	)			(1.29	)			20.62		17.85				270,651		0.75			0.75			1.47			13
Year ended 12/31/16			17.57			0.38			2.47				2.85				(0.29	)			(1.44	)			(1.73	)			18.69		17.30				256,080		0.77			0.78			2.20			21
Year ended 12/31/15			19.16			0.28			(1.45	)			(1.17	)			(0.37	)			(0.05	)			(0.42	)			17.57		(5.98	)			332,411		0.78			0.83			1.52			16
Series II
Six months ended 06/30/20			17.09			0.16			(3.69	)			(3.53	)			–				–				–				13.56		(20.66	)			971,037		0.99	(d)		0.99	(d)		2.29	(d)		28
Year ended 12/31/19			16.06			0.32			3.44				3.76				(0.32	)			(2.41	)			(2.73	)			17.09		24.94				1,240,109		0.99			0.99			1.84			21
Year ended 12/31/18			20.54			0.28			(2.40	)			(2.12	)			(0.30	)			(2.06	)			(2.36	)			16.06		(12.37	)			1,098,666		1.00			1.00			1.38			19
Year ended 12/31/17			18.62			0.23			2.93				3.16				(0.39	)			(0.85	)			(1.24	)			20.54		17.58				1,643,281		1.00			1.00			1.22			13
Year ended 12/31/16			17.51			0.34			2.45				2.79				(0.24	)			(1.44	)			(1.68	)			18.62		16.99				1,679,769		1.02			1.03			1.95			21
Year ended 12/31/15			19.08			0.24			(1.44	)			(1.20	)			(0.32	)			(0.05	)			(0.37	)			17.51		(6.19	)			1,549,679		1.03			1.08			1.27			16

^(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 $161,310 and $1,012,199 for Series I and Series II shares, respectively.

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

Invesco V.I. Comstock Fund

Notes to Financial Statements

June 30, 2020

(Unaudited)

NOTE 1–Significant Accounting Policies

Invesco 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. Information presented in these financial statements pertains only to the Fund. Matters affecting the Fund or each class will be voted on exclusively by the shareholders of the Fund or each class. 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 Fund is an investment company and accordingly follows the investment company accounting and reporting guidance in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 946, Financial Services – Investment Companies.

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

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

A security listed or traded on an exchange (except convertible securities) is valued at its last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded, or lacking any sales or official closing price on a particular day, the security may be valued at the closing bid price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued by an independent pricing service they may be considered fair valued. Futures contracts are valued at the final settlement price set by an exchange on which they are principally traded. Listed options are valued at the mean between the last bid and asked 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 asked prices. For purposes of determining net asset value (“NAV”) per share, futures and option contracts generally are valued 15 minutes after the close of the customary trading session of the New York Stock Exchange (“NYSE”).

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

Debt obligations (including convertible securities) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. Pricing services generally value debt obligations assuming orderly transactions of institutional round lot size, but a fund may hold or transact in the same securities in smaller, odd lot sizes. Odd lots often trade at lower prices than institutional round lots. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.

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

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

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

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

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

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

Invesco V.I. Comstock Fund

share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and the Statement of Changes in Net Assets, or the net investment income per share and the ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.

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

C. Country Determination - For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues 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 net investment income and net realized capital gain, if any, are generally declared and paid to separate accounts of participating insurance companies annually and recorded on the ex-dividend date.

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

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

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

F. Expenses - Fees provided for under the Rule 12b-1 plan of a particular class of the Fund and which are directly attributable to that class are charged to the operations of such class. All other expenses are allocated among the classes based on relative net assets.

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

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

I. 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. The Fund bears the risk of loss with respect to the investment of collateral. It is the Fund’s policy to obtain additional collateral from or return excess collateral to the borrower by the end of the next business day, following the valuation date of the securities loaned. Therefore, the value of the collateral held may be temporarily less than the value of the securities on loan. When loaning securities, the Fund retains certain benefits of owning the securities, including the economic equivalent of dividends or interest generated by the security. Lending securities entails a risk of loss to the Fund if, and to the extent that, the market value of the securities loaned were to increase and the borrower did not increase the collateral accordingly, and the borrower failed to return the securities. The securities loaned are subject to termination at the option of the borrower or the Fund. Upon termination, the borrower will return to the Fund the securities loaned and the Fund will return the collateral. Upon the failure of the borrower to return the securities, collateral may be liquidated and the securities may be purchased on the open market to replace the loaned securities. The Fund could experience delays and costs in gaining access to the collateral and the securities may lose value during the delay which could result in potential losses to the Fund. Some of these losses may be indemnified by the lending agent. The Fund bears the risk of any deficiency in the amount of the collateral available for return to the borrower due to any loss on the collateral invested. Dividends received on cash collateral investments for securities lending transactions, which are net of compensation to counterparties, are included in Dividends from affiliated money market funds on the Statement of Operations. The aggregate value of securities out on loan, if any, is shown as a footnote on the Statement of Assets and Liabilities.

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

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

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

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

Invesco V.I. Comstock Fund

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

NOTE 2–Advisory Fees and Other Fees Paid to Affiliates

The Trust has entered into a master investment advisory agreement with Invesco Advisers, Inc. (the “Adviser” or “Invesco”). Under the terms of the investment advisory agreement, the Fund accrues daily and pays monthly an 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		0.600%
Next $500 million		0.550%

For the six months ended June 30, 2020, the effective advisory fee rate incurred by the Fund was 0.57%.

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

The Adviser has contractually agreed, through at least April 30, 2021, 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 0.78% and Series II shares to 1.03% of average daily net assets (the “expense limits”). In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause the total annual fund operating expenses after fee waiver and/or expense reimbursement to exceed the numbers reflected above: (1) interest; (2) taxes; (3) dividend expense on short sales; (4) extraordinary or non-routine items, including litigation expenses; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Unless Invesco continues the fee waiver agreement, it will terminate on April 30, 2021. During its term, the fee waiver agreement cannot be terminated or amended to increase the expense limits or reduce the advisory fee waiver without approval of the Board of Trustees. The Adviser did not waive fees and/or reimburse expenses during the period under these expense limits.

Further, the Adviser has contractually agreed, through at least June 30, 2022, 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, 2020, the Adviser waived advisory fees of $25,635.

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 fees paid to insurance companies that have agreed to provide certain administrative services to the Fund. These administrative services provided by the insurance companies may include, among other things: maintenance of master accounts with the Fund; tracking, recording and transmitting net purchase and redemption orders for Fund shares; maintaining and preserving records related to the purchase, redemption and other account activity of variable product owners; distributing copies of Fund documents such as prospectuses, proxy materials and periodic reports, to variable product owners, and responding to inquiries from variable product owners about the Fund. Pursuant to such agreement, for the six months ended June 30, 2020, Invesco was paid $101,097 for accounting and fund administrative services and was reimbursed $876,325 for fees paid to insurance companies. Invesco has entered into a sub-administration agreement whereby State Street Bank and Trust Company (“SSB”) serves as fund accountant and provides certain administrative services to the Fund. Pursuant to a custody agreement with the Trust on behalf of the Fund, SSB also serves as the Fund’s custodian.

The Trust has entered into a transfer agency and service agreement with Invesco Investment Services, Inc. (“IIS”) pursuant to which the Fund has agreed to pay IIS a fee for providing transfer agency and shareholder services to the Fund and reimburse IIS for certain expenses incurred by IIS in the course of providing such services. IIS may make payments to intermediaries that provide omnibus account services, sub-accounting services and/or networking services. All fees payable by IIS to intermediaries that provide omnibus account services or sub-accounting services are charged back to the Fund, subject to certain limitations approved by the Trust’s Board of Trustees. For the six months ended June 30, 2020, 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. The fees are accrued daily and paid monthly. 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, 2020, expenses incurred under the Plan are detailed in the Statement of Operations as Distribution fees.

For the six months ended June 30, 2020, the Fund incurred $1,903 in brokerage commissions with Invesco Capital Markets, Inc., an affiliate of the Adviser and IDI, for portfolio transactions executed on behalf of the Fund.

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

NOTE 3–Additional Valuation Information

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

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

Level 2 – Prices are determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk, yield curves, loss severities, default rates, discount rates, volatilities and others.

Level 3 – Prices are determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Fund’s

Invesco V.I. Comstock Fund

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, 2020. The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

	Level 1		Level 2			Level 3		Total
Investments in Securities
Common Stocks & Other Equity Interests	$	1,075,068,805	$	7,618,883			$-	$	1,082,687,688
Money Market Funds		20,622,862		-			-		20,622,862
Total Investments in Securities		1,095,691,667		7,618,883			-		1,103,310,550
Other Investments - Assets*
Forward Foreign Currency Contracts		-		614,598			-		614,598
Other Investments - Liabilities*
Forward Foreign Currency Contracts		-		(32,727	)		-		(32,727	)
Total Other Investments		-		581,871			-		581,871
Total Investments	$	1,095,691,667	$	8,200,754			$-	$	1,103,892,421

* Unrealized appreciation (depreciation).

NOTE 4–Derivative Investments

The Fund may enter into an International Swaps and Derivatives Association Master Agreement (“ISDA Master Agreement”) under which a fund may trade OTC derivatives. An OTC transaction entered into under an ISDA Master Agreement typically involves a collateral posting arrangement, payment netting provisions and close-out netting provisions. These netting provisions allow for reduction of credit risk through netting of contractual obligations. The enforceability of the netting provisions of the ISDA Master Agreement depends on the governing law of the ISDA Master Agreement, among other factors.

For financial reporting purposes, the Fund does not offset OTC derivative assets or liabilities that are subject to ISDA Master Agreements in the Statement of Assets and Liabilities.

Value of Derivative Investments at Period-End

The table below summarizes the value of the Fund’s derivative investments, detailed by primary risk exposure, held as of June 30, 2020:

	Value
	Currency
Derivative Assets	Risk
Unrealized appreciation on forward foreign currency contracts outstanding	$	614,598
Derivatives not subject to master netting agreements		-
Total Derivative Assets subject to master netting agreements	$	614,598
	Value
	Currency
Derivative Liabilities	Risk
Unrealized depreciation on forward foreign currency contracts outstanding	$	(32,727	)
Derivatives not subject to master netting agreements		-
Total Derivative Liabilities subject to master netting agreements	$	(32,727	)

Offsetting Assets and Liabilities

The table below reflects the Fund’s exposure to Counterparties subject to either an ISDA Master Agreement or other agreement for OTC derivative transactions as of June 30, 2020.

	Financial			Financial
	Derivative			Derivative							Collateral
	Assets			Liabilities							(Received)/Pledged
	Forward Foreign			Forward Foreign				Net Value of									Net
Counterparty	Currency Contracts			Currency Contracts				Derivatives			Non-Cash			Cash			Amount
Canadian Imperial Bank of Commerce		$	189,212		$	(488	)		$	188,724		$	-		$	-		$	188,724
Deutsche Bank AG			88,685			(20,364	)			68,321			-			-			68,321
Goldman Sachs & Co.			331,267			(10,804	)			320,463			-			-			320,463
Royal Bank of Canada			4,545			(1,071	)			3,474			-			-			3,474
State Street Bank & Trust Co.			889			-				889			-			-			889
Total		$	614,598		$	(32,727	)		$	581,871		$	-		$	-		$	581,871

Invesco V.I. Comstock Fund

Effect of Derivative Investments for the six months ended June 30, 2020

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

	Location of Gain on
	Statement of Operations
	Currency
	Risk
Realized Gain:
Forward foreign currency contracts		$	636,216
Change in Net Unrealized Appreciation:
Forward foreign currency contracts			2,171,520
Total		$	2,807,736

The table below summarizes the average notional value of derivatives held during the period.

	Forward
	Foreign Currency
	Contracts
Average notional value		$	65,725,415

NOTE 5–Trustees’ and Officers’ Fees and Benefits

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

NOTE 6–Cash Balances

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

NOTE 7–Tax Information

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

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

The Fund did not have a capital loss carryforward as of December 31, 2019.

NOTE 8–Investment Transactions

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, 2020 was $314,677,417 and $321,126,111, respectively. Cost of investments, including any derivatives, on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end.

Unrealized Appreciation (Depreciation) of Investments on a Tax Basis
Aggregate unrealized appreciation of investments	$	160,656,568
Aggregate unrealized (depreciation) of investments		(136,802,937	)
Net unrealized appreciation of investments	$	23,853,631

Cost of investments for tax purposes is $1,080,038,790.

NOTE 9–Share Information

	Summary of Share Activity
	Six months ended				Year ended
	June 30, 2020(a)				December 31, 2019
	Shares		Amount		Shares		Amount
Sold:
Series I		640,746	$	8,014,159		531,077	$	9,046,219
Series II		6,334,757		75,105,338		6,503,571		116,600,521

Invesco V.I. Comstock Fund

	Summary of Share Activity
	Six months ended						Year ended
	June 30, 2020(a)						December 31, 2019
	Shares			Amount			Shares			Amount
Issued as reinvestment of dividends:
Series I		-		$	-			1,776,096		$	27,866,941
Series II		-			-			11,100,746			173,615,673
Reacquired:
Series I		(1,003,365	)		(14,201,683	)		(3,961,633	)		(69,401,555	)
Series II		(7,258,598	)		(101,137,263	)		(13,487,073	)		(235,585,974	)
Net increase (decrease) in share activity		(1,286,460	)	$	(32,219,449	)		2,462,784		$	22,141,825

^(a)  There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 66% 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 Fund 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–Coronavirus (COVID-19) Pandemic

During the first quarter of 2020, the World Health Organization declared COVID-19 to be a public health emergency. COVID-19 has led to increased short-term market volatility and may have adverse long-term effects on U.S. and world economies and markets in general. COVID-19 may adversely impact the Fund’s ability to achieve its investment objective. Because of the uncertainties on valuation, the global economy and business operations, values reflected in these financial statements may materially differ from the value received upon actual sales of those investments.

The extent of the impact on the performance of the Fund and its investments will depend on future developments, including the duration and spread of the COVID-19 outbreak, related restrictions and advisories, and the effects on the financial markets and economy overall, all of which are highly uncertain and cannot be predicted.

Invesco 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, 2020 through June 30, 2020.

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.

		ACTUAL		HYPOTHETICAL (5% annual return before expenses)		Annualized     Expense Ratio
	Beginning     Account Value     (01/01/20)	Ending     Account Value     (06/30/20)1	Expenses     Paid During     Period2	Ending     Account Value     (06/30/20)	Expenses     Paid During     Period2
Series I	$1,000.00	$794.30	$3.30	$1,021.18	$3.72	0.74%
Series II	1,000.00	793.40	4.41	1,019.94	4.97	0.99

¹  The actual ending account value is based on the actual total return of the Fund for the period January 1, 2020 through June 30, 2020, 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 182/366 to reflect the most recent fiscal half year.

Invesco V.I. Comstock Fund

Approval of Investment Advisory and Sub-Advisory Contracts

At meetings held on June 3, 2020, the Board of Trustees (the Board or the Trustees) of AIM Variable Insurance Funds (Invesco Variable Insurance Funds) as a whole, and the independent Trustees, who comprise over 75% of the Board, voting separately, approved the continuance of the Invesco V.I. Comstock Fund’s (the Fund) Master Investment Advisory Agreement with Invesco Advisers, Inc. (Invesco Advisers and the investment advisory agreement) and the Master Intergroup Sub-Advisory Contract for Mutual Funds with Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Canada Ltd. and separate sub-advisory contracts with Invesco Capital Management LLC and Invesco Asset Management (India) Private Limited (collectively, the Affiliated Sub-Advisers and the sub-advisory contracts) for another year, effective July 1, 2020. After evaluating the factors discussed below, among others, the Board approved the renewal of the Fund’s investment advisory agreement and the sub-advisory contracts and determined that the compensation payable thereunder by the Fund to Invesco Advisers and by Invesco Advisers to the Affiliated Sub-Advisers is fair and reasonable.

The Board’s Evaluation Process

The Board’s Investments Committee has established Sub-Committees, which meet throughout the year to review the performance of funds advised by Invesco Advisers (the Invesco Funds). The Sub-Committees meet regularly with portfolio managers for their assigned Invesco Funds and other members of management to review detailed information about investment performance and portfolio attributes of these funds. The Board took into account evaluations and reports that it received from the Investments Committee and Sub-Committees, as well as the information provided to such committees and the Board throughout the year, in considering whether to approve each Invesco Fund’s investment advisory agreement and sub-advisory contracts.

As part of the contract renewal process, the Board reviews and considers information provided in response to detailed requests for information submitted to management by the independent Trustees with assistance from legal counsel to the independent Trustees. The Board receives comparative investment performance and fee data regarding the Invesco Funds prepared by Invesco Advisers and Broadridge Financial Solutions, Inc. (Broadridge), an independent mutual fund data provider, as well as information on the composition of the peer groups provided by Broadridge and its methodology for determining peer groups. The Board also receives an independent written evaluation from the Senior Officer, an officer of the Invesco Funds who reports directly to the independent Trustees. 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. In addition to meetings with Invesco Advisers and fund counsel throughout the year, the independent Trustees also

discuss the continuance of the investment advisory agreement and sub-advisory contracts in separate sessions with the Senior Officer and with independent legal counsel.

The discussion below is a summary of 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. The Trustees’ review and conclusions are based on the comprehensive consideration of all information presented to them during the course of the year and in prior years and are not the result of any single determinative factor. Moreover, one Trustee may have weighed a particular piece of information or factor differently than another Trustee. This information is current as of June 3, 2020.

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 nature, extent and quality of the advisory services provided to the Fund by Invesco Advisers under the Fund’s investment advisory agreement, and the credentials and experience of the officers and employees of Invesco Advisers who provide these services, including the Fund’s portfolio manager(s). The Board’s review included consideration of Invesco Advisers’ investment process oversight and structure, credit analysis, investment risk management and research capabilities. The Board also considered non-advisory services that Invesco Advisers and its affiliates provide to the Invesco Funds, such as various back office support functions, third party oversight, internal audit, valuation, portfolio trading and legal and compliance. The Board also received and reviewed information about Invesco Advisers’ role as administrator of the Invesco Funds’ liquidity risk management program. The Board reviewed and considered the benefits to shareholders of investing in a Fund that is part of the Invesco family of funds under the umbrella of Invesco Ltd., Invesco Advisers’ parent company, and noted Invesco Ltd.’s depth and experience in conducting an investment management business, as well as its commitment of financial and other resources to such business. The Board also reviewed and considered information regarding the benefits to the Fund resulting from Invesco Ltd.’s acquisition of OppenheimerFunds, Inc. and its subsidiaries (the Transaction) and the resources that Invesco Advisers has committed to managing the Invesco family of funds following the Transaction. The Board concluded that the nature, extent and quality of the services provided to the Fund by Invesco Advisers are appropriate and satisfactory.

The Board reviewed the services that may be 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 the Affiliated Sub-Advisers’ expertise with respect to certain asset classes and that the Affiliated Sub-Advisers have offices and personnel that are located in financial centers around the world.

As a result, the Board noted that the Affiliated Sub-Advisers can provide research and investment analysis on the markets and economies of various countries in which the Fund may invest, make recommendations regarding securities and assist with security trades. The Board concluded that the sub-advisory contracts may 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 that may be provided by the Affiliated Sub-Advisers are appropriate and satisfactory.

B. Fund Investment Performance

The Board considered Fund investment performance as a relevant factor in considering whether to approve the investment advisory agreement. The Board did not view Fund investment 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 investment performance over multiple time periods ending December 31, 2019 to the performance of funds in the Broadridge performance universe and against the Russell 1000^® Value Index. The Board noted that performance of Series I shares of the Fund was in the fourth quintile of its performance universe for the one, three and five year periods (the first quintile being the best performing funds and the fifth quintile being the worst performing funds). The Board noted that performance of Series I shares of the Fund was reasonably comparable to the performance of the Index for the one year period and below the performance of the Index for the three and five year periods. The Board noted that the Fund’s stock selection in and overweight exposure to certain sectors detracted from Fund performance. The Board recognized that the performance data reflects a snapshot in time as of a particular date and that selecting a different performance period could produce different results. The Board also reviewed more recent Fund performance as well as other performance metrics and this review did not change their conclusions.

C. Advisory and Sub-Advisory Fees and Fund Expenses

The Board compared the Fund’s contractual management fee rate to the contractual management fee rates of funds in the Fund’s Broadridge expense group. The Board noted that the contractual management fee rate for Series I shares of the Fund was below the median contractual management fee rate of funds in its expense group. The Board noted that the term “contractual management fee” for funds in the expense group may include both advisory and certain non-portfolio management administrative services fees, but that Broadridge does not provide information on a fund by fund basis as to what is included. The Board also reviewed the methodology used by Broadridge in providing expense group information, which includes using each fund’s contractual management fee schedule (including any applicable breakpoints) as reported in the most recent prospectus or statement of additional information for each fund in the expense group. The Board also considered comparative information

Invesco V.I. Comstock Fund

regarding the Fund’s total expense ratio and its various components.

The Board noted that Invesco Advisers has contractually agreed to waive fees and/or limit expenses of the Fund for the term disclosed in the Fund’s registration statement 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 fees charged by Invesco Advisers and the Affiliated Sub-Advisers to other similarly managed client accounts. Invesco Advisers reviewed with the Board differences in the scope of services it provides to the Invesco Funds relative to certain other types of client accounts, including, among others: management of cash flows as a result of redemptions and purchases; necessary infrastructure such as officers, office space, technology, legal and distribution; oversight of service providers; costs and business risks associated with launching new funds and sponsoring and maintaining the product line; and compliance with federal and state laws and regulations.

The Board also compared the Fund’s effective advisory fee rate (the advisory fee rate after advisory fee waivers and before other expense limitations/ waivers) to the effective advisory fee rates of other similarly managed third-party mutual funds advised or sub-advised by Invesco Advisers and its affiliates, based on asset balances as of December 31, 2019.

The Board also considered the services that may be provided by the Affiliated Sub-Advisers pursuant to the sub-advisory contracts, as well as the fees payable by Invesco Advisers to the Affiliated Sub-Advisers pursuant to the sub-advisory contracts.

D. Economies of Scale and Breakpoints

The Board considered the extent to which there may be economies of scale in the provision of advisory services to the Fund. The Board also considered that the Fund benefits from economies of scale through contractual breakpoints in the Fund’s advisory fee schedule, which generally operate to reduce the Fund’s expense ratio as it grows in size. The Board 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. The Board noted that the Fund may also benefit from economies of scale through initial fee setting, fee waivers and expense reimbursements. The Board also considered Invesco’s reinvestment in its business, including investments in business infrastructure, technology and cybersecurity.

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 Invesco Funds and the profitability of Invesco Advisers and its affiliates in providing these services in the aggregate and on an individual Fund-by-Fund basis. The Board considered the methodology used for calculating profitability and noted the periodic review and enhancement of such methodology. The Board noted that Invesco Advisers continues to operate at a net profit from services Invesco Advisers and its affiliates provide to the Invesco Funds in the aggregate and to certain Funds on an individual fund level. The Board did not deem the level of profits realized by Invesco Advisers and its affiliates from providing such services to be excessive given the nature, extent and quality of the services provided. The Board received information

from Invesco Advisers demonstrating that Invesco Advisers and the Affiliated Sub-Advisers are financially sound and have the resources necessary to perform their obligations under the investment advisory agreement and sub-advisory contracts.

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 providing administrative, transfer agency and distribution services to the Fund. The Board considered comparative information regarding fees charged for these services, including information provided by Broadridge and other independent sources. 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; and that the services are required for the operation of the Fund.

The Board considered the benefits realized by Invesco Advisers and the Affiliated Sub-Advisers as a result of portfolio brokerage transactions executed through “soft dollar” arrangements. The Board noted that soft dollar arrangements may result in the Fund bearing costs to purchase research that may be used by Invesco Advisers or the Affiliated Sub-Advisers with other clients and may reduce Invesco Advisers’ or the Affiliated Sub-Advisers’ expenses. The Board also considered that it receives periodic reports from Invesco representing that these arrangements are consistent with regulatory requirements. The Board did not deem the soft dollar arrangements to be inappropriate.

The Board considered that the Fund’s uninvested cash and cash collateral from any securities lending arrangements may be invested in registered money market funds or, with regard to securities lending cash collateral, unregistered funds that comply with Rule 2a-7 (collectively referred to as “affiliated money market funds”) advised by Invesco Advisers pursuant to procedures approved by the Board. The Board considered information regarding the returns of the affiliated money market funds relative to comparable overnight investments, as well as the costs to the Fund of such investments. 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 with respect to certain investments in the affiliated money market 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 amount of advisory fees received by Invesco Advisers from the Fund’s investment of cash collateral from any securities lending arrangements in the affiliated money market funds is fair and reasonable.

The Board also considered that an affiliated broker may receive commissions for executing certain trades for the Fund. Invesco Advisers and the Affiliated Sub-Advisers may use the affiliated broker to, among other things, control order routing and minimize information leakage, and the Board was advised that

such trades are executed in compliance with rules under the federal securities laws and consistent with best execution obligations.

Invesco V.I. Comstock Fund

	Semiannual Report to Shareholders	June 30, 2020
	Invesco V.I. Core Equity Fund

Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, the insurance company that offers your variable annuity or variable life insurance contract may no longer send you paper copies of the Fund’s shareholder reports by mail, unless you specifically request paper copies of the reports from the insurance company or your financial intermediary. Instead of delivering paper copies of the report, the insurance company may choose to make the reports available on a website, and will notify you by mail each time a report is posted and provide you with a website link to access the report. Instructions for requesting paper copies will be provided by your insurance company.

If the insurance company offers electronic delivery, you may elect to receive shareholder reports and other communications about the Fund electronically by following the instructions provided by the insurance company or by contacting your financial intermediary. If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action.

You may elect to receive all future reports in paper free of charge from the insurance company. You can inform the insurance company or your financial intermediary that you wish to continue receiving paper copies of your shareholder reports by following the instructions provided by the insurance company or by contacting your financial intermediary. Your election to receive reports in paper will apply to all portfolio companies available under your contract with the insurance company.

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) as an exhibit to its reports on Form N-PORT. The Fund’s Form N-PORT filings are available on the SEC website, 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-PORT, 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 most recent 12-month period ended June 30 is available at invesco.com/proxysearch. The information is also available on the SEC website, sec.gov.

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

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.

NOT FDIC INSURED | MAY LOSE VALUE | NO BANK GUARANTEE

  Invesco Distributors, Inc. VICEQ-SAR-1

Fund Performance

Performance summary
Fund vs. Indexes
Cumulative total returns, 12/31/19 to 6/30/20, excluding variable product issuer charges. If variable product issuer charges were included, returns would be lower.
Series I Shares	-5.69	%
Series II Shares	-5.80
S&P 500 Indexq (Broad Market Index)	-3.08
Russell 1000 Indexq (Style-Specific Index)	-2.81
Lipper VUF Large-Cap Core Funds Index∎ (Peer Group Index)	-4.60
Source(s): qRIMES Technologies Corp.; ∎Lipper Inc.
The S&P 500® Index is an unmanaged index considered representative of the US stock market.
The Russell 1000® Index is an unmanaged index considered representative of large-cap stocks. The Russell 1000 Index is a trademark/service mark of the Frank Russell Co. Russell® is a trademark of the Frank Russell Co.
The Lipper VUF Large-Cap Core Funds Index is an unmanaged index considered representative of large-cap core variable insurance underlying funds tracked by Lipper. The Fund is not managed to track the performance of any particular index, including the index(es) described here, and consequently, the performance of the Fund may deviate significantly from the performance of the index(es).
A direct investment cannot be made in an index. Unless otherwise indicated, index results include reinvested dividends, and they do not reflect sales charges. Performance of the peer group, if applicable, reflects fund expenses; performance of a market index does not.

Average Annual Total Returns
As of 6/30/20
Series I Shares
Inception (5/2/94)	7.73%
10 Years	9.30
5 Years	5.27
1 Year	3.32
Series II Shares
Inception (10/24/01)	6.30%
10 Years	9.03
5 Years	5.02
1 Year	3.08

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 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. Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares. Investment return and principal value will

fluctuate so that you may have a gain or loss when you sell shares.

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 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.

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

Invesco V.I. Core Equity Fund

Liquidity Risk Management Program

The Securities and Exchange Commission has adopted Rule 22e-4 under the Investment Company Act of 1940 (the “Liquidity Rule”) in order to promote effective liquidity risk management throughout the open-end investment company industry, thereby reducing the risk that funds will be unable to meet their redemption obligations and mitigating dilution of the interests of fund shareholders. The Fund has adopted and implemented a liquidity risk management program in accordance with the Liquidity Rule (the “Program”). The Program is reasonably designed to assess and manage the Fund’s liquidity risk, which is the risk that the Fund could not meet redemption requests without significant dilution of remaining investors’ interests in the Fund. The Board of Trustees of the Fund (the “Board”) has appointed Invesco Advisers, Inc. (“Invesco”), the Fund’s investment adviser, as the Program’s administrator, and Invesco has delegated oversight of the Program to the Liquidity Risk Management Committee (the “Committee”), which is composed of senior representatives from relevant business groups at Invesco.

As required by the Liquidity Rule, the Program includes policies and procedures providing for an assessment, no less frequently than annually, of the Fund’s liquidity risk that takes into account, as relevant to the Fund’s liquidity risk: (1) the Fund’s investment strategy and liquidity of portfolio investments during both normal and reasonably foreseeable stressed conditions; (2) short-term and long-term cash flow projections for the Fund during both normal and reasonably foreseeable stressed conditions; and (3) the Fund’s holdings of cash and cash equivalents and any borrowing arrangements. The Liquidity Rule also requires the classification of the Fund’s investments into categories that reflect the assessment of their relative liquidity under current market conditions. The Fund classifies its investments into one of four categories defined in the Liquidity Rule: “Highly Liquid,” “Moderately Liquid,” “Less Liquid” and “Illiquid.” Funds that are not invested primarily in “Highly Liquid Investments” that are assets (cash or investments that are reasonably expected to be convertible into cash within three business days without significantly changing the market value of the investment) are required to establish a “Highly Liquid Investment Minimum” (“HLIM”), which is the minimum percentage of net assets that must be invested in Highly Liquid Investments. Funds with HLIMs have procedures for addressing HLIM shortfalls, including reporting to the Board and the SEC (on a non-public basis) as required by the Program and the Liquidity Rule. In addition, the Fund may not acquire an investment if, immediately after the acquisition, over 15% of the Fund’s net assets would consist of “Illiquid Investments” that are assets (an investment that cannot reasonably be expected to be sold or disposed of in current market conditions in seven calendar days or less without the sale or disposition significantly changing the market value of the investment). The Liquidity Rule and the Program also require reporting to the Board and the SEC (on a non-public basis) if a Fund’s holdings of Illiquid Investments exceed 15% of the Fund’s assets.

At a meeting held on March 30-April 1, 2020, the Committee presented a report to the Board that addressed the operation of the Program and assessed the Program’s adequacy and effectiveness of implementation (the “Report”). The Report covered the period from December 1, 2018 through December 31, 2019 (the “Program Reporting Period”).

The Report stated, in relevant part, that during the Program Reporting Period:

∎ The Program, as adopted and implemented, remained reasonably designed to assess and manage the Fund’s liquidity risk and was operated effectively to achieve that goal;

∎ The Fund’s investment strategy remained appropriate for an open-end fund;

∎ The Fund was able to meet requests for redemption without significant dilution of remaining investors’ interests in the Fund;

∎ The Fund did not breach the 15% limit on Illiquid Investments; and

∎ The Fund primarily held Highly Liquid Investments and therefore has not adopted an HLIM.

Invesco V.I. Core Equity Fund

Schedule of Investments^(a)

June 30, 2020

(Unaudited)

	Shares		Value
Common Stocks & Other Equity Interests–99.86%
Aerospace & Defense–3.19%
Lockheed Martin Corp.		68,229	$	24,898,127
Air Freight & Logistics–1.54%
C.H. Robinson Worldwide, Inc.		57,203		4,522,469
United Parcel Service, Inc., Class B		67,861		7,544,786
				12,067,255
Application Software–0.63%
Adobe, Inc.(b)		11,338		4,935,545
Automobile Manufacturers–0.48%
General Motors Co.		148,604		3,759,681
Automotive Retail–0.67%
O’Reilly Automotive, Inc.(b)		12,310		5,190,758
Biotechnology–1.76%
Amgen, Inc.		21,781		5,137,267
Gilead Sciences, Inc.		63,916		4,917,697
Neurocrine Biosciences, Inc.(b)		30,515		3,722,830
				13,777,794
Commodity Chemicals–0.52%
Valvoline, Inc.		207,968		4,020,021
Communications Equipment–1.23%
Motorola Solutions, Inc.		68,505		9,599,606
Construction Materials–0.19%
Vulcan Materials Co.		12,759		1,478,130
Consumer Finance–1.60%
Capital One Financial Corp.		199,151		12,464,861
Data Processing & Outsourced Services–2.07%
Mastercard, Inc., Class A		54,714		16,178,930
Distillers & Vintners–1.02%
Constellation Brands, Inc., Class A		45,307		7,926,460
Diversified Banks–2.42%
JPMorgan Chase & Co.		201,273		18,931,738
Electric Utilities–1.27%
Duke Energy Corp.		124,148		9,918,184
Environmental & Facilities Services–1.28%
Waste Connections, Inc.		106,411		9,980,288
Financial Exchanges & Data–2.63%
Intercontinental Exchange, Inc.		175,606		16,085,510
Moody’s Corp.		16,218		4,455,571
				20,541,081
Gas Utilities–0.09%
UGI Corp.		22,948		729,746
General Merchandise Stores–0.95%
Target Corp.		61,983		7,433,621

	Shares		Value
Health Care Equipment–1.17%
Zimmer Biomet Holdings, Inc.		76,804	$	9,167,325
Health Care Facilities–1.29%
HCA Healthcare, Inc.(b)		104,015		10,095,696
Health Care Services–0.37%
Laboratory Corp. of America Holdings(b)		17,227		2,861,577
Health Care Supplies–0.53%
Alcon, Inc. (Switzerland)(b)		72,676		4,165,788
Home Improvement Retail–2.41%
Home Depot, Inc. (The)		75,202		18,838,853
Homebuilding–0.61%
D.R. Horton, Inc.		85,918		4,764,153
Household Products–5.16%
Church & Dwight Co., Inc.		105,322		8,141,391
Procter & Gamble Co. (The)		241,602		28,888,351
Reckitt Benckiser Group PLC (United Kingdom)		36,187		3,330,236
				40,359,978
Industrial Conglomerates–1.02%
Honeywell International, Inc.		55,358		8,004,213
Industrial REITs–3.06%
Prologis, Inc.		256,061		23,898,173
Integrated Oil & Gas–1.01%
Suncor Energy, Inc. (Canada)		469,567		7,916,900
Integrated Telecommunication Services–2.39%
Verizon Communications, Inc.		339,119		18,695,630
Interactive Media & Services–6.35%
Alphabet, Inc., Class A(b)		10,746		15,238,365
Facebook, Inc., Class A(b)		113,993		25,884,391
Tencent Holdings Ltd., ADR (China)		133,470		8,542,080
				49,664,836
Internet & Direct Marketing Retail–8.65%
Amazon.com, Inc.(b)		19,980		55,121,224
Booking Holdings, Inc.(b)		7,862		12,518,977
				67,640,201
IT Consulting & Other Services–2.30%
Accenture PLC, Class A		55,635		11,945,947
Amdocs Ltd.		99,571		6,061,883
				18,007,830
Life Sciences Tools & Services–2.15%
Avantor, Inc.(b)		142,088		2,415,496
Thermo Fisher Scientific, Inc.		39,682		14,378,376
				16,793,872
Managed Health Care–4.66%
UnitedHealth Group, Inc.		123,475		36,418,951

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

Invesco V.I. Core Equity Fund

	Shares		Value
Movies & Entertainment–0.53%
Live Nation Entertainment, Inc.(b)		31,534	$	1,397,902
Warner Music Group Corp., Class A(b)		93,481		2,757,690
				4,155,592
Multi-Sector Holdings–2.48%
Berkshire Hathaway, Inc., Class B(b)		108,586		19,383,687
Oil & Gas Refining & Marketing–0.37%
Valero Energy Corp.		49,141		2,890,474
Oil & Gas Storage & Transportation–1.25%
Magellan Midstream Partners L.P.		225,579		9,738,245
Other Diversified Financial Services–1.67%
Equitable Holdings, Inc.		677,586		13,070,634
Packaged Foods & Meats–0.79%
a2 Milk Co. Ltd. (New Zealand)(b)		127,516		1,645,434
Mondelez International, Inc., Class A		88,047		4,501,843
				6,147,277
Pharmaceuticals–5.33%
AstraZeneca PLC, ADR (United Kingdom)		390,183		20,636,779
Merck & Co., Inc.		272,099		21,041,415
				41,678,194
Property & Casualty Insurance–1.80%
Progressive Corp. (The)		175,301		14,043,363
Railroads–1.29%
Union Pacific Corp.		59,781		10,107,174

	Shares		Value
Semiconductor Equipment–2.37%
Applied Materials, Inc.		305,753	$	18,482,769
Semiconductors–3.83%
QUALCOMM, Inc.		181,573		16,561,273
Texas Instruments, Inc.		105,539		13,400,287
				29,961,560
Soft Drinks–0.94%
PepsiCo, Inc.		55,368		7,322,972
Specialty Chemicals–0.63%
Ecolab, Inc.		24,908		4,955,447
Systems Software–9.91%
Microsoft Corp.		380,742		77,484,804
Total Common Stocks & Other Equity Interests (Cost $666,304,355)				780,547,994
Money Market Funds–0.33%
Invesco Government & Agency Portfolio, Institutional Class, 0.09%(c)(d)		1,001,516		1,001,516
Invesco Liquid Assets Portfolio, Institutional Class, 0.39%(c)(d)		476,967		477,301
Invesco Treasury Portfolio, Institutional Class, 0.08%(c)(d)		1,144,589		1,144,589
Total Money Market Funds (Cost $2,622,691)				2,623,406
TOTAL INVESTMENTS IN SECURITIES–100.19% (Cost $668,927,046)				783,171,400
OTHER ASSETS LESS LIABILITIES—(0.19)%				(1,501,731	)
NET ASSETS–100.00%			$	781,669,669

Investment Abbreviations:

ADR – American Depositary Receipt

REIT – Real Estate Investment Trust

Notes to Schedule of Investments:

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

^(b)  Non-income producing security.

^(c)  Affiliated issuer. The issuer and/or the Fund is a wholly-owned subsidiary of Invesco Ltd., or is affiliated by having an investment adviser that is under common control of Invesco Ltd. The table below shows the Fund’s transactions in, and earnings from, its investments in affiliates for the six months ended June 30, 2020.

	Value December 31, 2019		Purchases at Cost		Proceeds from Sales			Change in Unrealized Appreciation		Realized Gain		Value June 30, 2020		Dividend Income
Investments in Affiliated Money Market Funds:
Invesco Government & Agency Portfolio, Institutional Class	$	7,673,323	$	27,937,611	$	(34,609,418	)	$	-	$	-	$	1,001,516	$	14,178
Invesco Liquid Assets Portfolio, Institutional Class		5,580,713		19,955,436		(25,062,472	)		715		2,909		477,301		15,104
Invesco Treasury Portfolio, Institutional Class		8,769,511		31,928,698		(39,553,620	)		-		-		1,144,589		14,965
Total	$	22,023,547	$	79,821,745	$	(99,225,510	)	$	715	$	2,909	$	2,623,406	$	44,247

^(d)  The rate shown is the 7-day SEC standardized yield as of June 30, 2020.

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, 2020

Information Technology	22.35	%
Health Care	17.26
Consumer Discretionary	13.77
Financials	12.59
Communication Services	9.28
Industrials	8.32
Consumer Staples	7.90
Real Estate	3.06
Energy	2.63
Other Sectors, Each Less than 2% of Net Assets	2.70
Money Market Funds Plus Other Assets Less Liabilities	0.14

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, 2020

(Unaudited)

Assets:
Investments in securities, at value (Cost $666,304,355)	$	780,547,994
Investments in affiliated money market funds, at value (Cost $2,622,691)		2,623,406
Foreign currencies, at value (Cost $1,361)		1,435
Receivable for:
Investments sold		1,339,003
Fund shares sold		18,793
Dividends		469,215
Investment for trustee deferred compensation and retirement plans		401,571
Total assets		785,401,417
Liabilities:
Payable for:
Investments purchased		2,366,632
Fund shares reacquired		668,096
Accrued fees to affiliates		219,646
Accrued trustees’ and officers’ fees and benefits		3,137
Accrued other operating expenses		37,283
Trustee deferred compensation and retirement plans		436,954
Total liabilities		3,731,748
Net assets applicable to shares outstanding	$	781,669,669
Net assets consist of:
Shares of beneficial interest	$	502,441,757
Distributable earnings		279,227,912
	$	781,669,669
Net Assets:
Series I	$	762,222,392
Series II	$	19,447,277
Shares outstanding, no par value, with an unlimited number of shares authorized:
Series I		23,122,952
Series II		593,143
Series I:
Net asset value per share	$	32.96
Series II:
Net asset value per share	$	32.79

Statement of Operations

For the six months ended June 30, 2020

(Unaudited)

Investment income:
Dividends (net of foreign withholding taxes of $48,630)	$	7,382,966
Dividends from affiliated money market funds		44,247
Total investment income		7,427,213
Expenses:
Advisory fees		2,414,147
Administrative services fees		626,178
Custodian fees		2,593
Distribution fees - Series II		25,192
Transfer agent fees		28,392
Trustees’ and officers’ fees and benefits		10,941
Reports to shareholders		1,377
Professional services fees		13,552
Other		515
Total expenses		3,122,887
Less: Fees waived		(7,069	)
Net expenses		3,115,818
Net investment income		4,311,395
Realized and unrealized gain (loss) from:
Net realized gain (loss) from:
Investment securities (includes net gains from securities sold to affiliates of $2,716,347)		(5,984,272	)
Foreign currencies		(29,802	)
		(6,014,074	)
Change in net unrealized appreciation (depreciation) of: Investment securities		(47,032,411	)
Foreign currencies		266
		(47,032,145	)
Net realized and unrealized gain (loss)		(53,046,219	)
Net increase (decrease) in net assets resulting from operations	$	(48,734,824	)

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, 2020 and the year ended December 31, 2019

(Unaudited)

	June 30, 2020			December 31, 2019
Operations:
Net investment income	$	4,311,395		$	9,700,451
Net realized gain (loss)		(6,014,074	)		165,048,967
Change in net unrealized appreciation (depreciation)		(47,032,145	)		53,502,474
Net increase (decrease) in net assets resulting from operations		(48,734,824	)		228,251,892
Distributions to shareholders from distributable earnings:
Series I		-			(102,597,293	)
Series II		-			(2,536,276	)
Total distributions from distributable earnings		-			(105,133,569	)
Share transactions–net:
Series I		(46,148,802	)		(123,248,676	)
Series II		(1,842,599	)		(504,539	)
Net increase (decrease) in net assets resulting from share transactions		(47,991,401	)		(123,753,215	)
Net increase (decrease) in net assets		(96,726,225	)		(634,892	)
Net assets:
Beginning of period		878,395,894			879,030,786
End of period	$	781,669,669		$	878,395,894

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

Invesco V.I. Core Equity Fund

Financial Highlights

(Unaudited)

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

	Net asset value, beginning of period		Net investment income(a)		Net gains (losses) on securities (both realized and unrealized)			Total from investment operations			Dividends from net investment income			Distributions from net realized gains			Total distributions			Net asset value, end of period		Total return (b)			Net assets, end of period (000’s omitted)		Ratio of expenses to average net assets with fee waivers and/or expenses absorbed			Ratio of expenses to average net assets without fee waivers and/or expenses absorbed			Ratio of net investment income to average net assets			Portfolio turnover (c)
Series I
Six months ended 06/30/20		$34.95		$0.18		$(2.17	)		$(1.99	)		$ -			$ -			$ -			$32.96		(5.69	)%		$ 762,222		0.79	%(d)		0.79	%(d)		1.10	%(d)		27	%
Year ended 12/31/19		30.94		0.38		8.22			8.60			(0.35	)		(4.24	)		(4.59	)		34.95		28.97			855,744		0.78			0.78			1.08			82
Year ended 12/31/18		36.72		0.25		(3.29	)		(3.04	)		(0.34	)		(2.40	)		(2.74	)		30.94		(9.40	)		858,828		0.79			0.80			0.70			46
Year ended 12/31/17		34.58		0.27		4.21			4.48			(0.39	)		(1.95	)		(2.34	)		36.72		13.17			1,054,802		0.79			0.80			0.74			30
Year ended 12/31/16		33.84		0.39		3.07			3.46			(0.28	)		(2.44	)		(2.72	)		34.58		10.26			1,033,700		0.84			0.85			1.11			38
Year ended 12/31/15		41.00		0.32		(2.79	)		(2.47	)		(0.46	)		(4.23	)		(4.69	)		33.84		(5.75	)		921,516		0.89			0.90			0.81			45
Series II
Six months ended 06/30/20		34.81		0.14		(2.16	)		(2.02	)		-			-			-			32.79		(5.80	)		19,447		1.04	(d)		1.04	(d)		0.85	(d)		27
Year ended 12/31/19		30.66		0.29		8.16			8.45			(0.06	)		(4.24	)		(4.30	)		34.81		28.66			22,652		1.03			1.03			0.83			82
Year ended 12/31/18		36.18		0.16		(3.28	)		(3.12	)		-			(2.40	)		(2.40	)		30.66		(9.61	)		20,203		1.04			1.05			0.45			46
Year ended 12/31/17		34.11		0.18		4.14			4.32			(0.30	)		(1.95	)		(2.25	)		36.18		12.87			189,982		1.04			1.05			0.49			30
Year ended 12/31/16		33.40		0.30		3.03			3.33			(0.18	)		(2.44	)		(2.62	)		34.11		10.02			179,596		1.09			1.10			0.86			38
Year ended 12/31/15		40.53		0.22		(2.75	)		(2.53	)		(0.37	)		(4.23	)		(4.60	)		33.40		(5.98	)		178,126		1.14			1.15			0.56			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 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 $768,044 and $20,260 for Series I and Series II shares, respectively.

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

Invesco V.I. Core Equity Fund

Notes to Financial Statements

June 30, 2020

(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. Information presented in these financial statements pertains only to the Fund. Matters affecting the Fund or each class will be voted on exclusively by the shareholders of the Fund or each class. 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 Fund is an investment company and accordingly follows the investment company accounting and reporting guidance in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 946, Financial Services – Investment Companies.

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

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

A security listed or traded on an exchange (except convertible securities) is valued at its last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded, or lacking any sales or official closing price on a particular day, the security may be valued at the closing bid price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued by an independent pricing service they may be considered fair valued. Futures contracts are valued at the final settlement price set by an exchange on which they are principally traded. Listed options are valued at the mean between the last bid and asked 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 asked prices. For purposes of determining net asset value (“NAV”) per share, futures and option contracts generally are valued 15 minutes after the close of the customary trading session of the New York Stock Exchange (“NYSE”).

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

Debt obligations (including convertible securities) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. Pricing services generally value debt obligations assuming orderly transactions of institutional round lot size, but a fund may hold or transact in the same securities in smaller, odd lot sizes. Odd lots often trade at lower prices than institutional round lots. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.

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

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

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

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

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

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

Invesco V.I. Core Equity Fund

returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and the Statement of Changes in Net Assets, or the net investment income per share and the ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.

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

C. Country Determination – For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues 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 net investment income and net realized capital gain, if any, are generally declared and paid to separate accounts of participating insurance companies annually and recorded on the ex-dividend date.

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

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

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

F. Expenses – Fees provided for under the Rule 12b-1 plan of a particular class of the Fund and which are directly attributable to that class are charged to the operations of such class. All other expenses are allocated among the classes based on relative net assets.

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

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

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

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

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

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

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

NOTE 2–Advisory Fees and Other Fees Paid to Affiliates

The Trust has entered into a master investment advisory agreement with Invesco Advisers, Inc. (the “Adviser” or “Invesco”). Under the terms of the investment advisory agreement, the Fund accrues daily and pays monthly an 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		0.650	%
Over $250 million		0.600	%

Invesco V.I. Core Equity Fund

For the six months ended June 30, 2020, the effective advisory fee rate incurred by the Fund was 0.62%.

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

The Adviser has contractually agreed, through at least June 30, 2021, 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 2.00% and Series II shares to 2.25% of average daily net assets (the “expense limits”). In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause the total annual fund operating expenses after fee waiver and/or expense reimbursement to exceed the numbers reflected above: (1) interest; (2) taxes; (3) dividend expense on short sales; (4) extraordinary or non-routine items, including litigation expenses; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Unless Invesco continues the fee waiver agreement, it will terminate on June 30, 2021. During its term, the fee waiver agreement cannot be terminated or amended to increase the expense limits or reduce the advisory fee waiver without approval of the Board of Trustees. The Adviser did not waive fees and/or reimburse expenses during the period under these expense limits.

Further, the Adviser has contractually agreed, through at least June 30, 2022, 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, 2020, the Adviser waived advisory fees of $7,069.

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 fees paid to insurance companies that have agreed to provide certain administrative services to the Fund. These administrative services provided by the insurance companies may include, among other things: maintenance of master accounts with the Fund; tracking, recording and transmitting net purchase and redemption orders for Fund shares; maintaining and preserving records related to the purchase, redemption and other account activity of variable product owners; distributing copies of Fund documents such as prospectuses, proxy materials and periodic reports, to variable product owners, and responding to inquiries from variable product owners about the Fund. Pursuant to such agreement, for the six months ended June 30, 2020, Invesco was paid $63,816 for accounting and fund administrative services and was reimbursed $562,362 for fees paid to insurance companies. Invesco has entered into a sub-administration agreement whereby State Street Bank and Trust Company (“SSB”) serves as fund accountant and provides certain administrative services to the Fund. Pursuant to a custody agreement with the Trust on behalf of the Fund, SSB also serves as the Fund’s custodian.

The Trust has entered into a transfer agency and service agreement with Invesco Investment Services, Inc. (“IIS”) pursuant to which the Fund has agreed to pay IIS a fee for providing transfer agency and shareholder services to the Fund and reimburse IIS for certain expenses incurred by IIS in the course of providing such services. For the six months ended June 30, 2020, 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. The fees are accrued daily and paid monthly. 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, 2020, 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, 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, 2020. The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

	Level 1		Level 2		Level 3		Total
Investments in Securities
Common Stocks & Other Equity Interests	$	775,572,324	$	4,975,670		$-	$	780,547,994
Money Market Funds		2,623,406		-		-		2,623,406
Total Investments	$	778,195,730	$	4,975,670		$-	$	783,171,400

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, 2020, the Fund engaged in securities sales of $10,129,752, which resulted in net realized gains of $2,716,347.

Invesco V.I. Core Equity Fund

NOTE 5–Trustees’ and Officers’ Fees and Benefits

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

NOTE 6–Cash Balances

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

NOTE 7–Tax Information

The amount and character of income and gains to be distributed are determined in accordance with income tax regulations, which may differ from GAAP.

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

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

The Fund did not have a capital loss carryforward as of December 31, 2019.

NOTE 8–Investment Transactions

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, 2020 was $207,842,196 and $238,865,752, respectively. Cost of investments, including any derivatives, on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end.

Unrealized Appreciation (Depreciation) of Investments on a Tax Basis
Aggregate unrealized appreciation of investments	$	148,392,869
Aggregate unrealized (depreciation) of investments		(37,444,985	)
Net unrealized appreciation of investments	$	110,947,884

Cost of investments for tax purposes is $672,223,516.

NOTE 9–Share Information

	Summary of Share Activity
	Six months ended						Year ended
	June 30, 2020(a)						December 31, 2019
	Shares			Amount			Shares			Amount
Sold:
Series I		540,443		$	15,537,570			435,385		$	14,832,571
Series II		27,794			852,447			38,664			1,330,035
Issued as reinvestment of dividends:
Series I		-			-			3,165,606			102,597,293
Series II		-			-			78,522			2,536,276
Reacquired:
Series I		(1,901,217	)		(61,686,372	)		(6,876,372	)		(240,678,540	)
Series II		(85,416	)		(2,695,046	)		(125,341	)		(4,370,850	)
Net increase (decrease) in share activity		(1,418,396	)	$	(47,991,401	)		(3,283,536	)	$	(123,753,215	)

^(a)  There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 56% of the outstanding shares of the Fund. The Fund and the Fund’s principal underwriter or adviser, are parties to participation agreements with these entities whereby these entities sell units of interest in separate accounts funding variable products that are invested in the Fund. The Fund, Invesco and/or Invesco affiliates may make payments to these entities, which are considered to be related to the Fund, for providing services to the Fund, Invesco and/or Invesco affiliates including but not limited to services such as, securities brokerage, third party record keeping and account servicing and administrative services. The Fund 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–Coronavirus (COVID-19) Pandemic

During the first quarter of 2020, the World Health Organization declared COVID-19 to be a public health emergency. COVID-19 has led to increased short-term market volatility and may have adverse long-term effects on U.S. and world economies and markets in general. COVID-19 may adversely impact the Fund’s ability to achieve its investment objective. Because of the uncertainties on valuation, the global economy and business operations, values reflected in these financial statements may materially differ from the value received upon actual sales of those investments.

Invesco V.I. Core Equity Fund

The extent of the impact on the performance of the Fund and its investments will depend on future developments, including the duration and spread of the COVID-19 outbreak, related restrictions and advisories, and the effects on the financial markets and economy overall, all of which are highly uncertain and cannot be predicted.

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, 2020 through June 30, 2020.

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.

		ACTUAL		HYPOTHETICAL (5% annual return before expenses)		Annualized     Expense Ratio
	Beginning     Account Value     (01/01/20)	Ending     Account Value     (06/30/20)1	Expenses     Paid During     Period2	Ending     Account Value     (06/30/20)	Expenses     Paid During     Period2
Series I	$1,000.00	$943.10	$3.82	$1,020.93	$3.97	0.79%
Series II	1,000.00	942.00	5.02	1,019.69	5.22	1.04

¹  The actual ending account value is based on the actual total return of the Fund for the period January 1, 2020 through June 30, 2020, 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 182/366 to reflect the most recent fiscal half year.

Invesco V.I. Core Equity Fund

Approval of Investment Advisory and Sub-Advisory Contracts

At meetings held on June 3, 2020, the Board of Trustees (the Board or the Trustees) of AIM Variable Insurance Funds (Invesco Variable Insurance Funds) as a whole, and the independent Trustees, who comprise over 75% of the Board, voting separately, approved the continuance of the Invesco V.I. Core Equity Fund’s (the Fund) Master Investment Advisory Agreement with Invesco Advisers, Inc. (Invesco Advisers and the investment advisory agreement) and the Master Intergroup Sub-Advisory Contract for Mutual Funds with Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Canada Ltd. and separate sub-advisory contracts with Invesco Capital Management LLC and Invesco Asset Management (India) Private Limited (collectively, the Affiliated Sub-Advisers and the sub-advisory contracts) for another year, effective July 1, 2020. After evaluating the factors discussed below, among others, the Board approved the renewal of the Fund’s investment advisory agreement and the sub-advisory contracts and determined that the compensation payable thereunder by the Fund to Invesco Advisers and by Invesco Advisers to the Affiliated Sub-Advisers is fair and reasonable.

The Board’s Evaluation Process

The Board’s Investments Committee has established Sub-Committees, which meet throughout the year to review the performance of funds advised by Invesco Advisers (the Invesco Funds). The Sub-Committees meet regularly with portfolio managers for their assigned Invesco Funds and other members of management to review detailed information about investment performance and portfolio attributes of these funds. The Board took into account evaluations and reports that it received from the Investments Committee and Sub-Committees, as well as the information provided to such committees and the Board throughout the year, in considering whether to approve each Invesco Fund’s investment advisory agreement and sub-advisory contracts.

As part of the contract renewal process, the Board reviews and considers information provided in response to detailed requests for information submitted to management by the independent Trustees with assistance from legal counsel to the independent Trustees. The Board receives comparative investment performance and fee data regarding the Invesco Funds prepared by Invesco Advisers and Broadridge Financial Solutions, Inc. (Broadridge), an independent mutual fund data provider, as well as information on the composition of the peer groups provided by Broadridge and its methodology for determining peer groups. The Board also receives an independent written evaluation from the Senior Officer, an officer of the Invesco Funds who reports directly to the independent Trustees. 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. In addition to meetings with Invesco Advisers and fund counsel throughout the year, the independent Trustees also

discuss the continuance of the investment advisory agreement and sub-advisory contracts in separate sessions with the Senior Officer and with independent legal counsel.

The discussion below is a summary of 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. The Trustees’ review and conclusions are based on the comprehensive consideration of all information presented to them during the course of the year and in prior years and are not the result of any single determinative factor. Moreover, one Trustee may have weighed a particular piece of information or factor differently than another Trustee. This information is current as of June 3, 2020.

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 nature, extent and quality of the advisory services provided to the Fund by Invesco Advisers under the Fund’s investment advisory agreement, and the credentials and experience of the officers and employees of Invesco Advisers who provide these services, including the Fund’s portfolio manager(s). The Board’s review included consideration of Invesco Advisers’ investment process oversight and structure, credit analysis, investment risk management and research capabilities. The Board also considered non-advisory services that Invesco Advisers and its affiliates provide to the Invesco Funds, such as various back office support functions, third party oversight, internal audit, valuation, portfolio trading and legal and compliance. The Board also received and reviewed information about Invesco Advisers’ role as administrator of the Invesco Funds’ liquidity risk management program. The Board reviewed and considered the benefits to shareholders of investing in a Fund that is part of the Invesco family of funds under the umbrella of Invesco Ltd., Invesco Advisers’ parent company, and noted Invesco Ltd.’s depth and experience in conducting an investment management business, as well as its commitment of financial and other resources to such business. The Board also reviewed and considered information regarding the benefits to the Fund resulting from Invesco Ltd.’s acquisition of OppenheimerFunds, Inc. and its subsidiaries (the Transaction) and the resources that Invesco Advisers has committed to managing the Invesco family of funds following the Transaction. The Board concluded that the nature, extent and quality of the services provided to the Fund by Invesco Advisers are appropriate and satisfactory.

The Board reviewed the services that may be 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 the Affiliated Sub-Advisers’ expertise with respect to certain asset classes and that the Affiliated Sub-Advisers have offices and personnel that are located in financial centers around the world.

As a result, the Board noted that the Affiliated Sub-Advisers can provide research and investment analysis on the markets and economies of various countries in which the Fund may invest, make recommendations regarding securities and assist with security trades. The Board concluded that the sub-advisory contracts may 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 that may be provided by the Affiliated Sub-Advisers are appropriate and satisfactory.

B. Fund Investment Performance

The Board considered Fund investment performance as a relevant factor in considering whether to approve the investment advisory agreement. The Board did not view Fund investment 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 investment performance over multiple time periods ending December 31, 2019 to the performance of funds in the Broadridge performance universe and against the Russell 1000® Index. The Board noted that performance of Series I shares of the Fund was in the fourth quintile of its performance universe for the one year period and the fifth quintile for the three and five year periods (the first quintile being the best performing funds and the fifth quintile being the worst performing funds). The Board noted that 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 Fund’s underweight exposure to and stock selection in certain sectors, as well as a small allocation to cash in a rising market, detracted from Fund performance. The Board further noted that the Fund underwent a portfolio management team change in June 2019, and that performance results prior to such date were those of the prior portfolio management team. The Board recognized that the performance data reflects a snapshot in time as of a particular date and that selecting a different performance period could produce different results. The Board also reviewed more recent Fund performance as well as other performance metrics and this review did not change their conclusions.

C. Advisory and Sub-Advisory Fees and Fund Expenses

The Board compared the Fund’s contractual management fee rate to the contractual management fee rates of funds in the Fund’s Broadridge expense group. The Board noted that the contractual management fee rate for Series I shares of the Fund was below the median contractual management fee rate of funds in its expense group. The Board noted that the term “contractual management fee” for funds in the expense group may include both advisory and certain non-portfolio management administrative services fees, but that Broadridge does not provide information on a fund by fund basis as to what is included. The Board also reviewed the methodology used by Broadridge in providing expense group information, which includes using each fund’s contractual management fee schedule (including any applicable breakpoints) as reported in the most

Invesco V.I. Core Equity Fund

recent prospectus or statement of additional information for each fund in the expense group. The Board also considered comparative information regarding the Fund’s total expense ratio and its various components.

The Board noted that Invesco Advisers has contractually agreed to waive fees and/or limit expenses of the Fund for the term disclosed in the Fund’s registration statement 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 fees charged by Invesco Advisers and the Affiliated Sub-Advisers to other similarly managed client accounts. Invesco Advisers reviewed with the Board differences in the scope of services it provides to the Invesco Funds relative to certain other types of client accounts, including, among others: management of cash flows as a result of redemptions and purchases; necessary infrastructure such as officers, office space, technology, legal and distribution; oversight of service providers; costs and business risks associated with launching new funds and sponsoring and maintaining the product line; and compliance with federal and state laws and regulations.

The Board also compared the Fund’s effective advisory fee rate (the advisory fee rate after advisory fee waivers and before other expense limitations/waivers) to the effective advisory fee rates of other similarly managed third-party mutual funds advised or sub-advised by Invesco Advisers and its affiliates, based on asset balances as of December 31, 2019.

The Board also considered the services that may be provided by the Affiliated Sub-Advisers pursuant to the sub-advisory contracts, as well as the fees payable by Invesco Advisers to the Affiliated Sub-Advisers pursuant to the sub-advisory contracts.

D. Economies of Scale and Breakpoints

The Board considered the extent to which there may be economies of scale in the provision of advisory services to the Fund. The Board also considered that the Fund benefits from economies of scale through contractual breakpoints in the Fund’s advisory fee schedule, which generally operate to reduce the Fund’s expense ratio as it grows in size. The Board 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. The Board noted that the Fund may also benefit from economies of scale through initial fee setting, fee waivers and expense reimbursements. The Board also considered Invesco’s reinvestment in its business, including investments in business infrastructure, technology and cybersecurity.

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 Invesco Funds and the profitability of Invesco Advisers and its affiliates in providing these services in the aggregate and on an individual Fund-by-Fund basis. The Board considered the methodology used for calculating profitability and noted the periodic review and enhancement of such methodology. The Board noted that Invesco Advisers continues to operate at a net profit from services Invesco Advisers and its affiliates provide to the Invesco Funds in the aggregate and to certain Funds on an individual fund level. The Board did not deem the level of profits realized by Invesco Advisers and

its affiliates from providing such services to be excessive given the nature, extent and quality of the services provided. The Board received information from Invesco Advisers demonstrating that Invesco Advisers and the Affiliated Sub-Advisers are financially sound and have the resources necessary to perform their obligations under the investment advisory agreement and sub-advisory contracts.

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 providing administrative, transfer agency and distribution services to the Fund. The Board considered comparative information regarding fees charged for these services, including information provided by Broadridge and other independent sources. 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; and that the services are required for the operation of the Fund.

The Board considered the benefits realized by Invesco Advisers and the Affiliated Sub-Advisers as a result of portfolio brokerage transactions executed through “soft dollar” arrangements. The Board noted that soft dollar arrangements may result in the Fund bearing costs to purchase research that may be used by Invesco Advisers or the Affiliated Sub-Advisers with other clients and may reduce Invesco Advisers’ or the Affiliated Sub-Advisers’ expenses. The Board also considered that it receives periodic reports from Invesco representing that these arrangements are consistent with regulatory requirements. The Board did not deem the soft dollar arrangements to be inappropriate.

The Board considered that the Fund’s uninvested cash and cash collateral from any securities lending arrangements may be invested in registered money market funds or, with regard to securities lending cash collateral, unregistered funds that comply with Rule 2a-7 (collectively referred to as “affiliated money market funds”) advised by Invesco Advisers pursuant to procedures approved by the Board. The Board considered information regarding the returns of the affiliated money market funds relative to comparable overnight investments, as well as the costs to the Fund of such investments. 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 with respect to certain investments in the affiliated money market 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 amount of advisory fees received by Invesco Advisers from the Fund’s investment of cash collateral from any securities lending arrangements in the affiliated money market funds is fair and reasonable.

The Board also considered that an affiliated broker may receive commissions for executing certain trades for the Fund. Invesco Advisers and the Affiliated

Sub-Advisers may use the affiliated broker to, among other things, control order routing and minimize information leakage, and the Board was advised that such trades are executed in compliance with rules under the federal securities laws and consistent with best execution obligations.

Invesco V.I. Core Equity Fund

	Semiannual Report to Shareholders	June 30, 2020
	Invesco V.I. Core Plus Bond Fund

Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, the insurance company that offers your variable annuity or variable life insurance contract may no longer send you paper copies of the Fund’s shareholder reports by mail, unless you specifically request paper copies of the reports from the insurance company or your financial intermediary. Instead of delivering paper copies of the report, the insurance company may choose to make the reports available on a website, and will notify you by mail each time a report is posted and provide you with a website link to access the report. Instructions for requesting paper copies will be provided by your insurance company.

If the insurance company offers electronic delivery, you may elect to receive shareholder reports and other communications about the Fund electronically by following the instructions provided by the insurance company or by contacting your financial intermediary. If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action.

You may elect to receive all future reports in paper free of charge from the insurance company. You can inform the insurance company or your financial intermediary that you wish to continue receiving paper copies of your shareholder reports by following the instructions provided by the insurance company or by contacting your financial intermediary. Your election to receive reports in paper will apply to all portfolio companies available under your contract with the insurance company.

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) as an exhibit to its reports on Form N-PORT. The Fund’s Form N-PORT filings are available on the SEC website, 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-PORT, 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 most recent 12-month period ended June 30 is available at invesco.com/proxysearch. The information is also available on the SEC website, sec.gov.

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

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.

NOT FDIC INSURED | MAY LOSE VALUE | NO BANK GUARANTEE

Invesco Distributors, Inc. VICPB-SAR-1                                

Fund Performance

Performance summary
Fund vs. Indexes
Cumulative total returns, 12/31/19 to 6/30/20, excluding variable product issuer charges. If variable product issuer charges were included, returns would be lower.
Series I Shares	5.72%
Series II Shares	5.43
Bloomberg Barclays U.S. Aggregate Bond Indexq (Broad Market/Style-  Specific Index)	6.14
Lipper VUF Core Plus Bond Funds Index∎ (Peer Group Index)	5.12
Source(s): qRIMES Technologies Corp.; ∎Lipper Inc.
The Bloomberg Barclays U.S. Aggregate Bond Index is an unmanaged index   considered representative of the US investment grade, fixed-rate bond market. The Lipper VUF Core Plus Bond Funds Index is an unmanaged index considered representative of core plus bond variable insurance underlying funds tracked by Lipper. The Fund is not managed to track the performance of any particular index, including the index(es) described here, and consequently, the performance of the Fund may deviate significantly from the performance of the index(es). A direct investment cannot be made in an index. Unless otherwise indicated, index results include reinvested dividends, and they do not reflect sales charges. Performance of the peer group, if applicable, reflects fund expenses; performance of a market index does not.

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 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. Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares. Investment return and principal value will

fluctuate so that you may have a gain or loss when you sell shares.

Invesco V.I. Core Plus Bond 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.

Average Annual Total Returns
As of 6/30/20
Series I Shares
Inception (5/5/93)	4.56	%
10 Years	5.64
5 Years	5.21
1 Year	8.89
Series II Shares
Inception (3/14/02)	4.22	%
10 Years	5.36
5 Years	4.94
1 Year	8.65

The most recent month-end performance 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.

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

Invesco V.I. Core Plus Bond Fund

Liquidity Risk Management Program

The Securities and Exchange Commission has adopted Rule 22e-4 under the Investment Company Act of 1940 (the “Liquidity Rule”) in order to promote effective liquidity risk management throughout the open-end investment company industry, thereby reducing the risk that funds will be unable to meet their redemption obligations and mitigating dilution of the interests of fund shareholders. The Fund has adopted and implemented a liquidity risk management program in accordance with the Liquidity Rule (the “Program”). The Program is reasonably designed to assess and manage the Fund’s liquidity risk, which is the risk that the Fund could not meet redemption requests without significant dilution of remaining investors’ interests in the Fund. The Board of Trustees of the Fund (the “Board”) has appointed Invesco Advisers, Inc. (“Invesco”), the Fund’s investment adviser, as the Program’s administrator, and Invesco has delegated oversight of the Program to the Liquidity Risk Management Committee (the “Committee”), which is composed of senior representatives from relevant business groups at Invesco.

As required by the Liquidity Rule, the Program includes policies and procedures providing for an assessment, no less frequently than annually, of the Fund’s liquidity risk that takes into account, as relevant to the Fund’s liquidity risk: (1) the Fund’s investment strategy and liquidity of portfolio investments during both normal and reasonably foreseeable stressed conditions; (2) short-term and long-term cash flow projections for the Fund during both normal and reasonably foreseeable stressed conditions; and (3) the Fund’s holdings of cash and cash equivalents and any borrowing arrangements. The Liquidity Rule also requires the classification of the Fund’s investments into categories that reflect the assessment of their relative liquidity under current market conditions. The Fund classifies its investments into one of four categories defined in the Liquidity Rule: “Highly Liquid,” “Moderately Liquid,” “Less Liquid” and “Illiquid.” Funds that are not invested primarily in “Highly Liquid Investments” that are assets (cash or investments that are reasonably expected to be convertible into cash within three business days without significantly changing the market value of the investment) are required to establish a “Highly Liquid Investment Minimum” (“HLIM”), which is the minimum percentage of net assets that must be invested in Highly Liquid Investments. Funds with HLIMs have procedures for addressing HLIM shortfalls, including reporting to the Board and the SEC (on a non-public basis) as required by the Program and the Liquidity Rule. In addition, the Fund may not acquire an investment if, immediately after the acquisition, over 15% of the Fund’s net assets would consist of “Illiquid Investments” that are assets (an investment that cannot reasonably be expected to be sold or disposed of in current market conditions in seven calendar days or less without the sale or disposition significantly changing the market value of the investment). The Liquidity Rule and the Program also require reporting to the Board and the SEC (on a non-public basis) if a Fund’s holdings of Illiquid Investments exceed 15% of the Fund’s assets.

At a meeting held on March 30-April 1, 2020, the Committee presented a report to the Board that addressed the operation of the Program and assessed the Program’s adequacy and effectiveness of implementation (the “Report”). The Report covered the period from December 1, 2018 through December 31, 2019 (the “Program Reporting Period”).

The Report stated, in relevant part, that during the Program Reporting Period:

∎ The Program, as adopted and implemented, remained reasonably designed to assess and manage the Fund’s liquidity risk and was operated effectively to achieve that goal;

∎ The Fund’s investment strategy remained appropriate for an open-end fund;

∎ The Fund was able to meet requests for redemption without significant dilution of remaining investors’ interests in the Fund;

∎ The Fund did not breach the 15% limit on Illiquid Investments; and

∎ The Fund primarily held Highly Liquid Investments and therefore has not adopted an HLIM.

Invesco V.I. Core Plus Bond Fund

Schedule of Investments^(a)

June 30, 2020

(Unaudited)

	Principal Amount		Value
U.S. Dollar Denominated Bonds & Notes–49.61%
Advertising–0.46%
Interpublic Group of Cos., Inc. (The), 4.75%, 03/30/2030	$	65,000		$  76,775
Lamar Media Corp., 3.75%, 02/15/2028(b)		51,000		48,242
4.00%, 02/15/2030(b)		17,000		16,315
				141,332
Airlines–1.15%
American Airlines Pass Through Trust, Series 2017-1, Class B, 4.95%, 02/15/2025		26,703		20,238
Series 2017-2, Class B, 3.70%, 10/15/2025		28,720		19,985
Series 2016-1, Class AA, 3.58%, 01/15/2028		26,660		25,872
British Airways Pass Through Trust (United Kingdom), Series 2019-1, Class A, 3.35%, 06/15/2029(b)		25,892		21,460
Delta Air Lines Pass Through Trust, Series 2019-1, Class A, 3.40%, 04/25/2024		10,000		8,864
Series 2020-1, Class AA, 2.00%, 06/10/2028		65,000		62,217
Delta Air Lines, Inc., 3.80%, 04/19/2023		24,000		21,377
7.38%, 01/15/2026		37,000		35,834
Southwest Airlines Co., 2.63%, 02/10/2030		38,000		34,180
United Airlines Pass Through Trust, Series 2014-2, Class B, 4.63%, 09/03/2022		29,044		25,636
Series 2019-2, Class B, 3.50%, 05/01/2028		36,000		27,609
Series 2018-1, Class AA, 3.50%, 03/01/2030		54,116		50,867
				354,139
Apparel Retail–0.58%
Ross Stores, Inc., 4.60%, 04/15/2025		63,000		72,435
4.70%, 04/15/2027		49,000		56,947
5.45%, 04/15/2050		37,000		48,329
				177,711
Asset Management & Custody Banks–1.12%
Ameriprise Financial, Inc., 3.00%, 04/02/2025		50,000		54,365
Apollo Management Holdings L.P., 2.65%, 06/05/2030(b)		71,000		70,696
4.95%, 01/14/2050(b)		90,000		80,986
Bank of New York Mellon Corp. (The), Series G, 4.70%(c)		58,000		60,465
Carlyle Holdings II Finance LLC, 5.63%, 03/30/2043(b)		64,000		76,830
				343,342

	Principal Amount		Value
Auto Parts & Equipment–0.12%
Magna International, Inc. (Canada), 2.45%, 06/15/2030		$  36,000		$  36,892
Automobile Manufacturers–1.23%
Ford Motor Co., 8.50%, 04/21/2023		24,000		25,425
Ford Motor Credit Co. LLC, 3.09%, 01/09/2023		200,000		190,562
Hyundai Capital America, 5.75%, 04/06/2023(b)		63,000		68,836
4.30%, 02/01/2024(b)		22,000		23,512
5.88%, 04/07/2025(b)		34,000		38,215
Toyota Motor Credit Corp., 2.15%, 02/13/2030		31,000		32,640
				379,190
Automotive Retail–0.20%
Advance Auto Parts, Inc., 3.90%, 04/15/2030(b)		58,000		62,159
Biotechnology–0.98%
AbbVie, Inc., 2.30%, 11/21/2022(b)		123,000		127,203
2.60%, 11/21/2024(b)		119,000		126,798
Amgen, Inc., 3.15%, 02/21/2040		45,000		48,007
				302,008
Brewers–0.43%
Anheuser-Busch InBev Worldwide, Inc. (Belgium), 4.75%, 01/23/2029		45,000		54,400
4.35%, 06/01/2040		31,000		35,422
4.50%, 06/01/2050		35,000		41,916
				131,738
Broadcasting–0.11%
Discovery Communications LLC, 5.20%, 09/20/2047		15,000		17,471
Fox Corp., 3.50%, 04/08/2030		15,000		16,781
				34,252
Building Products–0.73%
Carrier Global Corp., 2.24%, 02/15/2025(b)		100,000		102,638
2.49%, 02/15/2027(b)		40,000		40,802
2.72%, 02/15/2030(b)		82,000		82,361
				225,801
Cable & Satellite–0.77%
Comcast Corp., 3.95%, 10/15/2025		20,000		22,935
4.60%, 10/15/2038		30,000		38,254
3.25%, 11/01/2039		15,000		16,665
3.45%, 02/01/2050		55,000		62,458
2.80%, 01/15/2051		50,000		51,362
4.95%, 10/15/2058		31,000		44,203
				235,877

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

Invesco V.I. Core Plus Bond Fund

	Principal Amount		Value
Construction Machinery & Heavy Trucks–0.04%
Wabtec Corp., 3.20%, 06/15/2025		$  12,000		$  12,264
Consumer Finance–0.13%
Credit Acceptance Corp., 5.13%, 12/31/2024(b)		18,000		17,427
6.63%, 03/15/2026		23,000		23,194
				40,621
Copper–0.46%
Freeport-McMoRan, Inc., 5.00%, 09/01/2027		57,000		57,326
4.13%, 03/01/2028		36,000		35,004
4.25%, 03/01/2030		28,000		27,186
Southern Copper Corp. (Peru), 5.88%, 04/23/2045		18,000		23,312
				142,828
Data Processing & Outsourced Services–0.25%
PayPal Holdings, Inc., 2.65%, 10/01/2026		42,000		45,682
2.85%, 10/01/2029		29,000		31,797
				77,479
Distillers & Vintners–0.22%
Constellation Brands, Inc., 1.09%, (3 mo. USD LIBOR + 0.70%), 11/15/2021(d)		22,000		22,004
3.75%, 05/01/2050		41,000		44,775
				66,779
Diversified Banks–5.31%
Bank of America Corp., 2.59%, 04/29/2031		47,000		49,823
2.68%, 06/19/2041(d)		84,000		86,593
Series Z, 6.50%(c)		85,000		91,516
BBVA Bancomer S.A. (Mexico), 6.75%, 09/30/2022(b)		150,000		160,097
Citigroup, Inc., 2.88%, (3 mo. USD LIBOR + 0.95%), 07/24/2023(d)		20,000		20,823
3.11%, 04/08/2026		54,000		58,000
4.41%, 03/31/2031		43,000		50,917
2.57%, 06/03/2031		89,000		92,100
Series Q, 5.95%(c)		25,000		23,654
Series T, 6.25%(c)		30,000		31,851
Series U, 5.00%(c)		95,000		89,595
Corp. Andina de Fomento (Supranational), 4.38%, 06/15/2022		50,000		53,075
HSBC Holdings PLC (United Kingdom), 4.00%, 03/30/2022		45,000		47,579
6.00%(c)		200,000		198,917

	Principal Amount		Value
Diversified Banks–(continued)
JPMorgan Chase & Co., 2.30%, 08/15/2021		$ 65,000		$  65,139
1.93%, (3 mo. USD LIBOR + 0.89%), 07/23/2024(d)		65,000		65,135
2.08%, 04/22/2026		69,000		71,672
3.63%, 12/01/2027		35,000		38,702
2.52%, 04/22/2031		59,000		62,446
2.96%, 05/13/2031		48,000		51,152
3.11%, 04/22/2041		45,000		48,623
Series W, 1.39% (3 mo. USD LIBOR + 1.00%), 05/15/2047(d)		65,000		45,789
Series I, 4.23% (3 mo. USD LIBOR + 3.47%)(c)(d)		34,000		31,016
Series V, 3.62% (3 mo. USD LIBOR + 3.32%)(c)(d)		40,000		35,376
Wells Fargo & Co., 2.19%, 04/30/2026		25,000		25,879
3.07%, 04/30/2041		34,000		35,510
				1,630,979
Diversified Capital Markets–0.93%
Credit Suisse Group AG (Switzerland), 4.19%, 04/01/2031(b)		250,000		285,876
Diversified Chemicals–0.01%
Chemours Co. (The), 6.63%, 05/15/2023		2,000		1,925
Diversified Metals & Mining–0.89%
Anglo American Capital PLC (South Africa), 5.38%, 04/01/2025(b)		203,000		229,517
Teck Resources Ltd. (Canada), 6.13%, 10/01/2035		38,000		43,061
				272,578
Diversified REITs–1.40%
Brixmor Operating Partnership L.P., 4.05%, 07/01/2030		18,000		18,423
Trust Fibra Uno (Mexico), 5.25%, 01/30/2026(b)		200,000		211,312
4.87%, 01/15/2030(b)		200,000		202,114
				431,849
Drug Retail–0.64%
CVS Pass Through Trust, 5.77%, 01/10/2033(b)		125,398		141,181
Walgreens Boots Alliance, Inc., 4.10%, 04/15/2050		55,000		55,775
				196,956
Education Services–0.13%
Northeastern University, 2.89%, 10/01/2050		20,000		20,320
Northwestern University, 2.64%, 12/01/2050		20,000		21,107
				41,427
Electric Utilities–0.25%
FirstEnergy Corp., Series A, 1.60%, 01/15/2026		8,000		8,081
Series B, 2.25%, 09/01/2030		22,000		22,093
NextEra Energy Capital Holdings, Inc., 2.75%, 05/01/2025		16,000		17,308

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

Invesco V.I. Core Plus Bond Fund

	Principal Amount		Value
Electric Utilities–(continued)
Southern Co. (The), Series B, 5.50%, 03/15/2057	$	29,000	$	29,415
				76,897
Electronic Components–1.14%
Corning, Inc., 5.45%, 11/15/2079		294,000		351,631
Financial Exchanges & Data–0.34%
Moody’s Corp., 5.25%, 07/15/2044		35,000		48,553
3.25%, 05/20/2050		17,000		18,312
MSCI, Inc., 3.88%, 02/15/2031(b)		36,000		36,787
				103,652
Food Retail–0.03%
Albertsons Cos., Inc./Safeway, Inc./New Albertsons L.P./Albertson’s LLC, 3.50%, 02/15/2023(b)		8,000		8,108
Forest Products–0.23%
Georgia-Pacific LLC, 1.75%, 09/30/2025(b)		32,000		33,037
2.10%, 04/30/2027(b)		35,000		36,374
				69,411
Gas Utilities–0.14%
East Ohio Gas Co. (The), 1.30%, 06/15/2025(b)		16,000		16,107
3.00%, 06/15/2050(b)		28,000		28,091
				44,198
Gold–0.09%
Newmont Corp., 2.25%, 10/01/2030		28,000		28,433
Health Care Equipment–0.29%
Becton, Dickinson and Co., 3.79%, 05/20/2050		29,000		32,365
Children’s Hospital Corp. (The), 2.59%, 02/01/2050		20,000		20,289
Zimmer Biomet Holdings, Inc., 1.07% (3 mo. USD LIBOR + 0.75%), 03/19/2021(d)		38,000		37,997
				90,651
Health Care REITs–0.40%
Diversified Healthcare Trust, 6.75%, 12/15/2021		40,000		40,460
Healthpeak Properties, Inc., 2.88%, 01/15/2031		29,000		29,838
Physicians Realty L.P., 4.30%, 03/15/2027		20,000		20,858
Welltower, Inc., 3.10%, 01/15/2030		31,000		32,199
				123,355
Health Care Services–0.49%
Cigna Corp., 3.40%, 09/17/2021		36,000		37,226
2.11%, (3 mo. USD LIBOR + 0.89%), 07/15/2023(d)		43,000		43,237
CVS Health Corp., 4.13%, 04/01/2040		44,000		52,074
4.25%, 04/01/2050		15,000		18,123
				150,660

	Principal Amount		Value
Home Improvement Retail–0.13%
Lowe’s Cos., Inc., 4.50%, 04/15/2030		$  32,000		$  39,327
Homebuilding–1.02%
M.D.C. Holdings, Inc., 3.85%, 01/15/2030		109,000		104,282
6.00%, 01/15/2043		174,000		183,521
NVR, Inc., 3.00%, 05/15/2030		24,000		25,110
				312,913
Industrial Conglomerates–0.47%
General Electric Co., 5.55%, 01/05/2026		115,000		133,688
Roper Technologies, Inc., 2.00%, 06/30/2030		10,000		10,018
				143,706
Industrial REITs–0.03%
Prologis L.P., 2.13%, 04/15/2027		8,000		8,421
Integrated Oil & Gas–1.30%
BP Capital Markets PLC (United Kingdom), 4.38% (5 yr. U.S. Treasury Yield Curve Rate + 4.04%)(c)(d)		15,000		15,262
Occidental Petroleum Corp., Series 1, 4.10%, 02/01/2021		114,000		115,026
2.60%, 08/13/2021		43,000		42,139
Petroleos Mexicanos (Mexico), 6.63%, 06/15/2035		23,000		18,781
Saudi Arabian Oil Co. (Saudi Arabia), 2.88%, 04/16/2024(b)		200,000		208,130
				399,338
Integrated Telecommunication Services–0.57%
AT&T, Inc., 5.15%, 11/15/2046		110,000		138,539
Verizon Communications, Inc., 4.81%, 03/15/2039		27,000		35,318
				173,857
Interactive Media & Services–0.98%
Diamond Sports Group LLC/Diamond Sports Finance Co., 5.38%, 08/15/2026(b)		46,000		33,576
Match Group, Inc., 5.63%, 02/15/2029(b)		33,000		34,904
Tencent Holdings Ltd. (China), 2.39%, 06/03/2030(b)		200,000		200,464
Twitter, Inc., 3.88%, 12/15/2027(b)		31,000		31,081
				300,025
Internet & Direct Marketing Retail–0.05%
Amazon.com, Inc., 2.70%, 06/03/2060		14,000		14,297
Investment Banking & Brokerage–1.92%
Cantor Fitzgerald L.P., 6.50%, 06/17/2022(b)		34,000		36,086
Charles Schwab Corp. (The), Series G, 5.38%(c)		93,000		99,586
Goldman Sachs Group, Inc. (The), 3.50%, 04/01/2025		44,000		48,299
3.27%, (3 mo. USD LIBOR + 1.20%), 09/29/2025(d)		50,000		53,935
Series P, 5.00%(c)		40,000		37,420
Jefferies Group LLC/Jefferies Group Capital Finance, Inc., 4.15%, 01/23/2030		49,000		53,240

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

Invesco V.I. Core Plus Bond Fund

	Principal Amount		Value
Investment Banking & Brokerage–(continued)
Morgan Stanley, 2.19%, 04/28/2026		$  42,000		$  43,731
2.70%, 01/22/2031		135,000		143,570
3.62%, 04/01/2031		43,000		49,214
Raymond James Financial, Inc., 4.65%, 04/01/2030		22,000		26,353
				591,434
Life & Health Insurance–1.69%
American Equity Investment Life Holding Co., 5.00%, 06/15/2027		40,000		43,484
Athene Global Funding, 2.50%, 01/14/2025(b)		45,000		44,969
Athene Holding Ltd., 4.13%, 01/12/2028		77,000		79,481
6.15%, 04/03/2030		50,000		57,688
Brighthouse Financial, Inc., 4.70%, 06/22/2047		29,000		26,574
MetLife, Inc., Series C, 3.89%(c)		65,000		58,784
Nationwide Financial Services, Inc., 5.38%, 03/25/2021(b)		165,000		169,707
3.90%, 11/30/2049(b)		38,000		38,079
				518,766
Managed Health Care–0.13%
UnitedHealth Group, Inc., 3.75%, 07/15/2025		35,000		39,925
Movies & Entertainment–0.08%
Netflix, Inc., 5.38%, 11/15/2029(b)		21,000		23,094
Multi-line Insurance–1.41%
AIG Global Funding, 2.70%, 12/15/2021(b)		42,000		43,273
American Financial Group, Inc., 3.50%, 08/15/2026		20,000		21,345
American International Group, Inc., 3.40%, 06/30/2030		70,000		75,984
Fairfax Financial Holdings Ltd. (Canada), 4.85%, 04/17/2028		35,000		37,531
4.63%, 04/29/2030(b)		105,000		113,344
Massachusetts Mutual Life Insurance Co., 3.38%, 04/15/2050(b)		24,000		24,760
Nationwide Mutual Insurance Co., 4.95%, 04/22/2044(b)		100,000		115,740
				431,977
Multi-Utilities–0.50%
CenterPoint Energy, Inc., Series A, 6.13%(c)		40,000		38,787
Dominion Energy, Inc., Series C, 3.38%, 04/01/2030		38,000		42,123
Sempra Energy, 4.88% (5 yr. U.S. Treasury Yield Curve Rate + 4.55%)(c)(d)		73,000		73,182
				154,092
Office REITs–0.35%
Alexandria Real Estate Equities, Inc., 3.95%, 01/15/2027		40,000		44,902
3.38%, 08/15/2031		25,000		27,905

	Principal Amount		Value
Office REITs–(continued)
Boston Properties L.P., 3.25%, 01/30/2031		$  33,000		$  35,576
				108,383
Oil & Gas Exploration & Production–0.48%
Canadian Natural Resources Ltd. (Canada), 2.05%, 07/15/2025		102,000		102,323
2.95%, 07/15/2030		47,000		46,735
				149,058
Oil & Gas Storage & Transportation–1.78%
Enterprise Products Operating LLC, 2.80%, 01/31/2030		22,000		23,115
3.70%, 01/31/2051		47,000		49,088
Series D, 4.88%, 08/16/2077		28,000		24,402
MPLX L.P., 1.21%, (3 mo. USD LIBOR + 0.90%), 09/09/2021(d)		67,000		66,484
1.41%, (3 mo. USD LIBOR + 1.10%), 09/09/2022(d)		48,000		47,223
ONEOK, Inc., 5.85%, 01/15/2026		21,000		24,008
6.35%, 01/15/2031		82,000		96,154
Plains All American Pipeline L.P., Series B, 6.13%(c)		52,000		37,169
Plains All American Pipeline L.P./PAA Finance Corp., 3.80%, 09/15/2030		26,000		25,657
Targa Resources Partners L.P./Targa Resources Partners Finance Corp., 5.25%, 05/01/2023		55,000		54,307
Western Midstream Operating L.P., 2.16% (3 mo. USD LIBOR + 0.85%), 01/13/2023(d)		9,000		8,263
Williams Cos., Inc. (The), 4.13%, 11/15/2020		83,000		83,137
3.50%, 11/15/2030		7,000		7,379
				546,386
Other Diversified Financial Services–0.31%
Carlyle Finance LLC, 5.65%, 09/15/2048(b)		52,000		63,089
Football Trust V, 5.35%, 10/05/2020(b)		33,353		33,626
				96,715
Packaged Foods & Meats–0.08%
Hershey Co. (The), 3.13%, 11/15/2049		22,000		24,216
Paper Packaging–0.11%
Cascades, Inc./Cascades USA, Inc. (Canada), 5.38%, 01/15/2028(b)		33,000		33,598
Pharmaceuticals–0.73%
Merck & Co., Inc., 0.75%, 02/24/2026		39,000		39,000
1.45%, 06/24/2030		21,000		21,071
2.35%, 06/24/2040		38,000		38,753
2.45%, 06/24/2050		4,000		4,027
Upjohn, Inc., 2.70%, 06/22/2030(b)		58,000		59,717
4.00%, 06/22/2050(b)		58,000		62,354
				224,922

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

Invesco V.I. Core Plus Bond Fund

	Principal Amount		Value
Property & Casualty Insurance–0.54%
Allstate Corp. (The), 4.20%, 12/15/2046		$  20,000		$  24,796
Arch Capital Group Ltd., 3.64%, 06/30/2050		57,000		59,919
Fidelity National Financial, Inc., 3.40%, 06/15/2030		40,000		41,718
W.R. Berkley Corp., 4.00%, 05/12/2050		35,000		39,085
				165,518
Regional Banks–1.97%
Citizens Financial Group, Inc., 3.25%, 04/30/2030		28,000		30,316
Fifth Third Bancorp, 4.30%, 01/16/2024		55,000		60,679
2.55%, 05/05/2027		35,000		37,475
First Niagara Financial Group, Inc., 7.25%, 12/15/2021		35,000		38,077
KeyCorp, 2.25%, 04/06/2027		70,000		73,278
Synovus Financial Corp., 3.13%, 11/01/2022		33,000		33,486
Truist Financial Corp., Series Q, 5.10% (10 yr. U.S. Treasury Yield Curve Rate + 4.35%)(c)(d)		84,000		86,948
Zions Bancorporation N.A., 3.25%, 10/29/2029		250,000		246,806
				607,065
Reinsurance–0.50%
Global Atlantic Fin Co., 4.40%, 10/15/2029(b)		130,000		119,838
Reinsurance Group of America, Inc., 4.70%, 09/15/2023		30,000		32,834
				152,672
Renewable Electricity–0.14%
Northern States Power Co., 2.60%, 06/01/2051		44,000		44,496
Residential REITs–0.41%
Camden Property Trust, 2.80%, 05/15/2030		22,000		23,817
Spirit Realty L.P., 4.00%, 07/15/2029		25,000		24,651
3.40%, 01/15/2030		70,000		66,277
VEREIT Operating Partnership L.P., 3.40%, 01/15/2028		11,000		11,084
				125,829
Retail REITs–0.17%
Realty Income Corp., 3.25%, 01/15/2031		23,000		24,933
Regency Centers L.P., 4.13%, 03/15/2028		25,000		27,307
				52,240
Semiconductor Equipment–0.09%
NXP B.V./NXP Funding LLC/NXP USA, Inc. (Netherlands), 3.40%, 05/01/2030(b)		27,000		29,113
Semiconductors–1.29%
Analog Devices, Inc., 2.95%, 04/01/2025		20,000		21,694

	Principal Amount		Value
Semiconductors–(continued)
Broadcom, Inc., 4.70%, 04/15/2025(b)		$ 105,000		$  118,343
5.00%, 04/15/2030(b)		60,000		69,080
4.30%, 11/15/2032(b)		64,000		70,820
Micron Technology, Inc., 4.98%, 02/06/2026		25,000		28,711
4.19%, 02/15/2027		80,000		88,705
				397,353
Soft Drinks–1.45%
Coca-Cola Co. (The), 2.50%, 06/01/2040		159,000		164,915
2.60%, 06/01/2050		69,000		69,931
2.75%, 06/01/2060		45,000		45,617
Fomento Economico Mexicano, S.A.B. de C.V. (Mexico), 3.50%, 01/16/2050		150,000		155,230
Keurig Dr Pepper, Inc., 3.20%, 05/01/2030		10,000		11,086
				446,779
Sovereign Debt–0.90%
Argentine Republic Government International Bond (Argentina), 7.13%, 06/28/2117(e)		1,000		393
Hungary Government International Bond (Hungary), 5.38%, 03/25/2024		28,000		31,854
Mexico Government International Bond (Mexico), 4.00%, 10/02/2023		14,000		14,951
Qatar Government International Bond (Qatar), 3.75%, 04/16/2030(b)		200,000		228,235
				275,433
Specialized Finance–0.95%
Mitsubishi UFJ Lease & Finance Co. Ltd. (Japan), 3.64%, 04/13/2025(b)		256,000		280,904
Park Aerospace Holdings Ltd. (Ireland), 5.25%, 08/15/2022(b)		13,000		12,209
				293,113
Specialized REITs–0.77%
American Tower Corp., 3.10%, 06/15/2050		73,000		72,074
Crown Castle International Corp., 4.15%, 07/01/2050		20,000		23,091
3.25%, 01/15/2051		81,000		81,226
Iron Mountain, Inc., 5.00%, 07/15/2028(b)		11,000		10,773
4.88%, 09/15/2029(b)		12,000		11,682
5.25%, 07/15/2030(b)		37,000		36,346
				235,192
Systems Software–0.39%
Microsoft Corp., 2.53%, 06/01/2050		24,000		24,963
Oracle Corp., 3.60%, 04/01/2050		85,000		96,246
				121,209
Technology Hardware, Storage & Peripherals–0.89%
Apple, Inc., 4.25%, 02/09/2047		20,000		26,379
2.65%, 05/11/2050		72,000		74,608

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

Invesco V.I. Core Plus Bond Fund

	Principal Amount		Value
Technology Hardware, Storage & Peripherals–(continued)
Dell International LLC/EMC Corp., 5.85%, 07/15/2025(b)		$  15,000		$  17,255
6.02%, 06/15/2026(b)		62,000		71,134
4.90%, 10/01/2026(b)		20,000		22,038
8.35%, 07/15/2046(b)		49,000		63,721
				275,135
Tobacco–0.17%
Altria Group, Inc., 4.40%, 02/14/2026		18,000		20,718
Philip Morris International, Inc., 1.50%, 05/01/2025		30,000		30,776
				51,494
Trading Companies & Distributors–1.17%
AerCap Ireland Capital DAC/AerCap Global Aviation Trust (Ireland), 4.50%, 09/15/2023		150,000		150,128
Air Lease Corp., 3.88%, 04/01/2021		85,000		85,500
3.38%, 06/01/2021		60,000		60,250
3.00%, 09/15/2023		64,000		63,157
				359,035
Trucking–0.44%
Aviation Capital Group LLC, 1.43%, (3 mo. USD LIBOR + 0.67%), 07/30/2021(b)(d)		22,000		20,748
4.13%, 08/01/2025(b)		31,000		27,940
Penske Truck Leasing Co. L.P./PTL Finance Corp., 4.00%, 07/15/2025(b)		25,000		27,363
Ryder System, Inc., 4.63%, 06/01/2025		36,000		40,183
3.35%, 09/01/2025		18,000		19,192
				135,426
Wireless Telecommunication Services–1.56%
Sprint Spectrum Co. LLC/Sprint Spectrum Co. II LLC/Sprint Spectrum Co. III LLC, 4.74%, 03/20/2025(b)		200,000		217,229
5.15%, 03/20/2028(b)		209,000		241,094
T-Mobile USA, Inc., 2.55%, 02/15/2031(b)		20,000		20,120
				478,443
Total U.S. Dollar Denominated Bonds & Notes     (Cost $14,507,084)				15,252,993
Asset-Backed Securities–16.93%
Adjustable Rate Mortgage Trust, Series 2004-2, Class 6A1, 3.88%, 02/25/2035(f)		8,371		8,270
Angel Oak Mortgage Trust, Series 2020-1, Class A1, 2.47%, 12/25/2059(b)(f)		47,466		47,873
Series 2020-3, Class A1, 1.69%, 04/25/2065(b)(f)		118,000		117,999
Angel Oak Mortgage Trust I LLC, Series 2018-3, Class A1, 3.65%, 09/25/2048(b)(f)		25,952		26,549
Series 2019-2, Class A1, 3.63%, 03/25/2049(b)(f)		70,348		72,386
Angel Oak Mortgage Trust LLC, Series 2017-3, Class A1, 2.71%, 11/25/2047(b)(f)		7,612		7,626

	Principal Amount		Value
Banc of America Commercial Mortgage Trust, Series 2015-UBS7, Class AS, 3.99%, 09/15/2048(f)		$ 70,000		$  75,025
Benchmark Mortgage Trust, Series 2019-B14, Class A5, 3.05%, 12/15/2062		90,000		100,592
Series 2019-B14, Class C, 3.90%, 12/15/2062		83,700		78,757
Series 2019-B15, Class B, 3.56%, 12/15/2072		70,000		71,356
CGDBB Commercial Mortgage Trust, Series 2017-BIOC, Class A, 0.97% (1 mo. USD LIBOR + 0.79%), 07/15/2032(b)(d)		91,354		90,789
Series 2017-BIOC, Class C, 1.23% (1 mo. USD LIBOR + 1.05%), 07/15/2032(b)(d)		91,354		89,745
Series 2017-BIOC, Class D, 1.78% (1 mo. USD LIBOR + 1.60%), 07/15/2032(b)(d)		91,354		90,227
Chase Home Lending Mortgage Trust, Series 2019-ATR2, Class A3, 3.50%, 07/25/2049(b)(f)		102,298		104,901
Chase Mortgage Finance Corp., Series 2016-SH1, Class M3, 3.75%, 04/25/2045(b)(f)		47,048		46,848
Series 2016-SH2, Class M3, 3.75%, 12/25/2045(b)(f)		52,859		52,623
Citigroup Mortgage Loan Trust, Inc., Series 2019-IMC1, Class A1, 2.72%, 07/25/2049(b)(f)		70,634		71,767
COLT Mortgage Loan Trust, Series 2020-1, Class A1, 2.49%, 02/25/2050(b)		89,299		90,499
Series 2020-2, Class A1, 1.85%, 03/25/2065(b)(f)		98,878		99,226
Commercial Mortgage Trust, Series 2015-CR25, Class B, 4.69%, 08/10/2048(f)		72,000		75,893
Series 2016-GCT, Class B, 3.09%, 08/10/2029(b)		100,000		100,402
CSAIL Commercial Mortgage Trust, Series 2020-C19, Class A3, 2.56%, 03/15/2053		139,000		148,302
CSFB Mortgage-Backed Pass Through Ctfs., Series 2004-AR5, Class 3A1, 3.84%, 06/25/2034(f)		14,506		14,411
CSWF, Series 2018-TOP, Class B, 1.48% (1 mo. USD LIBOR + 1.30%), 08/15/2035(b)(d)		80,000		76,261
DB Master Finance LLC, Series 2019-1A, Class A23, 4.35%, 05/20/2049(b)		49,625		53,919
Series 2019-1A, Class A2II, 4.02%, 05/20/2049(b)		49,625		52,500
Deephaven Residential Mortgage Trust, Series 2019-4A, Class A1, 2.79%, 10/25/2059(b)(f)		78,971		80,006
Domino’s Pizza Master Issuer LLC, Series 2019-1A, Class A2, 3.67%, 10/25/2049(b)		108,455		113,752
DT Auto Owner Trust, Series 2019-3A, Class C, 2.74%, 04/15/2025(b)		40,000		40,482
Series 2019-3A, Class D, 2.96%, 04/15/2025(b)		56,000		56,313

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

Invesco V.I. Core Plus Bond Fund

	Principal Amount		Value
Ellington Financial Mortgage Trust, Series 2019-2, Class A1, 2.74%, 11/25/2059(b)(f)		$  85,827		$  86,354
Galton Funding Mortgage Trust, Series 2019-H1, Class A1, 2.66%, 10/25/2059(b)(f)		71,823		73,679
GCAT Trust, Series 2019-NQM2, Class A1, 2.86%, 09/25/2059(b)(g)		83,846		85,513
Series 2019-NQM3, Class A1, 2.69%, 11/25/2059(b)(f)		87,160		88,695
GMACM Mortgage Loan Trust, Series 2006-AR1, Class 1A1, 3.74%, 04/19/2036(f)		49,699		42,288
Golub Capital Partners CLO 41B Ltd., Series 2019-41A, Class A, 2.51% (3 mo. USD LIBOR + 1.37%), 04/20/2029(b)(d)		146,000		144,858
GS Mortgage Securities Trust, Series 2020-GC45, Class A5, 2.91%, 02/13/2053		50,000		55,073
Series 2020-GC47, Class A5, 2.38%, 05/12/2053		55,000		58,353
Hertz Vehicle Financing II L.P., Series 2019-2A, Class A, 3.42%, 05/25/2025(b)		80,606		79,846
HMH Trust, Series 2017-NSS, Class A, 3.06%, 07/05/2031(b)		100,000		96,371
Homeward Opportunities Fund I Trust, Series 2019-1, Class A1, 3.45%, 01/25/2059(b)(f)		59,997		61,236
Invitation Homes Trust, Series 2017- SFR2, Class C, 1.64% (1 mo. USD LIBOR + 1.45%), 12/17/2036(b)(d)		100,000		99,450
JOL Air Ltd., Series 2019-1, Class A, 3.97%, 04/15/2044(b)		225,614		197,226
Merrill Lynch Mortgage Investors Trust, Series 2005-3, Class 3A, 4.01% (1 mo. USD LIBOR + 0.25%), 11/25/2035(d)		11,969		11,532
Morgan Stanley Capital I Trust, Series 2017-CLS, Class A, 0.88% (1 mo. USD LIBOR + 0.70%), 11/15/2034(b)(d)		99,000		98,482
Series 2017-CLS, Class B, 1.03% (1 mo. USD LIBOR + 0.85%), 11/15/2034(b)(d)		49,000		48,215
Series 2017-CLS, Class C, 1.18% (1 mo. USD LIBOR + 1.00%), 11/15/2034(b)(d)		33,000		32,175
Series 2019-L2, Class A4, 4.07%, 03/15/2052		80,000		94,475
Series 2019-L3, Class AS, 3.49%, 11/15/2052		60,000		63,641
MVW LLC, Series 2019-2A, Class A, 2.22%, 10/20/2038(b)		85,123		85,275
MVW Owner Trust, Series 2019-1A, Class A, 2.89%, 11/20/2036(b)		79,399		80,933
New Residential Mortgage Loan Trust, Series 2019-NQM4, Class A1, 2.49%, 09/25/2059(b)(f)		85,493		86,298
Series 2020-NQM1, Series A1, 2.46%, 01/26/2060(b)(f)		94,156		96,066
One Bryant Park Trust, Series 2019-OBP, Class A, 2.52%, 09/15/2054(b)		114,000		121,395

	Principal Amount		Value
Progress Residential Trust, Series 2020-SFR1, Class A, 1.73%, 04/17/2037(b)		$ 100,000		$  101,035
Sonic Capital LLC, Series 2020-1A, Class A2I, 3.85%, 01/20/2050(b)		49,833		52,526
Starwood Mortgage Residential Trust, Series 2020-1, Class A1, 2.28%, 02/25/2050(b)(f)		90,034		90,902
Starwood Waypoint Homes Trust, Series 2017-1, Class D, 2.13% (1 mo. USD LIBOR + 1.95%), 01/17/2035(b)(d)		100,000		99,708
Structured Adjustable Rate Mortgage Loan Trust, Series 2004-12, Class 3A2, 3.71%, 09/25/2034(f)		9,584		9,583
Structured Asset Securities Corp. Mortgage Pass-Through Ctfs., Series 2003-34A, Class 5A5, 3.67%, 11/25/2033(f)		57,982		56,207
Thornburg Mortgage Securities Trust, Series 2005-1, Class A3, 3.65%, 04/25/2045(f)		34,721		33,070
TICP CLO XV Ltd., Series 2020-15A, Class A, 2.92% (3 mo. USD LIBOR + 1.28%), 04/20/2033(b)(d)		250,000		244,297
Towd Point Mortgage Trust, Series 2017-2, Class A1, 2.75%, 04/25/2057(b)(f)		44,996		45,845
UBS Commercial Mortgage Trust, Series 2019-C16, Class A4, 3.60%, 04/15/2052		80,000		90,242
Verus Securitization Trust, Series 2020-1, Class A1, 2.42%, 01/25/2060(b)(f)		93,204		94,608
Wendy’s Funding LLC, Series 2018-1A, Class A2II, 3.88%, 03/15/2048(b)		58,500		61,858
WFRBS Commercial Mortgage Trust, Series 2012-C6, Class B, 4.70%, 04/15/2045		80,000		82,011
Total Asset-Backed Securities     (Cost $ 5,170,787)				5,204,620
U.S. Treasury Securities–11.18%
U.S. Treasury Bills–0.35%
0.01% - 0.12%, 09/03/2020(h)(i)		108,000		107,975
U.S. Treasury Bonds–1.12%
1.13%, 05/15/2040		3,400		3,369
2.00%, 02/15/2050		297,100		340,168
				343,537
U.S. Treasury Notes–9.71%
0.25%, 06/15/2023		323,200		323,907
0.25%, 06/30/2025		1,663,300		1,660,214
0.50%, 06/30/2027		552,200		552,610
0.63%, 05/15/2030		451,000		449,696
				2,986,427
Total U.S. Treasury Securities         (Cost $3,429,428)				3,437,939

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

Invesco V.I. Core Plus Bond Fund

	Principal Amount		Value
U.S. Government Sponsored Agency Mortgage-Backed Securities–11.17%
Collateralized Mortgage Obligations–0.81%
Freddie Mac Multifamily Structured Pass Through Ctfs., Series K062, Class A1, 3.03%, 09/25/2026		$  24,420		$  26,356
Series K083, Class AM, 4.03%, 10/25/2028(f)		23,000		27,963
Series K085, Class AM, 4.06%, 10/25/2028(f)		23,000		27,938
Series K089, Class AM, 3.63%, 01/25/2029(f)		39,000		46,437
Series K088, Class AM, 3.76%, 01/25/2029(f)		92,000		110,574
Freddie Mac Whole Loan Securities Trust, Series 2017-SC02, Class 2A1, 3.50%, 05/25/2047		8,459		8,540
				247,808
Federal Home Loan Mortgage Corp. (FHLMC)–1.12%
6.50%, 08/01/2032		602		689
4.00%, 11/01/2048 to 07/01/2049		323,337		344,024
				344,713
Federal National Mortgage Association (FNMA)–7.54%
7.50%, 04/01/2029		566		574
3.50%, 12/01/2030 to 05/01/2047		866,690		924,353
6.50%, 09/01/2031		621		715
7.00%, 09/01/2032		4,468		4,849
4.50%, 12/01/2048		36,010		38,686
TBA, 2.50%, 07/01/2035(j)		431,000		451,153
3.00%, 07/01/2035 to 07/01/2050(j)		854,000		898,409
				2,318,739
Government National Mortgage Association (GNMA)–1.70%
7.50%, 06/15/2023		550		558
8.50%, 11/15/2024		656		659
7.00%, 07/15/2031 to 08/15/2031		664		770
6.50%, 11/15/2031 to 03/15/2032		1,878		2,093
6.00%, 11/15/2032		985		1,135
4.00%, 07/20/2049		141,984		150,551
TBA, 3.00%, 07/01/2050(j)		345,000		365,444
				521,210
Total U.S. Government Sponsored Agency Mortgage-Backed Securities (Cost $3,369,647)				3,432,470
Non-U.S. Dollar Denominated Bonds & Notes–0.73%(k)
Integrated Telecommunication Services–0.35%
AT&T, Inc., Series B, 2.88%(c)		EUR    100,000		106,921
Movies & Entertainment–0.38%
Netflix, Inc., 3.88%, 11/15/2029(b)		EUR    100,000		118,325
Total Non-U.S. Dollar Denominated Bonds & Notes     (Cost $220,315)				225,246

	Shares		Value
Preferred Stocks–0.48%
Diversified Banks–0.05%
Wells Fargo & Co., 7.50%, Class A, Series L, Conv. Pfd.		11		$  14,267
Investment Banking & Brokerage–0.43%
Morgan Stanley, 6.88%, Series F, Pfd.		5,000		132,900
Total Preferred Stocks (Cost $138,976)				147,167
	Principal Amount
Agency Credit Risk Transfer Notes–0.38%
Fannie Mae Connecticut Avenue Securities Series 2018-C05, Class 1M2, 2.52%, (1 mo. USD LIBOR + 2.35%), 01/25/2031(d)		$  23,827		23,515
Series 2019-R03, Class 1M2, 2.33%, (1 mo. USD LIBOR + 2.15%), 09/25/2031(b)(d)		39,809		39,651
Series 2019-R06, Class 2M2, 2.27%, (1 mo. USD LIBOR + 2.10%), 09/25/2039(b)(d)		54,000		52,887
Total Agency Credit Risk Transfer Notes (Cost $118,054)				116,053
Municipal Obligations–0.37%
Grand Parkway Transportation Corp., Series 2020, Ref. RB, 3.24%, 10/01/2052		60,000		62,624
Massachusetts (Commonwealth of), Series 2020 C, Ref. GO Bonds, 2.51%, 07/01/2041		25,000		25,138
Texas (State of) Transportation Commission, Series 2020, Ref. GO Bonds, 2.56%, 04/01/2042		25,000		25,422
Total Municipal Obligations (Cost $110,000)				113,184
	Shares
Common Stocks & Other Equity Interests–0.00%
Diversified Support Services–0.00%
ACC Claims Holdings LLC(l)(m) (Cost $0)		73,980		0
Money Market Funds–14.35%
Invesco Government & Agency Portfolio, Institutional Class, 0.09%(n)(o)		1,501,980		1,501,980
Invesco Liquid Assets Portfolio, Institutional Class, 0.39%(n)(o)		1,192,527		1,193,362
Invesco Treasury Portfolio, Institutional Class, 0.08%(n)(o)		1,716,548		1,716,548
Total Money Market Funds (Cost $4,411,223)				4,411,890
TOTAL INVESTMENTS IN SECURITIES–105.20% (Cost $31,475,514)				32,341,562
OTHER ASSETS LESS LIABILITIES–(5.20)%				(1,597,341	)
NET ASSETS–100.00%			$	30,744,221

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

Invesco V.I. Core Plus Bond Fund

Investment Abbreviations:

CLO	- Collateralized Loan Obligation
Conv.	- Convertible
Ctfs.	- Certificates
EUR	- Euro
GO	- General Obligation
LIBOR	- London Interbank Offered Rate
Pfd.	- Preferred
RB	- Revenue Bonds
Ref.	- Refunding
REIT	- Real Estate Investment Trust
TBA	- To Be Announced
USD	- U.S. Dollar

Notes to Schedule of Investments:

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

^(b)  Security purchased or received in a transaction exempt from registration under the Securities Act of 1933, as amended (the “1933 Act”). The security may be resold pursuant to an exemption from registration under the 1933 Act, typically to qualified institutional buyers. The aggregate value of these securities at June 30, 2020 was $9,725,059, which represented 31.63% of the Fund’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, 2020.

^(e)  Defaulted security. Currently, the issuer is in default with respect to principal and/or interest payments. The value of this security at June 30, 2020 represented less than 1% of the Fund’s Net Assets.

^(f)  Interest rate is redetermined periodically based on the cash flows generated by the pool of assets backing the security, less any applicable fees. The rate shown is the rate in effect on June 30, 2020.

^(g)  Step coupon bond. The interest rate represents the coupon rate at which the bond will accrue at a specified future date.

^(h)  All or a portion of the value was pledged as collateral to cover margin requirements for open futures contracts. See Note 1L.

⁽ⁱ⁾  Security traded on a discount basis. The interest rate shown represents the discount rate at the time of purchase by the Fund.

^(j)  Security purchased on a forward commitment basis. This security is subject to dollar roll transactions. See Note 1M.

^(k)  Foreign denominated security. Principal amount is denominated in the currency indicated.

^(l)  Non-income producing security.

^(m)  Security valued using significant unobservable inputs (Level 3). See Note 3.

⁽ⁿ⁾  Affiliated issuer. The issuer and/or the Fund is a wholly-owned subsidiary of Invesco Ltd., or is affiliated by having an investment adviser that is under common control of Invesco Ltd. The table below shows the Fund’s transactions in, and earnings from, its investments in affiliates for the six months ended June 30, 2020.

	Value December 31, 2019		Purchases at Cost		Proceeds from Sales			Change in Unrealized Appreciation		Realized Gain		Value June 30, 2020		Dividend Income
Investments in Affiliated Money Market Funds:
Invesco Government & Agency Portfolio, Institutional Class		$1,129,193	$	5,824,558	$	(5,451,771	)		$    -		$    -		$1,501,980	$	5,326
Invesco Liquid Assets Portfolio, Institutional Class		817,642		4,268,806		(3,894,122	)		595		441		1,193,362		5,461
Invesco Treasury Portfolio, Institutional Class		1,290,506		6,656,638		(6,230,596	)		-		-		1,716,548		5,760
Total		$3,237,341	$	16,750,002	$	(15,576,489	)		$595		$441		$4,411,890	$	16,547

^(o) The rate shown is the 7-day SEC standardized yield as of June 30, 2020.

Portfolio Composition

By security type, based on Net Assets

as of June 30, 2020

U.S. Dollar Denominated Bonds & Notes	49.61%
Asset-Backed Securities	16.93
U.S. Treasury Securities	11.18
U.S. Government Sponsored Agency Mortgage-Backed Securities	11.17
Security Types Each Less Than 1% of Portfolio	1.96
Money Market Funds Plus Other Assets Less Liabilities	9.15

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

Invesco V.I. Core Plus Bond Fund

Open Futures Contracts
Long Futures Contracts	Number of Contracts		Expiration Month		Notional Value			Value			Unrealized Appreciation (Depreciation)
Interest Rate Risk
U.S. Treasury 2 Year Notes		32		September-2020	$	7,066,500		$	2,187			$   2,187
U.S. Treasury Long Bonds		5		September-2020		892,813			6,239			6,239
U.S. Treasury Ultra Bonds		3		September-2020		654,469			1,751			1,751
Subtotal–Long Futures Contracts									10,177			10,177
Short Futures Contracts
Interest Rate Risk
U.S. Treasury 5 Year Notes		1		September-2020		(125,742	)		(283	)		(283	)
U.S. Treasury 10 Year Notes		8		September-2020		(1,113,375	)		(2,828	)		(2,828	)
U.S. Treasury 10 Year Ultra Bonds		16		September-2020		(2,519,750	)		(9,409	)		(9,409	)
Subtotal–Short Futures Contracts									(12,520	)		(12,520	)
Total Futures Contracts								$	(2,343	)		$  (2,343	)

Open Forward Foreign Currency Contracts
		Contract to				Unrealized Appreciation (Depreciation)
Settlement Date	Counterparty	Deliver		Receive
Currency Risk
08/28/2020	Citibank N.A.		EUR    295,145		USD    324,975		$(7,032)

Abbreviations:

EUR – Euro

USD – U.S. Dollar

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

Invesco V.I. Core Plus Bond Fund

Statement of Assets and Liabilities

June 30, 2020

(Unaudited)

Assets:
Investments in securities, at value (Cost $27,064,291)	$	27,929,672
Investments in affiliated money market funds, at value (Cost $4,411,223)		4,411,890
Other investments:
Variation margin receivable - futures contracts		721
Foreign currencies, at value (Cost $69,943)		70,940
Receivable for:
Investments sold		482,164
Fund shares sold		7,947
Dividends		2,714
Interest		153,914
Investment for trustee deferred compensation and retirement plans		56,568
Total assets		33,116,530
Liabilities:
Other investments:
Unrealized depreciation on forward foreign currency contracts outstanding		7,032
Payable for:
Investments purchased		2,221,017
Fund shares reacquired		7,405
Accrued fees to affiliates		18,639
Accrued trustees’ and officers’ fees and benefits		1,705
Accrued other operating expenses		57,827
Trustee deferred compensation and retirement plans		58,684
Total liabilities		2,372,309
Net assets applicable to shares outstanding	$	30,744,221
Net assets consist of:
Shares of beneficial interest	$	27,843,699
Distributable earnings		2,900,522
	$30,744,221
Net Assets:
Series I	$	30,368,851
Series II	$	375,370
Shares outstanding, no par value, with an unlimited number of shares authorized:
Series I		4,441,380
Series II		55,211
Series I:
Net asset value per share	$	6.84
Series II:
Net asset value per share	$	6.80

Statement of Operations

For the six months ended June 30, 2020

(Unaudited)

Investment income:
Interest	$	381,622
Dividends from affiliated money market funds		16,547
Dividends		5,352
Total investment income		403,521
Expenses:
Advisory fees		63,590
Administrative services fees		20,940
Custodian fees		4,415
Distribution fees - Series II		453
Transfer agent fees		4,734
Trustees’ and officers’ fees and benefits		7,835
Reports to shareholders		5,324
Professional services fees		20,901
Other		(13,580	)
Total expenses		114,612
Less: Fees waived		(30,302	)
Net expenses		84,310
Net investment income		319,211
Realized and unrealized gain (loss) from:
Net realized gain from:
Investment securities		732,185
Foreign currencies		402
Forward foreign currency contracts		4,974
Futures contracts		216,338
		953,899
Change in net unrealized appreciation (depreciation) of:
Investment securities		321,904
Foreign currencies		(2,178	)
Forward foreign currency contracts		(2,404	)
Futures contracts		17,522
		334,844
Net realized and unrealized gain		1,288,743
Net increase in net assets resulting from operations	$	1,607,954

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

Invesco V.I. Core Plus Bond Fund

Statement of Changes in Net Assets

For the six months ended June 30, 2020 and the year ended December 31, 2019

(Unaudited)

	June 30, 2020			December 31, 2019
Operations:
Net investment income	$	319,211		$	622,883
Net realized gain		953,899			608,096
Change in net unrealized appreciation		334,844			881,049
Net increase in net assets resulting from operations		1,607,954			2,112,028
Distributions to shareholders from distributable earnings:
Series I		-			(684,305	)
Series II		-			(3,040	)
Total distributions from distributable earnings		-			(687,345	)
Share transactions–net:
Series I		4,011,935			6,335,765
Series II		(3,600	)		231,286
Net increase in net assets resulting from share transactions		4,008,335			6,567,051
Net increase in net assets		5,616,289			7,991,734
Net assets:
Beginning of period		25,127,932			17,136,198
End of period	$	30,744,221		$	25,127,932

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

Invesco V.I. Core Plus Bond Fund

Financial Highlights

(Unaudited)

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

																					Ratio of			Ratio of
																					expenses			expenses
					Net gains																to average			to average net
					(losses)																net assets			assets without			Ratio of net
	Net asset				on securities						Dividends										with fee waivers			fee waivers			investment
	value,		Net		(both			Total from			from net			Net asset					Net assets,		and/or			and/or			income
	beginning		investment		realized and			investment			investment			value, end		Total			end of period		expenses			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 06/30/20		$6.47		$0.07		$  0.30			$  0.37			$      –			$6.84		5.72	%		$30,369		0.59	%(d)		0.81	%(d)		2.27	%(d)		207	%
Year ended 12/31/19		6.00		0.19		0.47			0.66			(0.19	)		6.47		11.06			24,769		0.59			1.13			2.94			300
Year ended 12/31/18		6.38		0.22		(0.37	)		(0.15	)		(0.23	)		6.00		(2.37	)		17,019		0.59			1.78			3.57			339
Year ended 12/31/17		6.21		0.22		0.17			0.39			(0.22	)		6.38		6.34			20,326		0.60			1.58			3.46			407
Year ended 12/31/16		6.07		0.23		0.18			0.41			(0.27	)		6.21		6.66			15,485		0.55			1.68			3.71			474
Year ended 12/31/15		6.39		0.24		(0.26	)		(0.02	)		(0.30	)		6.07		(0.37	)		15,587		0.65			1.73			3.81			416
Series II
Six months ended 06/30/20		6.45		0.07		0.28			0.35			–			6.80		5.43			375		0.84	(d)		1.06	(d)		2.02	(d)		207
Year ended 12/31/19		5.97		0.17		0.49			0.66			(0.18	)		6.45		11.00			359		0.84			1.38			2.69			300
Year ended 12/31/18		6.35		0.20		(0.37	)		(0.17	)		(0.21	)		5.97		(2.64	)		117		0.84			2.03			3.32			339
Year ended 12/31/17		6.19		0.20		0.16			0.36			(0.20	)		6.35		5.89			123		0.85			1.83			3.21			407
Year ended 12/31/16		6.04		0.22		0.18			0.40			(0.25	)		6.19		6.52			126		0.80			1.93			3.46			474
Year ended 12/31/15		6.36		0.22		(0.26	)		(0.04	)		(0.28	)		6.04		(0.64	)		156		0.90			1.98			3.56			416

^(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 $28,053 and $364 for Series I and Series II shares, respectively.

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

Invesco V.I. Core Plus Bond Fund

Notes to Financial Statements

June 30, 2020

(Unaudited)

NOTE 1–Significant Accounting Policies

Invesco V.I. Core Plus Bond 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. Information presented in these financial statements pertains only to the Fund. Matters affecting the Fund or each class will be voted on exclusively by the shareholders of the Fund or each class. 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 Fund is an investment company and accordingly follows the investment company accounting and reporting guidance in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 946, Financial Services - Investment Companies.

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

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

Debt obligations (including convertible securities) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. Pricing services generally value debt obligations assuming orderly transactions of institutional round lot size, but a fund may hold or transact in the same securities in smaller, odd lot sizes. Odd lots often trade at lower prices than institutional round lots. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.

A security listed or traded on an exchange (except convertible securities) is valued at its last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded, or lacking any sales or official closing price on a particular day, the security may be valued at the closing bid price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued by an independent pricing service they may be considered fair valued. Futures contracts are valued at the final settlement price set by an exchange on which they are principally traded. Listed options are valued at the mean between the last bid and asked 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 asked prices. For purposes of determining net asset value (“NAV”) 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, if available, provided by an independent pricing service. Evaluated quotes provided by the pricing service are valued based on a model which may include end-of-day net present values, spreads, ratings, industry, company performance and returns of referenced assets. Centrally cleared swap agreements are valued at the daily settlement price determined by the relevant exchange or clearinghouse.

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

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

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

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

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

B. Securities Transactions and Investment Income - Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income (net of withholding tax, if any) is recorded on an accrual basis from settlement date. Bond premiums and discounts are amortized and/or accreted over the lives of the respective securities. Pay-in-kind interest income and non-cash

Invesco V.I. Core Plus Bond Fund

dividend income received in the form of securities in-lieu of cash are recorded at the fair value of the securities received. Dividend income (net of withholding tax, if any) is recorded on the ex-dividend date.

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

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

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

C. Country Determination - For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues 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 net investment income and net realized capital gain, if any, are generally declared and paid to separate accounts of participating insurance companies annually and recorded on the ex-dividend date.

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

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

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

F. Expenses - Fees provided for under the Rule 12b-1 plan of a particular class of the Fund and which are directly attributable to that class are charged to the operations of such class. All other expenses are allocated among the classes based on relative net assets.

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

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

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

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

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

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

A forward foreign currency contract is an obligation between two parties (“Counterparties”) to purchase or sell a specific currency for an agreed-upon price at a future date. The use of forward foreign currency contracts 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

Invesco V.I. Core Plus Bond Fund

forward foreign currency contracts include failure of the Counterparty to meet the terms of the contract and the value of the foreign currency changing unfavorably. These risks may be in excess of the amounts reflected in the Statement of Assets and Liabilities.

L. Futures Contracts - The Fund may enter into futures contracts to manage exposure to interest rate, equity and market price movements and/or currency risks. A futures contract is an agreement between Counterparties to purchase or sell a specified underlying security, currency or commodity (or delivery of a cash settlement price, in the case of an index future) for a fixed price at a future date. The Fund currently invests only in exchange-traded futures and they are standardized as to maturity date and underlying financial instrument. Initial margin deposits required upon entering into futures contracts are satisfied by the segregation of specific securities or cash as collateral at the futures commission merchant (broker). During the period the futures contracts are open, changes in the value of the contracts are recognized as unrealized gains or losses by recalculating the value of the contracts on a daily basis. Subsequent or variation margin payments are received or made depending upon whether unrealized gains or losses are incurred. These amounts are reflected as receivables or payables on the Statement of Assets and Liabilities. When the contracts are closed or expire, the Fund recognizes a realized gain or loss equal to the difference between the proceeds from, or cost of, the closing transaction and the Fund’s basis in the contract. The net realized gain (loss) and the change in unrealized gain (loss) on futures contracts held during the period is included on the Statement of Operations. The primary risks associated with futures contracts are market risk and the absence of a liquid secondary market. If the Fund were unable to liquidate a futures contract and/or enter into an offsetting closing transaction, the Fund would continue to be subject to market risk with respect to the value of the contracts and continue to be required to maintain the margin deposits on the futures contracts. Futures contracts have minimal Counterparty risk since the exchange’s clearinghouse, as Counterparty to all exchange-traded futures, guarantees the futures against default. Risks may exceed amounts recognized in the Statement of Assets and Liabilities.

M. Dollar Rolls and Forward Commitment Transactions - The Fund may enter into dollar roll transactions to enhance the Fund’s performance. The Fund executes its dollar roll transactions in the to be announced (“TBA”) market whereby the Fund makes a forward commitment to purchase a security and, instead of accepting delivery, the position is offset by the sale of the security with a simultaneous agreement to repurchase at a future date.

The Fund accounts for dollar roll transactions as purchases and sales and realizes gains and losses on these transactions. These transactions increase the Fund’s portfolio turnover rate. The Fund will segregate liquid assets in an amount equal to its dollar roll commitments.

Dollar roll transactions involve the risk that a Counterparty to the transaction may fail to complete the transaction. If this occurs, the Fund may lose the opportunity to purchase or sell the security at the agreed upon price. Dollar roll transactions also involve the risk that the value of the securities retained by the Fund may decline below the price of the securities that the Fund has sold but is obligated to purchase under the agreement. Dollar roll transactions covered in this manner are not treated as senior securities for purposes of a Fund’s fundamental investment limitation on senior securities and borrowings.

N. Other Risks - Active trading of portfolio securities may result in added expenses, a lower return and increased tax liability.

O. Leverage Risk - Leverage exists when the Fund can lose more than it originally invests because it purchases or sells an instrument or enters into a transaction without investing an amount equal to the full economic exposure of the instrument or transaction.

P. Collateral - To the extent the Fund has designated or segregated a security as collateral and that security is subsequently sold, it is the Fund’s practice to replace such collateral no later than the next business day.

NOTE 2–Advisory Fees and Other Fees Paid to Affiliates

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

Average Daily Net Assets	Rate
First $ 500 million		0.450%
Next $500 million		0.425%
Next $1.5 billion		0.400%
Next $2.5 billion		0.375%
Over $5 billion		0.350%

For the six months ended June 30, 2020, the effective advisory fee rate incurred by the Fund was 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 Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Canada Ltd. and separate sub-advisory agreements with Invesco Capital Management LLC and Invesco Asset Management (India) Private Limited (collectively, the “Affiliated Sub-Advisers”) the Adviser, not the Fund, will pay 40% of the fees paid to the Adviser to any such Affiliated Sub-Adviser(s) that provide(s) discretionary investment management services to the Fund based on the percentage of assets allocated to such Affiliated Sub-Adviser(s).

The Adviser has contractually agreed, through at least April 30, 2021, 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 0.61% and Series II shares to 0.86% of average daily net assets (the “expense limits”). In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause the total annual fund operating expenses after fee waiver and/or expense reimbursement to exceed the numbers reflected above: (1) interest; (2) taxes; (3) dividend expense on short sales; (4) extraordinary or non-routine items, including litigation expenses; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Unless Invesco continues the fee waiver agreement, it will terminate on April 30, 2021. During its term, the fee waiver agreement cannot be terminated or amended to increase the expense limits or reduce the advisory fee waiver without approval of the Board of Trustees. To the extent that the annualized expense ratio does not exceed the expense limits, the Adviser will retain its ability to be reimbursed for such fee waivers or reimbursements prior to the end of each fiscal year.

Further, the Adviser has contractually agreed, through at least June 30, 2022, 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, 2020, the Adviser waived advisory fees of $30,302.

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 fees paid to insurance companies that have agreed to provide certain administrative services to the Fund. These administrative services provided by the insurance companies may include, among other things: maintenance of master accounts with the Fund; tracking, recording and transmitting net purchase and redemption orders for Fund shares; maintaining and preserving records related to the purchase, redemption and other account activity of variable product owners; distributing copies of Fund documents such as prospectuses, proxy materials and periodic reports, to variable product owners, and responding to inquiries from variable product owners about the Fund. Pursuant to such agreement, for the six months ended June 30, 2020, Invesco was paid $2,042 for accounting and fund administrative services and was reimbursed $18,898 for fees paid to insurance companies. Invesco has entered into a sub-administration agreement whereby State Street Bank and Trust Company (“SSB”) serves as fund accountant and provides certain administrative services to the Fund. Pursuant to a custody agreement with the Trust on behalf of the Fund, SSB also serves as the Fund’s custodian.

Invesco V.I. Core Plus Bond Fund

The Trust has entered into a transfer agency and service agreement with Invesco Investment Services, Inc. (“IIS”) pursuant to which the Fund has agreed to pay IIS a fee for providing transfer agency and shareholder services to the Fund and reimburse IIS for certain expenses incurred by IIS in the course of providing such services. IIS may make payments to intermediaries that provide omnibus account services, sub-accounting services and/or networking services. All fees payable by IIS to intermediaries that provide omnibus account services or sub-accounting services are charged back to the Fund, subject to certain limitations approved by the Trust’s Board of Trustees. For the six months ended June 30, 2020, 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. The fees are accrued daily and paid monthly. 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, 2020, 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, 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, 2020. The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

	Level 1			Level 2			Level 3		Total
Investments in Securities
U.S. Dollar Denominated Bonds & Notes	$	–		$	15,252,993			$–	$	15,252,993
Asset-Backed Securities		–			5,204,620			–		5,204,620
U.S. Treasury Securities		–			3,437,939			–		3,437,939
U.S. Government Sponsored Agency Mortgage-Backed Securities		–			3,432,470			–		3,432,470
Non-U.S. Dollar Denominated Bonds & Notes		–			225,246			–		225,246
Preferred Stocks		147,167			–			–		147,167
Agency Credit Risk Transfer Notes		–			116,053			–		116,053
Municipal Obligations		–			113,184			–		113,184
Common Stocks & Other Equity Interests		–			–			0		0
Money Market Funds		4,411,890			–			–		4,411,890
Total Investments in Securities		4,559,057			27,782,505			0		32,341,562
Other Investments–Assets*
Futures Contracts		10,177			–			–		10,177
Other Investments–Liabilities*
Futures Contracts		(12,520	)		–			–		(12,520	)
Forward Foreign Currency Contracts		–			(7,032	)		–		(7,032	)
		(12,520	)		(7,032	)		–		(19,552	)
Total Other Investments		(2,343	)		(7,032	)		–		(9,375	)
Total Investments	$	4,556,714		$	27,775,473			$0	$	32,332,187

* Unrealized appreciation (depreciation).

NOTE 4–Derivative Investments

The Fund may enter into an International Swaps and Derivatives Association Master Agreement (“ISDA Master Agreement”) under which a fund may trade OTC derivatives. An OTC transaction entered into under an ISDA Master Agreement typically involves a collateral posting arrangement, payment netting provisions and close-out netting provisions. These netting provisions allow for reduction of credit risk through netting of contractual obligations. The enforceability of the netting provisions of the ISDA Master Agreement depends on the governing law of the ISDA Master Agreement, among other factors.

For financial reporting purposes, the Fund does not offset OTC derivative assets or liabilities that are subject to ISDA Master Agreements in the Statement of Assets and Liabilities.

Invesco V.I. Core Plus Bond Fund

Value of Derivative Investments at Period-End

The table below summarizes the value of the Fund’s derivative investments, detailed by primary risk exposure, held as of June 30, 2020:

	Value
Derivative Assets	Currency Risk			Interest Rate Risk			Total
Unrealized appreciation on futures contracts – Exchange-Traded(a)	$	-		$	10,177		$	10,177
Derivatives not subject to master netting agreements		-			(10,177	)		(10,177	)
Total Derivative Assets subject to master netting agreements	$	-		$	-		$	-
	Value
Derivative Liabilities	Currency Risk			Interest Rate Risk			Total
Unrealized depreciation on futures contracts – Exchange-Traded(a)	$	-		$	(12,520	)	$	(12,520	)
Unrealized depreciation on forward foreign currency contracts outstanding		(7,032	)		-			(7,032	)
Total Derivative Liabilities		(7,032	)		(12,520	)		(19,552	)
Derivatives not subject to master netting agreements		-			12,520			12,520
Total Derivative Liabilities subject to master netting agreements	$	(7,032	)	$	-		$	(7,032	)

^(a)  The daily variation margin receivable (payable) at period-end is recorded in the Statement of Assets and Liabilities.

Offsetting Assets and Liabilities

The table below reflects the Fund’s exposure to Counterparties subject to either an ISDA Master Agreement or other agreement for OTC derivative transactions as of June 30, 2020.

	Financial Derivative Assets	Financial Derivative Liabilities		Collateral (Received)/Pledged
	Forward Foreign	Forward Foreign	Net Value of			Net
Counterparty	Currency Contracts	Currency Contracts	Derivatives	Non-Cash	Cash	Amount
Citibank N.A.	$-	$(7,032)	$(7,032)	$-	$-	$(7,032)

Effect of Derivative Investments for the six months ended June 30, 2020

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

	Location of Gain (Loss) on Statement of Operations
	Currency Risk			Interest Rate Risk		Total
Realized Gain:
Forward foreign currency contracts		$4,974		$	-	$	4,974
Futures contracts		-			216,338		216,338
Change in Net Unrealized Appreciation (Depreciation):
Forward foreign currency contracts		(2,404	)		-		(2,404	)
Futures contracts		-			17,522		17,522
Total		$2,570		$	233,860	$	236,430

The table below summarizes the average notional value of derivatives held during the period.

	Forward
	Foreign Currency	Futures
	Contracts	Contracts
Average notional value	$327,552	$8,767,945

NOTE 5–Trustees’ and Officers’ Fees and Benefits

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

Invesco V.I. Core Plus Bond Fund

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

NOTE 7–Tax Information

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

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

The Fund did not have a capital loss carryforward as of December 31, 2019.

NOTE 8–Investment Transactions

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, 2020 was $28,303,718 and $22,834,733, respectively. During the same period, purchases and sales of U.S. Treasury obligations were $28,528,352 and $30,569,425, respectively. Cost of investments, including any derivatives, on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end.

Unrealized Appreciation (Depreciation) of Investments on a Tax Basis
Aggregate unrealized appreciation of investments	$	1,155,733
Aggregate unrealized (depreciation) of investments		(275,248	)
Net unrealized appreciation of investments	$	880,485

Cost of investments for tax purposes is $ 31,451,702.

NOTE 9–Share Information

	Summary of Share Activity
	Six months ended						Year ended
	June 30, 2020(a)						December 31, 2019
	Shares			Amount			Shares			Amount
Sold:
Series I		2,239,001		$	14,743,297			1,567,948		$	10,023,351
Series II		7			48			38,201			244,863
Issued as reinvestment of dividends:
Series I		-			-			106,424			684,305
Series II		-			-			432			2,771
Reacquired:
Series I		(1,623,251	)		(10,731,362	)		(685,177	)		(4,371,891	)
Series II		(553	)		(3,648	)		(2,491	)		(16,348	)
Net increase in share activity		615,204		$	4,008,335			1,025,337		$	6,567,051

^(a)  There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 83% of the outstanding shares of the Fund. The Fund and the Fund’s principal underwriter or adviser, are parties to participation agreements with these entities whereby these entities sell units of interest in separate accounts funding variable products that are invested in the Fund. The Fund, Invesco and/or Invesco affiliates may make payments to these entities, which are considered to be related to the Fund, for providing services to the Fund, Invesco and/or Invesco affiliates including but not limited to services such as, securities brokerage, third party record keeping and account servicing and administrative services. The Fund 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–Coronavirus (COVID-19) Pandemic

During the first quarter of 2020, the World Health Organization declared COVID-19 to be a public health emergency. COVID-19 has led to increased short-term market volatility and may have adverse long-term effects on U.S. and world economies and markets in general. COVID-19 may adversely impact the Fund’s ability to achieve its investment objective. Because of the uncertainties on valuation, the global economy and business operations, values reflected in these financial statements may materially differ from the value received upon actual sales of those investments.

The extent of the impact on the performance of the Fund and its investments will depend on future developments, including the duration and spread of the COVID-19 outbreak, related restrictions and advisories, and the effects on the financial markets and economy overall, all of which are highly uncertain and cannot be predicted.

Invesco V.I. Core Plus Bond 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, 2020 through June 30, 2020.

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.

		ACTUAL		HYPOTHETICAL (5% annual return before expenses)
	Beginning       Account Value       (01/01/20)	Ending       Account Value       (06/30/20)1	Expenses       Paid During       Period2	Ending       Account Value       (06/30/20)	Expenses       Paid During       Period2	Annualized       Expense Ratio
Series I	$1,000.00	$1,057.20	$3.02	$1,021.93	$2.97	0.59%
Series II	1,000.00	1,054.30	4.29	1,020.69	4.22	0.84

¹  The actual ending account value is based on the actual total return of the Fund for the period January 1, 2020 through June 30, 2020, 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 182/366 to reflect the most recent fiscal half year.

Invesco V.I. Core Plus Bond Fund

Approval of Investment Advisory and Sub-Advisory Agreements

At meetings held on June 3, 2020, the Board of Trustees (the Board or the Trustees) of AIM Variable Insurance Funds (Invesco Variable Insurance Funds) as a whole, and the independent Trustees, who comprise over 75% of the Board, voting separately, approved the continuance of the Invesco V.I. Core Plus Bond Fund’s (the Fund) Master Investment Advisory Agreement with Invesco Advisers, Inc. (Invesco Advisers and the investment advisory agreement) and the Master Intergroup Sub-Advisory Contract for Mutual Funds with Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Canada Ltd. and separate sub-advisory contracts with Invesco Capital Management LLC and Invesco Asset Management (India) Private Limited (collectively, the Affiliated Sub-Advisers and the sub-advisory contracts) for another year, effective July 1, 2020. After evaluating the factors discussed below, among others, the Board approved the renewal of the Fund’s investment advisory agreement and the sub-advisory contracts and determined that the compensation payable thereunder by the Fund to Invesco Advisers and by Invesco Advisers to the Affiliated Sub-Advisers is fair and reasonable.

The Board’s Evaluation Process

The Board’s Investments Committee has established Sub-Committees, which meet throughout the year to review the performance of funds advised by Invesco Advisers (the Invesco Funds). The Sub-Committees meet regularly with portfolio managers for their assigned Invesco Funds and other members of management to review detailed information about investment performance and portfolio attributes of these funds. The Board took into account evaluations and reports that it received from the Investments Committee and Sub-Committees, as well as the information provided to such committees and the Board throughout the year, in considering whether to approve each Invesco Fund’s investment advisory agreement and sub-advisory contracts.

As part of the contract renewal process, the Board reviews and considers information provided in response to detailed requests for information submitted to management by the independent Trustees with assistance from legal counsel to the independent Trustees. The Board receives comparative investment performance and fee data regarding the Invesco Funds prepared by Invesco Advisers and Broadridge Financial Solutions, Inc. (Broadridge), an independent mutual fund data provider, as well as information on the composition of the peer groups provided by Broadridge and its methodology for determining peer groups. The Board also receives an independent written evaluation from the Senior Officer, an officer of the Invesco Funds who reports directly to the independent Trustees. 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. In addition to meetings with Invesco Advisers and fund counsel throughout the year, the independent Trustees also

discuss the continuance of the investment advisory agreement and sub-advisory contracts in separate sessions with the Senior Officer and with independent legal counsel.

The discussion below is a summary of 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. The Trustees’ review and conclusions are based on the comprehensive consideration of all information presented to them during the course of the year and in prior years and are not the result of any single determinative factor. Moreover, one Trustee may have weighed a particular piece of information or factor differently than another Trustee. This information is current as of June 3, 2020.

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 nature, extent and quality of the advisory services provided to the Fund by Invesco Advisers under the Fund’s investment advisory agreement, and the credentials and experience of the officers and employees of Invesco Advisers who provide these services, including the Fund’s portfolio manager(s). The Board’s review included consideration of Invesco Advisers’ investment process oversight and structure, credit analysis, investment risk management and research capabilities. The Board also considered non-advisory services that Invesco Advisers and its affiliates provide to the Invesco Funds such as various back office support functions, third party oversight, internal audit, valuation, portfolio trading and legal and compliance. The Board also received and reviewed information about Invesco Advisers’ role as administrator of the Invesco Funds’ liquidity risk management program. The Board reviewed and considered the benefits to shareholders of investing in a Fund that is part of the Invesco family of funds under the umbrella of Invesco Ltd., Invesco Advisers’ parent company, and noted Invesco Ltd.’s depth and experience in conducting an investment management business, as well as its commitment of financial and other resources to such business. The Board also reviewed and considered information regarding the benefits to the Fund resulting from Invesco Ltd.’s acquisition of OppenheimerFunds, Inc. and its subsidiaries (the Transaction) and the resources that Invesco Advisers has committed to managing the Invesco family of funds following the Transaction. The Board concluded that the nature, extent and quality of the services provided to the Fund by Invesco Advisers are appropriate and satisfactory.

The Board reviewed the services that may be 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 the Affiliated Sub-Advisers’ expertise with respect to certain asset classes and that the Affiliated Sub-Advisers have offices and personnel that are located in financial centers around the world.

As a result, the Board noted that the Affiliated Sub-Advisers can provide research and investment analysis on the markets and economies of various countries in which the Fund may invest, make recommendations regarding securities and assist with security trades. The Board concluded that the sub-advisory contracts may 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 that may be provided by the Affiliated Sub-Advisers are appropriate and satisfactory.

B. Fund Investment Performance

The Board considered Fund investment performance as a relevant factor in considering whether to approve the investment advisory agreement. The Board did not view Fund investment 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 investment performance over multiple time periods ending December 31, 2019 to the performance of funds in the Broadridge performance universe and against the Bloomberg Barlcays U.S. Aggregate Bond Index. The Board noted that performance of Series I shares of the Fund was in the first quintile of its performance universe for the one year period and the second quintile for the three and five year periods (the first quintile being the best performing funds and the fifth quintile being the worst performing funds). The Board noted that performance of Series I shares of the Fund was above the performance of the Index for the one, three and five year periods. The Board recognized that the performance data reflects a snapshot in time as of a particular date and that selecting a different performance period could produce different results. The Board also reviewed more recent Fund performance as well as other performance metrics and this review did not change their conclusions.

C. Advisory and Sub-Advisory Fees and Fund Expenses

The Board compared the Fund’s contractual management fee rate to the contractual management fee rates of funds in the Fund’s Broadridge expense group. The Board noted that the contractual management fee rate for Series I shares of the Fund was the same as the median contractual management fee rate of funds in its expense group. The Board noted that the term “contractual management fee” for funds in the expense group may include both advisory and certain non-portfolio management administrative services fees, but that Broadridge does not provide information on a fund by fund basis as to what is included. The Board also reviewed the methodology used by Broadridge in providing expense group information, which includes using each fund’s contractual management fee schedule (including any applicable breakpoints) as reported in the most recent prospectus or statement of additional information for each fund in the expense group. The Board also considered comparative information regarding the Fund’s total expense ratio and its various components.

The Board noted that Invesco Advisers has contractually agreed to waive fees and/or limit expenses of the Fund for the term disclosed in the

Invesco V.I. Core Plus Bond Fund

Fund’s registration statement 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 fees charged by Invesco Advisers and the Affiliated Sub-Advisers to other similarly managed client accounts. Invesco Advisers reviewed with the Board differences in the scope of services it provides to the Invesco Funds relative to certain other types of client accounts, including, among others: management of cash flows as a result of redemptions and purchases; necessary infrastructure such as officers, office space, technology, legal and distribution; oversight of service providers; costs and business risks associated with launching new funds and sponsoring and maintaining the product line; and compliance with federal and state laws and regulations.

The Board also considered the services that may be provided by the Affiliated Sub-Advisers pursuant to the sub-advisory contracts, as well as the fees payable by Invesco Advisers to the Affiliated Sub-Advisers pursuant to the sub-advisory contracts.

D. Economies of Scale and Breakpoints

The Board considered the extent to which there may be economies of scale in the provision of advisory services to the Fund. The Board also considered that the Fund may benefit from economies of scale through contractual breakpoints in the Fund’s advisory fee schedule, which generally operate to reduce the Fund’s expense ratio as it grows in size. The Board 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. The Board noted that the Fund may also benefit from economies of scale through initial fee setting, fee waivers and expense reimbursements. The Board also considered Invesco’s reinvestment in its business, including investments in business infrastructure, technology and cybersecurity.

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 Invesco Funds and the profitability of Invesco Advisers and its affiliates in providing these services in the aggregate and on an individual Fund-by-Fund basis. The Board considered the methodology used for calculating profitability and noted the periodic review and enhancement of such methodology. The Board noted that Invesco Advisers continues to operate at a net profit from services Invesco Advisers and its affiliates provide to the Invesco Funds in the aggregate and to certain Funds on an individual fund level. The Board did not deem the level of profits realized by Invesco Advisers and its affiliates from providing such services to be excessive given the nature, extent and quality of the services provided. The Board received information from Invesco Advisers demonstrating that Invesco Advisers and the Affiliated Sub-Advisers are financially sound and have the resources necessary to perform their obligations under the investment advisory agreement and sub-advisory contracts.

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 providing administrative, transfer agency and distribution services to the Fund. The

Board considered comparative information regarding fees charged for these services, including information provided by Broadridge and other independent sources. 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; and that the services are required for the operation of the Fund.

The Board considered the benefits realized by Invesco Advisers and the Affiliated Sub-Advisers as a result of portfolio brokerage transactions executed through “soft dollar” arrangements. Invesco Advisers noted that the Fund does not execute brokerage transactions through “soft dollar” arrangements to any significant degree.

The Board considered that the Fund’s uninvested cash and cash collateral from any securities lending arrangements may be invested in registered money market funds or, with regard to securities lending cash collateral, unregistered funds that comply with Rule 2a-7 (collectively referred to as “affiliated money market funds”) advised by Invesco Advisers pursuant to procedures approved by the Board. The Board considered information regarding the returns of the affiliated money market funds relative to comparable overnight investments, as well as the costs to the Fund of such investments. 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 with respect to certain investments in the affiliated money market 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 amount of advisory fees received by Invesco Advisers from the Fund’s investment of cash collateral from any securities lending arrangements in the affiliated money market funds is fair and reasonable.

Invesco V.I. Core Plus Bond Fund

	Semiannual Report to Shareholders	June 30, 2020
	Invesco V.I. Diversified Dividend Fund

Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, the insurance company that offers your variable annuity or variable life insurance contract may no longer send you paper copies of the Fund’s shareholder reports by mail, unless you specifically request paper copies of the reports from the insurance company or your financial intermediary. Instead of delivering paper copies of the report, the insurance company may choose to make the reports available on a website, and will notify you by mail each time a report is posted and provide you with a website link to access the report. Instructions for requesting paper copies will be provided by your insurance company.

    If the insurance company offers electronic delivery, you may elect to receive shareholder reports and other communications about the Fund electronically by following the instructions provided by the insurance company or by contacting your financial intermediary. If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action.

    You may elect to receive all future reports in paper free of charge from the insurance company. You can inform the insurance company or your financial intermediary that you wish to continue receiving paper copies of your shareholder reports by following the instructions provided by the insurance company or by contacting your financial intermediary. Your election to receive reports in paper will apply to all portfolio companies available under your contract with the insurance company.

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) as an exhibit to its reports on Form N-PORT. The Fund’s Form N-PORT filings are available on the SEC website, 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-PORT, 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 most recent 12-month period ended June 30 is available at invesco.com/proxysearch. The information is also available on the SEC website, sec.gov.

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

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.

NOT FDIC INSURED  |  MAY LOSE VALUE  |  NO BANK GUARANTEE

Invesco Distributors, Inc. VIDDI-SAR-1                                

Fund Performance

Performance summary

Fund vs. Indexes

Cumulative total returns, 12/31/19 to 6/30/20, excluding variable product issuer charges. If variable product issuer charges were included, returns would be lower.

Series I Shares	-14.98	%
Series II Shares	-15.13
S&P 500 Indexq (Broad Market Index)	-3.08
Russell 1000 Value Indexq (Style-Specific Index)	-16.26
Lipper VUF Large-Cap Value Funds Index∎ (Peer Group Index)	-15.82
Source(s): qRIMES Technologies Corp.; ∎Lipper Inc.

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

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

    The Lipper 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) described here, and consequently, the performance of the Fund may deviate significantly from the performance of the index(es).

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

Average Annual Total Returns
As of 6/30/20
Series I Shares
Inception (3/1/90)	7.48	%
10 Years	10.10
5 Years	4.14
1 Year	-7.71
Series II Shares
Inception (6/5/00)	4.87	%
10 Years	9.81
5 Years	3.87
1 Year	-7.95

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 (renamed Invesco V.I. Diversified Dividend Fund on April 30, 2012). Returns shown above, prior to June 1, 2010, for Series I and Series II shares are those of the Class X shares and Class Y shares the predecessor fund. Share class returns will differ from the predecessor fund because of different expenses.

    The performance data quoted represent past performance and cannot guarantee future results; current performance may be lower or higher. Please 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. Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares. Investment return and principal value will fluctuate so that you may have a gain or loss when you sell shares.

    Invesco V.I. Diversified Dividend 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 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.

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

Invesco V.I. Diversified Dividend Fund

Liquidity Risk Management Program

The Securities and Exchange Commission has adopted Rule 22e-4 under the Investment Company Act of 1940 (the “Liquidity Rule”) in order to promote effective liquidity risk management throughout the open-end investment company industry, thereby reducing the risk that funds will be unable to meet their redemption obligations and mitigating dilution of the interests of fund shareholders. The Fund has adopted and implemented a liquidity risk management program in accordance with the Liquidity Rule (the “Program”). The Program is reasonably designed to assess and manage the Fund’s liquidity risk, which is the risk that the Fund could not meet redemption requests without significant dilution of remaining investors’ interests in the Fund. The Board of Trustees of the Fund (the “Board”) has appointed Invesco Advisers, Inc. (“Invesco”), the Fund’s investment adviser, as the Program’s administrator, and Invesco has delegated oversight of the Program to the Liquidity Risk Management Committee (the “Committee”), which is composed of senior representatives from relevant business groups at Invesco.

As required by the Liquidity Rule, the Program includes policies and procedures providing for an assessment, no less frequently than annually, of the Fund’s liquidity risk that takes into account, as relevant to the Fund’s liquidity risk: (1) the Fund’s investment strategy and liquidity of portfolio investments during both normal and reasonably foreseeable stressed conditions; (2) short-term and long-term cash flow projections for the Fund during both normal and reasonably foreseeable stressed conditions; and (3) the Fund’s holdings of cash and cash equivalents and any borrowing arrangements. The Liquidity Rule also requires the classification of the Fund’s investments into categories that reflect the assessment of their relative liquidity under current market conditions. The Fund classifies its investments into one of four categories defined in the Liquidity Rule: “Highly Liquid,” “Moderately Liquid,” “Less Liquid” and “Illiquid.” Funds that are not invested primarily in “Highly Liquid Investments” that are assets (cash or investments that are reasonably expected to be convertible into cash within three business days without significantly changing the market value of the investment) are required to establish a “Highly Liquid Investment Minimum” (“HLIM”), which is the minimum percentage of net assets that must be invested in Highly Liquid Investments. Funds with HLIMs have procedures for addressing HLIM shortfalls, including reporting to the Board and the SEC (on a non-public basis) as required by the Program and the Liquidity Rule. In addition, the Fund may not acquire an investment if, immediately after the acquisition, over 15% of the Fund’s net assets would consist of “Illiquid Investments” that are assets (an investment that cannot reasonably be expected to be sold or disposed of in current market conditions in seven calendar days or less without the sale or disposition significantly changing the market value of the investment). The Liquidity Rule and the Program also require reporting to the Board and the SEC (on a non-public basis) if a Fund’s holdings of Illiquid Investments exceed 15% of the Fund’s assets.

At a meeting held on March 30-April 1, 2020, the Committee presented a report to the Board that addressed the operation of the Program and assessed the Program’s adequacy and effectiveness of implementation (the “Report”). The Report covered the period from December 1, 2018 through December 31, 2019 (the “Program Reporting Period”).

The Report stated, in relevant part, that during the Program Reporting Period:

∎ The Program, as adopted and implemented, remained reasonably designed to assess and manage the Fund’s liquidity risk and was operated effectively to achieve that goal;

∎ The Fund’s investment strategy remained appropriate for an open-end fund;

∎ The Fund was able to meet requests for redemption without significant dilution of remaining investors’ interests in the Fund;

∎ The Fund did not breach the 15% limit on Illiquid Investments; and

∎ The Fund primarily held Highly Liquid Investments and therefore has not adopted an HLIM.

Invesco V.I. Diversified Dividend Fund

Schedule of Investments^(a)

June 30, 2020

(Unaudited)

	Shares		Value
Common Stocks & Other Equity Interests–95.24%
Aerospace & Defense–1.17%
General Dynamics Corp.		16,206	$    2,422,149
Raytheon Technologies Corp.		37,787	2,328,435
			4,750,584
Agricultural & Farm Machinery–0.79%
Deere & Co.		20,404	3,206,489
Air Freight & Logistics–1.09%
United Parcel Service, Inc., Class B		39,935	4,439,973
Apparel Retail–1.26%
TJX Cos., Inc. (The)		101,546	5,134,166
Apparel, Accessories & Luxury Goods–0.48%
Columbia Sportswear Co.		24,086	1,940,850
Asset Management & Custody Banks–0.18%
Federated Hermes, Inc., Class B		31,073	736,430
Brewers–3.21%
Anheuser-Busch InBev S.A./N.V. (Belgium)		98,091	4,834,571
Heineken N.V. (Netherlands)		89,292	8,223,066
			13,057,637
Construction Machinery & Heavy Trucks–1.15%
Cummins, Inc.		26,905	4,661,560
Consumer Finance–1.04%
American Express Co.		44,388	4,225,738
Data Processing & Outsourced Services–1.32%
Automatic Data Processing, Inc.		35,925	5,348,873
Diversified Chemicals–0.77%
BASF SE (Germany)		56,264	3,144,029
Electric Utilities–11.31%
American Electric Power Co., Inc.		60,927	4,852,226
Duke Energy Corp.		63,258	5,053,682
Entergy Corp.		131,691	12,353,933
Exelon Corp.		210,335	7,633,057
PPL Corp.		370,060	9,562,351
SSE PLC (United Kingdom)		385,877	6,515,137
			45,970,386
Electrical Components & Equipment–2.42%
ABB Ltd. (Switzerland)		287,826	6,469,625
Emerson Electric Co.		54,454	3,377,782
			9,847,407
Fertilizers & Agricultural Chemicals–0.39%
Nutrien Ltd. (Canada)		49,173	1,579,940
Food Distributors–0.98%
Sysco Corp.		72,979	3,989,032
General Merchandise Stores–1.63%
Target Corp.		55,331	6,635,847

	Shares		Value
Household Products–5.91%
Kimberly-Clark Corp.		75,939	$  10,733,978
Procter & Gamble Co. (The)		111,176	13,293,314
			24,027,292
Industrial Conglomerates–2.27%
3M Co.		33,193	5,177,776
Siemens AG (Germany)		34,457	4,047,585
			9,225,361
Industrial Machinery–2.90%
Flowserve Corp.		209,576	5,977,108
Pentair PLC		76,730	2,914,973
Stanley Black & Decker, Inc.		20,725	2,888,650
			11,780,731
Integrated Oil & Gas–2.54%
Suncor Energy, Inc. (Canada)		154,429	2,603,771
TOTAL S.A. (France)(b)		202,031	7,695,279
			10,299,050
Integrated Telecommunication Services–3.33%
AT&T, Inc.		279,903	8,461,468
Deutsche Telekom AG (Germany)		304,088	5,086,601
			13,548,069
IT Consulting & Other Services–0.69%
International Business Machines Corp.		23,315	2,815,753
Motorcycle Manufacturers–1.02%
Harley-Davidson, Inc.		173,446	4,122,811
Movies & Entertainment–0.76%
Walt Disney Co. (The)(c)		27,494	3,065,856
Multi-line Insurance–2.51%
Hartford Financial Services Group, Inc. (The)		264,579	10,199,520
Multi-Utilities–5.42%
Consolidated Edison, Inc.		50,214	3,611,893
Dominion Energy, Inc.		148,240	12,034,123
Sempra Energy		54,444	6,382,470
			22,028,486
Oil & Gas Equipment & Services–0.63%
Baker Hughes Co., Class A		165,403	2,545,552
Oil & Gas Exploration & Production–1.41%
ConocoPhillips		135,924	5,711,527
Packaged Foods & Meats–11.42%
Campbell Soup Co.		219,113	10,874,578
General Mills, Inc.		261,764	16,137,751
Kraft Heinz Co. (The)		112,397	3,584,340
Mondelez International, Inc., Class A		172,453	8,817,522
Nestle S.A. (Switzerland)		63,446	7,009,209
			46,423,400
Paper Packaging–2.35%
Avery Dennison Corp.		20,130	2,296,631

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

Invesco V.I. Diversified Dividend Fund

	Shares		Value
Paper Packaging–(continued)
International Paper Co.		115,671	$    4,072,776
Sonoco Products Co.		60,982	3,188,749
			9,558,156
Personal Products–1.65%
L’Oreal S.A. (France)		20,924	6,708,345
Pharmaceuticals–8.29%
Bayer AG (Germany)		88,586	6,502,173
Bristol-Myers Squibb Co.		94,058	5,530,610
Eli Lilly and Co.		51,120	8,392,882
Johnson & Johnson		47,659	6,702,285
Merck & Co., Inc.		84,866	6,562,688
			33,690,638
Property & Casualty Insurance–1.73%
Travelers Cos., Inc. (The)		61,524	7,016,812
Regional Banks–6.66%
Comerica, Inc.		74,700	2,846,070
Cullen/Frost Bankers, Inc.		40,557	3,030,014
Fifth Third Bancorp		193,569	3,732,010
KeyCorp		123,927	1,509,431
M&T Bank Corp.		65,623	6,822,823
PNC Financial Services Group, Inc. (The)		30,581	3,217,427
Zions Bancorporation N.A.		173,905	5,912,770
			27,070,545
Restaurants–0.27%
Darden Restaurants, Inc.(c)		14,573	1,104,196
Soft Drinks–2.13%
Coca-Cola Co. (The)		193,209	8,632,578

	Shares		Value
Specialized REITs–1.34%
Weyerhaeuser Co.		243,194	$	5,462,137
Specialty Chemicals–0.82%
DuPont de Nemours, Inc.		62,745		3,333,642
Total Common Stocks & Other Equity Interests (Cost $340,516,364)				387,039,398
Money Market Funds–4.70%
Invesco Government & Agency Portfolio, Institutional Class, 0.09%(d)(e)		6,042,082		6,042,082
Invesco Liquid Assets Portfolio, Institutional Class, 0.39%(d)(e)		6,156,403		6,160,712
Invesco Treasury Portfolio, Institutional Class, 0.08%(d)(e)		6,905,236		6,905,236
Total Money Market Funds (Cost $19,104,771)				19,108,030
TOTAL INVESTMENTS IN SECURITIES (excluding investments purchased with cash collateral from securities on loan)-99.94% (Cost $359,621,135)				406,147,428
Investments Purchased with Cash Collateral from Securities on Loan
Money Market Funds–1.81%
Invesco Private Government Fund, 0.05%(d)(e)(f)		5,508,000		5,508,000
Invesco Private Prime Fund, 0.11%(d)(e)(f)		1,835,633		1,836,000
Total Investments Purchased with Cash Collateral from Securities on Loan (Cost $7,344,000)				7,344,000
TOTAL INVESTMENTS IN SECURITIES–101.75% (Cost $366,965,135)				413,491,428
OTHER ASSETS LESS LIABILITIES–(1.75)%				(7,104,663	)
NET ASSETS–100.00%			$	406,386,765

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 this security was out on loan at June 30, 2020.

^(c)  Non-income producing security.

^(d)  Affiliated issuer. The issuer and/or the Fund is a wholly-owned subsidiary of Invesco Ltd., or is affiliated by having an investment adviser that is under common control of Invesco Ltd. The table below shows the Fund’s transactions in, and earnings from, its investments in affiliates for the six months ended June 30, 2020.

	Value December 31, 2019			Purchases at Cost			Proceeds from Sales				Change in Unrealized Appreciation			Realized Gain			Value June 30, 2020			Dividend Income
Investments in Affiliated Money Market Funds:
Invesco Government & Agency Portfolio, Institutional Class		$	9,736,144		$	7,163,093		$	(10,857,155	)		$	-		$	-		$	6,042,082		$	28,854
Invesco Liquid Assets Portfolio, Institutional Class			6,984,374			7,087,963			(7,914,048	)			2,234			189			6,160,712			29,463
Invesco Treasury Portfolio, Institutional Class			11,127,022			8,186,392			(12,408,178	)			-			-			6,905,236			31,567
Investments Purchased with Cash Collateral from Securities on Loan:
Invesco Private Government Fund			-			5,792,400			(284,400	)			-			-			5,508,000			46
Invesco Private Prime Fund			-			1,930,800			(94,800	)			-			-			1,836,000			33
Total		$	27,847,540		$	30,160,648		$	(31,558,581	)		$	2,234		$	189		$	26,452,030		$	89,963

^(e) The rate shown is the 7-day SEC standardized yield as of June 30, 2020.

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

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

Invesco V.I. Diversified Dividend Fund

Portfolio Composition

By sector, based on Net Assets

as of June 30, 2020

Consumer Staples	25.30	%
Utilities	16.73
Financials	12.12
Industrials	11.79
Health Care	8.29
Consumer Discretionary	4.66
Energy	4.57
Materials	4.33
Communication Services	4.09
Information Technology	2.01
Other Sectors, Each Less than 2% of Net Assets	1.35
Money Market Funds Plus Other Assets Less Liabilities	4.76

Open Forward Foreign Currency Contracts

Settlement		Contract to				Unrealized Appreciation
Date	Counterparty	Deliver		Receive		(Depreciation)
Currency Risk
07/28/2020	Goldman Sachs & Co.	EUR	1,561,788	USD	1,772,053	$	16,399
Currency Risk
07/28/2020	Bank Of America	EUR	14,307,807	USD	15,734,653		(349,192	)
Total Forward Foreign Currency Contracts						$	(332,793	)

Abbreviations:

EUR – Euro

USD – U.S. Dollar

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

Invesco V.I. Diversified Dividend Fund

Statement of Assets and Liabilities

June 30, 2020

(Unaudited)

Assets:
Investments in securities, at value (Cost $340,516,364)*	$387,039,398
Investments in affiliated money market funds, at value (Cost $26,448,771)	26,452,030
Other investments:
Unrealized appreciation on forward foreign currency contracts outstanding	16,399
Foreign currencies, at value (Cost $21,951)	22,072
Receivable for:
Investments sold	143,644
Fund shares sold	226,720
Dividends	1,154,937
Investment for trustee deferred compensation and retirement plans	85,305
Total assets	415,140,505
Liabilities:
Other investments:
Unrealized depreciation on forward foreign currency contracts outstanding	349,192
Payable for:
Investments purchased	473,867
Fund shares reacquired	286,169
Collateral upon return of securities loaned	7,344,000
Accrued fees to affiliates	159,044
Accrued trustees’ and officers’ fees and benefits	2,625
Accrued other operating expenses	19,603
Trustee deferred compensation and retirement plans	119,240
Total liabilities	8,753,740
Net assets applicable to shares outstanding	$406,386,765
Net assets consist of:
Shares of beneficial interest	$331,963,148
Distributable earnings	74,423,617
	$406,386,765
Net Assets:
Series I	$211,721,934
Series II	$194,664,831
Shares outstanding, no par value, with an unlimited number of shares authorized:
Series I	9,147,352
Series II	8,485,178
Series I:
Net asset value per share	$           23.15
Series II:
Net asset value per share	$           22.94

* At June 30, 2020, securities with an aggregate value of $6,993,888 were on loan to brokers.

Statement of Operations

For the six months ended June 30, 2020

(Unaudited)

Investment income:
Dividends (net of foreign withholding taxes of $278,325)	$	6,861,800
Dividends from affiliated money market funds (includes securities lending income of $79)		89,963
Total investment income		6,951,763
Expenses:
Advisory fees		1,053,934
Administrative services fees		346,105
Custodian fees		6,350
Distribution fees - Series II		251,608
Transfer agent fees		13,475
Trustees’ and officers’ fees and benefits		9,565
Reports to shareholders		929
Professional services fees		14,246
Other		6,003
Total expenses		1,702,215
Less: Fees waived		(12,316	)
Net expenses		1,689,899
Net investment income		5,261,864
Realized and unrealized gain (loss) from:
Net realized gain (loss) from:
Investment securities		(304,555	)
Foreign currencies		(16,875	)
Forward foreign currency contracts		404,413
		82,983
Change in net unrealized appreciation (depreciation) of:
Investment securities		(81,506,503	)
Foreign currencies		496
Forward foreign currency contracts		(194,357	)
		(81,700,364	)
Net realized and unrealized gain (loss)		(81,617,381	)
Net increase (decrease) in net assets resulting from operations	$	(76,355,517	)

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

Invesco V.I. Diversified Dividend Fund

Statement of Changes in Net Assets

For the six months ended June 30, 2020 and the year ended December 31, 2019

(Unaudited)

	June 30, 2020			December 31, 2019
Operations:
Net investment income	$	5,261,864		$	12,841,617
Net realized gain		82,983			44,073,693
Change in net unrealized appreciation (depreciation)		(81,700,364	)		61,624,586
Net increase (decrease) in net assets resulting from operations		(76,355,517	)		118,539,896
Distributions to shareholders from distributable earnings:
Series I		–			(21,611,367	)
Series II		–			(18,163,081	)
Total distributions from distributable earnings		–			(39,774,448	)
Share transactions–net:
Series I		(26,171,450	)		(106,614,162	)
Series II		(6,692,473	)		1,105,297
Net increase (decrease) in net assets resulting from share transactions		(32,863,923	)		(105,508,865	)
Net increase (decrease) in net assets		(109,219,440	)		(26,743,417	)
Net assets:
Beginning of period		515,606,205			542,349,622
End of period	$	406,386,765		$	515,606,205

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

Invesco V.I. Diversified Dividend Fund

Financial Highlights

(Unaudited)

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

																																				Ratio of			Ratio of
																																				expenses			expenses
							Net gains																													to average			to average net
							(losses)																													net assets			assets without			Ratio of net
	Net asset						on securities								Dividends				Distributions																	with fee waivers			fee waivers			investment
	value,			Net			(both				Total from				from net				from net								Net asset						Net assets,			and/or			and/or			income
	beginning			investment			realized and				investment				investment				realized				Total				value, end			Total			end of period			expenses			expenses			to average			Portfolio
	of period			income(a)			unrealized)				operations				income				gains				distributions				of period			return (b)			(000’s omitted)			absorbed			absorbed			net assets			turnover (c)
Series I
Six months ended 06/30/20		$	27.23		$	0.30		$	(4.38	)		$	(4.08	)		$	–			$	–			$	–			$	23.15		(14.98	)%		$	211,722		0.67	%(d)		0.68	%(d)		2.58	%(d)		6	%
Year ended 12/31/19			23.70			0.67			5.15				5.82				(0.80	)			(1.49	)			(2.29	)			27.23		25.09				278,727		0.65			0.65			2.54			7
Year ended 12/31/18			27.18			0.63			(2.53	)			(1.90	)			(0.65	)			(0.93	)			(1.58	)			23.70		(7.57	)			337,461		0.64			0.65			2.38			10
Year ended 12/31/17			26.38			0.56			1.65				2.21				(0.46	)			(0.95	)			(1.41	)			27.18		8.58				437,104		0.64			0.65			2.06			16
Year ended 12/31/16			23.27			0.50			2.93				3.43				(0.32	)			–				(0.32	)			26.38		14.81				439,857		0.66			0.68			2.02			14
Year ended 12/31/15			23.21			0.43			0.04				0.47				(0.41	)			–				(0.41	)			23.27		2.07				333,573		0.70			0.71			1.84			15
Series II
Six months ended 06/30/20			27.03			0.27			(4.36	)			(4.09	)			–				–				–				22.94		(15.13	)			194,665		0.92	(d)		0.93	(d)		2.33	(d)		6
Year ended 12/31/19			23.54			0.60			5.11				5.71				(0.73	)			(1.49	)			(2.22	)			27.03		24.77				236,880		0.90			0.90			2.29			7
Year ended 12/31/18			27.00			0.56			(2.51	)			(1.95	)			(0.58	)			(0.93	)			(1.51	)			23.54		(7.78	)			204,889		0.89			0.90			2.13			10
Year ended 12/31/17			26.23			0.49			1.64				2.13				(0.41	)			(0.95	)			(1.36	)			27.00		8.31				242,614		0.89			0.90			1.81			16
Year ended 12/31/16			23.16			0.43			2.92				3.35				(0.28	)			–				(0.28	)			26.23		14.54				215,614		0.91			0.93			1.77			14
Year ended 12/31/15			23.11			0.37			0.04				0.41				(0.36	)			–				(0.36	)			23.16		1.82				132,477		0.95			0.96			1.59			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 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 $227,963 and $202,264 for Series I and Series II shares, respectively.

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

Invesco V.I. Diversified Dividend Fund

Notes to Financial Statements

June 30, 2020

(Unaudited)

NOTE 1–Significant Accounting Policies

Invesco V.I. Diversified Dividend 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. Information presented in these financial statements pertains only to the Fund. Matters affecting the Fund or each class will be voted on exclusively by the shareholders of the Fund or each class. 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 Fund is an investment company and accordingly follows the investment company accounting and reporting guidance in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 946, Financial Services – Investment Companies.

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

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

A security listed or traded on an exchange (except convertible securities) is valued at its last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded, or lacking any sales or official closing price on a particular day, the security may be valued at the closing bid price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued by an independent pricing service they may be considered fair valued. Futures contracts are valued at the final settlement price set by an exchange on which they are principally traded. Listed options are valued at the mean between the last bid and asked 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 asked prices. For purposes of determining net asset value (“NAV”) per share, futures and option contracts generally are valued 15 minutes after the close of the customary trading session of the New York Stock Exchange (“NYSE”).

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

Debt obligations (including convertible securities) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. Pricing services generally value debt obligations assuming orderly transactions of institutional round lot size, but a fund may hold or transact in the same securities in smaller, odd lot sizes. Odd lots often trade at lower prices than institutional round lots. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.

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

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

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

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

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

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

Invesco V.I. Diversified Dividend Fund

share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and the Statement of Changes in Net Assets, or the net investment income per share and the ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.

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

C. Country Determination – For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues 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 net investment income and net realized capital gain, if any, are generally declared and paid to separate accounts of participating insurance companies annually and recorded on the ex-dividend date.

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

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

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

F. Expenses – Fees provided for under the Rule 12b-1 plan of a particular class of the Fund and which are directly attributable to that class are charged to the operations of such class. All other expenses are allocated among the classes based on relative net assets.

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

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

I. 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. The Fund bears the risk of loss with respect to the investment of collateral. It is the Fund’s policy to obtain additional collateral from or return excess collateral to the borrower by the end of the next business day, following the valuation date of the securities loaned. Therefore, the value of the collateral held may be temporarily less than the value of the securities on loan. When loaning securities, the Fund retains certain benefits of owning the securities, including the economic equivalent of dividends or interest generated by the security. Lending securities entails a risk of loss to the Fund if, and to the extent that, the market value of the securities loaned were to increase and the borrower did not increase the collateral accordingly, and the borrower failed to return the securities. The securities loaned are subject to termination at the option of the borrower or the Fund. Upon termination, the borrower will return to the Fund the securities loaned and the Fund will return the collateral. Upon the failure of the borrower to return the securities, collateral may be liquidated and the securities may be purchased on the open market to replace the loaned securities. The Fund could experience delays and costs in gaining access to the collateral and the securities may lose value during the delay which could result in potential losses to the Fund. Some of these losses may be indemnified by the lending agent. The Fund bears the risk of any deficiency in the amount of the collateral available for return to the borrower due to any loss on the collateral invested. Dividends received on cash collateral investments for securities lending transactions, which are net of compensation to counterparties, are included in Dividends from affiliated money market funds on the Statement of Operations. The aggregate value of securities out on loan, if any, is shown as a footnote on the Statement of Assets and Liabilities.

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

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

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

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

Invesco V.I. Diversified Dividend Fund

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

NOTE 2–Advisory Fees and Other Fees Paid to Affiliates

The Trust has entered into a master investment advisory agreement with Invesco Advisers, Inc. (the “Adviser” or “Invesco”). Under the terms of the investment advisory agreement, the Fund accrues daily and pays monthly an 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		0.420%
Next $1 billion		0.395%
Over $2 billion		0.370%

For the six months ended June 30, 2020, the effective advisory fee rate incurred by the Fund was 0.49%.

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

The Adviser has contractually agreed, through at least June 30, 2021, 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 2.00% and Series II shares to 2.25% of average daily net assets (the “expense limits”). In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause the total annual fund operating expenses after fee waiver and/or expense reimbursement to exceed the numbers reflected above: (1) interest; (2) taxes; (3) dividend expense on short sales; (4) extraordinary or non-routine items, including litigation expenses; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Unless Invesco continues the fee waiver agreement, it will terminate on June 30, 2021. During its term, the fee waiver agreement cannot be terminated or amended to increase the expense limits or reduce the advisory fee waiver without approval of the Board of Trustees. The Adviser did not waive fees and/or reimburse expenses during the period under these expense limits.

Further, the Adviser has contractually agreed, through at least June 30, 2022, 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, 2020, the Adviser waived advisory fees of $12,316.

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 fees paid to insurance companies that have agreed to provide certain administrative services to the Fund. These administrative services provided by the insurance companies may include, among other things: maintenance of master accounts with the Fund; tracking, recording and transmitting net purchase and redemption orders for Fund shares; maintaining and preserving records related to the purchase, redemption and other account activity of variable product owners; distributing copies of Fund documents such as prospectuses, proxy materials and periodic reports, to variable product owners, and responding to inquiries from variable product owners about the Fund. Pursuant to such agreement, for the six months ended June 30, 2020, Invesco was paid $36,863 for accounting and fund administrative services and was reimbursed $309,242 for fees paid to insurance companies. Invesco has entered into a sub-administration agreement whereby State Street Bank and Trust Company (“SSB”) serves as fund accountant and provides certain administrative services to the Fund. Pursuant to a custody agreement with the Trust on behalf of the Fund, SSB also serves as the Fund’s custodian.

The Trust has entered into a transfer agency and service agreement with Invesco Investment Services, Inc. (“IIS”) pursuant to which the Fund has agreed to pay IIS a fee for providing transfer agency and shareholder services to the Fund and reimburse IIS for certain expenses incurred by IIS in the course of providing such services. For the six months ended June 30, 2020, 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. The fees are accrued daily and paid monthly. 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, 2020, expenses incurred under the Plan are detailed in the Statement of Operations as Distribution fees.

For the six months ended June 30, 2020, the Fund incurred $122 in brokerage commissions with Invesco Capital Markets, Inc., an affiliate of the Adviser and IDI, for portfolio transactions executed on behalf of the Fund.

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

NOTE 3–Additional Valuation Information

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

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

Level 2 - Prices are determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk, yield curves, loss severities, default rates, discount rates, volatilities and others.

Level 3 - Prices are determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Fund’s

Invesco V.I. Diversified Dividend Fund

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, 2020. The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

	Level 1		Level 2			Level 3		Total
Investments in Securities
Common Stocks & Other Equity Interests	$	320,803,778	$	66,235,620			$–	$	387,039,398
Money Market Funds		19,108,030		7,344,000			–		26,452,030
Total Investments in Securities		339,911,808		73,579,620			–		413,491,428
Other Investments - Assets*
Forward Foreign Currency Contracts		–		16,399			–		16,399
Other Investments - Liabilities*
Forward Foreign Currency Contracts		–		(349,192	)		–		(349,192	)
Total Other Investments		–		(332,793	)		–		(332,793	)
Total Investments	$	339,911,808	$	73,246,827			$–	$	413,158,635

* Unrealized appreciation (depreciation).

NOTE 4–Derivative Investments

The Fund may enter into an International Swaps and Derivatives Association Master Agreement (“ISDA Master Agreement”) under which a fund may trade OTC derivatives. An OTC transaction entered into under an ISDA Master Agreement typically involves a collateral posting arrangement, payment netting provisions and close-out netting provisions. These netting provisions allow for reduction of credit risk through netting of contractual obligations. The enforceability of the netting provisions of the ISDA Master Agreement depends on the governing law of the ISDA Master Agreement, among other factors.

    For financial reporting purposes, the Fund does not offset OTC derivative assets or liabilities that are subject to ISDA Master Agreements in the Statement of Assets and Liabilities.

Value of Derivative Investments at Period-End

The table below summarizes the value of the Fund’s derivative investments, detailed by primary risk exposure, held as of June 30, 2020:

	Value
	Currency
Derivative Assets	Risk
Unrealized appreciation on forward foreign currency contracts outstanding	$	16,399
Derivatives not subject to master netting agreements		-
Total Derivative Assets subject to master netting agreements	$	16,399
	Value
	Currency
Derivative Liabilities	Risk
Unrealized depreciation on forward foreign currency contracts outstanding	$	(349,192	)
Derivatives not subject to master netting agreements		-
Total Derivative Liabilities subject to master netting agreements	$	(349,192	)

Offsetting Assets and Liabilities

The table below reflects the Fund’s exposure to Counterparties subject to either an ISDA Master Agreement or other agreement for OTC derivative transactions as of June 30, 2020.

	Financial Derivative Assets	Financial Derivative Liabilities				Collateral (Received)/Pledged
Counterparty	Forward Foreign Currency Contracts	Forward Foreign Currency Contracts	Net Value of Derivatives			Non-Cash	Cash	Net Amount
Goldman Sachs & Co.	$16,399	$              -	$	16,399		$-	$-	$	16,399
Bank Of America	-	(349,192)		(349,192	)	-	-		(349,192	)
Total	$16,399	$(349,192)	$	(332,793	)	$-	$-	$	(332,793	)

Invesco V.I. Diversified Dividend Fund

Effect of Derivative Investments for the six months ended June 30, 2020

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

	Location of Gain (Loss) on Statement of Operations
	Currency Risk
Realized Gain:
Forward foreign currency contracts		$404,413
Change in Net Unrealized Appreciation (Depreciation):
Forward foreign currency contracts		(194,357)
Total		$210,056

The table below summarizes the average notional value of derivatives held during the period.

	Forward Foreign Currency Contracts
Average notional value	$	21,603,384

NOTE 5–Trustees’ and Officers’ Fees and Benefits

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

NOTE 6–Cash Balances

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

NOTE 7–Tax Information

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

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

    The Fund did not have a capital loss carryforward as of December 31, 2019.

NOTE 8–Investment Transactions

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, 2020 was $25,426,090 and $43,138,967, respectively. Cost of investments, including any derivatives, on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end.

Unrealized Appreciation (Depreciation) of Investments on a Tax Basis

Aggregate unrealized appreciation of investments	$	80,192,507
Aggregate unrealized (depreciation) of investments		(34,565,239	)
Net unrealized appreciation of investments	$	45,627,268

    Cost of investments for tax purposes is $367,531,367.

NOTE 9–Share Information

	Summary of Share Activity
	Six months ended				Year ended
	June 30, 2020(a)				December 31, 2019
	Shares		Amount		Shares		Amount
Sold:
Series I		351,786	$	8,271,610		1,203,566	$	31,545,134
Series II		341,692		7,761,371		533,931		13,948,354

Invesco V.I. Diversified Dividend Fund

	Summary of Share Activity
	Six months ended						Year ended
	June 30, 2020(a)						December 31, 2019
	Shares			Amount			Shares			Amount
Issued as reinvestment of dividends:
Series I		-		$	-			837,001		$	21,611,367
Series II		-			-			708,388			18,163,081
Reacquired:
Series I		(1,439,298	)		(34,443,060	)		(6,041,667	)		(159,770,663	)
Series II		(621,454	)		(14,453,844	)		(1,181,712	)		(31,006,138	)
Net increase (decrease) in share activity		(1,367,274	)	$	(32,863,923	)		(3,940,493	)	$	(105,508,865	)

^(a)  There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 68% 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 Fund 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–Coronavirus (COVID-19) Pandemic

During the first quarter of 2020, the World Health Organization declared COVID-19 to be a public health emergency. COVID-19 has led to increased short-term market volatility and may have adverse long-term effects on U.S. and world economies and markets in general. COVID-19 may adversely impact the Fund’s ability to achieve its investment objective. Because of the uncertainties on valuation, the global economy and business operations, values reflected in these financial statements may materially differ from the value received upon actual sales of those investments.

    The extent of the impact on the performance of the Fund and its investments will depend on future developments, including the duration and spread of the COVID-19 outbreak, related restrictions and advisories, and the effects on the financial markets and economy overall, all of which are highly uncertain and cannot be predicted.

Invesco V.I. Diversified Dividend 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, 2020 through June 30, 2020.

    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.

		ACTUAL		HYPOTHETICAL (5% annual return before expenses)		Annualized   Expense Ratio
	Beginning   Account Value   (01/01/20)	Ending   Account Value   (06/30/20)1	Expenses   Paid During   Period2	Ending   Account Value   (06/30/20)	Expenses   Paid During   Period2
Series I	$1,000.00	$850.20	$3.08	$1,021.53	$3.37	0.67%
Series II	1,000.00	848.70	4.23	1,020.29	4.62	0.92

¹  The actual ending account value is based on the actual total return of the Fund for the period January 1, 2020 through June 30, 2020, 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 182/366 to reflect the most recent fiscal half year.

Invesco V.I. Diversified Dividend Fund

Approval of Investment Advisory and Sub-Advisory Contracts

At meetings held on June 3, 2020, the Board of Trustees (the Board or the Trustees) of AIM Variable Insurance Funds (Invesco Variable Insurance Funds) as a whole, and the independent Trustees, who comprise over 75% of the Board, voting separately, approved the continuance of the Invesco V.I. Diversified Dividend Fund’s (the Fund) Master Investment Advisory Agreement with Invesco Advisers, Inc. (Invesco Advisers and the investment advisory agreement) and the Master Intergroup Sub-Advisory Contract for Mutual Funds with Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Canada Ltd. and separate sub-advisory contracts with Invesco Capital Management LLC and Invesco Asset Management (India) Private Limited (collectively, the Affiliated Sub-Advisers and the sub-advisory contracts) for another year, effective July 1, 2020. After evaluating the factors discussed below, among others, the Board approved the renewal of the Fund’s investment advisory agreement and the sub-advisory contracts and determined that the compensation payable thereunder by the Fund to Invesco Advisers and by Invesco Advisers to the Affiliated Sub-Advisers is fair and reasonable.

The Board’s Evaluation Process

The Board’s Investments Committee has established Sub-Committees, which meet throughout the year to review the performance of funds advised by Invesco Advisers (the Invesco Funds). The Sub-Committees meet regularly with portfolio managers for their assigned Invesco Funds and other members of management to review detailed information about investment performance and portfolio attributes of these funds. The Board took into account evaluations and reports that it received from the Investments Committee and Sub-Committees, as well as the information provided to such committees and the Board throughout the year, in considering whether to approve each Invesco Fund’s investment advisory agreement and sub-advisory contracts.

As part of the contract renewal process, the Board reviews and considers information provided in response to detailed requests for information submitted to management by the independent Trustees with assistance from legal counsel to the independent Trustees. The Board receives comparative investment performance and fee data regarding the Invesco Funds prepared by Invesco Advisers and Broadridge Financial Solutions, Inc. (Broadridge), an independent mutual fund data provider, as well as information on the composition of the peer groups provided by Broadridge and its methodology for determining peer groups. The Board also receives an independent written evaluation from the Senior Officer, an officer of the Invesco Funds who reports directly to the independent Trustees. 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. In addition to meetings with Invesco Advisers and fund counsel throughout the year, the independent Trustees also

discuss the continuance of the investment advisory agreement and sub-advisory contracts in separate sessions with the Senior Officer and with independent legal counsel.

The discussion below is a summary of 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. The Trustees’ review and conclusions are based on the comprehensive consideration of all information presented to them during the course of the year and in prior years and are not the result of any single determinative factor. Moreover, one Trustee may have weighed a particular piece of information or factor differently than another Trustee. This information is current as of June 3, 2020.

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 nature, extent and quality of the advisory services provided to the Fund by Invesco Advisers under the Fund’s investment advisory agreement, and the credentials and experience of the officers and employees of Invesco Advisers who provide these services, including the Fund’s portfolio manager(s). The Board’s review included consideration of Invesco Advisers’ investment process oversight and structure, credit analysis, investment risk management and research capabilities. The Board also considered non-advisory services that Invesco Advisers and its affiliates provide to the Invesco Funds, such as various back office support functions, third party oversight, internal audit, valuation, portfolio trading and legal and compliance. The Board also received and reviewed information about Invesco Advisers’ role as administrator of the Invesco Funds’ liquidity risk management program. The Board reviewed and considered the benefits to shareholders of investing in a Fund that is part of the Invesco family of funds under the umbrella of Invesco Ltd., Invesco Advisers’ parent company, and noted Invesco Ltd.’s depth and experience in conducting an investment management business, as well as its commitment of financial and other resources to such business. The Board also reviewed and considered information regarding the benefits to the Fund resulting from Invesco Ltd.’s acquisition of OppenheimerFunds, Inc. and its subsidiaries (the Transaction) and the resources that Invesco Advisers has committed to managing the Invesco family of funds following the Transaction. The Board concluded that the nature, extent and quality of the services provided to the Fund by Invesco Advisers are appropriate and satisfactory.

The Board reviewed the services that may be 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 the Affiliated Sub-Advisers’ expertise with respect to certain asset classes and that the Affiliated Sub-Advisers have offices and personnel that are located in financial centers around the world.

As a result, the Board noted that the Affiliated Sub-Advisers can provide research and investment analysis on the markets and economies of various countries in which the Fund may invest, make recommendations regarding securities and assist with security trades. The Board concluded that the sub-advisory contracts may 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 that may be provided by the Affiliated Sub-Advisers are appropriate and satisfactory.

B. Fund Investment Performance

The Board considered Fund investment performance as a relevant factor in considering whether to approve the investment advisory agreement. The Board did not view Fund investment 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 investment performance over multiple time periods ending December 31, 2019 to the performance of funds in the Broadridge performance universe and against the Russell 1000^® Value Index. The Board noted that performance of Series I shares of the Fund was in the fourth quintile of its performance universe for the one year period, the fifth 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 and three year periods and reasonably comparable to the performance of the Index for the five year period. The Board acknowledged limitations regarding the Broadridge data, in particular that differences may exist between a Fund’s investment objective, principal investment strategies and/or investment restrictions and those of its performance peer funds. The Board noted that the Fund’s cash levels and defensive positioning, including its underweight and overweight exposures to certain sectors, detracted from Fund performance. The Board recognized that the performance data reflects a snapshot in time as of a particular date and that selecting a different performance period could produce different results. The Board also reviewed more recent Fund performance as well as other performance metrics and this review did not change their conclusions.

C. Advisory and Sub-Advisory Fees and Fund Expenses

The Board compared the Fund’s contractual management fee rate to the contractual management fee rates of funds in the Fund’s Broadridge expense group. The Board noted that the contractual management fee rate for Series I shares of the Fund was below the median contractual management fee rate of funds in its expense group. The Board noted that the term “contractual management fee” for funds in the expense group may include both advisory and certain non-portfolio management administrative services fees, but that Broadridge does not provide information on a fund by fund basis as to what is included. The Board also reviewed the methodology used by Broadridge in providing expense group

Invesco V.I. Diversified Dividend Fund

information, which includes using each fund’s contractual management fee schedule (including any applicable breakpoints) as reported in the most recent prospectus or statement of additional information for each fund in the expense group. The Board also considered comparative information regarding the Fund’s total expense ratio and its various components.

The Board noted that Invesco Advisers has contractually agreed to waive fees and/or limit expenses of the Fund for the term disclosed in the Fund’s registration statement 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 fees charged by Invesco Advisers and the Affiliated Sub-Advisers to other similarly managed client accounts. Invesco Advisers reviewed with the Board differences in the scope of services it provides to the Invesco Funds relative to certain other types of client accounts, including, among others: management of cash flows as a result of redemptions and purchases; necessary infrastructure such as officers, office space, technology, legal and distribution; oversight of service providers; costs and business risks associated with launching new funds and sponsoring and maintaining the product line; and compliance with federal and state laws and regulations.

The Board also compared the Fund’s effective advisory fee rate (the advisory fee rate after advisory fee waivers and before other expense limitations/ waivers) to the effective advisory fee rates of other similarly managed third-party mutual funds advised or sub-advised by Invesco Advisers and its affiliates, based on asset balances as of December 31, 2019.

The Board also considered the services that may be provided by the Affiliated Sub-Advisers pursuant to the sub-advisory contracts, as well as the fees payable by Invesco Advisers to the Affiliated Sub-Advisers pursuant to the sub-advisory contracts.

D. Economies of Scale and Breakpoints

The Board considered the extent to which there may be economies of scale in the provision of advisory services to the Fund. The Board also considered that the Fund benefits from economies of scale through contractual breakpoints in the Fund’s advisory fee schedule, which generally operate to reduce the Fund’s expense ratio as it grows in size. The Board 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. The Board noted that the Fund may also benefit from economies of scale through initial fee setting, fee waivers and expense reimbursements. The Board also considered Invesco’s reinvestment in its business, including investments in business infrastructure, technology and cybersecurity.

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 Invesco Funds and the profitability of Invesco Advisers and its affiliates in providing these services in the aggregate and on an individual Fund-by-Fund basis. The Board considered the methodology used for calculating profitability and noted the periodic review and enhancement of such methodology. The Board noted that Invesco Advisers continues to operate at a net profit from services Invesco Advisers and its affiliates provide to the

Invesco Funds in the aggregate and to certain Funds on an individual fund level. The Board did not deem the level of profits realized by Invesco Advisers and its affiliates from providing such services to be excessive given the nature, extent and quality of the services provided. The Board received information from Invesco Advisers demonstrating that Invesco Advisers and the Affiliated Sub-Advisers are financially sound and have the resources necessary to perform their obligations under the investment advisory agreement and sub-advisory contracts.

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 providing administrative, transfer agency and distribution services to the Fund. The Board considered comparative information regarding fees charged for these services, including information provided by Broadridge and other independent sources. 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; and that the services are required for the operation of the Fund.

The Board considered the benefits realized by Invesco Advisers and the Affiliated Sub-Advisers as a result of portfolio brokerage transactions executed through “soft dollar” arrangements. The Board noted that soft dollar arrangements may result in the Fund bearing costs to purchase research that may be used by Invesco Advisers or the Affiliated Sub-Advisers with other clients and may reduce Invesco Advisers’ or the Affiliated Sub-Advisers’ expenses. The Board also considered that it receives periodic reports from Invesco representing that these arrangements are consistent with regulatory requirements. The Board did not deem the soft dollar arrangements to be inappropriate.

The Board considered that the Fund’s uninvested cash and cash collateral from any securities lending arrangements may be invested in registered money market funds or, with regard to securities lending cash collateral, unregistered funds that comply with Rule 2a-7 (collectively referred to as “affiliated money market funds”) advised by Invesco Advisers pursuant to procedures approved by the Board. The Board considered information regarding the returns of the affiliated money market funds relative to comparable overnight investments, as well as the costs to the Fund of such investments. 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 with respect to certain investments in the affiliated money market 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 amount of advisory fees received by Invesco Advisers from the Fund’s investment of cash collateral from any securities lending arrangements in the affiliated money market funds is fair and reasonable.

The Board also considered that an affiliated broker may receive commissions for executing certain trades for the Fund. Invesco Advisers and the Affiliated Sub-Advisers may use the affiliated broker to, among other things, control order routing and minimize information leakage, and the Board was advised that such trades are executed in compliance with rules under the federal securities laws and consistent with best execution obligations.

Invesco V.I. Diversified Dividend Fund

	Semiannual Report to Shareholders	June 30, 2020
	Invesco V.I. Equally-Weighted S&P 500 Fund

Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, the insurance company that offers your variable annuity or variable life insurance contract may no longer send you paper copies of the Fund’s shareholder reports by mail, unless you specifically request paper copies of the reports from the insurance company or your financial intermediary. Instead of delivering paper copies of the report, the insurance company may choose to make the reports available on a website, and will notify you by mail each time a report is posted and provide you with a website link to access the report. Instructions for requesting paper copies will be provided by your insurance company.

    If the insurance company offers electronic delivery, you may elect to receive shareholder reports and other communications about the Fund electronically by following the instructions provided by the insurance company or by contacting your financial intermediary. If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action.

    You may elect to receive all future reports in paper free of charge from the insurance company. You can inform the insurance company or your financial intermediary that you wish to continue receiving paper copies of your shareholder reports by following the instructions provided by the insurance company or by contacting your financial intermediary. Your election to receive reports in paper will apply to all portfolio companies available under your contract with the insurance company.

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) as an exhibit to its reports on Form N-PORT. The Fund’s Form N-PORT filings are available on the SEC website, 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-PORT, 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 most recent 12-month period ended June 30 is available at invesco.com/proxysearch. The information is also available on the SEC website, sec.gov.

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

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.

NOT FDIC INSURED  |  MAY LOSE VALUE  |  NO BANK GUARANTEE

Invesco Distributors, Inc. MS-VIEWSP-SAR-1                                 

Fund Performance

Performance summary

Fund vs. Indexes

Cumulative total returns, 12/31/19 to 6/30/20, excluding variable product issuer charges. If variable product issuer charges were included, returns would be lower.

Series I Shares*	–10.66%
Series II Shares*	–10.76
S&P 500 Indexq (Broad Market Index)	–3.08
S&P 500 Equal Weight Indexq (Style-Specific Index)	–10.77
Lipper VUF Multi-Cap Core Funds Index∎ (Peer Group Index)	–6.64
Source(s): qRIMES Technologies Corp.; ∎Lipper Inc.

*Amount includes the effect of the Adviser pay-in for an economic loss as a result of a delay in rebalancing to the Index that occurred on April 24, 2020. Had the pay-in not been made, the cumulative total returns for Series I and Series II shares were estimated at –12.01% and –12.16%, respectively.

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

  The S&P 500^® Equal Weight Index is the equally weighted version of the S&P 500^® Index, which is considered representative of the US stock market.

    The Lipper VUF Multi-Cap Core Funds Index is an unmanaged index considered representative of multicap 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) described here, and consequently, the performance of the Fund may deviate significantly from the performance of the index(es).

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

Average Annual Total Returns
As of 6/30/20
Series I Shares
Inception (11/9/94)	10.08	%
10 Years	12.23
5 Years	6.83
1 Year	–3.25
Series II Shares
Inception (7/24/00)	8.05	%
10 Years	11.95
5 Years	6.57
1 Year	–3.46
Returns above include the effect of the Adviser pay-in for an economic loss as a result of a delay in rebalancing to the Index that occurred on April 24, 2020. Had the pay-in not been made, average annual total returns for 1 year, 5 years, 10 years and since inception were estimated at –4.72%, 6.50%, 12.06% and 10.01% for Series I shares and –4.98%, 6.23%, 11.77% and 7.96% for Series II shares, respectively.

Effective June 1, 2010, Class X and Class Y shares of the predecessor fund, Morgan Stanley Select Dimensions Investment Series Equally-Weighted S&P 500 Portfolio, 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 (renamed Invesco V.I. Equally-Weighted S&P 500 Fund on April 30, 2012). Returns shown above, prior to June 1, 2010, for Series I and Series II shares are those of the Class X shares and Class Y shares the predecessor fund. Share class returns will differ from the predecessor fund because of different expenses.

    The performance data quoted represent past performance and cannot guarantee future results; current performance may be lower or higher. Please 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. Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares. Investment return and principal value will fluctuate so that you may have a gain or loss when you sell shares.

    Invesco V.I. 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 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.

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

Invesco V.I. Equally-Weighted S&P 500 Fund

Liquidity Risk Management Program

The Securities and Exchange Commission has adopted Rule 22e-4 under the Investment Company Act of 1940 (the “Liquidity Rule”) in order to promote effective liquidity risk management throughout the open-end investment company industry, thereby reducing the risk that funds will be unable to meet their redemption obligations and mitigating dilution of the interests of fund shareholders. The Fund has adopted and implemented a liquidity risk management program in accordance with the Liquidity Rule (the “Program”). The Program is reasonably designed to assess and manage the Fund’s liquidity risk, which is the risk that the Fund could not meet redemption requests without significant dilution of remaining investors’ interests in the Fund. The Board of Trustees of the Fund (the “Board”) has appointed Invesco Advisers, Inc. (“Invesco”), the Fund’s investment adviser, as the Program’s administrator, and Invesco has delegated oversight of the Program to the Liquidity Risk Management Committee (the “Committee”), which is composed of senior representatives from relevant business groups at Invesco.

As required by the Liquidity Rule, the Program includes policies and procedures providing for an assessment, no less frequently than annually, of the Fund’s liquidity risk that takes into account, as relevant to the Fund’s liquidity risk: (1) the Fund’s investment strategy and liquidity of portfolio investments during both normal and reasonably foreseeable stressed conditions; (2) short-term and long-term cash flow projections for the Fund during both normal and reasonably foreseeable stressed conditions; and (3) the Fund’s holdings of cash and cash equivalents and any borrowing arrangements. The Liquidity Rule also requires the classification of the Fund’s investments into categories that reflect the assessment of their relative liquidity under current market conditions. The Fund classifies its investments into one of four categories defined in the Liquidity Rule: “Highly Liquid,” “Moderately Liquid,” “Less Liquid” and “Illiquid.” Funds that are not invested primarily in “Highly Liquid Investments” that are assets (cash or investments that are reasonably expected to be convertible into cash within three business days without significantly changing the market value of the investment) are required to establish a “Highly Liquid Investment Minimum” (“HLIM”), which is the minimum percentage of net assets that must be invested in Highly Liquid Investments. Funds with HLIMs have procedures for addressing HLIM shortfalls, including reporting to the Board and the SEC (on a non-public basis) as required by the Program and the Liquidity Rule. In addition, the Fund may not acquire an investment if, immediately after the acquisition, over 15% of the Fund’s net assets would consist of “Illiquid Investments” that are assets (an investment that cannot reasonably be expected to be sold or disposed of in current market conditions in seven calendar days or less without the sale or disposition significantly changing the market value of the investment). The Liquidity Rule and the Program also require reporting to the Board and the SEC (on a non-public basis) if a Fund’s holdings of Illiquid Investments exceed 15% of the Fund’s assets.

At a meeting held on March 30-April 1, 2020, the Committee presented a report to the Board that addressed the operation of the Program and assessed the Program’s adequacy and effectiveness of implementation (the “Report”). The Report covered the period from December 1, 2018 through December 31, 2019 (the “Program Reporting Period”).

The Report stated, in relevant part, that during the Program Reporting Period:

∎ The Program, as adopted and implemented, remained reasonably designed to assess and manage the Fund’s liquidity risk and was operated effectively to achieve that goal;

∎ The Fund’s investment strategy remained appropriate for an open-end fund;

∎ The Fund was able to meet requests for redemption without significant dilution of remaining investors’ interests in the Fund;

∎ The Fund did not breach the 15% limit on Illiquid Investments; and

∎ The Fund primarily held Highly Liquid Investments and therefore has not adopted an HLIM.

Invesco V.I. Equally-Weighted S&P 500 Fund

Schedule of Investments^(a)

June 30, 2020

(Unaudited)

	Shares		Value
Common Stocks & Other Equity Interests–98.50%
Advertising–0.39%
Interpublic Group of Cos., Inc. (The)		30,496	$	523,311
Omnicom Group, Inc.		9,576		522,850
				1,046,161
Aerospace & Defense–2.10%
Boeing Co. (The)(b)		2,780		509,574
General Dynamics Corp.		3,531		527,743
Howmet Aerospace, Inc.(b)		37,642		596,626
Huntington Ingalls Industries, Inc.		2,890		504,276
L3Harris Technologies, Inc.		2,727		462,690
Lockheed Martin Corp.		1,379		503,225
Northrop Grumman Corp.		1,658		509,736
Raytheon Technologies Corp.		8,060		496,657
Teledyne Technologies, Inc.(b)		1,579		490,990
Textron, Inc.		15,430		507,801
TransDigm Group, Inc.		1,177		520,293
				5,629,611
Agricultural & Farm Machinery–0.20%
Deere & Co.		3,399		534,153
Agricultural Products–0.20%
Archer-Daniels-Midland Co.		13,365		533,263
Air Freight & Logistics–0.83%
C.H. Robinson Worldwide, Inc.		6,779		535,948
Expeditors International of Washington, Inc.		7,162		544,598
FedEx Corp.		3,969		556,533
United Parcel Service, Inc., Class B		5,192		577,247
				2,214,326
Airlines–0.88%
Alaska Air Group, Inc.(b)		13,698		496,689
American Airlines Group, Inc.(c)		31,480		411,444
Delta Air Lines, Inc.		17,318		485,770
Southwest Airlines Co.(b)		14,691		502,138
United Airlines Holdings, Inc.(b)		13,287		459,863
				2,355,904
Alternative Carriers–0.20%
CenturyLink, Inc.		52,280		524,368
Apparel Retail–0.79%
Gap, Inc. (The)(b)		49,999		630,987
L Brands, Inc.(b)		33,673		504,085
Ross Stores, Inc.(b)		5,698		485,698
TJX Cos., Inc. (The)		10,045		507,875
				2,128,645
Apparel, Accessories & Luxury Goods–1.15%
Hanesbrands, Inc.		44,965		507,655
PVH Corp.(b)		10,614		510,003
Ralph Lauren Corp.(b)		7,047		511,048
Tapestry, Inc.(b)		36,393		483,299
Under Armour, Inc., Class A(b)		28,219		274,853

	Shares		Value
Apparel, Accessories & Luxury Goods–(continued)
Under Armour, Inc., Class C(b)		29,176	$	257,916
VF Corp.		8,603		524,267
				3,069,041
Application Software–2.08%
Adobe, Inc.(b)		1,295		563,726
ANSYS, Inc.(b)		1,949		568,582
Autodesk, Inc.(b)		2,363		565,206
Cadence Design Systems, Inc.(b)		5,890		565,204
Citrix Systems, Inc.		3,743		553,627
Intuit, Inc.		1,877		555,949
Paycom Software, Inc.(b)		1,739		538,620
salesforce.com, inc.(b)		3,014		564,613
Synopsys, Inc.(b)		2,933		571,935
Tyler Technologies, Inc.(b)		1,537		533,155
				5,580,617
Asset Management & Custody Banks–1.58%
Ameriprise Financial, Inc.		3,592		538,944
Bank of New York Mellon Corp. (The)		13,709		529,853
BlackRock, Inc.		999		543,546
Franklin Resources, Inc.		24,184		507,138
Invesco Ltd.(d)		50,966		548,394
Northern Trust Corp.		6,302		500,001
State Street Corp.		8,349		530,579
T. Rowe Price Group, Inc.		4,357		538,089
				4,236,544
Auto Parts & Equipment–0.41%
Aptiv PLC		6,964		542,635
BorgWarner, Inc.		15,706		554,422
				1,097,057
Automobile Manufacturers–0.36%
Ford Motor Co.(b)		81,577		495,988
General Motors Co.		18,847		476,829
				972,817
Automotive Retail–0.81%
Advance Auto Parts, Inc.		3,881		552,849
AutoZone, Inc.(b)		478		539,241
CarMax, Inc.(b)		5,856		524,405
O’Reilly Automotive, Inc.(b)		1,288		543,111
				2,159,606
Biotechnology–1.66%
AbbVie, Inc.		5,680		557,662
Alexion Pharmaceuticals, Inc.(b)		4,821		541,109
Amgen, Inc.		2,417		570,074
Biogen, Inc.(b)		1,886		504,599
Gilead Sciences, Inc.		7,198		553,814
Incyte Corp.(b)		5,723		595,020
Regeneron Pharmaceuticals, Inc.(b)		895		558,167
Vertex Pharmaceuticals, Inc.(b)		1,961		569,298
				4,449,743

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

Invesco V.I. Equally-Weighted S&P 500 Fund

	Shares		Value
Brewers–0.18%
Molson Coors Beverage Co., Class B(b)		13,849	$	475,852
Broadcasting–0.58%
Discovery, Inc., Class A(b)		8,253		174,138
Discovery, Inc., Class C(b)		17,504		337,127
Fox Corp., Class A		12,824		343,940
Fox Corp., Class B		5,873		157,631
ViacomCBS, Inc., Class B		23,012		536,640
				1,549,476
Building Products–1.42%
A.O. Smith Corp.		11,223		528,828
Allegion PLC		5,145		525,922
Carrier Global Corp.		24,464		543,590
Fortune Brands Home & Security, Inc.		9,023		576,840
Johnson Controls International PLC		15,296		522,206
Masco Corp.		11,508		577,817
Trane Technologies PLC		5,829		518,664
				3,793,867
Cable & Satellite–0.59%
Charter Communications, Inc., Class A(b)		1,008		514,120
Comcast Corp., Class A		13,354		520,539
DISH Network Corp., Class A(b)		16,115		556,129
				1,590,788
Casinos & Gaming–0.51%
Las Vegas Sands Corp.(b)		10,566		481,176
MGM Resorts International		27,489		461,815
Wynn Resorts Ltd.		5,708		425,189
				1,368,180
Commodity Chemicals–0.39%
Dow, Inc.		12,781		520,954
LyondellBasell Industries N.V., Class A		7,910		519,845
				1,040,799
Communications Equipment–0.97%
Arista Networks, Inc.(b)		2,364		496,511
Cisco Systems, Inc.		11,691		545,268
F5 Networks, Inc.(b)		3,754		523,608
Juniper Networks, Inc.		22,058		504,246
Motorola Solutions, Inc.		3,747		525,067
				2,594,700
Computer & Electronics Retail–0.22%
Best Buy Co., Inc.		6,776		591,342
Construction & Engineering–0.42%
Jacobs Engineering Group, Inc.		6,546		555,101
Quanta Services, Inc.		14,223		557,968
				1,113,069
Construction Machinery & Heavy Trucks–0.79%
Caterpillar, Inc.		4,279		541,293
Cummins, Inc.		3,153		546,289
PACCAR, Inc.		7,208		539,519
Wabtec Corp.		8,654		498,211
				2,125,312
Construction Materials–0.41%
Martin Marietta Materials, Inc.		2,673		552,161

	Shares		Value
Construction Materials–(continued)
Vulcan Materials Co.		4,701	$	544,611
				1,096,772
Consumer Electronics–0.21%
Garmin Ltd.		5,748		560,430
Consumer Finance–0.73%
American Express Co.(c)		5,182		493,327
Capital One Financial Corp.		7,460		466,921
Discover Financial Services		9,944		498,095
Synchrony Financial		22,170		491,287
				1,949,630
Copper–0.22%
Freeport-McMoRan, Inc.(b)		50,237		581,242
Data Processing & Outsourced Services–2.38%
Automatic Data Processing, Inc.		3,583		533,473
Broadridge Financial Solutions, Inc.		4,332		546,655
Fidelity National Information Services, Inc.		3,843		515,308
Fiserv, Inc.(b)		5,251		512,603
FleetCor Technologies, Inc.(b)		2,034		511,612
Global Payments, Inc.		2,950		500,379
Jack Henry & Associates, Inc.		3,058		562,764
Mastercard, Inc., Class A		1,769		523,093
Paychex, Inc.		7,123		539,567
PayPal Holdings, Inc.(b)		3,393		591,162
Visa, Inc., Class A		2,740		529,286
Western Union Co. (The)		23,400		505,908
				6,371,810
Department Stores–0.18%
Kohl’s Corp.(b)		22,695		471,375
Distillers & Vintners–0.39%
Brown-Forman Corp., Class B		8,075		514,055
Constellation Brands, Inc., Class A		3,094		541,295
				1,055,350
Distributors–0.40%
Genuine Parts Co.		6,156		535,326
LKQ Corp.(b)		20,358		533,379
				1,068,705
Diversified Banks–0.94%
Bank of America Corp.		21,266		505,068
Citigroup, Inc.		10,085		515,343
JPMorgan Chase & Co.		5,276		496,261
U.S. Bancorp		14,049		517,284
Wells Fargo & Co.		18,840		482,304
				2,516,260
Diversified Chemicals–0.20%
Eastman Chemical Co.		7,567		526,966
Diversified Support Services–0.39%
Cintas Corp.		1,979		527,126
Copart, Inc.(b)		6,196		515,941
				1,043,067
Drug Retail–0.20%
Walgreens Boots Alliance, Inc.		12,729		539,582

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

Invesco V.I. Equally-Weighted S&P 500 Fund

	Shares		Value
Electric Utilities–2.85%
Alliant Energy Corp.		10,854	$	519,255
American Electric Power Co., Inc.		6,441		512,961
Duke Energy Corp.		6,075		485,332
Edison International		9,153		497,099
Entergy Corp.		5,465		512,672
Evergy, Inc.		8,771		520,033
Eversource Energy		6,250		520,437
Exelon Corp.		13,900		504,431
FirstEnergy Corp.		13,034		505,459
NextEra Energy, Inc.		2,133		512,283
NRG Energy, Inc.		15,646		509,434
Pinnacle West Capital Corp.		6,970		510,831
PPL Corp.		19,848		512,872
Southern Co. (The)		9,381		486,405
Xcel Energy, Inc.		8,279		517,437
				7,626,941
Electrical Components & Equipment–0.80%
AMETEK, Inc.		6,003		536,488
Eaton Corp. PLC		6,126		535,902
Emerson Electric Co.		8,589		532,776
Rockwell Automation, Inc.		2,530		538,890
				2,144,056
Electronic Components–0.39%
Amphenol Corp., Class A		5,546		531,362
Corning, Inc.		19,568		506,811
				1,038,173
Electronic Equipment & Instruments–0.60%
FLIR Systems, Inc.		12,772		518,160
Keysight Technologies, Inc.(b)		5,508		555,096
Zebra Technologies Corp., Class A(b)		2,039		521,882
				1,595,138
Electronic Manufacturing Services–0.41%
IPG Photonics Corp.(b)		3,374		541,156
TE Connectivity Ltd.		6,704		546,711
				1,087,867
Environmental & Facilities Services–0.60%
Republic Services, Inc.		6,447		528,976
Rollins, Inc.		12,726		539,455
Waste Management, Inc.		5,072		537,176
				1,605,607
Fertilizers & Agricultural Chemicals–0.77%
CF Industries Holdings, Inc.		17,924		504,381
Corteva, Inc.		19,134		512,600
FMC Corp.		5,413		539,243
Mosaic Co. (The)		39,682		496,422
				2,052,646
Financial Exchanges & Data–1.58%
Cboe Global Markets, Inc.		5,274		491,959
CME Group, Inc., Class A		3,015		490,058
Intercontinental Exchange, Inc.		5,650		517,540
MarketAxess Holdings, Inc.		1,069		535,483
Moody’s Corp.		1,973		542,042
MSCI, Inc.		1,641		547,799
Nasdaq, Inc.		4,576		546,695

	Shares		Value
Financial Exchanges & Data–(continued)
S&P Global, Inc.		1,662	$	547,596
				4,219,172
Food Distributors–0.20%
Sysco Corp.		9,712		530,858
Food Retail–0.21%
Kroger Co. (The)		16,335		552,940
Footwear–0.20%
NIKE, Inc., Class B		5,473		536,628
Gas Utilities–0.19%
Atmos Energy Corp.		5,247		522,496
General Merchandise Stores–0.61%
Dollar General Corp.		2,863		545,430
Dollar Tree, Inc.(b)		6,003		556,358
Target Corp.		4,507		540,525
				1,642,313
Gold–0.22%
Newmont Corp.		9,503		586,715
Health Care Distributors–0.81%
AmerisourceBergen Corp.		5,554		559,677
Cardinal Health, Inc.		9,963		519,969
Henry Schein, Inc.(b)		9,305		543,319
McKesson Corp.		3,553		545,101
				2,168,066
Health Care Equipment–3.68%
Abbott Laboratories		5,919		541,174
ABIOMED, Inc.(b)		2,180		526,601
Baxter International, Inc.		6,275		540,277
Becton, Dickinson and Co.		2,281		545,775
Boston Scientific Corp.(b)		14,907		523,385
Danaher Corp.		3,129		553,301
DexCom, Inc.(b)		1,423		576,884
Edwards Lifesciences Corp.(b)		7,751		535,672
Hologic, Inc.(b)		10,507		598,899
IDEXX Laboratories, Inc.(b)		1,739		574,148
Intuitive Surgical, Inc.(b)		943		537,350
Medtronic PLC		5,653		518,380
ResMed, Inc.		3,278		629,376
STERIS PLC		3,470		532,437
Stryker Corp.		2,805		505,433
Teleflex, Inc.		1,495		544,150
Varian Medical Systems, Inc.(b)		4,570		559,916
Zimmer Biomet Holdings, Inc.		4,209		502,386
				9,845,544
Health Care Facilities–0.38%
HCA Healthcare, Inc.(b)		5,240		508,594
Universal Health Services, Inc., Class B(b)		5,513		512,103
				1,020,697
Health Care REITs–0.56%
Healthpeak Properties, Inc.		19,176		528,491
Ventas, Inc.		13,371		489,646
Welltower, Inc.		9,539		493,643
				1,511,780

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

Invesco V.I. Equally-Weighted S&P 500 Fund

	Shares		Value
Health Care Services–0.99%
Cigna Corp.		2,772	$      520,166
CVS Health Corp.		8,215	533,729
DaVita, Inc.(b)		6,734	532,929
Laboratory Corp. of America Holdings(b)		3,141	521,751
Quest Diagnostics, Inc.		4,764	542,905
			2,651,480
Health Care Supplies–0.83%
Align Technology, Inc.(b)		2,095	574,952
Cooper Cos., Inc. (The)		1,826	517,926
DENTSPLY SIRONA, Inc.		12,147	535,197
West Pharmaceutical Services, Inc.		2,624	596,094
			2,224,169
Health Care Technology–0.20%
Cerner Corp.		7,869	539,420
Home Furnishings–0.42%
Leggett & Platt, Inc.		16,056	564,369
Mohawk Industries, Inc.(b)		5,391	548,588
			1,112,957
Home Improvement Retail–0.41%
Home Depot, Inc. (The)		2,173	544,358
Lowe’s Cos., Inc.		4,180	564,802
			1,109,160
Homebuilding–0.80%
D.R. Horton, Inc.		9,758	541,081
Lennar Corp., Class A		8,894	548,048
NVR, Inc.(b)		165	537,694
PulteGroup, Inc.		15,549	529,133
			2,155,956
Hotel & Resort REITs–0.17%
Host Hotels & Resorts, Inc.		41,692	449,857
Hotels, Resorts & Cruise Lines–0.85%
Carnival Corp.(e)		26,375	433,077
Hilton Worldwide Holdings, Inc.(b)		6,803	499,680
Marriott International, Inc., Class A(b)		5,726	490,890
Norwegian Cruise Line Holdings Ltd.(b)		25,706	422,350
Royal Caribbean Cruises Ltd.(b)		8,613	433,234
			2,279,231
Household Appliances–0.21%
Whirlpool Corp.		4,316	559,051
Household Products–1.02%
Church & Dwight Co., Inc.		7,210	557,333
Clorox Co. (The)		2,568	563,342
Colgate-Palmolive Co.		7,239	530,329
Kimberly-Clark Corp.		3,875	547,731
Procter & Gamble Co. (The)		4,557	544,881
			2,743,616
Housewares & Specialties–0.20%
Newell Brands, Inc.		34,443	546,955
Human Resource & Employment Services–0.20%
Robert Half International, Inc.		10,274	542,775

	Shares		Value
Hypermarkets & Super Centers–0.40%
Costco Wholesale Corp.		1,763	$      534,559
Walmart, Inc.		4,475	536,016
			1,070,575
Independent Power Producers & Energy Traders–0.22%
AES Corp. (The)		41,593	602,683
Industrial Conglomerates–0.78%
3M Co.		3,401	530,522
General Electric Co.		72,688	496,459
Honeywell International, Inc.		3,645	527,031
Roper Technologies, Inc.		1,351	524,539
			2,078,551
Industrial Gases–0.41%
Air Products and Chemicals, Inc.		2,241	541,112
Linde PLC (United Kingdom)		2,613	554,243
			1,095,355
Industrial Machinery–2.40%
Dover Corp.		5,457	526,928
Flowserve Corp.		18,820	536,746
Fortive Corp.		8,279	560,157
IDEX Corp.		3,452	545,554
Illinois Tool Works, Inc.		3,194	558,471
Ingersoll Rand, Inc.(b)		16,879	474,637
Otis Worldwide Corp.		9,403	534,655
Parker-Hannifin Corp.		2,924	535,882
Pentair PLC		14,052	533,836
Snap-on, Inc.		3,902	540,466
Stanley Black & Decker, Inc.		4,019	560,168
Xylem, Inc.		8,213	533,516
			6,441,016
Industrial REITs–0.39%
Duke Realty Corp.		14,907	527,558
Prologis, Inc.		5,578	520,595
			1,048,153
Insurance Brokers–0.82%
Aon PLC, Class A		2,895	557,577
Arthur J. Gallagher & Co.		5,528	538,925
Marsh & McLennan Cos., Inc.		5,050	542,218
Willis Towers Watson PLC		2,820	555,399
			2,194,119
Integrated Oil & Gas–0.57%
Chevron Corp.		5,703	508,879
Exxon Mobil Corp.		11,126	497,555
Occidental Petroleum Corp.		28,485	521,275
			1,527,709
Integrated Telecommunication Services–0.39%
AT&T, Inc.		17,278	522,314
Verizon Communications, Inc.		9,322	513,922
			1,036,236
Interactive Home Entertainment–0.63%
Activision Blizzard, Inc.		7,351	557,941
Electronic Arts, Inc.(b)		4,320	570,456
Take-Two Interactive Software, Inc.(b)		3,931	548,650
			1,677,047

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

Invesco V.I. Equally-Weighted S&P 500 Fund

	Shares		Value
Interactive Media & Services–0.57%
Alphabet, Inc., Class A(b)		186	$	263,757
Alphabet, Inc., Class C(b)		186		262,932
Facebook, Inc., Class A(b)		2,304		523,169
Twitter, Inc.(b)		15,777		469,997
				1,519,855
Internet & Direct Marketing Retail–0.82%
Amazon.com, Inc.(b)		207		571,076
Booking Holdings, Inc.(b)		326		519,103
eBay, Inc.		11,056		579,887
Expedia Group, Inc.(b)		6,385		524,847
				2,194,913
Internet Services & Infrastructure–0.41%
Akamai Technologies, Inc.(b)		5,251		562,330
VeriSign, Inc.(b)		2,580		533,621
				1,095,951
Investment Banking & Brokerage–0.97%
Charles Schwab Corp. (The)		14,413		486,294
E*TRADE Financial Corp.		11,052		549,616
Goldman Sachs Group, Inc. (The)		2,619		517,567
Morgan Stanley		11,386		549,944
Raymond James Financial, Inc.		7,359		506,520
				2,609,941
IT Consulting & Other Services–1.20%
Accenture PLC, Class A		2,613		561,063
Cognizant Technology Solutions Corp., Class A		9,616		546,381
DXC Technology Co.(b)		32,389		534,419
Gartner, Inc.(b)		4,438		538,463
International Business Machines Corp.		4,322		521,968
Leidos Holdings, Inc.		5,327		498,980
				3,201,274
Leisure Products–0.20%
Hasbro, Inc.		7,092		531,545
Life & Health Insurance–1.33%
Aflac, Inc.		14,382		518,183
Globe Life, Inc.		6,942		515,304
Lincoln National Corp.		12,954		476,578
MetLife, Inc.		14,071		513,873
Principal Financial Group, Inc.		12,583		522,698
Prudential Financial, Inc.		8,343		508,089
Unum Group		30,853		511,851
				3,566,576
Life Sciences Tools & Services–1.62%
Agilent Technologies, Inc.		6,119		540,736
Bio-Rad Laboratories, Inc., Class A(b)		1,173		529,598
Illumina, Inc.(b)		1,542		571,080
IQVIA Holdings, Inc.(b)		3,795		538,434
Mettler-Toledo International, Inc.(b)		689		555,024
PerkinElmer, Inc.		5,424		532,040
Thermo Fisher Scientific, Inc.		1,550		561,627
Waters Corp.(b)		2,839		512,156
				4,340,695

	Shares		Value
Managed Health Care–0.80%
Anthem, Inc.		1,982	$	521,226
Centene Corp.(b)		8,508		540,684
Humana, Inc.		1,391		539,360
UnitedHealth Group, Inc.		1,847		544,773
				2,146,043
Metal & Glass Containers–0.20%
Ball Corp.		7,711		535,837
Movies & Entertainment–0.58%
Live Nation Entertainment, Inc.(b)		10,728		475,572
Netflix, Inc.(b)		1,260		573,351
Walt Disney Co. (The)(b)		4,563		508,820
				1,557,743
Multi-line Insurance–0.56%
American International Group, Inc.		15,949		497,290
Assurant, Inc.		4,923		508,497
Hartford Financial Services Group, Inc. (The)		13,164		507,472
				1,513,259
Multi-Sector Holdings–0.19%
Berkshire Hathaway, Inc., Class B(b)		2,907		518,929
Multi-Utilities–1.94%
Ameren Corp.		7,344		516,724
CenterPoint Energy, Inc.		29,277		546,602
CMS Energy Corp.		9,039		528,058
Consolidated Edison, Inc.		6,990		502,791
Dominion Energy, Inc.		6,337		514,438
DTE Energy Co.		5,015		539,112
NiSource, Inc.		22,656		515,197
Public Service Enterprise Group, Inc.		10,600		521,096
Sempra Energy		4,248		497,993
WEC Energy Group, Inc.		5,834		511,350
				5,193,361
Office REITs–0.76%
Alexandria Real Estate Equities, Inc.		3,308		536,723
Boston Properties, Inc.		5,458		493,294
SL Green Realty Corp.		10,095		497,582
Vornado Realty Trust		13,118		501,239
				2,028,838
Oil & Gas Equipment & Services–0.94%
Baker Hughes Co., Class A		33,061		508,809
Halliburton Co.		41,235		535,230
National Oilwell Varco, Inc.(b)		41,315		506,109
Schlumberger Ltd.		27,735		510,046
TechnipFMC PLC (United Kingdom)		66,288		453,410
				2,513,604
Oil & Gas Exploration & Production–2.02%
Apache Corp.		38,270		516,645
Cabot Oil & Gas Corp.		26,257		451,095
Concho Resources, Inc.		9,085		467,878
ConocoPhillips		12,050		506,341
Devon Energy Corp.		41,171		466,879
Diamondback Energy, Inc.		11,221		469,262
EOG Resources, Inc.		10,024		507,816
Hess Corp.		10,622		550,326

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

Invesco V.I. Equally-Weighted S&P 500 Fund

	Shares		Value
Oil & Gas Exploration & Production–(continued)
Marathon Oil Corp.		80,089	$      490,145
Noble Energy, Inc.		51,413	460,660
Pioneer Natural Resources Co.		5,364	524,063
			5,411,110
Oil & Gas Refining & Marketing–0.75%
HollyFrontier Corp.		16,793	490,356
Marathon Petroleum Corp.		14,390	537,898
Phillips 66		6,820	490,358
Valero Energy Corp.		8,261	485,912
			2,004,524
Oil & Gas Storage & Transportation–0.59%
Kinder Morgan, Inc.		33,999	515,765
ONEOK, Inc.		15,458	513,515
Williams Cos., Inc. (The)		28,908	549,830
			1,579,110
Packaged Foods & Meats–2.42%
Campbell Soup Co.		11,195	555,608
Conagra Brands, Inc.		16,259	571,829
General Mills, Inc.		8,761	540,116
Hershey Co. (The)		4,081	528,979
Hormel Foods Corp.		11,291	545,017
JM Smucker Co. (The)		5,033	532,542
Kellogg Co.		8,287	547,439
Kraft Heinz Co. (The)(c)		16,572	528,481
Lamb Weston Holdings, Inc.		8,125	519,431
McCormick & Co., Inc.		3,163	567,474
Mondelez International, Inc., Class A		10,387	531,087
Tyson Foods, Inc., Class A		8,472	505,863
			6,473,866
Paper Packaging–1.21%
Amcor PLC(b)		53,720	548,481
Avery Dennison Corp.		4,642	529,606
International Paper Co.		15,097	531,565
Packaging Corp. of America		5,318	530,737
Sealed Air Corp.		17,233	566,104
Westrock Co.		18,680	527,897
			3,234,390
Personal Products–0.37%
Coty, Inc., Class A(b)		108,212	483,708
Estee Lauder Cos., Inc. (The), Class A(b)		2,752	519,247
			1,002,955
Pharmaceuticals–1.63%
Bristol-Myers Squibb Co.(c)		9,381	551,603
Eli Lilly and Co.		3,670	602,540
Johnson & Johnson		3,706	521,175
Merck & Co., Inc.		6,906	534,041
Mylan N.V.(b)		33,061	531,621
Perrigo Co. PLC		10,234	565,633
Pfizer, Inc.		15,613	510,545
Zoetis, Inc.		3,929	538,430
			4,355,588
Property & Casualty Insurance–1.41%
Allstate Corp. (The)		5,506	534,027
Chubb Ltd.		4,192	530,791

	Shares		Value
Property & Casualty Insurance–(continued)
Cincinnati Financial Corp.		8,634	$      552,835
Loews Corp.		15,958	547,200
Progressive Corp. (The)		6,879	551,077
Travelers Cos., Inc. (The)		4,649	530,218
W.R. Berkley Corp.		9,242	529,474
			3,775,622
Publishing–0.20%
News Corp., Class A		34,214	405,778
News Corp., Class B		10,722	128,128
			533,906
Railroads–0.79%
CSX Corp.		7,560	527,235
Kansas City Southern		3,577	534,010
Norfolk Southern Corp.		2,950	517,932
Union Pacific Corp.		3,162	534,599
			2,113,776
Real Estate Services–0.19%
CBRE Group, Inc., Class A(b)		11,077	500,902
Regional Banks–2.45%
Citizens Financial Group, Inc.		20,410	515,148
Comerica, Inc.		13,464	512,978
Fifth Third Bancorp		25,330	488,362
First Republic Bank		4,938	523,379
Huntington Bancshares, Inc.		53,312	481,674
KeyCorp		39,862	485,519
M&T Bank Corp.		4,836	502,799
People’s United Financial, Inc.		43,195	499,766
PNC Financial Services Group, Inc. (The)		4,736	498,275
Regions Financial Corp.		44,284	492,438
SVB Financial Group(b)		2,526	544,429
Truist Financial Corp.		13,351	501,330
Zions Bancorporation N.A.		15,108	513,672
			6,559,769
Reinsurance–0.19%
Everest Re Group Ltd.		2,448	504,778
Research & Consulting Services–0.81%
Equifax, Inc.		3,136	539,016
IHS Markit Ltd.		7,548	569,874
Nielsen Holdings PLC		34,853	517,915
Verisk Analytics, Inc.		3,238	551,108
			2,177,913
Residential REITs–1.11%
Apartment Investment & Management Co., Class A		13,365	503,058
AvalonBay Communities, Inc.		3,217	497,477
Equity Residential		8,289	487,559
Essex Property Trust, Inc.		2,110	483,549
Mid-America Apartment Communities, Inc.		4,425	507,415
UDR, Inc.		13,481	503,920
			2,982,978
Restaurants–1.16%
Chipotle Mexican Grill, Inc.(b)		531	558,803
Darden Restaurants, Inc.(b)		6,938	525,692
Domino’s Pizza, Inc.		1,389	513,152

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

Invesco V.I. Equally-Weighted S&P 500 Fund

	Shares		Value
Restaurants–(continued)
McDonald’s Corp.		2,785	$	513,749
Starbucks Corp.		6,898		507,624
Yum! Brands, Inc.		5,772		501,645
				3,120,665
Retail REITs–0.93%
Federal Realty Investment Trust		5,824		496,263
Kimco Realty Corp.(b)		38,298		491,746
Realty Income Corp.		8,720		518,840
Regency Centers Corp.		11,003		504,928
Simon Property Group, Inc.		6,935		474,215
				2,485,992
Semiconductor Equipment–0.64%
Applied Materials, Inc.		9,318		563,273
KLA Corp.		2,852		554,657
Lam Research Corp.		1,851		598,724
				1,716,654
Semiconductors–2.66%
Advanced Micro Devices, Inc.(b)		9,849		518,156
Analog Devices, Inc.		4,450		545,748
Broadcom, Inc.		1,754		553,580
Intel Corp.		8,882		531,410
Maxim Integrated Products, Inc.		9,221		558,885
Microchip Technology, Inc.		5,289		556,985
Micron Technology, Inc.(b)		10,822		557,549
NVIDIA Corp.		1,474		559,987
Qorvo, Inc.(b)		4,839		534,855
QUALCOMM, Inc.		6,181		563,769
Skyworks Solutions, Inc.		4,152		530,875
Texas Instruments, Inc.		4,234		537,591
Xilinx, Inc.		5,809		571,547
				7,120,937
Soft Drinks–0.59%
Coca-Cola Co. (The)		11,556		516,322
Monster Beverage Corp.(b)		7,731		535,913
PepsiCo, Inc.		4,085		540,282
				1,592,517
Specialized Consumer Services–0.16%
H&R Block, Inc.		29,490		421,117
Specialized REITs–1.77%
American Tower Corp.		2,041		527,680
Crown Castle International Corp.		3,205		536,357
Digital Realty Trust, Inc.		3,874		550,534
Equinix, Inc.		778		546,390
Extra Space Storage, Inc.		5,448		503,232
Iron Mountain, Inc.		18,942		494,386
Public Storage		2,681		514,457
SBA Communications Corp., Class A		1,771		527,616
Weyerhaeuser Co.		24,217		543,914
				4,744,566
Specialty Chemicals–1.39%
Albemarle Corp.		6,815		526,186
Celanese Corp.		5,952		513,895
DuPont de Nemours, Inc.		10,330		548,833
Ecolab, Inc.		2,581		513,490

	Shares		Value
Specialty Chemicals–(continued)
International Flavors & Fragrances, Inc.		4,154	$	508,699
PPG Industries, Inc.		5,180		549,391
Sherwin-Williams Co. (The)		962		555,892
				3,716,386
Specialty Stores–0.60%
Tiffany & Co.		4,423		539,340
Tractor Supply Co.		4,449		586,334
Ulta Beauty, Inc.(b)		2,324		472,748
				1,598,422
Steel–0.20%
Nucor Corp.		12,781		529,261
Systems Software–1.03%
Fortinet, Inc.(b)		4,042		554,845
Microsoft Corp.		2,806		571,049
NortonLifeLock, Inc.		26,548		526,447
Oracle Corp.		10,161		561,599
ServiceNow, Inc.(b)		1,368		554,122
				2,768,062
Technology Distributors–0.20%
CDW Corp.		4,618		536,519
Technology Hardware, Storage & Peripherals–1.38%
Apple, Inc.		1,555		567,264
Hewlett Packard Enterprise Co.		51,919		505,172
HP, Inc.		32,369		564,192
NetApp, Inc.		12,411		550,676
Seagate Technology PLC		10,412		504,045
Western Digital Corp.(b)		12,269		541,676
Xerox Holdings Corp.		30,890		472,308
				3,705,333
Tobacco–0.39%
Altria Group, Inc.		13,467		528,580
Philip Morris International, Inc.		7,482		524,189
				1,052,769
Trading Companies & Distributors–0.62%
Fastenal Co.		13,154		563,517
United Rentals, Inc.(b)		3,671		547,126
W.W. Grainger, Inc.		1,735		545,068
				1,655,711
Trucking–0.42%
J.B. Hunt Transport Services, Inc.		4,618		555,730
Old Dominion Freight Line, Inc.		3,337		565,922
				1,121,652
Water Utilities–0.20%
American Water Works Co., Inc.		4,140		532,652
Wireless Telecommunication Services–0.20%
T-Mobile US, Inc.(b)		5,150		536,373
T-Mobile US, Inc., Rts. expiring 07/28/2020(b)		5,150		865
				537,238
Total Common Stocks & Other Equity Interests (Cost $193,327,795)				263,766,142

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

Invesco V.I. Equally-Weighted S&P 500 Fund

	Shares		Value
Money Market Funds–1.31%
Invesco Government & Agency Portfolio, Institutional Class, 0.09%(d)(f)		1,175,691	$	1,175,691
Invesco Liquid Assets Portfolio, Institutional Class, 0.39%(d)(f)		986,511		987,201
Invesco Treasury Portfolio, Institutional Class, 0.08%(d)(f)		1,343,646		1,343,647
Total Money Market Funds (Cost $3,505,532)				3,506,539
TOTAL INVESTMENTS IN SECURITIES (excluding investments purchased with cash collateral from securities on loan)-99.81% (Cost $196,833,327)				267,272,681
Investments Purchased with Cash Collateral from Securities on Loan
Money Market Funds–0.15%
Invesco Private Government Fund, 0.05%(d)(f)(g)		291,739		291,739

	Shares		Value
Money Market Funds–(continued)
Invesco Private Prime Fund, 0.11%(d)(f)(g)		97,227	$	97,246
Total Investments Purchased with Cash Collateral from Securities on Loan (Cost $388,976)				388,985
TOTAL INVESTMENTS IN SECURITIES–99.96% (Cost $197,222,303)				267,661,666
OTHER ASSETS LESS LIABILITIES–0.04%				116,675
NET ASSETS–100.00%			$	267,778,341

Investment Abbreviations:

REIT – Real Estate Investment Trust

Rts.   – Rights

Notes to Schedule of Investments:

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

^(b)  Non-income producing security.

^(c)  All or a portion of the value was pledged as collateral to cover margin requirements for open futures contracts. See Note 1J.

^(d)  Affiliated issuer. The issuer and/or the Fund is a wholly-owned subsidiary of Invesco Ltd., or is affiliated by having an investment adviser that is under common control of Invesco Ltd. The table below shows the Fund’s transactions in, and earnings from, its investments in affiliates for the six months ended June 30, 2020.

	Value December 31, 2019			Purchases at Cost			Proceeds from Sales				Change in Unrealized Appreciation (Depreciation)				Realized Gain (Loss)				Value June 30, 2020			Dividend Income
Invesco Ltd.		$	549,469		$	182,959		$	(22,759	)		$	(133,021	)		$	(28,254	)		$	548,394		$	17,810
Investments in Affiliated Money Market Funds:
Invesco Government & Agency Portfolio, Institutional Class			1,740,175			10,627,977			(11,192,461	)			-				-				1,175,691			7,735
Invesco Liquid Assets Portfolio, Institutional Class			1,183,097			7,851,684			(8,048,881	)			975				326				987,201			7,687
Invesco Treasury Portfolio, Institutional Class			1,988,772			12,146,260			(12,791,385	)			-				-				1,343,647			8,287
Investments Purchased with Cash Collateral from Securities on Loan:
Invesco Government & Agency Portfolio, Institutional Class			716,421			2,252,168			(2,968,589	)			-				-				-			1,078
Invesco Liquid Assets Portfolio, Institutional Class			239,736			611,678			(851,173	)			-				(241	)			-			467
Invesco Private Government Fund			-			4,583,050			(4,291,311	)			-				-				291,739			36
Invesco Private Prime Fund			-			880,024			(782,787	)			9				-				97,246			13
Total		$	6,417,670		$	39,135,800		$	(40,949,346	)		$	(132,037	)		$	(28,169	)		$	4,443,918		$	43,113

^(e)  All or a portion of this security was out on loan at June 30, 2020.

^(f)  The rate shown is the 7-day SEC standardized yield as of June 30, 2020.

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

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

Invesco V.I. Equally-Weighted S&P 500 Fund

Portfolio Composition

By sector, based on Net Assets

as of June 30, 2020

Industrials	14.45	%
Information Technology	14.35
Financials	12.76
Health Care	12.60
Consumer Discretionary	11.69
Consumer Staples	6.58
Real Estate	5.88
Materials	5.60
Utilities	5.41
Energy	4.87
Communication Services	4.32
Money Market Funds Plus Other Assets Less Liabilities	1.49

Open Futures Contracts
Long Futures Contracts	Number of Contracts		Expiration Month	Notional Value		Value		Unrealized Appreciation
Equity Risk
E-Mini S&P 500 Index		24	September-2020		$3,708,240		$63,596		$63,596

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

Invesco V.I. Equally-Weighted S&P 500 Fund

Statement of Assets and Liabilities

June 30, 2020

(Unaudited)

Assets:
Investments in securities, at value (Cost $192,614,257)*	$	263,217,748
Investments in affiliates, at value (Cost $4,608,046)		4,443,918
Other investments: Variation margin receivable – futures contracts		52,295
Cash		10,570
Receivable for: Fund shares sold		324,103
Dividends		334,705
Investment for trustee deferred compensation and retirement plans		37,371
Total assets		268,420,710
Liabilities:
Payable for:
Fund shares reacquired		23,763
Collateral upon return of securities loaned		388,976
Accrued fees to affiliates		123,828
Accrued trustees’ and officers’ fees and benefits		1,894
Accrued other operating expenses		63,510
Trustee deferred compensation and retirement plans		40,398
Total liabilities		642,369
Net assets applicable to shares outstanding	$	267,778,341
Net assets consist of:
Shares of beneficial interest	$	194,527,578
Distributable earnings		73,250,763
	$	267,778,341
Net Assets:
Series I	$	26,163,558
Series II	$	241,614,783
Shares outstanding, no par value, with an unlimited number of shares authorized:
Series I		1,322,487
Series II		12,618,328
Series I:
Net asset value per share	$	19.78
Series II:
Net asset value per share	$	19.15

* At June 30, 2020, securities with an aggregate value of $378,322 were on loan to brokers.

Statement of Operations

For the six months ended June 30, 2020

(Unaudited)

Investment income:
Dividends	$	2,874,689
Dividends from affiliates (includes securities lending income of $4,420)		45,939
Total investment income		2,920,628
Expenses:
Advisory fees		153,123
Administrative services fees		203,049
Custodian fees		6,754
Distribution fees - Series II		285,369
Transfer agent fees		2,248
Trustees’ and officers’ fees and benefits		8,623
Licensing fees		23,842
Reports to shareholders		4,043
Professional services fees		15,163
Other		712
Total expenses		702,926
Less: Fees waived		(3,126	)
Net expenses		699,800
Net investment income		2,220,828
Realized and unrealized gain (loss) from:
Net realized gain (loss) from:
Investment securities		(4,961,836	)
Futures contracts		(667,283	)
Net increase from payments by affiliates		215,409
		(5,413,710	)
Change in net unrealized appreciation (depreciation) of:
Investment securities		(30,170,865	)
Futures contracts		(30,449	)
Net increase from payments by affiliates		3,926,018
		(26,275,296	)
Net realized and unrealized gain (loss)		(31,689,006	)
Net increase (decrease) in net assets resulting from operations	$	(29,468,178	)

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

Invesco V.I. Equally-Weighted S&P 500 Fund

Statement of Changes in Net Assets

For the six months ended June 30, 2020 and the year ended December 31, 2019

(Unaudited)

	June 30, 2020			December 31, 2019
Operations:
Net investment income	$	2,220,828		$	3,603,999
Net realized gain (loss)		(5,629,119	)		4,597,203
Change in net unrealized appreciation (depreciation)		(30,201,314	)		55,462,807
Net increase from payments by affiliates		4,141,427			–
Net increase (decrease) in net assets resulting from operations		(29,468,178	)		63,664,009
Distributions to shareholders from distributable earnings:
Series I		–			(984,182	)
Series II		–			(7,440,206	)
Total distributions from distributable earnings		–			(8,424,388	)
Share transactions–net:
Series I		(1,083,981	)		(92,725,236	)
Series II		18,946,382			57,543,221
Net increase (decrease) in net assets resulting from share transactions		17,862,401			(35,182,015	)
Net increase (decrease) in net assets		(11,605,777	)		20,057,606
Net assets:
Beginning of period		279,384,118			259,326,512
End of period	$	267,778,341		$	279,384,118

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

Invesco V.I. Equally-Weighted S&P 500 Fund

Financial Highlights

(Unaudited)

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

																											Ratio of			Ratio of
																											expenses			expenses
					Net gains																						to average			to average net
					(losses)																						net assets			assets without			Ratio of net
	Net asset				on securities						Dividends			Distributions													with fee waivers			fee waivers			investment
	value,		Net		(both			Total from			from net			from net						Net asset					Net assets,		and/or			and/or			income
	beginning		investment		realized and			investment			investment			realized			Total			value, end		Total			end of period		expenses			expenses			to average			Portfolio
	of period		income(a)		unrealized)			operations			income			gains			distributions			of period		return (b)			(000’s omitted)		absorbed			absorbed			net assets			turnover (c)
Series I
Six months ended 06/30/20		$22.14		$0.19		$(2.55	)		$(2.36	)		$    –			$    –			$    –			$19.78		(10.66	)%(d)		$  26,164		0.33	%(e)		0.33	%(e)		1.96	%(e)		17	%
Year ended 12/31/19		17.80		0.34		4.73			5.07			(0.35	)		(0.38	)		(0.73	)		22.14		28.79			31,327		0.35			0.35			1.71			39
Year ended 12/31/18		19.88		0.32		(1.80	)		(1.48	)		(0.23	)		(0.37	)		(0.60	)		17.80		(7.87	)		109,414		0.31			0.31			1.61			24
Year ended 12/31/17		17.24		0.29		2.87			3.16			(0.15	)		(0.37	)		(0.52	)		19.88		18.58			127,462		0.32			0.32			1.55			22
Year ended 12/31/16		15.81		0.26		1.96			2.22			(0.10	)		(0.69	)		(0.79	)		17.24		14.24			114,202		0.39			0.39			1.56			22
Year ended 12/31/15		19.98		0.26		(0.94	)		(0.68	)		(0.28	)		(3.21	)		(3.49	)		15.81		(2.68	)		27,974		0.55			0.55			1.38			25
Series II
Six months ended 06/30/20		21.46		0.16		(2.47	)		(2.31	)		–			–			–			19.15		(10.76	)(d)		241,615		0.58	(e)		0.58	(e)		1.71	(e)		17
Year ended 12/31/19		17.29		0.29		4.57			4.86			(0.31	)		(0.38	)		(0.69	)		21.46		28.46			248,057		0.60			0.60			1.46			39
Year ended 12/31/18		19.35		0.26		(1.74	)		(1.48	)		(0.21	)		(0.37	)		(0.58	)		17.29		(8.11	)		149,913		0.56			0.56			1.36			24
Year ended 12/31/17		16.82		0.24		2.79			3.03			(0.13	)		(0.37	)		(0.50	)		19.35		18.26			117,400		0.57			0.57			1.30			22
Year ended 12/31/16		15.44		0.21		1.93			2.14			(0.07	)		(0.69	)		(0.76	)		16.82		14.01			48,936		0.64			0.64			1.31			22
Year ended 12/31/15		19.60		0.21		(0.92	)		(0.71	)		(0.24	)		(3.21	)		(3.45	)		15.44		(2.92	)		38,643		0.80			0.80			1.13			25

^(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)  Amount includes the effect of the Adviser pay-in for an economic loss as a result of a delay in rebalancing to the Index that occurred on April 24, 2020. Had the pay-in not been made, the total return would have been (12.01)% and (12.16)% for Series I and Series II shares, respectively.

^(e)  Ratios are annualized and based on average daily net assets (000’s omitted) of $27,120 and $229,487 for Series I and Series II shares, respectively.

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

Invesco V.I. Equally-Weighted S&P 500 Fund

Notes to Financial Statements

June 30, 2020

(Unaudited)

NOTE 1–Significant Accounting Policies

Invesco V.I. 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. Information presented in these financial statements pertains only to the Fund. Matters affecting the Fund or each class will be voted on exclusively by the shareholders of the Fund or each class. 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 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 Fund is an investment company and accordingly follows the investment company accounting and reporting guidance in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 946, Financial Services - Investment Companies.

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

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

A security listed or traded on an exchange (except convertible securities) is valued at its last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded, or lacking any sales or official closing price on a particular day, the security may be valued at the closing bid price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued by an independent pricing service they may be considered fair valued. Futures contracts are valued at the final settlement price set by an exchange on which they are principally traded. Listed options are valued at the mean between the last bid and asked 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 asked prices. For purposes of determining net asset value (“NAV”) per share, futures and option contracts generally are valued 15 minutes after the close of the customary trading session of the New York Stock Exchange (“NYSE”).

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

Debt obligations (including convertible securities) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. Pricing services generally value debt obligations assuming orderly transactions of institutional round lot size, but a fund may hold or transact in the same securities in smaller, odd lot sizes. Odd lots often trade at lower prices than institutional round lots. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.

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

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

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

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

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

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

Invesco V.I. Equally-Weighted S&P 500 Fund

share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and the Statement of Changes in Net Assets, or the net investment income per share and the ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.

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

The Fund recharacterizes distributions received from REIT investments based on information provided by the REIT into the following categories: ordinary income, long-term and short-term capital gains, and return of capital. If information is not available on a timely basis from the REIT, the recharacterization will be based on available information which may include the previous year’s allocation. If new or additional information becomes available from the REIT at a later date, a recharacterization will be made in the following year. The Fund records as dividend income the amount recharacterized as ordinary income and as realized gain the amount recharacterized as capital gain in the Statement of Operations, and the amount recharacterized as return of capital as a reduction of the cost of the related investment. These recharacterizations are reflected in the accompanying financial statements.

C. Country Determination – For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues 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 net investment income and net realized capital gain, if any, are generally declared and paid to separate accounts of participating insurance companies annually and recorded on the ex-dividend date.

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

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

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

F. Expenses – Fees provided for under the Rule 12b-1 plan of a particular class of the Fund and which are directly attributable to that class are charged to the operations of such class. All other expenses are allocated among the classes based on relative net assets.

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

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

I. 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. The Fund bears the risk of loss with respect to the investment of collateral. It is the Fund’s policy to obtain additional collateral from or return excess collateral to the borrower by the end of the next business day, following the valuation date of the securities loaned. Therefore, the value of the collateral held may be temporarily less than the value of the securities on loan. When loaning securities, the Fund retains certain benefits of owning the securities, including the economic equivalent of dividends or interest generated by the security. Lending securities entails a risk of loss to the Fund if, and to the extent that, the market value of the securities loaned were to increase and the borrower did not increase the collateral accordingly, and the borrower failed to return the securities. The securities loaned are subject to termination at the option of the borrower or the Fund. Upon termination, the borrower will return to the Fund the securities loaned and the Fund will return the collateral. Upon the failure of the borrower to return the securities, collateral may be liquidated and the securities may be purchased on the open market to replace the loaned securities. The Fund could experience delays and costs in gaining access to the collateral and the securities may lose value during the delay which could result in potential losses to the Fund. Some of these losses may be indemnified by the lending agent. The Fund bears the risk of any deficiency in the amount of the collateral available for return to the borrower due to any loss on the collateral invested. Dividends received on cash collateral investments for securities lending transactions, which are net of compensation to counterparties, are included in Dividends from affiliates on the Statement of Operations. The aggregate value of securities out on loan, if any, is shown as a footnote on the Statement of Assets and Liabilities.

J. Futures Contracts – The Fund may enter into futures contracts to manage exposure to interest rate, equity and market price movements and/or currency risks. A futures contract is an agreement between two parties (“Counterparties”) to purchase or sell a specified underlying security, currency or commodity (or delivery of a cash settlement price, in the case of an index future) for a fixed price at a future date. The Fund currently invests only in exchange-traded futures and they are standardized as to maturity date and underlying financial instrument. Initial margin deposits required upon entering into futures contracts are satisfied by the segregation of specific securities or cash as collateral at the futures commission merchant (broker). During the period the futures contracts are open, changes in the value of the contracts are recognized as unrealized gains or losses by recalculating the value of the contracts on a daily basis. Subsequent or variation margin payments are received or made depending upon whether unrealized gains or losses are incurred. These amounts are reflected as receivables or payables on the Statement of Assets and Liabilities. When the contracts are closed or expire, the Fund recognizes a realized gain or loss equal to the difference between the proceeds from, or cost of, the closing transaction and the Fund’s basis in the contract. The net realized gain (loss) and the change in unrealized gain (loss) on futures contracts held during the period is included on the Statement of Operations. The primary risks associated with futures contracts are market risk and the absence of a liquid secondary market. If the Fund were unable to liquidate a futures contract and/or enter into an offsetting closing transaction, the Fund would continue to be subject to market risk with respect to the value of the contracts and continue to be required to maintain the margin deposits on the futures contracts. Futures contracts have minimal Counterparty risk since the exchange’s clearinghouse, as Counterparty to all exchange-traded futures, guarantees the futures against default. Risks may exceed amounts recognized in the Statement of Assets and Liabilities.

Invesco V.I. Equally-Weighted S&P 500 Fund

K. Collateral – To the extent the Fund has designated or segregated a security as collateral and that security is subsequently sold, it is the Fund’s practice to replace such collateral no later than the next business day. This practice does not apply to securities pledged as collateral for securities lending transactions.

NOTE 2–Advisory Fees and Other Fees Paid to Affiliates

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

Average Daily Net Assets	Rate
First $2 billion		0.120	%
Over $2 billion		0.100	%

For the six months ended June 30, 2020, the effective advisory fee rate incurred by the Fund was 0.12%.

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

The Adviser has contractually agreed, through at least June 30, 2021, 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 2.00% and Series II shares to 2.25% of average daily net assets (the “expense limits”). In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause the total annual fund operating expenses after fee waiver and/or expense reimbursement to exceed the numbers reflected above: (1) interest; (2) taxes; (3) dividend expense on short sales; (4) extraordinary or non-routine items, including litigation expenses; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Unless Invesco continues the fee waiver agreement, it will terminate on June 30, 2021. During its term, the fee waiver agreement cannot be terminated or amended to increase the expense limits or reduce the advisory fee waiver without approval of the Board of Trustees. The Adviser did not waive fees and/or reimburse expenses during the period under these expense limits.

Further, the Adviser has contractually agreed, through at least June 30, 2022, 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, 2020, the Adviser waived advisory fees of $3,126.

The Adviser paid in to the Fund $4,141,427 for the economic loss as a result of a delay in rebalancing to the Index that occurred on April 24, 2020.

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 fees paid to insurance companies that have agreed to provide certain administrative services to the Fund. These administrative services provided by the insurance companies may include, among other things: maintenance of master accounts with the Fund; tracking, recording and transmitting net purchase and redemption orders for Fund shares; maintaining and preserving records related to the purchase, redemption and other account activity of variable product owners; distributing copies of Fund documents such as prospectuses, proxy materials and periodic reports, to variable product owners, and responding to inquiries from variable product owners about the Fund. Pursuant to such agreement, for the six months ended June 30, 2020, Invesco was paid $20,129 for accounting and fund administrative services and was reimbursed $182,920 for fees paid to insurance companies. Invesco has entered into a sub-administration agreement whereby State Street Bank and Trust Company (“SSB”) serves as fund accountant and provides certain administrative services to the Fund. Pursuant to a custody agreement with the Trust on behalf of the Fund, SSB also serves as the Fund’s custodian.

The Trust has entered into a transfer agency and service agreement with Invesco Investment Services, Inc. (“IIS”) pursuant to which the Fund has agreed to pay IIS a fee for providing transfer agency and shareholder services to the Fund and reimburse IIS for certain expenses incurred by IIS in the course of providing such services. For the six months ended June 30, 2020, 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. The fees are accrued daily and paid monthly. 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, 2020, expenses incurred under the Plan are detailed in the Statement of Operations as Distribution fees.

For the six months ended June 30, 2020, the Fund incurred $117 in brokerage commissions with Invesco Capital Markets, Inc., an affiliate of the Adviser and IDI, for portfolio transactions executed on behalf of the Fund.

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

NOTE 3–Additional Valuation Information

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

Level 1	-	Prices are determined using quoted prices in an active market for identical assets.
Level 2	-	Prices are determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk, yield curves, loss severities, default rates, discount rates, volatilities and others.
Level 3	-	Prices are determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. 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, 2020. 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. Equally-Weighted S&P 500 Fund

	Level 1		Level 2		Level 3		Total
Investments in Securities
Common Stocks & Other Equity Interests	$	263,766,142	$	–		$–	$	263,766,142
Money Market Funds		3,506,539		388,985		–		3,895,524
Total Investments in Securities		267,272,681		388,985		–		267,661,666
Other Investments - Assets*
Futures Contracts		63,596		–		–		63,596
Total Investments	$	267,336,277	$	388,985		$–	$	267,725,262

* Unrealized appreciation.

NOTE 4–Derivative Investments

The Fund may enter into an International Swaps and Derivatives Association Master Agreement (“ISDA Master Agreement”) under which a fund may trade OTC derivatives. An OTC transaction entered into under an ISDA Master Agreement typically involves a collateral posting arrangement, payment netting provisions and close-out netting provisions. These netting provisions allow for reduction of credit risk through netting of contractual obligations. The enforceability of the netting provisions of the ISDA Master Agreement depends on the governing law of the ISDA Master Agreement, among other factors.

For financial reporting purposes, the Fund does not offset OTC derivative assets or liabilities that are subject to ISDA Master Agreements in the Statement of Assets and Liabilities.

Value of Derivative Investments at Period-End

The table below summarizes the value of the Fund’s derivative investments, detailed by primary risk exposure, held as of June 30, 2020:

	Value
	Equity
Derivative Assets	Risk
Unrealized appreciation on futures contracts – Exchange-Traded(a)	$	63,596
Derivatives not subject to master netting agreements		(63,596	)
Total Derivative Assets subject to master netting agreements	$	-

^(a)  The daily variation margin receivable (payable) at period-end is recorded in the Statement of Assets and Liabilities.

Effect of Derivative Investments for the six months ended June 30, 2020

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

	Location of Gain (Loss) on Statement of Operations
	Equity
	Risk
Realized Gain (Loss):
Futures contracts		$	(667,283	)
Change in Net Unrealized Appreciation (Depreciation):
Futures contracts			(30,449	)
Total		$	(697,732	)

The table below summarizes the average notional value of derivatives held during the period.
	Futures Contracts
Average notional value	$	5,250,185

NOTE 5–Trustees’ and Officers’ Fees and Benefits

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

NOTE 6–Cash Balances

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

Invesco V.I. Equally-Weighted S&P 500 Fund

NOTE 7–Tax Information

The amount and character of income and gains to be distributed are determined in accordance with income tax regulations, which may differ from GAAP.

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

    Capital loss carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Fund to utilize. Capital losses generated in years beginning after December 22, 2010 can be carried forward for an unlimited period, whereas previous losses expire in eight tax years. Capital losses with an expiration period may not be used to offset capital gains until all net capital losses without an expiration date have been utilized. Capital loss carryforwards with no expiration date will retain their character as either short-term or long-term capital losses instead of as short-term capital losses as under prior law. The ability to utilize capital loss carryforwards in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.

    The Fund did not have a capital loss carryforward as of December 31, 2019.

NOTE 8–Investment Transactions

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, 2020 was $69,176,774 and $43,788,817, respectively. Cost of investments, including any derivatives, on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end.

Unrealized Appreciation (Depreciation) of Investments on a Tax Basis
Aggregate unrealized appreciation of investments	$	77,313,634
Aggregate unrealized (depreciation) of investments		(8,957,745	)
Net unrealized appreciation of investments	$	68,355,889

    Cost of investments for tax purposes is $199,369,373.

NOTE 9–Share Information

	Summary of Share Activity
	Six months ended						Year ended
	June 30, 2020(a)						December 31, 2019
	Shares			Amount			Shares			Amount
Sold:
Series I		188,294		$	3,931,547			284,241		$	5,873,493
Series II		1,609,497			29,327,309			3,153,361			62,882,016
Issued as reinvestment of dividends:
Series I		-			-			47,845			984,182
Series II		-			-			373,130			7,440,206
Reacquired:
Series I		(280,760	)		(5,015,528	)		(5,064,768	)		(99,582,911	)
Series II		(552,011	)		(10,380,927	)		(637,753	)		(12,779,001	)
Net increase (decrease) in share activity		965,020		$	17,862,401			(1,843,944	)	$	(35,182,015	)

^(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 Fund 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–Coronavirus (COVID-19) Pandemic

During the first quarter of 2020, the World Health Organization declared COVID-19 to be a public health emergency. COVID-19 has led to increased short-term market volatility and may have adverse long-term effects on U.S. and world economies and markets in general. COVID-19 may adversely impact the Fund’s ability to achieve its investment objective. Because of the uncertainties on valuation, the global economy and business operations, values reflected in these financial statements may materially differ from the value received upon actual sales of those investments.

    The extent of the impact on the performance of the Fund and its investments will depend on future developments, including the duration and spread of the COVID-19 outbreak, related restrictions and advisories, and the effects on the financial markets and economy overall, all of which are highly uncertain and cannot be predicted.

Invesco V.I. 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, 2020 through June 30, 2020.

    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.

		ACTUAL		HYPOTHETICAL (5% annual return before expenses)
	Beginning Account Value   (01/01/20)	Ending Account Value   (06/30/20)1	Expenses Paid During   Period2	Ending Account Value   (06/30/20)	Expenses Paid During   Period2	Annualized   Expense Ratio
Series I	$1,000.00	$893.40	$1.55	$1,023.22	$1.66	0.33%
Series II	1,000.00	892.40	2.73	1,021.98	2.92	0.58

¹  The actual ending account value is based on the actual total return of the Fund for the period January 1, 2020 through June 30, 2020, 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 182/366 to reflect the most recent fiscal half year.

Invesco V.I. Equally-Weighted S&P 500 Fund

Approval of Investment Advisory and Sub-Advisory Contracts

At meetings held on June 3, 2020, the Board of Trustees (the Board or the Trustees) of AIM Variable Insurance Funds (Invesco Variable Insurance Funds) as a whole, and the independent Trustees, who comprise over 75% of the Board, voting separately, approved the continuance of the Invesco V.I. Equally-Weighted S&P 500 Fund’s (the Fund) Master Investment Advisory Agreement with Invesco Advisers, Inc. (Invesco Advisers and the investment advisory agreement) and the Master Intergroup Sub-Advisory Contract for Mutual Funds with Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Canada Ltd. and separate sub-advisory contracts with Invesco Capital Management LLC and Invesco Asset Management (India) Private Limited (collectively, the Affiliated Sub-Advisers and the sub-advisory contracts) for another year, effective July 1, 2020. After evaluating the factors discussed below, among others, the Board approved the renewal of the Fund’s investment advisory agreement and the sub-advisory contracts and determined that the compensation payable thereunder by the Fund to Invesco Advisers and by Invesco Advisers to the Affiliated Sub-Advisers is fair and reasonable.

The Board’s Evaluation Process

The Board’s Investments Committee has established Sub-Committees, which meet throughout the year to review the performance of funds advised by Invesco Advisers (the Invesco Funds). The Sub-Committees meet regularly with portfolio managers for their assigned Invesco Funds and other members of management to review detailed information about investment performance and portfolio attributes of these funds. The Board took into account evaluations and reports that it received from the Investments Committee and Sub-Committees, as well as the information provided to such committees and the Board throughout the year, in considering whether to approve each Invesco Fund’s investment advisory agreement and sub-advisory contracts.

    As part of the contract renewal process, the Board reviews and considers information provided in response to detailed requests for information submitted to management by the independent Trustees with assistance from legal counsel to the independent Trustees. The Board receives comparative investment performance and fee data regarding the Invesco Funds prepared by Invesco Advisers and Broadridge Financial Solutions, Inc. (Broadridge), an independent mutual fund data provider, as well as information on the composition of the peer groups provided by Broadridge and its methodology for determining peer groups. The Board also receives an independent written evaluation from the Senior Officer, an officer of the Invesco Funds who reports directly to the independent Trustees. 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. In addition to meetings with Invesco Advisers and fund counsel throughout the year, the independent Trustees also

discuss the continuance of the investment advisory agreement and sub-advisory contracts in separate sessions with the Senior Officer and with independent legal counsel.

    The discussion below is a summary of 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. The Trustees’ review and conclusions are based on the comprehensive consideration of all information presented to them during the course of the year and in prior years and are not the result of any single determinative factor. Moreover, one Trustee may have weighed a particular piece of information or factor differently than another Trustee. This information is current as of June 3, 2020.

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 nature, extent and quality of the advisory services provided to the Fund by Invesco Advisers under the Fund’s investment advisory agreement, and the credentials and experience of the officers and employees of Invesco Advisers who provide these services, including the Fund’s portfolio manager(s). The Board’s review included consideration of Invesco Advisers’ investment process oversight and structure, credit analysis, investment risk management and research capabilities. The Board also considered non-advisory services that Invesco Advisers and its affiliates provide to the Invesco Funds, such as various back office support functions, third party oversight, internal audit, valuation, portfolio trading and legal and compliance. The Board also received and reviewed information about Invesco Advisers’ role as administrator of the Invesco Funds’ liquidity risk management program. The Board reviewed and considered the benefits to shareholders of investing in a Fund that is part of the Invesco family of funds under the umbrella of Invesco Ltd., Invesco Advisers’ parent company, and noted Invesco Ltd.’s depth and experience in conducting an investment management business, as well as its commitment of financial and other resources to such business. The Board also reviewed and considered information regarding the benefits to the Fund resulting from Invesco Ltd.’s acquisition of OppenheimerFunds, Inc. and its subsidiaries (the Transaction) and the resources that Invesco Advisers has committed to managing the Invesco family of funds following the Transaction. The Board concluded that the nature, extent and quality of the services provided to the Fund by Invesco Advisers are appropriate and satisfactory.

    The Board reviewed the services that may be 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 the Affiliated Sub-Advisers’ expertise with respect to certain asset classes and that the Affiliated Sub-Advisers have offices and personnel that are located in financial centers around the world.

As a result, the Board noted that the Affiliated Sub-Advisers can provide research and investment analysis on the markets and economies of various countries in which the Fund may invest, make recommendations regarding securities and assist with security trades. The Board concluded that the sub-advisory contracts may 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 that may be provided by the Affiliated Sub-Advisers are appropriate and satisfactory.

B. Fund Investment Performance

The Board considered Fund investment performance as a relevant factor in considering whether to approve the investment advisory agreement. The Board did not view Fund investment 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 investment performance over multiple time periods ending December 31, 2019 to the performance of funds in the Broadridge performance universe and against the S&P 500^® Equal Weight Index. The Board noted that performance of Series I shares of the Fund was in the third quintile of its performance universe for the one, three and five year periods (the first quintile being the best performing funds and the fifth quintile being the worst performing funds). The Board noted that performance of Series I shares of the Fund was reasonably comparable to the performance of the Index for the one, three and five year periods. The Board noted that the Fund is passively managed and discussed reasons for differences in the Fund’s performance versus its peers. The Board recognized that the performance data reflects a snapshot in time as of a particular date and that selecting a different performance period could produce different results. The Board also reviewed more recent Fund performance as well as other performance metrics and this review did not change their conclusions.

C. Advisory and Sub-Advisory Fees and Fund Expenses

The Board compared the Fund’s contractual management fee rate to the contractual management fee rates of funds in the Fund’s Broadridge expense group. The Board noted that the contractual management fee rate for Series I shares of the Fund was below the median contractual management fee rate of funds in its expense group. The Board noted that the term “contractual management fee” for funds in the expense group may include both advisory and certain non-portfolio management administrative services fees, but that Broadridge does not provide information on a fund by fund basis as to what is included. The Board also reviewed the methodology used by Broadridge in providing expense group information, which includes using each fund’s contractual management fee schedule (including any applicable breakpoints) as reported in the most recent prospectus or statement of additional information for each fund in the expense group. The Board also considered comparative information regarding the Fund’s total expense ratio and its various components. The Board noted that there were

Invesco V.I. Equally-Weighted S&P 500 Fund

only three funds (including the Fund) in the expense group.

    The Board noted that Invesco Advisers has contractually agreed to waive fees and/or limit expenses of the Fund for the term disclosed in the Fund’s registration statement 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 fees charged by Invesco Advisers and the Affiliated Sub-Advisers to other similarly managed client accounts. Invesco Advisers reviewed with the Board differences in the scope of services it provides to the Invesco Funds relative to certain other types of client accounts, including, among others: management of cash flows as a result of redemptions and purchases; necessary infrastructure such as officers, office space, technology, legal and distribution; oversight of service providers; costs and business risks associated with launching new funds and sponsoring and maintaining the product line; and compliance with federal and state laws and regulations.

    The Board also considered the services that may be provided by the Affiliated Sub-Advisers pursuant to the sub-advisory contracts, as well as the fees payable by Invesco Advisers to the Affiliated Sub-Advisers pursuant to the sub-advisory contracts.

D. Economies of Scale and Breakpoints

The Board considered the extent to which there may be economies of scale in the provision of advisory services to the Fund. The Board also considered that the Fund may benefit from economies of scale through contractual breakpoints in the Fund’s advisory fee schedule, which generally operate to reduce the Fund’s expense ratio as it grows in size. The Board 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. The Board noted that the Fund may also benefit from economies of scale through initial fee setting, fee waivers and expense reimbursements. The Board also considered Invesco’s reinvestment in its business, including investments in business infrastructure, technology and cybersecurity.

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 Invesco Funds and the profitability of Invesco Advisers and its affiliates in providing these services in the aggregate and on an individual Fund-by-Fund basis. The Board considered the methodology used for calculating profitability and noted the periodic review and enhancement of such methodology. The Board noted that Invesco Advisers continues to operate at a net profit from services Invesco Advisers and its affiliates provide to the Invesco Funds in the aggregate and to certain Funds on an individual fund level. The Board did not deem the level of profits realized by Invesco Advisers and its affiliates from providing such services to be excessive given the nature, extent and quality of the services provided. The Board received information from Invesco Advisers demonstrating that Invesco Advisers and the Affiliated Sub-Advisers are financially sound and have the resources necessary to perform their obligations under the investment advisory agreement and sub-advisory contracts.

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 providing administrative, transfer agency and distribution services to the Fund. The Board considered comparative information regarding fees charged for these services, including information provided by Broadridge and other independent sources. 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; and that the services are required for the operation of the Fund.

    The Board considered the benefits realized by Invesco Advisers and the Affiliated Sub-Advisers as a result of portfolio brokerage transactions executed through “soft dollar” arrangements. The Board noted that soft dollar arrangements may result in the Fund bearing costs to purchase research that may be used by Invesco Advisers or the Affiliated Sub-Advisers with other clients and may reduce Invesco Advisers’ or the Affiliated Sub-Advisers’ expenses. The Board also considered that it receives periodic reports from Invesco representing that these arrangements are consistent with regulatory requirements. The Board did not deem the soft dollar arrangements to be inappropriate.

    The Board considered that the Fund’s uninvested cash and cash collateral from any securities lending arrangements may be invested in registered money market funds or, with regard to securities lending cash collateral, unregistered funds that comply with Rule 2a-7 (collectively referred to as “affiliated money market funds”) advised by Invesco Advisers pursuant to procedures approved by the Board. The Board considered information regarding the returns of the affiliated money market funds relative to comparable overnight investments, as well as the costs to the Fund of such investments. 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 with respect to certain investments in the affiliated money market 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 amount of advisory fees received by Invesco Advisers from the Fund’s investment of cash collateral from any securities lending arrangements in the affiliated money market funds is fair and reasonable.

    The Board also considered that an affiliated broker may receive commissions for executing certain trades for the Fund. Invesco Advisers and the Affiliated Sub-Advisers may use the affiliated broker to, among other things, control order routing and minimize information leakage, and the Board was advised that such trades are executed in compliance with rules under the federal securities laws and consistent with best execution obligations.

Invesco V.I. Equally-Weighted S&P 500 Fund

	Semiannual Report to Shareholders	June 30, 2020
	Invesco V.I. Equity and Income Fund

Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, the insurance company that offers your variable annuity or variable life insurance contract may no longer send you paper copies of the Fund’s shareholder reports by mail, unless you specifically request paper copies of the reports from the insurance company or your financial intermediary. Instead of delivering paper copies of the report, the insurance company may choose to make the reports available on a website, and will notify you by mail each time a report is posted and provide you with a website link to access the report. Instructions for requesting paper copies will be provided by your insurance company.

If the insurance company offers electronic delivery, you may elect to receive shareholder reports and other communications about the Fund electronically by following the instructions provided by the insurance company or by contacting your financial intermediary. If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action.

You may elect to receive all future reports in paper free of charge from the insurance company. You can inform the insurance company or your financial intermediary that you wish to continue receiving paper copies of your shareholder reports by following the instructions provided by the insurance company or by contacting your financial intermediary. Your election to receive reports in paper will apply to all portfolio companies available under your contract with the insurance company.

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) as an exhibit to its reports on Form N-PORT. The Fund’s Form N-PORT filings are available on the SEC website, 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-PORT, 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 most recent 12-month period ended June 30 is available at invesco.com/proxysearch. The information is also available on the SEC website, sec.gov.

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

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.

NOT FDIC INSURED  |  MAY LOSE VALUE  |  NO BANK GUARANTEE

Invesco Distributors, Inc. VK-VIEQI-SAR-1                                 

Fund Performance

Performance summary
Fund vs. Indexes
Cumulative total returns, 12/31/19 to 6/30/20, excluding variable product issuer charges. If variable product issuer charges were included, returns would be lower.
Series I Shares	-9.25%
Series II Shares	-9.36
Russell 1000 Value Indexq (Broad Market Index)	-16.26
Bloomberg Barclays U.S. Government/Credit Indexq (Style-Specific Index)	7.21
Lipper VUF Mixed-Asset Target Allocation Growth Funds Index∎ (Peer Group Index)	-4.14
Source(s): qRIMES Technologies Corp.; ∎Lipper Inc.
The Russell 1000® Value Index is an unmanaged index considered representative of large-cap value stocks. The Russell 1000 Value Index is a trademark/service mark of the Frank Russell Co. Russell® is a trademark of the Frank Russell Co.
The Bloomberg Barclays U.S. Government/Credit Index is a broad-based benchmark that includes investment-grade, US dollar-denominated, fixed-rate Treasuries, government-related and corporate securities. The Lipper VUF Mixed-Asset Target Allocation Growth Funds Index is an unmanaged index considered representative of mixed-asset target allocation 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) described here, and consequently, the performance of the Fund may deviate significantly from the performance of the index(es).
A direct investment cannot be made in an index. Unless otherwise indicated, index results include reinvested dividends, and they do not reflect sales charges. Performance of the peer group, if applicable, reflects fund expenses; performance of a market index does not.

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 (renamed Invesco V.I. Equity and Income Fund on April 29, 2013). Returns shown above, prior to June 1, 2010, for Series II shares are those of the Class II shares of the predecessor fund. Share class returns will differ from the predecessor fund because of different expenses.

The performance data quoted represent past performance and cannot guarantee future results; current performance may be lower or higher. Please 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. Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares. Investment return and principal value will fluctuate so that you may have a gain or loss when you sell shares.

Invesco V.I. Equity and Income Fund, a series portfolio of AIM Variable Insurance Funds (Invesco Variable Insurance Funds), is currently offered through insurance companies issuing variable products. You cannot purchase shares of the Fund directly. Performance figures given represent the Fund and are not intended to reflect actual variable product values. They do not reflect

Average Annual Total Returns
As of 6/30/20
Series I Shares
Inception (6/1/10)	7.87	%
10 Years	8.21
5 Years	4.02
1 Year	-3.62
Series II Shares
Inception (4/30/03)	6.97	%
10 Years	7.97
5 Years	3.75
1 Year	-3.87

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 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.

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

Invesco V.I. Equity and Income Fund

Liquidity Risk Management Program

The Securities and Exchange Commission has adopted Rule 22e-4 under the Investment Company Act of 1940 (the “Liquidity Rule”) in order to promote effective liquidity risk management throughout the open-end investment company industry, thereby reducing the risk that funds will be unable to meet their redemption obligations and mitigating dilution of the interests of fund shareholders. The Fund has adopted and implemented a liquidity risk management program in accordance with the Liquidity Rule (the “Program”). The Program is reasonably designed to assess and manage the Fund’s liquidity risk, which is the risk that the Fund could not meet redemption requests without significant dilution of remaining investors’ interests in the Fund. The Board of Trustees of the Fund (the “Board”) has appointed Invesco Advisers, Inc. (“Invesco”), the Fund’s investment adviser, as the Program’s administrator, and Invesco has delegated oversight of the Program to the Liquidity Risk Management Committee (the “Committee”), which is composed of senior representatives from relevant business groups at Invesco.

As required by the Liquidity Rule, the Program includes policies and procedures providing for an assessment, no less frequently than annually, of the Fund’s liquidity risk that takes into account, as relevant to the Fund’s liquidity risk: (1) the Fund’s investment strategy and liquidity of portfolio investments during both normal and reasonably foreseeable stressed conditions; (2) short-term and long-term cash flow projections for the Fund during both normal and reasonably foreseeable stressed conditions; and (3) the Fund’s holdings of cash and cash equivalents and any borrowing arrangements. The Liquidity Rule also requires the classification of the Fund’s investments into categories that reflect the assessment of their relative liquidity under current market conditions. The Fund classifies its investments into one of four categories defined in the Liquidity Rule: “Highly Liquid,” “Moderately Liquid,” “Less Liquid” and “Illiquid.” Funds that are not invested primarily in “Highly Liquid Investments” that are assets (cash or investments that are reasonably expected to be convertible into cash within three business days without significantly changing the market value of the investment) are required to establish a “Highly Liquid Investment Minimum” (“HLIM”), which is the minimum percentage of net assets that must be invested in Highly Liquid Investments. Funds with HLIMs have procedures for addressing HLIM shortfalls, including reporting to the Board and the SEC (on a non-public basis) as required by the Program and the Liquidity Rule. In addition, the Fund may not acquire an investment if, immediately after the acquisition, over 15% of the Fund’s net assets would consist of “Illiquid Investments” that are assets (an investment that cannot reasonably be expected to be sold or disposed of in current market conditions in seven calendar days or less without the sale or disposition significantly changing the market value of the investment). The Liquidity Rule and the Program also require reporting to the Board and the SEC (on a non-public basis) if a Fund’s holdings of Illiquid Investments exceed 15% of the Fund’s assets.

At a meeting held on March 30-April 1, 2020, the Committee presented a report to the Board that addressed the operation of the Program and assessed the Program’s adequacy and effectiveness of implementation (the “Report”). The Report covered the period from December 1, 2018 through December 31, 2019 (the “Program Reporting Period”).

The Report stated, in relevant part, that during the Program Reporting Period:

∎ The Program, as adopted and implemented, remained reasonably designed to assess and manage the Fund’s liquidity risk and was operated effectively to achieve that goal;

∎ The Fund’s investment strategy remained appropriate for an open-end fund;

∎ The Fund was able to meet requests for redemption without significant dilution of remaining investors’ interests in the Fund;

∎ The Fund did not breach the 15% limit on Illiquid Investments; and

∎ The Fund primarily held Highly Liquid Investments and therefore has not adopted an HLIM.

Invesco V.I. Equity and Income Fund

Schedule of Investments^(a)

June 30, 2020

(Unaudited)

	Shares		Value
Common Stocks & Other Equity Interests–64.32%
Aerospace & Defense–3.01%
General Dynamics Corp.		122,592	$	18,322,600
Raytheon Technologies Corp.		106,482		6,561,421
Textron, Inc.		196,783		6,476,129
				31,360,150
Apparel Retail–0.70%
TJX Cos., Inc. (The)		143,562		7,258,495
Apparel, Accessories & Luxury Goods–0.63%
Capri Holdings Ltd.(b)		418,114		6,535,122
Automobile Manufacturers–1.74%
General Motors Co.		715,344		18,098,203
Building Products–2.24%
Johnson Controls International PLC		411,038		14,032,837
Trane Technologies PLC		103,992		9,253,208
				23,286,045
Cable & Satellite–1.73%
Charter Communications, Inc.,
Class A(b)		16,404		8,366,696
Comcast Corp., Class A		248,179		9,674,018
				18,040,714
Commodity Chemicals–0.69%
Dow, Inc.		176,025		7,174,779
Communications Equipment–0.29%
Cisco Systems, Inc.		65,764		3,067,233
Diversified Banks–4.15%
Bank of America Corp.		880,673		20,915,984
Citigroup, Inc.		436,607		22,310,617
				43,226,601
Electric Utilities–1.98%
Duke Energy Corp.		79,480		6,349,657
Exelon Corp.		204,693		7,428,309
FirstEnergy Corp.		175,114		6,790,921
				20,568,887
Electronic Components–0.72%
Corning, Inc.		290,546		7,525,141
Fertilizers & Agricultural Chemicals–1.75%
Corteva, Inc.		530,847		14,221,391
Nutrien Ltd. (Canada)		124,432		3,994,267
				18,215,658
Food Distributors–1.52%
Sysco Corp.		145,309		7,942,590
US Foods Holding Corp.(b)		397,035		7,829,530
				15,772,120
Health Care Distributors–1.14%
McKesson Corp.		77,550		11,897,721

	Shares		Value
Health Care Equipment–1.94%
Medtronic PLC		126,186	$	11,571,256
Zimmer Biomet Holdings, Inc.		72,384		8,639,754
				20,211,010
Health Care Services–0.88%
CVS Health Corp.		141,644		9,202,611
Health Care Supplies–0.53%
Alcon, Inc. (Switzerland)(b)		95,846		5,491,614
Home Improvement Retail–0.65%
Kingfisher PLC (United Kingdom)		2,472,633		6,755,487
Human Resource & Employment Services–0.03%
Adecco Group AG (Switzerland)		6,136		287,495
Insurance Brokers–0.79%
Willis Towers Watson PLC		41,848		8,241,964
Integrated Oil & Gas–2.60%
BP PLC (United Kingdom)		1,921,508		7,302,541
Chevron Corp.		142,597		12,723,930
Royal Dutch Shell PLC, Class A (United Kingdom)		440,645		7,011,675
				27,038,146
Internet & Direct Marketing Retail–0.82%
Booking Holdings, Inc.(b)		5,334		8,493,542
Investment Banking & Brokerage–4.01%
Charles Schwab Corp. (The)		144,654		4,880,626
Goldman Sachs Group, Inc. (The)		94,391		18,653,550
Morgan Stanley		377,571		18,236,679
				41,770,855
IT Consulting & Other Services–1.41%
Cognizant Technology Solutions Corp., Class A		259,200		14,727,744
Managed Health Care–1.40%
Anthem, Inc.		55,224		14,522,807
Multi-line Insurance–1.63%
American International Group, Inc.		543,342		16,941,404
Oil & Gas Exploration & Production–1.71%
Canadian Natural Resources Ltd. (Canada)		224,858		3,900,564
Devon Energy Corp.		428,463		4,858,771
Marathon Oil Corp.		839,651		5,138,664
Parsley Energy, Inc., Class A		368,753		3,938,282
				17,836,281
Other Diversified Financial Services–1.40%
Equitable Holdings, Inc.		305,334		5,889,893
Voya Financial, Inc.		186,803		8,714,360
				14,604,253

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

Invesco V.I. Equity and Income Fund

	Shares		Value
Packaged Foods & Meats–0.95%
Kellogg Co.		65,657	$	4,337,301
Mondelez International, Inc., Class A		109,570		5,602,314
				9,939,615
Pharmaceuticals–5.41%
Bristol-Myers Squibb Co.		249,640		14,678,832
GlaxoSmithKline PLC (United Kingdom)		270,508		5,481,017
Johnson & Johnson		130,766		18,389,623
Pfizer, Inc.		227,651		7,444,188
Sanofi (France)		101,439		10,320,303
				56,313,963
Railroads–1.54%
CSX Corp.		230,474		16,073,257
Regional Banks–4.16%
Citizens Financial Group, Inc.		553,267		13,964,459
PNC Financial Services Group, Inc. (The)		149,052		15,681,761
Truist Financial Corp.		365,274		13,716,039
				43,362,259
Semiconductors–3.54%
Intel Corp.		226,892		13,574,948
NXP Semiconductors N.V. (Netherlands)		82,905		9,454,486
QUALCOMM, Inc.		151,676		13,834,368
				36,863,802
Specialty Chemicals–0.65%
DuPont de Nemours, Inc.		126,563		6,724,292
Systems Software–1.43%
Oracle Corp.		268,590		14,844,969
Technology Hardware, Storage & Peripherals–1.27%
Apple, Inc.		36,341		13,257,197
Tobacco–2.03%
Philip Morris International, Inc.		302,112		21,165,967
Wireless Telecommunication Services–1.25%
Vodafone Group PLC (United Kingdom)		8,145,529		12,988,536
Total Common Stocks & Other Equity Interests (Cost $629,108,630)				669,685,939
	Principal Amount
U.S. Dollar Denominated Bonds & Notes–25.71%
Aerospace & Defense–0.45%
BAE Systems Holdings, Inc. (United Kingdom), 2.85%, 12/15/2020(c)	$	262,000		263,736
Northrop Grumman Corp., 2.08%, 10/15/2020		1,278,000		1,284,028
Precision Castparts Corp., 2.50%, 01/15/2023		333,000		349,223
Raytheon Co., 3.13%, 10/15/2020		2,375,000		2,394,179
Raytheon Technologies Corp., 4.45%, 11/16/2038		299,000		366,155
				4,657,321
Agricultural & Farm Machinery–0.12%
Deere & Co., 2.60%, 06/08/2022		1,161,000		1,205,779

	Principal Amount		Value
Agricultural Products–0.03%
Ingredion, Inc., 6.63%, 04/15/2037	$	232,000	$	327,275
Air Freight & Logistics–0.16%
FedEx Corp., 4.90%, 01/15/2034		402,000		486,874
5.10%, 01/15/2044		828,000		968,562
United Parcel Service, Inc., 3.40%, 11/15/2046		236,000		256,069
				1,711,505
Airlines–0.14%
American Airlines Pass Through Trust, Series 2014-1, Class A, 3.70%, 04/01/2028		287,645		244,793
Continental Airlines Pass Through Trust, Series 2010-1, Class A, 4.75%, 01/12/2021		117,399		115,759
Series 2012-1, Class A, 4.15%, 04/11/2024		304,793		286,154
United Airlines Pass Through Trust, Series 2014-2, Class A, 3.75%, 09/03/2026		370,672		339,050
Series 2018-1, Class AA, 3.50%, 03/01/2030		461,848		434,127
				1,419,883
Alternative Carriers–0.48%
GCI Liberty, Inc., Conv., 1.75%, 10/05/2023(c)(d)		2,143,000		3,006,579
Liberty Latin America Ltd. (Chile), Conv., 2.00%, 07/15/2024(c)		2,431,000		1,937,203
				4,943,782
Application Software–0.87%
Nuance Communications, Inc., Conv., 1.00%, 12/15/2022(d)		2,458,000		2,909,027
1.25%, 04/01/2025		1,558,000		2,180,043
RealPage, Inc., Conv., 1.50%, 11/15/2022		628,000		1,013,396
Workday, Inc., Conv., 0.25%, 10/01/2022		2,173,000		2,997,624
				9,100,090
Asset Management & Custody Banks–0.37%
Apollo Management Holdings L.P., 4.00%, 05/30/2024(c)		2,715,000		2,951,359
Brookfield Asset Management, Inc. (Canada), 4.00%, 01/15/2025		420,000		463,021
Carlyle Holdings Finance LLC, 3.88%, 02/01/2023(c)		98,000		104,396
KKR Group Finance Co. III LLC, 5.13%, 06/01/2044(c)		287,000		346,050
				3,864,826
Automobile Manufacturers–0.09%
General Motors Co., 6.60%, 04/01/2036		361,000		392,895
General Motors Financial Co., Inc., 5.25%, 03/01/2026		459,000		500,589
				893,484

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

Invesco V.I. Equity and Income Fund

	Principal Amount		Value
Automotive Retail–0.06%
Advance Auto Parts, Inc., 4.50%, 12/01/2023	$	602,000	$	653,490
Biotechnology–1.07%
AbbVie, Inc., 4.50%, 05/14/2035		656,000		809,937
4.05%, 11/21/2039(c)		1,288,000		1,495,869
4.85%, 06/15/2044(c)		864,000		1,081,217
BioMarin Pharmaceutical, Inc., Conv., 1.50%, 10/15/2020		2,172,000		2,859,347
Gilead Sciences, Inc., 2.55%, 09/01/2020		1,643,000		1,648,972
4.40%, 12/01/2021		448,000		468,746
Neurocrine Biosciences, Inc., Conv., 2.25%, 05/15/2024		1,685,000		2,818,545
				11,182,633
Brewers–0.36%
Anheuser-Busch Cos. LLC/Anheuser- Busch InBev Worldwide, Inc. (Belgium), 4.70%, 02/01/2036		914,000		1,078,744
4.90%, 02/01/2046		1,021,000		1,252,689
Heineken N.V. (Netherlands), 3.50%, 01/29/2028(c)		910,000		1,026,688
Molson Coors Beverage Co., 4.20%, 07/15/2046		361,000		351,717
				3,709,838
Broadcasting–0.68%
Liberty Media Corp., Conv., 2.25%, 10/05/2021(d)		1,399,000		671,613
1.38%, 10/15/2023		5,513,000		5,812,907
Liberty Formula One, Conv., 1.00%, 01/30/2023		520,000		566,456
				7,050,976
Cable & Satellite–1.23%
BofA Finance LLC, Conv., 0.13%, 09/01/2022		2,151,000		2,242,418
Charter Communications Operating LLC/Charter Communications Operating Capital Corp., 4.46%, 07/23/2022		969,000		1,033,504
Comcast Corp., 4.15%, 10/15/2028		905,000		1,089,515
6.45%, 03/15/2037		278,000		412,140
3.90%, 03/01/2038		746,000		886,689
DISH Network Corp., Conv., 3.38%, 08/15/2026		7,388,000		6,805,195
NBCUniversal Media LLC, 5.95%, 04/01/2041		197,000		293,055
				12,762,516
Commodity Chemicals–0.09%
LYB Finance Co. B.V. (Netherlands), 8.10%, 03/15/2027(c)		678,000		910,522
Communications Equipment–0.44%
Finisar Corp., Conv., 0.50%, 12/15/2021(d)		1,013,000		1,045,720

	Principal Amount		Value
Communications Equipment–(continued)
Viavi Solutions, Inc., Conv., 1.75%, 06/01/2023	$	1,295,000	$	1,449,101
1.00%, 03/01/2024		1,806,000		2,083,058
				4,577,879
Consumer Finance–0.34%
American Express Co., 3.63%, 12/05/2024		306,000		339,732
Capital One Financial Corp., 3.20%, 01/30/2023		943,000		993,856
Discover Bank, 3.35%, 02/06/2023		1,500,000		1,583,463
Synchrony Financial, 3.95%, 12/01/2027		546,000		570,969
				3,488,020
Data Processing & Outsourced Services–0.20%
Euronet Worldwide, Inc., Conv., 0.75%, 03/15/2025(d)		554,000		538,419
Fiserv, Inc., 3.80%, 10/01/2023		1,397,000		1,527,283
				2,065,702
Diversified Banks–2.49%
ANZ New Zealand (Int’l) Ltd. (New Zealand), 2.88%, 01/25/2022(c)		350,000		361,791
Australia & New Zealand Banking Group Ltd. (Australia),
2.70%, 11/16/2020		2,690,000		2,713,405
2.30%, 06/01/2021		713,000		725,665
Bank of America Corp., 3.25%, 10/21/2027		515,000		568,306
BBVA Bancomer S.A. (Mexico), 4.38%, 04/10/2024(c)		700,000		747,842
Citigroup, Inc., 3.67%, (3 mo. USD LIBOR + 1.39%), 07/24/2028(e)		496,000		553,255
6.68%, 09/13/2043		741,000		1,146,526
5.30%, 05/06/2044		228,000		303,229
4.75%, 05/18/2046		341,000		436,529
HSBC Holdings PLC (United Kingdom), 2.63% (3 mo. USD LIBOR + 1.14%), 11/07/2025(e)		1,775,000		1,841,741
JPMorgan Chase & Co.,
4.50%, 01/24/2022		74,000		78,645
3.20%, 06/15/2026		379,000		421,005
3.51%, (3 mo. USD LIBOR + 0.95%), 01/23/2029(e)		1,043,000		1,166,000
4.26%, (3 mo. USD LIBOR + 1.58%), 02/22/2048(e)		479,000		604,802
3.90%, (3 mo. USD LIBOR + 1.22%), 01/23/2049(e)		1,043,000		1,262,362
Series V, 3.62% (3 mo. USD LIBOR + 3.32%)(e)(f)		582,000		514,721
Mizuho Financial Group Cayman 3 Ltd. (Japan), 4.60%, 03/27/2024(c)		200,000		218,132
National Australia Bank Ltd. (Australia), 1.88%, 07/12/2021		945,000		959,674
SMBC Aviation Capital Finance DAC (Ireland), 2.65%, 07/15/2021(c)		315,000		316,443

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

Invesco V.I. Equity and Income Fund

	Principal Amount		Value
Diversified Banks–(continued)
Societe Generale S.A. (France), 2.63%, 09/16/2020(c)	$	890,000	$	894,206
5.00%, 01/17/2024(c)		735,000		795,711
Standard Chartered PLC (United Kingdom), 3.05%, 01/15/2021(c)		680,000		688,308
Sumitomo Mitsui Banking Corp. (Japan), 2.65%, 07/23/2020		715,000		715,923
U.S. Bancorp, Series W, 3.10%, 04/27/2026		2,087,000		2,319,089
Wells Fargo & Co., 3.55%, 09/29/2025		596,000		666,056
4.10%, 06/03/2026		410,000		462,500
4.65%, 11/04/2044		632,000		785,268
Westpac Banking Corp. (Australia), 2.10%, 05/13/2021		3,590,000		3,643,439
				25,910,573
Diversified Capital Markets–0.42%
Credit Suisse AG (Switzerland), 6.50%, 08/08/2023(c)		686,000		751,971
Conv., 0.50%, 06/24/2024(c)		3,834,000		3,669,905
				4,421,876
Diversified Metals & Mining–0.02%
Rio Tinto Finance USA Ltd. (Australia), 7.13%, 07/15/2028		182,000		255,413
Drug Retail–0.16%
CVS Pass-Through Trust, 6.04%, 12/10/2028		603,036		681,891
Walgreens Boots Alliance, Inc.,
3.30%, 11/18/2021		548,000		565,322
4.50%, 11/18/2034		404,000		452,688
				1,699,901
Electric Utilities–0.32%
Electricite de France S.A. (France), 4.88%, 01/22/2044(c)		846,000		1,001,142
Georgia Power Co., Series B, 3.70%, 01/30/2050		341,000		380,180
NextEra Energy Capital Holdings, Inc., 3.55%, 05/01/2027		519,000		589,235
Ohio Power Co., Series M, 5.38%, 10/01/2021		182,000		192,869
PPL Electric Utilities Corp., 6.25%, 05/15/2039		46,000		68,120
Xcel Energy, Inc., 3.50%, 12/01/2049		957,000		1,071,998
				3,303,544
Environmental & Facilities Services–0.05%
Waste Management, Inc., 3.90%, 03/01/2035		427,000		506,706
Food Retail–0.32%
Nestle Holdings, Inc., 3.10%, 09/24/2021(c)		3,190,000		3,290,099
General Merchandise Stores–0.03%
Dollar General Corp., 3.25%, 04/15/2023		333,000		355,688

	Principal Amount		Value
Health Care Equipment–1.07%
Becton, Dickinson and Co., 4.88%, 05/15/2044	$	342,000	$	424,217
DexCom, Inc., Conv., 0.75%, 12/01/2023		2,639,000		6,553,115
Integra LifeSciences Holdings Corp., Conv., 0.50%, 08/15/2025(c)		1,758,000		1,606,935
Medtronic, Inc., 4.38%, 03/15/2035		234,000		305,985
NuVasive, Inc., Conv., 2.25%, 03/15/2021		1,710,000		1,882,197
Tandem Diabetes Care, Inc., Conv., 1.50%, 05/01/2025(c)		338,000		395,417
				11,167,866
Health Care REITs–0.09%
Healthpeak Properties, Inc., 4.20%, 03/01/2024		438,000		477,825
3.88%, 08/15/2024		461,000		507,259
				985,084
Health Care Services–0.29%
Cigna Corp., 4.80%, 08/15/2038		298,000		378,198
CVS Health Corp., 3.38%, 08/12/2024		341,000		371,844
4.10%, 03/25/2025		1,237,000		1,399,214
Laboratory Corp. of America Holdings, 3.20%, 02/01/2022		548,000		568,579
4.70%, 02/01/2045		241,000		293,928
				3,011,763
Health Care Technology–0.36%
Teladoc Health, Inc., Conv., 1.25%, 06/01/2027(c)		3,333,000		3,699,168
Home Improvement Retail–0.12%
Home Depot, Inc. (The), 2.00%, 04/01/2021		575,000		581,783
Lowe’s Cos., Inc., 4.55%, 04/05/2049		508,000		644,320
				1,226,103
Homebuilding–0.10%
M.D.C. Holdings, Inc., 6.00%, 01/15/2043		956,000		1,008,312
Hotel & Resort REITs–0.02%
Service Properties Trust, 5.00%, 08/15/2022		182,000		178,806
Insurance Brokers–0.02%
Willis North America, Inc., 3.60%, 05/15/2024		228,000		246,891
Integrated Oil & Gas–0.06%
Husky Energy, Inc. (Canada), 3.95%, 04/15/2022		274,000		280,057
Suncor Energy, Inc. (Canada), 3.60%, 12/01/2024		304,000		328,391
				608,448

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

Invesco V.I. Equity and Income Fund

	Principal
	Amount		Value
Integrated Telecommunication Services–0.69%
AT&T, Inc., 3.00%, 06/30/2022	$	474,000	$	495,199
3.40%, 05/15/2025		263,000		289,370
4.30%, 02/15/2030		318,000		371,815
4.50%, 05/15/2035		421,000		499,989
5.35%, 09/01/2040		92,000		115,780
4.80%, 06/15/2044		491,000		582,128
5.15%, 11/15/2046		128,000		161,209
Orange S.A. (France), 4.13%, 09/14/2021		1,385,000		1,447,803
Telefonica Emisiones S.A. (Spain), 7.05%, 06/20/2036		328,000		477,763
4.67%, 03/06/2038		750,000		897,329
5.21%, 03/08/2047		700,000		878,944
Verizon Communications, Inc., 4.40%, 11/01/2034		297,000		369,449
4.81%, 03/15/2039		459,000		600,395
				7,187,173
Interactive Media & Services–0.56%
JOYY, Inc. (China), Conv., 1.38%, 06/15/2024(d)		3,894,000		4,307,426
Zillow Group, Inc., Conv., 2.75%, 05/15/2025		1,282,000		1,497,004
				5,804,430
Internet & Direct Marketing Retail–0.85%
Booking Holdings, Inc., Conv., 0.90%, 09/15/2021		1,430,000		1,522,930
0.75%, 05/01/2025(c)		345,000		427,909
Match Group Financeco 3, Inc., Conv., 2.00%, 01/15/2030(c)		3,211,000		4,169,531
Trip.com Group Ltd. (China), Conv., 1.25%, 09/15/2022		2,721,000		2,717,499
				8,837,869
Investment Banking & Brokerage–0.72%
Goldman Sachs Group, Inc. (The), 5.25%, 07/27/2021		364,000		382,269
4.25%, 10/21/2025		502,000		566,151
GS Finance Corp., Series 0001, Conv., 0.25%, 07/08/2024		5,920,000		5,877,621
Morgan Stanley, 4.00%, 07/23/2025		619,000		702,303
				7,528,344
IT Consulting & Other Services–0.04%
DXC Technology Co., 4.45%, 09/18/2022		446,000		466,236
Life & Health Insurance–0.33%
Athene Global Funding, 4.00%, 01/25/2022(c)		1,110,000		1,149,328
2.75%, 06/25/2024(c)		260,000		263,401
Jackson National Life Global Funding, 2.10%, 10/25/2021(c)		479,000		488,577
3.25%, 01/30/2024(c)		438,000		467,939
Nationwide Financial Services, Inc., 5.30%, 11/18/2044(c)		405,000		474,533
Prudential Financial, Inc., 3.91%, 12/07/2047		141,000		160,507

	Principal
	Amount		Value
Life & Health Insurance–(continued)
Reliance Standard Life Global Funding II, 3.05%, 01/20/2021(c)	$	423,000	$	427,412
				3,431,697
Managed Health Care–0.06%
UnitedHealth Group, Inc., 3.50%, 08/15/2039		543,000		632,094
Movies & Entertainment–0.19%
Live Nation Entertainment, Inc., Conv., 2.50%, 03/15/2023		1,953,000		1,985,957
Multi-line Insurance–0.23%
American International Group, Inc., 4.38%, 01/15/2055		656,000		755,083
Guardian Life Global Funding, 2.90%, 05/06/2024(c)		669,000		713,819
Liberty Mutual Group, Inc., 3.95%, 05/15/2060(c)		887,000		937,292
				2,406,194
Multi-Utilities–0.12%
NiSource, Inc., 4.38%, 05/15/2047		562,000		679,928
Sempra Energy, 3.80%, 02/01/2038		551,000		596,366
				1,276,294
Office REITs–0.06%
Office Properties Income Trust, 4.00%, 07/15/2022		664,000		661,933
Oil & Gas Equipment & Services–0.07%
Oil States International, Inc., Conv., 1.50%, 02/15/2023		1,451,000		731,770
Oil & Gas Exploration & Production–0.15%
Cameron LNG LLC, 3.70%, 01/15/2039(c)		606,000		652,021
ConocoPhillips, 4.15%, 11/15/2034		217,000		241,206
Noble Energy, Inc., 5.25%, 11/15/2043		756,000		693,976
				1,587,203
Oil & Gas Storage & Transportation–0.80%
Energy Transfer Operating L.P., 4.20%, 09/15/2023		1,722,000		1,831,776
4.90%, 03/15/2035		325,000		326,787
5.00%, 05/15/2050		716,000		679,034
Enterprise Products Operating LLC, 6.45%, 09/01/2040		23,000		30,580
4.25%, 02/15/2048		686,000		748,648
Kinder Morgan, Inc., 5.30%, 12/01/2034		384,000		447,045
MPLX L.P., 4.50%, 07/15/2023		1,656,000		1,781,998
4.50%, 04/15/2038		799,000		799,697
Plains All American Pipeline L.P./PAA Finance Corp., 3.65%, 06/01/2022		323,000		330,315
Spectra Energy Partners L.P., 4.50%, 03/15/2045		488,000		553,593

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

Invesco V.I. Equity and Income Fund

	Principal
	Amount		Value
Oil & Gas Storage & Transportation–(continued)
Sunoco Logistics Partners Operations L.P., 5.30%, 04/01/2044	$	587,000	$	567,305
Texas Eastern Transmission L.P., 7.00%, 07/15/2032		169,000		227,229
				8,324,007
Other Diversified Financial Services–2.40%
Convertible Trust - Consumer, Series 2018-1, 0.25%, 01/17/2024		5,674,000		5,761,379
Convertible Trust - Energy, Series 2019-1, 0.33%, 09/19/2024		5,688,000		5,751,706
Convertible Trust - Healthcare, Series 2018-1, 0.25%, 02/05/2024		5,897,000		6,359,325
Convertible Trust - Media, Series 2019, Class 1, 0.25%, 12/04/2024		5,704,000		6,133,511
MassMutual Global Funding II, 2.00%, 04/15/2021(c)		945,000		957,740
				24,963,661
Packaged Foods & Meats–0.06%
Kraft Heinz Foods Co. (The), 4.63%, 10/01/2039(c)		525,000		528,672
Mead Johnson Nutrition Co. (United Kingdom), 4.13%, 11/15/2025		60,000		69,507
				598,179
Paper Packaging–0.14%
International Paper Co., 6.00%, 11/15/2041		223,000		294,385
Packaging Corp. of America, 4.50%, 11/01/2023		1,037,000		1,142,557
				1,436,942
Pharmaceuticals–0.90%
Bayer US Finance II LLC (Germany), 4.38%, 12/15/2028(c)		985,000		1,151,708
Bayer US Finance LLC (Germany), 3.00%, 10/08/2021(c)		590,000		605,720
Bristol-Myers Squibb Co., 4.00%, 08/15/2023(c)		485,000		535,296
4.13%, 06/15/2039(c)		603,000		772,192
4.63%, 05/15/2044(c)		1,390,000		1,866,204
GlaxoSmithKline Capital, Inc. (United Kingdom), 6.38%, 05/15/2038		64,000		97,451
Jazz Investments I Ltd., Conv., 2.00%, 06/15/2026(c)		1,374,000		1,391,719
Mylan N.V., 3.15%, 06/15/2021		393,000		401,251
Pacira BioSciences, Inc., Conv., 2.38%, 04/01/2022		1,080,000		1,181,201
Supernus Pharmaceuticals, Inc., Conv., 0.63%, 04/01/2023		1,057,000		935,516
Zoetis, Inc., 4.70%, 02/01/2043		333,000		440,488
				9,378,746
Property & Casualty Insurance–0.24%
Allstate Corp. (The), 3.28%, 12/15/2026		292,000		333,721

	Principal
	Amount		Value
Property & Casualty Insurance–(continued)
Markel Corp., 5.00%, 03/30/2043	$	351,000	$	416,864
5.00%, 05/20/2049		482,000		600,155
Travelers Cos., Inc. (The), 4.60%, 08/01/2043		605,000		790,224
W.R. Berkley Corp., 4.63%, 03/15/2022		382,000		402,724
				2,543,688
Railroads–0.21%
CSX Corp., 5.50%, 04/15/2041		346,000		477,295
Norfolk Southern Corp., 3.40%, 11/01/2049		456,000		501,297
Union Pacific Corp., 3.65%, 02/15/2024		92,000		100,758
4.15%, 01/15/2045		401,000		483,365
3.84%, 03/20/2060		519,000		612,952
				2,175,667
Regional Banks–0.11%
Citizens Financial Group, Inc., 2.38%, 07/28/2021		415,000		420,345
PNC Financial Services Group, Inc. (The), 3.45%, 04/23/2029		669,000		772,199
				1,192,544
Reinsurance–0.14%
PartnerRe Finance B LLC, 3.70%, 07/02/2029		1,015,000		1,116,480
Reinsurance Group of America, Inc., 4.70%, 09/15/2023		352,000		385,253
				1,501,733
Renewable Electricity–0.05%
Oglethorpe Power Corp., 4.55%, 06/01/2044		529,000		569,535
Restaurants–0.08%
Starbucks Corp., 3.55%, 08/15/2029		685,000		781,586
Retail REITs–0.10%
Regency Centers L.P., 2.95%, 09/15/2029		745,000		756,618
4.65%, 03/15/2049		256,000		291,869
				1,048,487
Semiconductors–1.16%
Broadcom Corp./Broadcom Cayman Finance Ltd., 3.63%, 01/15/2024		610,000		656,454
Cree, Inc., Conv., 0.88%, 09/01/2023		1,922,000		2,264,758
1.75%, 05/01/2026(c)		1,370,000		1,935,125
Microchip Technology, Inc., Conv., 1.63%, 02/15/2027		1,983,000		2,929,976
Micron Technology, Inc., 4.66%, 02/15/2030		670,000		783,339
NXP B.V./NXP Funding LLC (Netherlands), 5.35%, 03/01/2026(c)		656,000		780,870
ON Semiconductor Corp., Conv., 1.00%, 12/01/2020		1,548,000		1,807,147

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

Invesco V.I. Equity and Income Fund

	Principal Amount		Value
Semiconductors–(continued)
Silicon Laboratories, Inc., Conv., 1.38%, 03/01/2022	$	563,000	$	680,215
Texas Instruments, Inc., 2.63%, 05/15/2024		210,000		225,854
				12,063,738
Specialized REITs–0.19%
Crown Castle International Corp., 4.75%, 05/15/2047		46,000		56,981
EPR Properties, 4.75%, 12/15/2026		1,556,000		1,487,945
LifeStorage L.P., 3.50%, 07/01/2026		404,000		433,345
				1,978,271
Specialty Chemicals–0.02%
Sherwin-Williams Co. (The), 4.50%, 06/01/2047		156,000		190,135
Systems Software–0.44%
FireEye, Inc., Series B, Conv., 1.63%, 06/01/2022(d)		1,587,000		1,503,971
Series A, Conv., 1.00%, 06/01/2025(d)		1,566,000		1,563,506
Microsoft Corp., 3.50%, 02/12/2035		367,000		449,572
Oracle Corp., 3.60%, 04/01/2040		965,000		1,099,240
				4,616,289
Technology Distributors–0.07%
Avnet, Inc., 4.63%, 04/15/2026		641,000		726,091
Technology Hardware, Storage & Peripherals–0.54%
Apple, Inc., 2.15%, 02/09/2022		652,000		671,006
3.35%, 02/09/2027		305,000		346,179
Dell International LLC/EMC Corp., 5.45%, 06/15/2023(c)		587,000		642,319
8.35%, 07/15/2046(c)		14,000		18,206
SanDisk LLC, Conv., 0.50%, 10/15/2020		2,520,000		2,169,015
Western Digital Corp., Conv., 1.50%, 02/01/2024		1,916,000		1,810,685
				5,657,410
Tobacco–0.31%
Altria Group, Inc., 5.80%, 02/14/2039		1,088,000		1,358,135
Philip Morris International, Inc., 3.60%, 11/15/2023		369,000		407,123
4.88%, 11/15/2043		1,102,000		1,419,607
				3,184,865
Trading Companies & Distributors–0.12%
Air Lease Corp., 3.00%, 09/15/2023		63,000		62,170
4.25%, 09/15/2024		392,000		399,007
Aircastle Ltd., 4.40%, 09/25/2023		761,000		738,675
				1,199,852

	Principal Amount		Value
Trucking–0.15%
Aviation Capital Group LLC, 2.88%, 01/20/2022(c)	$	1,015,000	$	970,282
4.88%, 10/01/2025(c)		669,000		613,513
				1,583,795
Wireless Telecommunication Services–0.29%
America Movil S.A.B. de C.V. (Mexico), 4.38%, 07/16/2042		600,000		724,253
Rogers Communications, Inc. (Canada), 4.50%, 03/15/2043		533,000		634,414
4.30%, 02/15/2048		1,379,000		1,641,609
				3,000,276
Total U.S. Dollar Denominated Bonds & Notes (Cost $242,646,583)				267,654,453
U.S. Treasury Securities–3.59%
U.S. Treasury Bills–0.00% 0.00%, 09/03/2020(g)(h)		15,000		14,997
U.S. Treasury Bonds–0.65% 4.50%, 02/15/2036		2,636,800		4,037,033
4.50%, 08/15/2039		36,400		57,988
4.38%, 05/15/2040		72,800		115,075
2.00%, 02/15/2050		2,198,600		2,517,311
				6,727,407
U.S. Treasury Notes–2.94%
2.63%, 11/15/2020		545,600		550,587
0.13%, 06/30/2022		5,189,300		5,186,665
0.25%, 06/15/2023		15,880,500		15,915,239
0.25%, 06/30/2025		4,110,100		4,102,474
0.50%, 06/30/2027		3,189,800		3,192,167
0.63%, 05/15/2030		1,681,100		1,676,240
				30,623,372
Total U.S. Treasury Securities (Cost $36,598,003)				37,365,776
	Shares
Preferred Stocks–0.60%
Asset Management & Custody Banks–0.16%
AMG Capital Trust II, 5.15%, Conv. Pfd.		42,732		1,699,386
Diversified Banks–0.03%
Wells Fargo & Co., 5.85%, Series Q, Pfd.		10,911		270,156
Oil & Gas Storage & Transportation–0.41%
El Paso Energy Capital Trust I, 4.75%, Conv. Pfd.		95,499		4,245,886
Total Preferred Stocks (Cost $5,854,432)				6,215,428
	Principal Amount
U.S. Government Sponsored Agency Mortgage-Backed Securities–0.10%
Federal Home Loan Mortgage Corp. (FHLMC)–0.10%
6.75%, 03/15/2031	$	682,000		1,073,955
5.50%, 02/01/2037		14		16
				1,073,971

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

Invesco V.I. Equity and Income Fund

	Principal Amount		Value
Federal National Mortgage Association (FNMA)–0.00%
5.50%, 03/01/2021	$	8	$	8
9.50%, 04/01/2030		809		916
				924
Total U.S. Government Sponsored Agency Mortgage-Backed Securities (Cost $843,241)				1,074,895
	Shares
Money Market Funds–5.19%
Invesco Government & Agency Portfolio, Institutional Class, 0.09%(i)(j)		20,341,529		20,341,529

	Shares		Value
Money Market Funds–(continued)
Invesco Liquid Assets Portfolio, Institutional Class, 0.39%(i)(j)		10,502,686	$	10,510,038
Invesco Treasury Portfolio, Institutional Class, 0.08%(i)(j)		23,247,462		23,247,462
Total Money Market Funds (Cost $54,088,473)				54,099,029
TOTAL INVESTMENTS IN SECURITIES–99.51% (Cost $969,139,362)				1,036,095,520
OTHER ASSETS LESS LIABILITIES—0.49%				5,063,959
NET ASSETS–100.00%			$	1,041,159,479

Investment Abbreviations:

Conv.	- Convertible
LIBOR	- London Interbank Offered Rate
Pfd.	- Preferred
REIT	- Real Estate Investment Trust
USD	- U.S. Dollar

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 “1933 Act”). The security may be resold pursuant to an exemption from registration under the 1933 Act, typically to qualified institutional buyers. The aggregate value of these securities at June 30, 2020 was $54,502,017, which represented 5.23% of the Fund’s Net Assets.

^(d)  Security has an irrevocable call by the issuer or mandatory put by the holder. Maturity date reflects such call or put.

^(e)  Interest or dividend rate is redetermined periodically. Rate shown is the rate in effect on June 30, 2020.

^(f)  Perpetual bond with no specified maturity date.

^(g)  All or a portion of the value was pledged as collateral to cover margin requirements for open futures contracts. See Note 1L.

^(h)  Security traded on a discount basis. The interest rate shown represents the discount rate at the time of purchase by the Fund.

⁽ⁱ⁾  Affiliated issuer. The issuer and/or the Fund is a wholly-owned subsidiary of Invesco Ltd., or is affiliated by having an investment adviser that is under common control of Invesco Ltd. The table below shows the Fund’s transactions in, and earnings from, its investments in affiliates for the six months ended June 30, 2020.

	Value December 31, 2019		Purchases at Cost		Proceeds from Sales			Change in Unrealized Appreciation		Realized Gain (Loss)			Value June 30, 2020		Dividend Income
Investments in Affiliated Money Market Funds:
Invesco Government & Agency Portfolio, Institutional Class		$19,017,510	$	48,895,329	$	(47,571,310	)	$	-	$	-		$	20,341,529	$	66,796
Invesco Liquid Assets Portfolio, Institutional Class		13,563,951		34,925,235		(37,988,037	)		8,248		641			10,510,038		62,668
Invesco Treasury Portfolio, Institutional Class		21,734,298		55,880,375		(54,367,211	)		-		-			23,247,462		71,797
Investments Purchased with Cash Collateral from Securities on Loan:
Invesco Government & Agency Portfolio, Institutional Class		-		10,778,973		(10,778,973	)		-		-			-		1,310
Invesco Liquid Assets Portfolio, Institutional Class		-		3,141,262		(3,139,648	)		-		(1,614	)		-		865
Invesco Private Government Fund		-		4,768,622		(4,768,622	)		-		-			-		35
Invesco Private Prime Fund		-		1,551,000		(1,551,000	)		-		-			-		14
Total		$54,315,759	$	159,940,796	$	(160,164,801	)	$	8,248	$	(973	)	$	54,099,029	$	203,485

^(j)  The rate shown is the 7-day SEC standardized yield as of June 30, 2020.

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

Invesco V.I. Equity and Income Fund

Portfolio Composition

By security type, based on Net Assets

as of June 30, 2020

Common Stocks & Other Equity Interests	64.32	%
U.S. Dollar Denominated Bonds & Notes	25.71
U.S. Treasury Securities	3.59
Security Types Each Less Than 1% of Portfolio	0.70
Money Market Funds Plus Other Assets Less Liabilities	5.68

Open Futures Contracts
Short Futures Contracts	Number of Contracts		Expiration Month		Notional Value			Value			Unrealized Appreciation (Depreciation)
Interest Rate Risk
U.S. Treasury 5 Year Notes		12		September-2020	$	(1,508,906	)	$	(4,337	)	$	(4,337	)

Open Forward Foreign Currency Contracts

Settlement Date	Counterparty	Contract to						Unrealized Appreciation (Depreciation)
		Deliver			Receive
Currency Risk
07/10/2020	Bank of New York Mellon (The)		GBP	12,032,789		USD	15,103,677	$	193,139
07/10/2020	State Street Bank & Trust Co.		CAD	4,931,136		USD	3,646,493		14,158
07/10/2020	State Street Bank & Trust Co.		EUR	412,350		USD	466,196		2,844
07/10/2020	State Street Bank & Trust Co.		GBP	14,830,604		USD	18,628,121		250,645
07/10/2020	State Street Bank & Trust Co.		USD	706,369		CAD	961,268		1,713
07/10/2020	State Street Bank & Trust Co.		USD	639,245		CHF	609,060		3,738
07/10/2020	State Street Bank & Trust Co.		USD	379,716		EUR	338,553		710
Subtotal—Appreciation									466,947
Currency Risk
07/10/2020	State Street Bank & Trust Co.		CAD	180,450		USD	132,590		(331	)
07/10/2020	State Street Bank & Trust Co.		CHF	4,868,228		USD	5,068,664		(70,710	)
07/10/2020	State Street Bank & Trust Co.		EUR	6,948,318		USD	7,768,906		(38,809	)
07/10/2020	State Street Bank & Trust Co.		GBP	572,896		USD	709,225		(684	)
07/10/2020	State Street Bank & Trust Co.		USD	97,779		CAD	131,543		(883	)
07/10/2020	State Street Bank & Trust Co.		USD	143,852		CHF	135,845		(441	)
07/10/2020	State Street Bank & Trust Co.		USD	106,237		EUR	94,338		(231	)
07/10/2020	State Street Bank & Trust Co.		USD	3,938,775		GBP	3,148,772		(36,945	)
Subtotal—Depreciation									(149,034	)
Total Forward Foreign Currency Contracts								$	317,913

Abbreviations:

CAD	– Canadian Dollar
CHF	– Swiss Franc
EUR	– Euro
GBP	– British Pound Sterling
USD	– U.S. Dollar

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

Invesco V.I. Equity and Income Fund

Statement of Assets and Liabilities

June 30, 2020

(Unaudited)

Assets:
Investments in securities, at value (Cost $915,050,889)	$	981,996,491
Investments in affiliated money market funds, at value (Cost $54,088,473)		54,099,029
Other investments:
Variation margin receivable - futures contracts		375
Unrealized appreciation on forward foreign currency contracts outstanding		466,947
Cash		2,015,020
Foreign currencies, at value (Cost $259,272)		259,125
Receivable for:
Investments sold		767
Fund shares sold		123,550
Dividends		1,519,175
Interest		1,769,019
Investment for trustee deferred compensation and retirement plans		150,383
Total assets		1,042,399,881
Liabilities:
Other investments:
Unrealized depreciation on forward foreign currency contracts outstanding		149,034
Payable for:
Fund shares reacquired		378,574
Accrued fees to affiliates		543,496
Accrued trustees’ and officers’ fees and benefits		3,848
Trustee deferred compensation and retirement plans		165,450
Total liabilities		1,240,402
Net assets applicable to shares outstanding	$	1,041,159,479
Net assets consist of:
Shares of beneficial interest	$	891,352,820
Distributable earnings		149,806,659
	$	1,041,159,479
Net Assets:
Series I	$	42,368,642
Series II	$	998,790,837
Shares outstanding, no par value, with an unlimited number of shares authorized:
Series I		2,664,338
Series II		63,243,039
Series I:
Net asset value per share	$	15.90
Series II:
Net asset value per share	$	15.79

Statement of Operations

For the six months ended June 30, 2020

(Unaudited)

Investment income:
Dividends (net of foreign withholding taxes of $142,271)	$	10,214,775
Interest		3,910,311
Dividends from affiliated money market funds (includes securities lending income of $64,330)		265,591
Total investment income		14,390,677
Expenses:
Advisory fees		2,077,553
Administrative services fees		901,912
Distribution fees - Series II		1,296,837
Transfer agent fees		17,279
Trustees’ and officers’ fees and benefits		12,477
Professional services fees		13,692
Other		(25,862	)
Total expenses		4,293,888
Less: Fees waived		(28,464	)
Net expenses		4,265,424
Net investment income		10,125,253
Realized and unrealized gain (loss) from:
Net realized gain (loss) from:
Investment securities		2,697,049
Foreign currencies		424,777
Forward foreign currency contracts		87,350
Futures contracts		(82,067	)
		3,127,109
Change in net unrealized appreciation (depreciation) of:
Investment securities		(141,782,706	)
Foreign currencies		(12,281	)
Forward foreign currency contracts		1,484,668
Futures contracts		(9,444	)
		(140,319,763	)
Net realized and unrealized gain (loss)		(137,192,654	)
Net increase (decrease) in net assets resulting from operations	$	(127,067,401	)

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

Invesco V.I. Equity and Income Fund

Statement of Changes in Net Assets

For the six months ended June 30, 2020 and the year ended December 31, 2019

(Unaudited)

	June 30, 2020			December 31, 2019
Operations:
Net investment income	$	10,125,253		$	23,135,130
Net realized gain		3,127,109			83,910,028
Change in net unrealized appreciation (depreciation)		(140,319,763	)		121,055,875
Net increase (decrease) in net assets resulting from operations		(127,067,401	)		228,101,033
Distributions to shareholders from distributable earnings:
Series I		-			(4,953,688	)
Series II		-			(114,458,310	)
Total distributions from distributable earnings		-			(119,411,998	)
Share transactions–net:
Series I		(3,628,084	)		(131,330,818	)
Series II		(114,145,104	)		100,806,762
Net increase (decrease) in net assets resulting from share transactions		(117,773,188	)		(30,524,056	)
Net increase (decrease) in net assets		(244,840,589	)		78,164,979
Net assets:
Beginning of period		1,286,000,068			1,207,835,089
End of period	$	1,041,159,479		$	1,286,000,068

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

Invesco V.I. Equity and Income Fund

Financial Highlights

(Unaudited)

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

																																					Ratio of			Ratio of
																																					expenses			expenses
								Net gains																													to average			to average net
								(losses)																													net assets			assets without			Ratio of net
	Net asset							on securities								Dividends				Distributions																	with fee waivers			fee waivers			investment
	value,			Net				(both				Total from				from net				from net								Net asset						Net assets,			and/or			and/or			income
	beginning			investment				realized and				investment				investment				realized				Total				value, end			Total			end of period			expenses			expenses			to average			Portfolio
	of period			income(a)				unrealized)				operations				income				gains				distributions				of period			return (b)			(000’s omitted)			absorbed			absorbed			net assets			turnover (c)
Series I
Six months ended 06/30/20		$	17.52		$	0.17			$	(1.79	)		$	(1.62	)		$	—			$	—			$	—			$	15.90		(9.25	)%		$	42,369		0.54	%(d)		0.55	%(d)		2.12	%(d)		55	%
Year ended 12/31/19			16.12			0.36				2.82				3.18				(0.47	)			(1.31	)			(1.78	)			17.52		20.37				50,731		0.54			0.55			2.02			150
Year ended 12/31/18			19.04			0.35				(2.00	)			(1.65	)			(0.43	)			(0.84	)			(1.27	)			16.12		(9.50	)			165,924		0.54			0.55			1.91			150
Year ended 12/31/17			17.76			0.35	(e)			1.58				1.93				(0.31	)			(0.34	)			(0.65	)			19.04		11.03				184,768		0.55			0.56			1.93	(e)		119
Year ended 12/31/16			16.23			0.29				2.10				2.39				(0.32	)			(0.54	)			(0.86	)			17.76		15.12				157,774		0.60			0.61			1.78			101
Year ended 12/31/15			18.93			0.28				(0.78	)			(0.50	)			(0.49	)			(1.71	)			(2.20	)			16.23		(2.29	)			96,287		0.64			0.65			1.55			87
Series II
Six months ended 06/30/20			17.42			0.15				(1.78	)			(1.63	)			—				—				—				15.79		(9.36	)			998,791		0.79	(d)		0.80	(d)		1.87	(d)		55
Year ended 12/31/19			16.04			0.31				2.80				3.11				(0.42	)			(1.31	)			(1.73	)			17.42		20.01				1,235,269		0.79			0.80			1.77			150
Year ended 12/31/18			18.95			0.31				(2.00	)			(1.69	)			(0.38	)			(0.84	)			(1.22	)			16.04		(9.73	)			1,041,911		0.79			0.80			1.66			150
Year ended 12/31/17			17.68			0.31	(e)			1.57				1.88				(0.27	)			(0.34	)			(0.61	)			18.95		10.78				1,385,490		0.80			0.81			1.68	(e)		119
Year ended 12/31/16			16.16			0.25				2.09				2.34				(0.28	)			(0.54	)			(0.82	)			17.68		14.84				1,314,323		0.85			0.86			1.53			101
Year ended 12/31/15			18.86			0.23				(0.78	)			(0.55	)			(0.44	)			(1.71	)			(2.15	)			16.16		(2.58	)			1,129,261		0.89			0.90			1.30			87

^(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 $43,788 and $1,042,766 for Series I and Series II shares, respectively.

^(e)  Net investment income per share and the ratio of net investment income to average net assets includes significant dividends received during the year ended December 31, 2017. Net investment income per share and the ratio of net investment income to average net assets excluding the significant dividends are $0.30 and 1.64% and $0.26 and 1.39% for Series I and Series II shares, respectively.

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

Invesco V.I. Equity and Income Fund

Notes to Financial Statements

June 30, 2020

(Unaudited)

NOTE 1—Significant Accounting Policies

Invesco 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. Information presented in these financial statements pertains only to the Fund. Matters affecting the Fund or each class will be voted on exclusively by the shareholders of the Fund or each class. 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 Fund is an investment company and accordingly follows the investment company accounting and reporting guidance in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 946, Financial Services – Investment Companies.

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

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

A security listed or traded on an exchange (except convertible securities) is valued at its last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded, or lacking any sales or official closing price on a particular day, the security may be valued at the closing bid price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued by an independent pricing service they may be considered fair valued. Futures contracts are valued at the final settlement price set by an exchange on which they are principally traded. Listed options are valued at the mean between the last bid and asked 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 asked prices. For purposes of determining net asset value (“NAV”) per share, futures and option contracts generally are valued 15 minutes after the close of the customary trading session of the New York Stock Exchange (“NYSE”).

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

Debt obligations (including convertible securities) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. Pricing services generally value debt obligations assuming orderly transactions of institutional round lot size, but a fund may hold or transact in the same securities in smaller, odd lot sizes. Odd lots often trade at lower prices than institutional round lots. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.

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

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

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

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

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

B. Securities Transactions and Investment Income – Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income (net of withholding tax, if any) is recorded on an accrual basis from settlement date. Bond premiums and discounts are amortized and/or accreted over the lives of the respective securities. Pay-in-kind interest income and non-cash dividend income received in the form of securities in-lieu of cash are recorded at the fair value of the securities received. Dividend income (net of withholding tax, if any) is recorded on the ex-dividend date.

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

Invesco V.I. Equity and Income 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 and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the net realized and unrealized gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and the Statement of Changes in Net Assets, or the net investment income per share and the ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.

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

C. Country Determination — For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues 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 net investment income, if any, are declared and paid monthly. Distributions from net realized capital gain, if any, are generally declared and paid annually and recorded on the ex-dividend date. The Fund may elect to treat a portion of the proceeds from redemptions as distributions for federal income tax purposes.

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

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

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

F. Expenses – Fees provided for under the Rule 12b-1 plan of a particular class of the Fund and which are directly attributable to that class are charged to the operations of such class. All other expenses are allocated among the classes based on relative net assets.

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

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

I. 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. The Fund bears the risk of loss with respect to the investment of collateral. It is the Fund’s policy to obtain additional collateral from or return excess collateral to the borrower by the end of the next business day, following the valuation date of the securities loaned. Therefore, the value of the collateral held may be temporarily less than the value of the securities on loan. When loaning securities, the Fund retains certain benefits of owning the securities, including the economic equivalent of dividends or interest generated by the security. Lending securities entails a risk of loss to the Fund if, and to the extent that, the market value of the securities loaned were to increase and the borrower did not increase the collateral accordingly, and the borrower failed to return the securities. The securities loaned are subject to termination at the option of the borrower or the Fund. Upon termination, the borrower will return to the Fund the securities loaned and the Fund will return the collateral. Upon the failure of the borrower to return the securities, collateral may be liquidated and the securities may be purchased on the open market to replace the loaned securities. The Fund could experience delays and costs in gaining access to the collateral and the securities may lose value during the delay which could result in potential losses to the Fund. Some of these losses may be indemnified by the lending agent. The Fund bears the risk of any deficiency in the amount of the collateral available for return to the borrower due to any loss on the collateral invested. Dividends received on cash collateral investments for securities lending transactions, which are net of compensation to counterparties, are included in Dividends from affiliated money market funds on the Statement of Operations. The aggregate value of securities out on loan, if any, is shown as a footnote on the Statement of Assets and Liabilities.

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

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

Invesco V.I. Equity and Income Fund

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

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

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

L. Futures Contracts — The Fund may enter into futures contracts to manage exposure to interest rate, equity and market price movements and/or currency risks. A futures contract is an agreement between Counterparties to purchase or sell a specified underlying security, currency or commodity (or delivery of a cash settlement price, in the case of an index future) for a fixed price at a future date. The Fund currently invests only in exchange-traded futures and they are standardized as to maturity date and underlying financial instrument. Initial margin deposits required upon entering into futures contracts are satisfied by the segregation of specific securities or cash as collateral at the futures commission merchant (broker). During the period the futures contracts are open, changes in the value of the contracts are recognized as unrealized gains or losses by recalculating the value of the contracts on a daily basis. Subsequent or variation margin payments are received or made depending upon whether unrealized gains or losses are incurred. These amounts are reflected as receivables or payables on the Statement of Assets and Liabilities. When the contracts are closed or expire, the Fund recognizes a realized gain or loss equal to the difference between the proceeds from, or cost of, the closing transaction and the Fund’s basis in the contract. The net realized gain (loss) and the change in unrealized gain (loss) on futures contracts held during the period is included on the Statement of Operations. The primary risks associated with futures contracts are market risk and the absence of a liquid secondary market. If the Fund were unable to liquidate a futures contract and/or enter into an offsetting closing transaction, the Fund would continue to be subject to market risk with respect to the value of the contracts and continue to be required to maintain the margin deposits on the futures contracts. Futures contracts have minimal Counterparty risk since the exchange’s clearinghouse, as Counterparty to all exchange-traded futures, guarantees the futures against default. Risks may exceed amounts recognized in the Statement of Assets and Liabilities.

M. Other Risks - Active trading of portfolio securities may result in added expenses, a lower return and increased tax liability.

N. Collateral —To the extent the Fund has designated or segregated a security as collateral and that security is subsequently sold, it is the Fund’s practice to replace such collateral no later than the next business day. This practice does not apply to securities pledged as collateral for securities lending transactions.

NOTE 2—Advisory Fees and Other Fees Paid to Affiliates

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

Average Daily Net Assets	Rate
First $ 150 million		0.500	%
Next $100 million		0.450	%
Next $100 million		0.400	%
Over $350 million		0.350	%

For the six months ended June 30, 2020, the effective advisory fee rate incurred by the Fund was 0.38%.

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

The Adviser has contractually agreed, through at least June 30, 2021, 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 1.50% and Series II shares to 1.75% of average daily net assets (the “expense limits”). In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause the total annual fund operating expenses after fee waiver and/or expense reimbursement to exceed the numbers reflected above: (1) interest; (2) taxes; (3) dividend expense on short sales; (4) extraordinary or non-routine items, including litigation expenses; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Unless Invesco continues the fee waiver agreement, it will terminate on June 30, 2021. During its term, the fee waiver agreement cannot be terminated or amended to increase the expense limits or reduce the advisory fee waiver without approval of the Board of Trustees. The Adviser did not waive fees and/or reimburse expenses during the period under these expense limits.

Further, the Adviser has contractually agreed, through at least June 30, 2022, 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, 2020, the Adviser waived advisory fees of $28,464.

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 fees paid to insurance companies that have agreed to provide certain administrative services to the Fund. These administrative services provided by the insurance companies may include, among other things: maintenance of master accounts with the Fund; tracking, recording and transmitting net purchase and redemption orders for Fund shares; maintaining and preserving records related to the purchase, redemption and other account activity of variable product owners; distributing copies of Fund documents such as prospectuses, proxy materials and periodic reports, to variable product owners, and responding to inquiries from variable product owners about the Fund. Pursuant to such agreement, for the six months ended June 30, 2020, Invesco was paid $91,224 for accounting and fund administrative services and was reimbursed $810,688 for fees paid to insurance companies. Invesco has entered into a sub-administration agreement whereby State Street Bank and Trust Company (“SSB”) serves as fund accountant and provides certain administrative services to the Fund. Pursuant to a custody agreement with the Trust on behalf of the Fund, SSB also serves as the Fund’s custodian.

The Trust has entered into a transfer agency and service agreement with Invesco Investment Services, Inc. (“IIS”) pursuant to which the Fund has agreed to pay IIS a fee for providing transfer agency and shareholder services to the Fund and reimburse IIS for certain expenses incurred by IIS in the course of providing such services. IIS may make payments to intermediaries that provide omnibus account services, sub-accounting services and/or networking services. All fees payable by IIS to

Invesco V.I. Equity and Income Fund

intermediaries that provide omnibus account services or sub-accounting services are charged back to the Fund, subject to certain limitations approved by the Trust’s Board of Trustees. For the six months ended June 30, 2020, 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. The fees are accrued daily and paid monthly. 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, 2020, expenses incurred under the Plan are detailed in the Statement of Operations as

Distribution fees.

For the six months ended June 30, 2020, the Fund incurred $318 in brokerage commissions with Invesco Capital Markets, Inc., an affiliate of the Adviser and IDI, for portfolio transactions executed on behalf of the Fund.

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

NOTE 3–Additional Valuation Information

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

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

Level 2 – Prices are determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk, yield curves, loss severities, default rates, discount rates, volatilities and others.

Level 3 – Prices are determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. 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, 2020. The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

	Level 1			Level 2			Level 3		Total
Investments in Securities
Common Stocks & Other Equity Interests	$	614,047,271		$	55,638,668		$	–	$	669,685,939
U.S. Dollar Denominated Bonds & Notes		–			267,654,453			–		267,654,453
U.S. Treasury Securities		–			37,365,776			–		37,365,776
Preferred Stocks		6,215,428			–			–		6,215,428
U.S. Government Sponsored Agency Mortgage-Backed Securities		–			1,074,895			–		1,074,895
Money Market Funds		54,099,029			–			–		54,099,029
Total Investments in Securities		674,361,728			361,733,792			–		1,036,095,520
Other Investments - Assets*
Forward Foreign Currency Contracts		–			466,947			–		466,947
Other Investments - Liabilities*
Futures Contracts		(4,337	)		–			–		(4,337	)
Forward Foreign Currency Contracts		–			(149,034	)		–		(149,034	)
		(4,337	)		(149,034	)		–		(153,371	)
Total Other Investments		(4,337	)		317,913			–		313,576
Total Investments	$	674,357,391		$	362,051,705			$–	$	1,036,409,096

* Unrealized appreciation (depreciation).

NOTE 4—Derivative Investments

The Fund may enter into an International Swaps and Derivatives Association Master Agreement (“ISDA Master Agreement”) under which a fund may trade OTC derivatives. An OTC transaction entered into under an ISDA Master Agreement typically involves a collateral posting arrangement, payment netting provisions and close-out netting provisions. These netting provisions allow for reduction of credit risk through netting of contractual obligations. The enforceability of the netting provisions of the ISDA Master Agreement depends on the governing law of the ISDA Master Agreement, among other factors.

For financial reporting purposes, the Fund does not offset OTC derivative assets or liabilities that are subject to ISDA Master Agreements in the Statement of Assets and Liabilities.

Invesco V.I. Equity and Income Fund

Value of Derivative Investments at Period-End

The table below summarizes the value of the Fund’s derivative investments, detailed by primary risk exposure, held as of June 30, 2020:

	Value
Derivative Assets	Currency Risk			Interest Rate Risk			Total
Unrealized appreciation on forward foreign currency contracts outstanding	$	466,947		$	-		$	466,947
Derivatives not subject to master netting agreements		-			-			-
Total Derivative Assets subject to master netting agreements	$	466,947		$	-		$	466,947
	Value
Derivative Liabilities	Currency Risk			Interest Rate Risk			Total
Unrealized depreciation on futures contracts — Exchange-Traded(a)	$	-		$	(4,337	)	$	(4,337	)
Unrealized depreciation on forward foreign currency contracts outstanding		(149,034	)		-			(149,034	)
Total Derivative Liabilities		(149,034	)		(4,337	)		(153,371	)
Derivatives not subject to master netting agreements		-			4,337			4,337
Total Derivative Liabilities subject to master netting agreements	$	(149,034	)	$	-		$	(149,034	)

^(a) The daily variation margin receivable (payable) at period-end is recorded in the Statement of Assets and Liabilities.

Offsetting Assets and Liabilities

The table below reflects the Fund’s exposure to Counterparties subject to either an ISDA Master Agreement or other agreement for OTC derivative transactions as of June 30, 2020.

	Financial Derivative Assets	Financial Derivative Liabilities		Collateral (Received)/Pledged
	Forward Foreign	Forward Foreign	Net Value of			Net
Counterparty	Currency Contracts	Currency Contracts	Derivatives	Non-Cash	Cash	Amount
Bank of New York Mellon (The)	$193,139	$              -	$193,139	$-	$-	$	193,139
State Street Bank & Trust Co.	273,808	(149,034)	124,774	-	-		124,774
Total	$466,947	$(149,034)	$317,913	$-	$-	$	317,913

Effect of Derivative Investments for the six months ended June 30, 2020

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

	Location of Gain (Loss) on Statement of Operations
	Currency Risk		Interest Rate Risk			Total
Realized Gain (Loss):
Forward foreign currency contracts	$	87,350	$	-		$	87,350
Futures contracts		-		(82,067	)		(82,067	)
Change in Net Unrealized Appreciation (Depreciation):
Forward foreign currency contracts		1,484,668		-			1,484,668
Futures contracts		-		(9,444	)		(9,444	)
Total	$	1,572,018	$	(91,511	)	$	1,480,507

The table below summarizes the average notional value of derivatives held during the period.

	Forward Foreign Currency Contracts		Futures Contracts
Average notional value	$	70,151,896	$	1,592,935

NOTE 5—Trustees’ and Officers’ Fees and Benefits

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

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

NOTE 7—Tax Information

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

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

The Fund did not have a capital loss carryforward as of December 31, 2019.

NOTE 8—Investment Transactions

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, 2020 was $169,604,528 and $145,573,797, respectively. During the same period, purchases and sales of U.S. Treasury obligations were $402,905,223 and $528,376,661, respectively. Cost of investments, including any derivatives, on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end.

Unrealized Appreciation (Depreciation) of Investments on a Tax Basis
Aggregate unrealized appreciation of investments	$	142,573,735
Aggregate unrealized (depreciation) of investments		(81,956,955	)
Net unrealized appreciation of investments	$	60,616,780

    Cost of investments for tax purposes is $975,792,316.

NOTE 9—Share Information

				Summary of Share Activity
	Six months ended						Year ended
	June 30, 2020(a)						December 31, 2019
	Shares			Amount			Shares			Amount
Sold:
Series I		59,147		$	928,707			400,977		$	7,034,559
Series II		2,195,200			33,829,530			10,719,286			190,855,182
Issued as reinvestment of dividends:
Series I		-			-			298,775			4,953,688
Series II		-			-			6,936,867			114,458,310
Reacquired:
Series I		(291,010	)		(4,556,791	)		(8,098,584	)		(143,319,065	)
Series II		(9,871,521	)		(147,974,634	)		(11,706,489	)		(204,506,730	)
Net increase (decrease) in share activity		(7,908,184	)	$	(117,773,188	)		(1,449,168	)	$	(30,524,056	)

^(a) There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 72% 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 Fund 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—Coronavirus (COVID-19) Pandemic

During the first quarter of 2020, the World Health Organization declared COVID-19 to be a public health emergency. COVID-19 has led to increased short-term market volatility and may have adverse long-term effects on U.S. and world economies and markets in general. COVID-19 may adversely impact the Fund’s ability to achieve its investment objective. Because of the uncertainties on valuation, the global economy and business operations, values reflected in these financial statements may materially differ from the value received upon actual sales of those investments.

The extent of the impact on the performance of the Fund and its investments will depend on future developments, including the duration and spread of the COVID-19 outbreak, related restrictions and advisories, and the effects on the financial markets and economy overall, all of which are highly uncertain and cannot be predicted.

Invesco 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, 2020 through June 30, 2020.

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.

			ACTUAL				HYPOTHETICAL (5% annual return before expenses)
	Beginning		Ending		Expenses		Ending		Expenses		Annualized
	Account Value     (01/01/20)		Account Value     (06/30/20)1		Paid During     Period2		Account Value     (06/30/20)		Paid During     Period2		Expense     Ratio
Series I	$	1,000.00	$	907.50	$	2.56	$	1,022.18	$	2.72		0.54	%
Series II		1,000.00		906.40		3.74		1,020.93		3.97		0.79

¹ The actual ending account value is based on the actual total return of the Fund for the period January 1, 2020 through June 30, 2020, 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 182/366 to reflect the most recent fiscal half year.

Invesco V.I. Equity and Income Fund

Approval of Investment Advisory and Sub-Advisory Contracts

At meetings held on June 3, 2020, the Board of Trustees (the Board or the Trustees) of AIM Variable Insurance Funds (Invesco Variable Insurance Funds) as a whole, and the independent Trustees, who comprise over 75% of the Board, voting separately, approved the continuance of the Invesco V.I. Equity and Income Fund’s (the Fund) Master Investment Advisory Agreement with Invesco Advisers, Inc. (Invesco Advisers and the investment advisory agreement) and the Master Intergroup Sub-Advisory Contract for Mutual Funds with Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Canada Ltd. and separate sub-advisory contracts with Invesco Capital Management LLC and Invesco Asset Management (India) Private Limited (collectively, the Affiliated Sub-Advisers and the sub-advisory contracts) for another year, effective July 1, 2020. After evaluating the factors discussed below, among others, the Board approved the renewal of the Fund’s investment advisory agreement and the sub-advisory contracts and determined that the compensation payable thereunder by the Fund to Invesco Advisers and by Invesco Advisers to the Affiliated Sub-Advisers is fair and reasonable.

The Board’s Evaluation Process

The Board’s Investments Committee has established Sub-Committees, which meet throughout the year to review the performance of funds advised by Invesco Advisers (the Invesco Funds). The Sub-Committees meet regularly with portfolio managers for their assigned Invesco Funds and other members of management to review detailed information about investment performance and portfolio attributes of these funds. The Board took into account evaluations and reports that it received from the Investments Committee and Sub-Committees, as well as the information provided to such committees and the Board throughout the year, in considering whether to approve each Invesco Fund’s investment advisory agreement and sub-advisory contracts.

As part of the contract renewal process, the Board reviews and considers information provided in response to detailed requests for information submitted to management by the independent Trustees with assistance from legal counsel to the independent Trustees. The Board receives comparative investment performance and fee data regarding the Invesco Funds prepared by Invesco Advisers and Broadridge Financial Solutions, Inc. (Broadridge), an independent mutual fund data provider, as well as information on the composition of the peer groups provided by Broadridge and its methodology for determining peer groups. The Board also receives an independent written evaluation from the Senior Officer, an officer of the Invesco Funds who reports directly to the independent Trustees. 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. In addition to meetings with Invesco Advisers and fund counsel throughout the year, the independent Trustees also

discuss the continuance of the investment advisory agreement and sub-advisory contracts in separate sessions with the Senior Officer and with independent legal counsel.

The discussion below is a summary of 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. The Trustees’ review and conclusions are based on the comprehensive consideration of all information presented to them during the course of the year and in prior years and are not the result of any single determinative factor. Moreover, one Trustee may have weighed a particular piece of information or factor differently than another Trustee. This information is current as of June 3, 2020.

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 nature, extent and quality of the advisory services provided to the Fund by Invesco Advisers under the Fund’s investment advisory agreement, and the credentials and experience of the officers and employees of Invesco Advisers who provide these services, including the Fund’s portfolio manager(s). The Board’s review included consideration of Invesco Advisers’ investment process oversight and structure, credit analysis, investment risk management and research capabilities. The Board also considered non-advisory services that Invesco Advisers and its affiliates provide to the Invesco Funds, such as various back office support functions, third party oversight, internal audit, valuation, portfolio trading and legal and compliance. The Board also received and reviewed information about Invesco Advisers’ role as administrator of the Invesco Funds’ liquidity risk management program. The Board reviewed and considered the benefits to shareholders of investing in a Fund that is part of the Invesco family of funds under the umbrella of Invesco Ltd., Invesco Advisers’ parent company, and noted Invesco Ltd.’s depth and experience in conducting an investment management business, as well as its commitment of financial and other resources to such business. The Board also reviewed and considered information regarding the benefits to the Fund resulting from Invesco Ltd.’s acquisition of OppenheimerFunds, Inc. and its subsidiaries (the Transaction) and the resources that Invesco Advisers has committed to managing the Invesco family of funds following the Transaction. The Board concluded that the nature, extent and quality of the services provided to the Fund by Invesco Advisers are appropriate and satisfactory.

The Board reviewed the services that may be 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 the Affiliated Sub-Advisers’ expertise with respect to certain asset classes and that the Affiliated Sub-Advisers have offices and personnel that are located in financial centers around the world.

As a result, the Board noted that the Affiliated Sub-Advisers can provide research and investment analysis on the markets and economies of various countries in which the Fund may invest, make recommendations regarding securities and assist with security trades. The Board concluded that the sub-advisory contracts may 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 that may be provided by the Affiliated Sub-Advisers are appropriate and satisfactory.

B. Fund Investment Performance

The Board considered Fund investment performance as a relevant factor in considering whether to approve the investment advisory agreement. The Board did not view Fund investment 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 investment performance over multiple time periods ending December 31, 2019 to the performance of funds in the Broadridge performance universe and against the Russell 1000® Value Index. The Board noted that performance of Series II shares of the Fund was in the third quintile of its performance universe for the one year period, the fifth quintile for the three year period, and the fourth quintile for the five year period (the first quintile being the best performing funds and the fifth quintile being the worst performing funds). The Board noted that performance of Series II shares of the Fund was below the performance of the Index for the one, three and five year periods. The Board noted that the Fund’s value style of equity investing compared to its peers, including its underweight and overweight exposures to certain sectors, as well as stock selection in certain sectors negatively impacted relative performance. The Board also noted the impact of the Fund’s fixed income component on relative performance during strong equity market rallies. The Board recognized that the performance data reflects a snapshot in time as of a particular date and that selecting a different performance period could produce different results. The Board also reviewed more recent Fund performance as well as other performance metrics and this review did not change their conclusions.

C. Advisory and Sub-Advisory Fees and Fund Expenses

The Board compared the Fund’s contractual management fee rate to the contractual management fee rates of funds in the Fund’s Broadridge expense group. The Board noted that the contractual management fee rate for Series II shares of the Fund was below the median contractual management fee rate of funds in its expense group. The Board noted that the term “contractual management fee” for funds in the expense group may include both advisory and certain non-portfolio management administrative services fees, but that Broadridge does not provide information on a fund by fund basis as to what is included. The Board also reviewed the methodology used by Broadridge in providing expense group information, which includes using each fund’s contractual management fee schedule (including any applicable breakpoints) as reported in the most

Invesco V.I. Equity and Income Fund

recent prospectus or statement of additional information for each fund in the expense group. The Board also considered comparative information regarding the Fund’s total expense ratio and its various components.

The Board noted that Invesco Advisers has contractually agreed to waive fees and/or limit expenses of the Fund for the term disclosed in the Fund’s registration statement 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 fees charged by Invesco Advisers and the Affiliated Sub-Advisers to other similarly managed client accounts. Invesco Advisers reviewed with the Board differences in the scope of services it provides to the Invesco Funds relative to certain other types of client accounts, including, among others: management of cash flows as a result of redemptions and purchases; necessary infrastructure such as officers, office space, technology, legal and distribution; oversight of service providers; costs and business risks associated with launching new funds and sponsoring and maintaining the product line; and compliance with federal and state laws and regulations.

The Board also compared the Fund’s effective advisory fee rate (the advisory fee rate after advisory fee waivers and before other expense limitations/ waivers) to the effective advisory fee rates of other similarly managed third-party mutual funds advised or sub-advised by Invesco Advisers and its affiliates, based on asset balances as of December 31, 2019.

The Board also considered the services that may be provided by the Affiliated Sub-Advisers pursuant to the sub-advisory contracts, as well as the fees payable by Invesco Advisers to the Affiliated Sub-Advisers pursuant to the sub-advisory contracts.

D. Economies of Scale and Breakpoints

The Board considered the extent to which there may be economies of scale in the provision of advisory services to the Fund. The Board also considered that the Fund benefits from economies of scale through contractual breakpoints in the Fund’s advisory fee schedule, which generally operate to reduce the Fund’s expense ratio as it grows in size. The Board 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. The Board noted that the Fund may also benefit from economies of scale through initial fee setting, fee waivers and expense reimbursements. The Board also considered Invesco’s reinvestment in its business, including investments in business infrastructure, technology and cybersecurity.

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 Invesco Funds and the profitability of Invesco Advisers and its affiliates in providing these services in the aggregate and on an individual Fund-by-Fund basis. The Board considered the methodology used for calculating profitability and noted the periodic review and enhancement of such methodology. The Board noted that Invesco Advisers continues to operate at a net profit from services Invesco Advisers and its affiliates provide to the Invesco Funds in the aggregate and to certain Funds on an individual fund level. The Board did not deem the level of profits realized by Invesco Advisers and

its affiliates from providing such services to be excessive given the nature, extent and quality of the services provided. The Board received information from Invesco Advisers demonstrating that Invesco Advisers and the Affiliated Sub-Advisers are financially sound and have the resources necessary to perform their obligations under the investment advisory agreement and sub-advisory contracts.

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 providing administrative, transfer agency and distribution services to the Fund. The Board considered comparative information regarding fees charged for these services, including information provided by Broadridge and other independent sources. 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; and that the services are required for the operation of the Fund.

The Board considered the benefits realized by Invesco Advisers and the Affiliated Sub-Advisers as a result of portfolio brokerage transactions executed through “soft dollar” arrangements. The Board noted that soft dollar arrangements may result in the Fund bearing costs to purchase research that may be used by Invesco Advisers or the Affiliated Sub-Advisers with other clients and may reduce Invesco Advisers’ or the Affiliated Sub-Advisers’ expenses. The Board also considered that it receives periodic reports from Invesco representing that these arrangements are consistent with regulatory requirements. The Board did not deem the soft dollar arrangements to be inappropriate.

The Board considered that the Fund’s uninvested cash and cash collateral from any securities lending arrangements may be invested in registered money market funds or, with regard to securities lending cash collateral, unregistered funds that comply with Rule 2a-7 (collectively referred to as “affiliated money market funds”) advised by Invesco Advisers pursuant to procedures approved by the Board. The Board considered information regarding the returns of the affiliated money market funds relative to comparable overnight investments, as well as the costs to the Fund of such investments. 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 with respect to certain investments in the affiliated money market 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 amount of advisory fees received by Invesco Advisers from the Fund’s investment of cash collateral from any securities lending arrangements in the affiliated money market funds is fair and reasonable.

The Board also considered that an affiliated broker may receive commissions for executing certain trades for the Fund. Invesco Advisers and the Affiliated .

Sub-Advisers may use the affiliated broker to, among other things, control order routing and minimize information leakage, and the Board was advised that such trades are executed in compliance with rules under the federal securities laws and consistent with best execution obligations.

Invesco V.I. Equity and Income Fund

	Semiannual Report to Shareholders	June 30, 2020
	Invesco V.I. Global Core Equity Fund

Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, the insurance company that offers your variable annuity or variable life insurance contract may no longer send you paper copies of the Fund’s shareholder reports by mail, unless you specifically request paper copies of the reports from the insurance company or your financial intermediary. Instead of delivering paper copies of the report, the insurance company may choose to make the reports available on a website, and will notify you by mail each time a report is posted and provide you with a website link to access the report. Instructions for requesting paper copies will be provided by your insurance company.

If the insurance company offers electronic delivery, you may elect to receive shareholder reports and other communications about the Fund electronically by following the instructions provided by the insurance company or by contacting your financial intermediary. If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action.

You may elect to receive all future reports in paper free of charge from the insurance company. You can inform the insurance company or your financial intermediary that you wish to continue receiving paper copies of your shareholder reports by following the instructions provided by the insurance company or by contacting your financial intermediary. Your election to receive reports in paper will apply to all portfolio companies available under your contract with the insurance company.

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) as an exhibit to its reports on Form N-PORT. The Fund’s Form N-PORT filings are available on the SEC website, 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-PORT, 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 most recent 12-month period ended June 30 is available at invesco.com/proxysearch. The information is also available on the SEC website, sec.gov.

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

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.

NOT FDIC INSURED  |  MAY LOSE VALUE  |  NO BANK GUARANTEE

Invesco Distributors, Inc. VIGCE-SAR-1                                 

Fund Performance

Performance summary
Fund vs. Indexes
Cumulative total returns, 12/31/19 to 6/30/20, excluding variable product issuer charges. If variable product issuer charges were included, returns would be lower.
Series I Shares	-9.14%
Series II Shares	-9.24
MSCI World Indexq (Broad Market/Style-Specific Index)	-5.77
Lipper VUF Global Multi-Cap Value Funds Classification Average∎ (Peer Group)	-14.81
Source(s): qRIMES Technologies Corp.; ∎Lipper Inc.
The MSCI World Index (Net) is an unmanaged index considered representative of stocks of developed countries. The index is computed using the net return, which withholds applicable taxes for non-resident investors.
The Lipper VUF Global Multi-Cap Value Funds Classification Average represents an average of all variable insurance underlyng funds in the Lipper Global Multi Cap Value Funds Classification Average. the Fund is not managed to track the performance of any particular index, including the index(es) described here, and consequently, the performance of the Fund may deviate significantly from the performance of the index(es).
A direct investment cannot be made in an index. Unless otherwise indicated, index results include reinvested dividends, and they do not reflect sales charges. Performance of the peer group, if applicable, reflects fund expenses; performance of a market index does not.

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 (renamed Invesco V.I. Global Core Equity Fund on April 30, 2012). Returns shown above, prior to June 1, 2010, for Series I shares are those of the Class I shares of the predecessor fund. Share class returns will differ from the predecessor fund because of different expenses.

The performance data quoted represent past performance and cannot guarantee future results; current performance may be lower or higher. Please 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. Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares. Investment return and principal value will fluctuate so that you may have a gain or loss when you sell shares.

Invesco V.I. Global 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

Average Annual Total Returns As of 6/30/20
Series I Shares
Inception (1/2/97)	4.69	%
10 Years	6.67
5 Years	3.64
1 Year	-1.29
Series II Shares
Inception (6/1/10)	6.20	%
10 Years	6.42
5 Years	3.38
1 Year	-1.60

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 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.

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

Invesco V.I. Global Core Equity Fund

Liquidity Risk Management Program

The Securities and Exchange Commission has adopted Rule 22e-4 under the Investment Company Act of 1940 (the “Liquidity Rule”) in order to promote effective liquidity risk management throughout the open-end investment company industry, thereby reducing the risk that funds will be unable to meet their redemption obligations and mitigating dilution of the interests of fund shareholders. The Fund has adopted and implemented a liquidity risk management program in accordance with the Liquidity Rule (the “Program”). The Program is reasonably designed to assess and manage the Fund’s liquidity risk, which is the risk that the Fund could not meet redemption requests without significant dilution of remaining investors’ interests in the Fund. The Board of Trustees of the Fund (the “Board”) has appointed Invesco Advisers, Inc. (“Invesco”), the Fund’s investment adviser, as the Program’s administrator, and Invesco has delegated oversight of the Program to the Liquidity Risk Management Committee (the “Committee”), which is composed of senior representatives from relevant business groups at Invesco.

As required by the Liquidity Rule, the Program includes policies and procedures providing for an assessment, no less frequently than annually, of the Fund’s liquidity risk that takes into account, as relevant to the Fund’s liquidity risk: (1) the Fund’s investment strategy and liquidity of portfolio investments during both normal and reasonably foreseeable stressed conditions; (2) short-term and long-term cash flow projections for the Fund during both normal and reasonably foreseeable stressed conditions; and (3) the Fund’s holdings of cash and cash equivalents and any borrowing arrangements. The Liquidity Rule also requires the classification of the Fund’s investments into categories that reflect the assessment of their relative liquidity under current market conditions. The Fund classifies its investments into one of four categories defined in the Liquidity Rule: “Highly Liquid,” “Moderately Liquid,” “Less Liquid” and “Illiquid.” Funds that are not invested primarily in “Highly Liquid Investments” that are assets (cash or investments that are reasonably expected to be convertible into cash within three business days without significantly changing the market value of the investment) are required to establish a “Highly Liquid Investment Minimum” (“HLIM”), which is the minimum percentage of net assets that must be invested in Highly Liquid Investments. Funds with HLIMs have procedures for addressing HLIM shortfalls, including reporting to the Board and the SEC (on a non-public basis) as required by the Program and the Liquidity Rule. In addition, the Fund may not acquire an investment if, immediately after the acquisition, over 15% of the Fund’s net assets would consist of “Illiquid Investments” that are assets (an investment that cannot reasonably be expected to be sold or disposed of in current market conditions in seven calendar days or less without the sale or disposition significantly changing the market value of the investment). The Liquidity Rule and the Program also require reporting to the Board and the SEC (on a non-public basis) if a Fund’s holdings of Illiquid Investments exceed 15% of the Fund’s assets.

At a meeting held on March 30-April 1, 2020, the Committee presented a report to the Board that addressed the operation of the Program and assessed the Program’s adequacy and effectiveness of implementation (the “Report”). The Report covered the period from December 1, 2018 through December 31, 2019 (the “Program Reporting Period”).

The Report stated, in relevant part, that during the Program Reporting Period:

∎ The Program, as adopted and implemented, remained reasonably designed to assess and manage the Fund’s liquidity risk and was operated effectively to achieve that goal;

∎ The Fund’s investment strategy remained appropriate for an open-end fund;

∎ The Fund was able to meet requests for redemption without significant dilution of remaining investors’ interests in the Fund;

∎ The Fund did not breach the 15% limit on Illiquid Investments; and

∎ The Fund primarily held Highly Liquid Investments and therefore has not adopted an HLIM.

Invesco V.I. Global Core Equity Fund

Schedule of Investments

June 30, 2020

(Unaudited)

	Shares		Value
Common Stocks & Other Equity Interests–97.92%
Australia–1.37%
Rio Tinto PLC		14,477	$	814,620
Belgium–0.80%
Umicore S.A.		10,097		474,753
Brazil–1.24%
Pagseguro Digital Ltd., Class A(a)		20,923		739,419
China–1.88%
Autohome, Inc., ADR		7,345		554,547
Ping An Healthcare and Technology Co. Ltd.(a)(b)		15,900		241,566
Xinyi Glass Holdings Ltd.		262,000		322,250
				1,118,363
Denmark–0.79%
AP Moller - Maersk A/S, Class B		405		471,466
France–0.56%
Dassault Systemes SE		1,913		329,694
Germany–8.00%
Infineon Technologies AG		26,894		628,601
KION Group AG		12,765		783,640
RWE AG		14,136		494,532
SAP SE		7,559		1,052,179
Siemens AG		15,284		1,795,376
				4,754,328
Hong Kong–2.36%
AIA Group Ltd.		150,800		1,403,506
Ireland–0.86%
Ryanair Holdings PLC, ADR(a)		7,656		507,899
Italy–3.91%
Enel S.p.A.		180,932		1,558,760
Prysmian S.p.A.		33,024		763,933
				2,322,693
Japan–9.00%
Asahi Group Holdings Ltd.		21,000		735,698
Hitachi Ltd.		48,500		1,531,118
KDDI Corp.		33,500		1,004,426
Kobe Bussan Co. Ltd.		8,300		467,898
Nissan Chemical Corp.		19,400		993,714
Shionogi & Co. Ltd.		9,800		613,474
				5,346,328
Luxembourg–0.93%
ArcelorMittal S.A.		52,606		552,371
Singapore–1.29%
DBS Group Holdings Ltd.		51,300		767,372
South Korea–0.98%
Samsung Electronics Co. Ltd.		13,131		582,086

	Shares		Value
Spain–1.17%
Bankinter S.A.		145,922	$	694,711
Sweden–1.26%
Svenska Handelsbanken AB, Class A		78,964		748,544
Switzerland–2.10%
Cie Financiere Richemont S.A.		9,371		596,736
Novartis AG		7,517		653,157
				1,249,893
United Kingdom–9.99%
B&M European Value Retail S.A.		130,129		640,262
BAE Systems PLC		45,113		269,838
Experian PLC		18,826		656,634
Hiscox Ltd.		58,253		568,629
Imperial Brands PLC		58,938		1,122,365
Nomad Foods Ltd.(a)		67,831		1,454,975
Reckitt Benckiser Group PLC		13,321		1,225,912
				5,938,615
United States–49.43%
Activision Blizzard, Inc.		11,719		889,472
Align Technology, Inc.(a)		2,264		621,332
Alphabet, Inc., Class C(a)		1,714		2,422,928
American Express Co.		13,883		1,321,662
Aptiv PLC		7,112		554,167
BioMarin Pharmaceutical, Inc.(a)		7,875		971,302
Carrier Global Corp.		8,830		196,203
Chevron Corp.		17,199		1,534,667
Chubb Ltd.		5,359		678,557
Comcast Corp., Class A		43,023		1,677,037
Delta Air Lines, Inc.		15,296		429,053
EPAM Systems, Inc.(a)		4,619		1,164,034
First Republic Bank		12,871		1,364,197
Globus Medical, Inc., Class A(a)		24,663		1,176,672
HCA Healthcare, Inc.(a)		6,358		617,107
IQVIA Holdings, Inc.(a)		4,214		597,882
James Hardie Industries PLC, CDI		26,066		497,528
Marsh & McLennan Cos., Inc.		7,410		795,612
Mastercard, Inc., Class A		2,705		799,868
Moody’s Corp.		2,579		708,529
NIKE, Inc., Class B		6,919		678,408
Northrop Grumman Corp.		1,803		554,314
Otis Worldwide Corp.		4,415		251,037
PepsiCo, Inc.		8,976		1,187,166
Pinterest, Inc., Class A(a)		31,907		707,378
Raytheon Technologies Corp.		14,209		875,559
salesforce.com, inc.(a)		9,967		1,867,118
Samsonite International S.A.(b)		560,400		568,697
Silk Road Medical, Inc.(a)		3,879		162,491
Texas Instruments, Inc.		7,370		935,769
Thermo Fisher Scientific, Inc.		1,028		372,486
T-Mobile US, Inc.(a)		5,670		590,530
T-Mobile US, Inc., Rts. expiring 07/28/2020(a)		1,410		237
Wynn Resorts Ltd.		12,805		953,844

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

Invesco V.I. Global Core Equity Fund

	Shares		Value
United States–(continued)
Zimmer Biomet Holdings, Inc.		5,446	$	650,035
				29,372,878
Total Common Stocks & Other Equity Interests (Cost $50,572,215)				58,189,539
Money Market Funds–1.93%
Invesco Government & Agency Portfolio, Institutional Class, 0.09%(c)(d)		419,328		419,328
Invesco Liquid Assets Portfolio, Institutional Class, 0.39%(c)(d)		243,947		244,118

	Shares		Value
Money Market Funds–(continued)
Invesco Treasury Portfolio, Institutional Class, 0.08%(c)(d)		479,231	$	479,231
Total Money Market Funds (Cost $1,142,591)				1,142,677
TOTAL INVESTMENTS IN SECURITIES-99.85% (Cost $51,714,806)				59,332,216
OTHER ASSETS LESS LIABILITIES–0.15%				92,025
NET ASSETS–100.00%			$	59,424,241

Investment Abbreviations:

ADR – American Depositary Receipt

CDI  – CREST Depository Interest

Rts.  – Rights

Notes to Schedule of Investments:

^(a)  Non-income producing security.

^(b)  Security purchased or received in a transaction exempt from registration under the Securities Act of 1933, as amended (the “1933 Act”). The security may be resold pursuant to an exemption from registration under the 1933 Act, typically to qualified institutional buyers. The aggregate value of these securities at June 30, 2020 was $810,263, which represented 1.36% of the Fund’s Net Assets.

^(c)  Affiliated issuer. The issuer and/or the Fund is a wholly-owned subsidiary of Invesco Ltd., or is affiliated by having an investment adviser that is under common control of Invesco Ltd. The table below shows the Fund’s transactions in, and earnings from, its investments in affiliates for the six months ended June 30, 2020.

	Value December 31, 2019		Purchases at Cost			Proceeds from Sales				Change in Unrealized Appreciation			Realized Gain (Loss)			Value June 30, 2020			Dividend Income
Investments in Affiliated Money Market Funds:
Invesco Government & Agency Portfolio, Institutional Class		$  40,649		$	3,564,878		$	(3,186,199	)		$	-		$	-		$	419,328		$1,218
Invesco Liquid Assets Portfolio, Institutional Class		47,383			2,546,342			(2,349,517	)			86			(176)			244,118		1,190
Invesco Treasury Portfolio, Institutional Class		46,456			4,074,146			(3,641,371	)			-			-			479,231		1,315
Total		$134,488		$	10,185,366		$	(9,177,087	)		$	86		$	(176)		$	1,142,677		$3,723

^(d)  The rate shown is the 7-day SEC standardized yield as of June 30, 2020.

Portfolio Composition

By country, based on Net Assets

as of June 30, 2020

United States	49.43	%
United Kingdom	9.99
Japan	9.00
Germany	8.00
Italy	3.91
Hong Kong	2.36
Switzerland	2.10
Countries each less than 2% of portfolio	13.13
Money Market Funds Plus Other Assets Less Liabilities	2.08

Open Forward Foreign Currency Contracts
Settlement Date		Contract to				Unrealized Appreciation
	Counterparty	Deliver		Receive
Currency Risk
08/13/2020	Bank of America, N.A.	JPY	202,000,000	USD	1,878,780	$ 7,001

Abbreviations:

JPY – Japanese Yen

USD – U.S. Dollar

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

Invesco V.I. Global Core Equity Fund

Statement of Assets and Liabilities

June 30, 2020

(Unaudited)

Assets:
Investments in securities, at value (Cost $50,572,215)	$	58,189,539
Investments in affiliated money market funds, at value (Cost $1,142,591)		1,142,677
Other investments:
Unrealized appreciation on forward foreign currency contracts outstanding		7,001
Foreign currencies, at value (Cost $99,588)		98,670
Receivable for:
Fund shares sold		3,721
Dividends		72,851
Investment for trustee deferred compensation and retirement plans		41,532
Total assets		59,555,991
Liabilities:
Payable for:
Fund shares reacquired		18,641
Accrued fees to affiliates		28,093
Accrued trustees’ and officers’ fees and benefits		1,749
Accrued other operating expenses		39,173
Trustee deferred compensation and retirement plans		44,094
Total liabilities		131,750
Net assets applicable to shares outstanding	$	59,424,241
Net assets consist of:
Shares of beneficial interest	$	52,511,874
Distributable earnings		6,912,367
	$	59,424,241
Net Assets:
Series I	$	50,248,598
Series II	$	9,175,643
Shares outstanding, no par value, with an unlimited number of shares authorized:
Series I		5,380,836
Series II		983,126
Series I:
Net asset value per share	$	9.34
Series II:
Net asset value per share	$	9.33

Statement of Operations

For the six months ended June 30, 2020

(Unaudited)

Investment income:
Dividends (net of foreign withholding taxes of $41,967)	$	688,962
Dividends from affiliated money market funds		3,723
Total investment income		692,685
Expenses:
Advisory fees		200,208
Administrative services fees		49,894
Custodian fees		6,344
Distribution fees - Series II		11,320
Transfer agent fees		5,679
Trustees’ and officers’ fees and benefits		7,985
Reports to shareholders		3,540
Professional services fees		17,946
Other		1,014
Total expenses		303,930
Less: Fees waived		(477	)
Net expenses		303,453
Net investment income		389,232
Realized and unrealized gain (loss) from:
Net realized gain (loss) from:
Investment securities		(569,709	)
Foreign currencies		4,393
Forward foreign currency contracts		2,076
		(563,240	)
Change in net unrealized appreciation (depreciation) of:
Investment securities		(6,518,817	)
Foreign currencies		(1,578	)
Forward foreign currency contracts		539
		(6,519,856	)
Net realized and unrealized gain (loss)		(7,083,096	)
Net increase (decrease) in net assets resulting from operations	$	(6,693,864	)

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

Invesco V.I. Global Core Equity Fund

Statement of Changes in Net Assets

For the six months ended June 30, 2020 and the year ended December 31, 2019

(Unaudited)

	June 30, 2020			December 31, 2019
Operations:
Net investment income	$	389,232		$	1,029,421
Net realized gain (loss)		(563,240	)		(1,299,675	)
Change in net unrealized appreciation (depreciation)		(6,519,856	)		15,575,782
Net increase (decrease) in net assets resulting from operations		(6,693,864	)		15,305,528
Distributions to shareholders from distributable earnings:
Series I		–			(4,858,170	)
Series II		–			(849,972	)
Total distributions from distributable earnings		–			(5,708,142	)
Share transactions–net:
Series I		(4,103,190	)		(2,943,770	)
Series II		(417,509	)		(484,443	)
Net increase (decrease) in net assets resulting from share transactions		(4,520,699	)		(3,428,213	)
Net increase (decrease) in net assets		(11,214,563	)		6,169,173
Net assets:
Beginning of period		70,638,804			64,469,631
End of period	$	59,424,241		$	70,638,804

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

Invesco V.I. Global Core Equity Fund

Financial Highlights

(Unaudited)

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

																																				Ratio of			Ratio of
																																				expenses			expenses
							Net gains																													to average			to average net
							(losses)																													net assets			assets without			Ratio of net
	Net asset						on securities								Dividends				Distributions																	with fee waivers			fee waivers			investment
	value,			Net			(both				Total from				from net				from net								Net asset						Net assets,			and/or			and/or			income
	beginning			investment			realized and				investment				investment				realized				Total				value, end			Total			end of period			expenses			expenses			to average			Portfolio
	of period			income(a)			unrealized)				operations				income				gains				distributions				of period			return (b)			(000’s omitted)			absorbed			absorbed			net assets			turnover (c)
Series I
Six months ended 06/30/20		$	10.28		$	0.06		$	(1.00	)		$	(0.94	)		$	–			$	–			$	–			$	9.34		(9.14	)%		$	50,249		0.98	%(d)		0.98	%(d)		1.34	%(d)		23	%
Year ended 12/31/19			8.99			0.15			2.03				2.18				(0.15	)			(0.74	)			(0.89	)			10.28		25.20				60,078		1.01			1.01			1.54			24
Year ended 12/31/18			10.73			0.13			(1.76	)			(1.63	)			(0.11	)			–				(0.11	)			8.99		(15.32	)			54,854		1.02			1.02			1.19			26
Year ended 12/31/17			8.83			0.09			1.93				2.02				(0.12	)			–				(0.12	)			10.73		22.90				73,716		1.04			1.04			0.95			69
Year ended 12/31/16			8.35			0.10			0.47				0.57				(0.09	)			–				(0.09	)			8.83		6.81				62,130		1.05			1.05			1.14			47
Year ended 12/31/15			8.94			0.09			(0.23	)			(0.14	)			(0.13	)			(0.32	)			(0.45	)			8.35		(1.42	)			65,167		1.06			1.06			0.98			75
Series II
Six months ended 06/30/20			10.28			0.05			(1.00	)			(0.95	)			–				–				–				9.33		(9.24	)			9,176		1.23	(d)		1.23	(d)		1.09	(d)		23
Year ended 12/31/19			8.99			0.13			2.02				2.15				(0.12	)			(0.74	)			(0.86	)			10.28		24.82				10,561		1.26			1.26			1.29			24
Year ended 12/31/18			10.73			0.10			(1.75	)			(1.65	)			(0.09	)			–				(0.09	)			8.99		(15.54	)			9,616		1.27			1.27			0.94			26
Year ended 12/31/17			8.83			0.07			1.92				1.99				(0.09	)			–				(0.09	)			10.73		22.60				13,043		1.29			1.29			0.70			69
Year ended 12/31/16			8.35			0.07			0.47				0.54				(0.06	)			–				(0.06	)			8.83		6.50				12,302		1.30			1.30			0.89			47
Year ended 12/31/15			8.93			0.07			(0.23	)			(0.16	)			(0.10	)			(0.32	)			(0.42	)			8.35		(1.65	)			13,286		1.31			1.31			0.73			75

^(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 $50,987 and $9,104 for Series I and Series II shares, respectively.

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

Invesco V.I. Global Core Equity Fund

Notes to Financial Statements

June 30, 2020

(Unaudited)

NOTE 1—Significant Accounting Policies

Invesco V.I. Global 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. Information presented in these financial statements pertains only to the Fund. Matters affecting the Fund or each class will be voted on exclusively by the shareholders of the Fund or each class. 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 Fund is an investment company and accordingly follows the investment company accounting and reporting guidance in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 946, Financial Services – Investment Companies.

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

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

A security listed or traded on an exchange (except convertible securities) is valued at its last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded, or lacking any sales or official closing price on a particular day, the security may be valued at the closing bid price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued by an independent pricing service they may be considered fair valued. Futures contracts are valued at the final settlement price set by an exchange on which they are principally traded. Listed options are valued at the mean between the last bid and asked 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 asked prices. For purposes of determining net asset value (“NAV”) per share, futures and option contracts generally are valued 15 minutes after the close of the customary trading session of the New York Stock Exchange (“NYSE”).

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

Debt obligations (including convertible securities) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. Pricing services generally value debt obligations assuming orderly transactions of institutional round lot size, but a fund may hold or transact in the same securities in smaller, odd lot sizes. Odd lots often trade at lower prices than institutional round lots. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.

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

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

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

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

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

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

Invesco V.I. Global Core Equity Fund

share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and the Statement of Changes in Net Assets, or the net investment income per share and the ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.

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

C. Country Determination – For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues 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 net investment income and net realized capital gain, if any, are generally declared and paid to separate accounts of participating insurance companies annually and recorded on the ex-dividend date.

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

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

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

F. Expenses – Fees provided for under the Rule 12b-1 plan of a particular class of the Fund and which are directly attributable to that class are charged to the operations of such class. All other expenses are allocated among the classes based on relative net assets.

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

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

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

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

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

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

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

Invesco V.I. Global Core Equity Fund

NOTE 2—Advisory Fees and Other Fees Paid to Affiliates

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

Average Daily Net Assets	Rate
First $1 billion		0.670%
Next $ 500 million		0.645%
Next $ 1 billion		0.620%
Next $ 1 billion		0.595%
Next $ 1 billion		0.570%
Over $4.5 billion		0.545%

For the six months ended June 30, 2020, the effective advisory fee rate incurred by the Fund was 0.67%.

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

The Adviser has contractually agreed, through at least June 30, 2021, 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 2.25% and Series II shares to 2.50% of average daily net assets (the “expense limits”). In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause the total annual fund operating expenses after fee waiver and/or expense reimbursement to exceed the numbers reflected above: (1) interest; (2) taxes; (3) dividend expense on short sales; (4) extraordinary or non-routine items, including litigation expenses; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Unless Invesco continues the fee waiver agreement, it will terminate on June 30, 2021. During its term, the fee waiver agreement cannot be terminated or amended to increase the expense limits or reduce the advisory fee waiver without approval of the Board of Trustees. The Adviser did not waive fees and/or reimburse expenses during the period under these expense limits.

Further, the Adviser has contractually agreed, through at least June 30, 2022, 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, 2020, the Adviser waived advisory fees of $477.

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 fees paid to insurance companies that have agreed to provide certain administrative services to the Fund. These administrative services provided by the insurance companies may include, among other things: maintenance of master accounts with the Fund; tracking, recording and transmitting net purchase and redemption orders for Fund shares; maintaining and preserving records related to the purchase, redemption and other account activity of variable product owners; distributing copies of Fund documents such as prospectuses, proxy materials and periodic reports, to variable product owners, and responding to inquiries from variable product owners about the Fund. Pursuant to such agreement, for the six months ended June 30, 2020, Invesco was paid $5,068 for accounting and fund administrative services and was reimbursed $44,826 for fees paid to insurance companies. Invesco has entered into a sub-administration agreement whereby State Street Bank and Trust Company (“SSB”) serves as fund accountant and provides certain administrative services to the Fund. Pursuant to a custody agreement with the Trust on behalf of the Fund, SSB also serves as the Fund’s custodian.

The Trust has entered into a transfer agency and service agreement with Invesco Investment Services, Inc. (“IIS”) pursuant to which the Fund has agreed to pay IIS a fee for providing transfer agency and shareholder services to the Fund and reimburse IIS for certain expenses incurred by IIS in the course of providing such services. For the six months ended June 30, 2020, 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. The fees are accrued daily and paid monthly. 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, 2020, 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, 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, 2020. 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 Core Equity Fund

	Level 1		Level 2		Level 3		Total
Investments in Securities
Australia	$	–	$	814,620		$–	$	814,620
Belgium		–		474,753		–		474,753
Brazil		739,419		–		–		739,419
China		554,547		563,816		–		1,118,363
Denmark		–		471,466		–		471,466
France		–		329,694		–		329,694
Germany		–		4,754,328		–		4,754,328
Hong Kong		–		1,403,506		–		1,403,506
Ireland		507,899		–		–		507,899
Italy		–		2,322,693		–		2,322,693
Japan		–		5,346,328		–		5,346,328
Luxembourg		–		552,371		–		552,371
Singapore		–		767,372		–		767,372
South Korea		–		582,086		–		582,086
Spain		–		694,711		–		694,711
Sweden		–		748,544		–		748,544
Switzerland		–		1,249,893		–		1,249,893
United Kingdom		1,454,975		4,483,640		–		5,938,615
United States		28,306,653		1,066,225		–		29,372,878
Money Market Funds		1,142,677		–		–		1,142,677
Total Investments in Securities		32,706,170		26,626,046		–		59,332,216
Other Investments - Assets*
Forward Foreign Currency Contracts		–		7,001		–		7,001
Total Investments	$	32,706,170	$	26,633,047		$–	$	59,339,217

* Unrealized appreciation.

NOTE 4—Derivative Investments

The Fund may enter into an International Swaps and Derivatives Association Master Agreement (“ISDA Master Agreement”) under which a fund may trade OTC derivatives. An OTC transaction entered into under an ISDA Master Agreement typically involves a collateral posting arrangement, payment netting provisions and close-out netting provisions. These netting provisions allow for reduction of credit risk through netting of contractual obligations. The enforceability of the netting provisions of the ISDA Master Agreement depends on the governing law of the ISDA Master Agreement, among other factors.

For financial reporting purposes, the Fund does not offset OTC derivative assets or liabilities that are subject to ISDA Master Agreements in the Statement of Assets and Liabilities.

Value of Derivative Investments at Period-End

The table below summarizes the value of the Fund’s derivative investments, detailed by primary risk exposure, held as of June 30, 2020:

	Value
	Currency
Derivative Assets	Risk
Unrealized appreciation on forward foreign currency contracts outstanding		$7,001
Derivatives not subject to master netting agreements		-
Total Derivative Assets subject to master netting agreements		$7,001

Offsetting Assets and Liabilities

The table below reflects the Fund’s exposure to Counterparties subject to either an ISDA Master Agreement or other agreement for OTC derivative transactions as of June 30, 2020.

	Financial Derivative Assets		Collateral (Received)/Pledged
	Forward Foreign	Net Value of			Net
Counterparty	Currency Contracts	Derivatives	Non-Cash	Cash	Amount
Bank of America, N.A.	$7,001	$7,001	$-	$-		$7,001

Invesco V.I. Global Core Equity Fund

Effect of Derivative Investments for the six months ended June 30, 2020

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

	Location of Gain on Statement of Operations
	Currency
	Risk
Realized Gain:
Forward foreign currency contracts		$2,076
Change in Net Unrealized Appreciation:
Forward foreign currency contracts		539
Total		$2,615

The table below summarizes the average notional value of derivatives held during the period.

	Forward Foreign Currency Contracts
Average notional value	$1,876,036

NOTE 5—Trustees’ and Officers’ Fees and Benefits

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

NOTE 6—Cash Balances

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

NOTE 7—Tax Information

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

Capital loss carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Fund to utilize. The ability to utilize capital loss carryforwards 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, 2019, as follows:

Capital Loss Carryforward*
Expiration	Short-Term	Long-Term	Total
Not subject to expiration	$356,447	$931,333	$1,287,780

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

NOTE 8—Investment Transactions

The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Fund during the six months ended June 30, 2020 was $13,640,685 and $18,814,523, respectively. Cost of investments, including any derivatives, on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end.

Unrealized Appreciation (Depreciation) of Investments on a Tax Basis
Aggregate unrealized appreciation of investments	$	11,125,184
Aggregate unrealized (depreciation) of investments		(3,516,638	)
Net unrealized appreciation of investments	$	7,608,546

Cost of investments for tax purposes is $51,730,671.

Invesco V.I. Global Core Equity Fund

NOTE 9—Share Information

	Summary of Share Activity
	Six months ended						Year ended
	June 30, 2020(a)						December 31, 2019
	Shares			Amount			Shares			Amount
Sold:
Series I		76,085		$	676,746			173,169		$	1,705,731
Series II		15,550			134,564			12,211			120,875
Issued as reinvestment of dividends:
Series I		-			-			517,929			4,858,170
Series II		-			-			90,378			848,653
Reacquired:
Series I		(541,720	)		(4,779,936	)		(948,455	)		(9,507,671	)
Series II		(59,438	)		(552,073	)		(145,366	)		(1,453,971	)
Net increase (decrease) in share activity		(509,523	)	$	(4,520,699	)		(300,134	)	$	(3,428,213	)

^(a)  There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 85% 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 Fund 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—Coronavirus (COVID-19) Pandemic

During the first quarter of 2020, the World Health Organization declared COVID-19 to be a public health emergency. COVID-19 has led to increased short-term market volatility and may have adverse long-term effects on U.S. and world economies and markets in general. COVID-19 may adversely impact the Fund’s ability to achieve its investment objective. Because of the uncertainties on valuation, the global economy and business operations, values reflected in these financial statements may materially differ from the value received upon actual sales of those investments.

The extent of the impact on the performance of the Fund and its investments will depend on future developments, including the duration and spread of the COVID-19 outbreak, related restrictions and advisories, and the effects on the financial markets and economy overall, all of which are highly uncertain and cannot be predicted.

Invesco V.I. Global 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, 2020 through June 30, 2020.

    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.

		ACTUAL		HYPOTHETICAL (5% annual return before expenses)		Annualized   Expense Ratio
	Beginning   Account Value   (01/01/20)	Ending   Account Value   (06/30/20)1	Expenses   Paid During   Period2	Ending   Account Value   (06/30/20)	Expenses   Paid During   Period2
Series I	$1,000.00	$908.60	$4.65	$1,019.99	$4.92	0.98%
Series II	1,000.00	907.60	5.83	1,018.75	6.17	1.23

¹  The actual ending account value is based on the actual total return of the Fund for the period January 1, 2020 through June 30, 2020, 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 182/366 to reflect the most recent fiscal half year.

Invesco V.I. Global Core Equity Fund

Approval of Investment Advisory and Sub-Advisory Contracts

At meetings held on June 3, 2020, the Board of Trustees (the Board or the Trustees) of AIM Variable Insurance Funds (Invesco Variable Insurance Funds) as a whole, and the independent Trustees, who comprise over 75% of the Board, voting separately, approved the continuance of the Invesco V.I. Global Core Equity Fund’s (the Fund) Master Investment Advisory Agreement with Invesco Advisers, Inc. (Invesco Advisers and the investment advisory agreement) and the Master Intergroup Sub-Advisory Contract for Mutual Funds with Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Canada Ltd. and separate sub-advisory contracts with Invesco Capital Management LLC and Invesco Asset Management (India) Private Limited (collectively, the Affiliated Sub-Advisers and the sub-advisory contracts) for another year, effective July 1, 2020. After evaluating the factors discussed below, among others, the Board approved the renewal of the Fund’s investment advisory agreement and the sub-advisory contracts and determined that the compensation payable thereunder by the Fund to Invesco Advisers and by Invesco Advisers to the Affiliated Sub-Advisers is fair and reasonable.

The Board’s Evaluation Process

The Board’s Investments Committee has established Sub-Committees, which meet throughout the year to review the performance of funds advised by Invesco Advisers (the Invesco Funds). The Sub-Committees meet regularly with portfolio managers for their assigned Invesco Funds and other members of management to review detailed information about investment performance and portfolio attributes of these funds. The Board took into account evaluations and reports that it received from the Investments Committee and Sub-Committees, as well as the information provided to such committees and the Board throughout the year, in considering whether to approve each Invesco Fund’s investment advisory agreement and sub-advisory contracts.

As part of the contract renewal process, the Board reviews and considers information provided in response to detailed requests for information submitted to management by the independent Trustees with assistance from legal counsel to the independent Trustees. The Board receives comparative investment performance and fee data regarding the Invesco Funds prepared by Invesco Advisers and Broadridge Financial Solutions, Inc. (Broadridge), an independent mutual fund data provider, as well as information on the composition of the peer groups provided by Broadridge and its methodology for determining peer groups. The Board also receives an independent written evaluation from the Senior Officer, an officer of the Invesco Funds who reports directly to the independent Trustees. 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. In addition to meetings with Invesco Advisers and fund counsel throughout the year, the independent Trustees also

discuss the continuance of the investment advisory agreement and sub-advisory contracts in separate sessions with the Senior Officer and with independent legal counsel.

The discussion below is a summary of 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. The Trustees’ review and conclusions are based on the comprehensive consideration of all information presented to them during the course of the year and in prior years and are not the result of any single determinative factor. Moreover, one Trustee may have weighed a particular piece of information or factor differently than another Trustee. This information is current as of June 3, 2020.

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 nature, extent and quality of the advisory services provided to the Fund by Invesco Advisers under the Fund’s investment advisory agreement, and the credentials and experience of the officers and employees of Invesco Advisers who provide these services, including the Fund’s portfolio manager(s). The Board’s review included consideration of Invesco Advisers’ investment process oversight and structure, credit analysis, investment risk management and research capabilities. The Board also considered non-advisory services that Invesco Advisers and its affiliates provide to the Invesco Funds, such as various back office support functions, third party oversight, internal audit, valuation, portfolio trading and legal and compliance. The Board also received and reviewed information about Invesco Advisers’ role as administrator of the Invesco Funds’ liquidity risk management program. The Board reviewed and considered the benefits to shareholders of investing in a Fund that is part of the Invesco family of funds under the umbrella of Invesco Ltd., Invesco Advisers’ parent company, and noted Invesco Ltd.’s depth and experience in conducting an investment management business, as well as its commitment of financial and other resources to such business. The Board also reviewed and considered information regarding the benefits to the Fund resulting from Invesco Ltd.’s acquisition of OppenheimerFunds, Inc. and its subsidiaries (the Transaction) and the resources that Invesco Advisers has committed to managing the Invesco family of funds following the Transaction. The Board concluded that the nature, extent and quality of the services provided to the Fund by Invesco Advisers are appropriate and satisfactory.

The Board reviewed the services that may be 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 the Affiliated Sub-Advisers’ expertise with respect to certain asset classes and that the Affiliated Sub-Advisers have offices and personnel that are located in financial centers around the world.

As a result, the Board noted that the Affiliated Sub-Advisers can provide research and investment analysis on the markets and economies of various countries in which the Fund may invest, make recommendations regarding securities and assist with security trades. The Board concluded that the sub-advisory contracts may 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 that may be provided by the Affiliated Sub-Advisers are appropriate and satisfactory.

B. Fund Investment Performance

The Board considered Fund investment 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 compared the Fund’s investment performance over multiple time periods ending December 31, 2019 to the performance of funds in the Broadridge performance universe and against the MSCI World Index. The Board noted that performance of Series I shares of the Fund was in the fifth quintile of its performance universe for the one, three and five year periods (the first quintile being the best performing funds and the fifth quintile being the worst performing funds). The Board noted that 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 acknowledged limitations regarding the Broadridge data, in particular that differences may exist between a Fund’s investment objective, principal investment strategies and/or investment restrictions and those of its performance peer funds. The Board noted that the Fund’s stock selection in certain sectors and regions as well as its underweight exposure to certain sectors negatively impacted performance. The Board recognized that the performance data reflects a snapshot in time as of a particular date and that selecting a different performance period could produce different results. The Board also reviewed more recent Fund performance as well as other performance metrics and this review did not change their conclusions.

C. Advisory and Sub-Advisory Fees and Fund Expenses

The Board compared the Fund’s contractual management fee rate to the contractual management fee rates of funds in the Fund’s Broadridge expense group. The Board noted that the contractual management fee rate for Series I shares of the Fund was below the median contractual management fee rate of funds in its expense group. The Board noted that the term “contractual management fee” for funds in the expense group may include both advisory and certain non-portfolio management administrative services fees, but that Broadridge does not provide information on a fund by fund basis as to what is included. The Board also reviewed the methodology used by Broadridge in providing expense group information, which includes using each fund’s contractual management fee schedule (including any applicable breakpoints) as reported in the most recent prospectus or statement of additional information for each fund in the expense group. The

Invesco V.I. Global Core Equity Fund

Board also considered comparative information regarding the Fund’s total expense ratio and its various components. The Board noted that there were only five funds (including the Fund) in the expense group.

The Board noted that Invesco Advisers has contractually agreed to waive fees and/or limit expenses of the Fund for the term disclosed in the Fund’s registration statement 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 fees charged by Invesco Advisers and the Affiliated Sub-Advisers to other similarly managed client accounts. Invesco Advisers reviewed with the Board differences in the scope of services it provides to the Invesco Funds relative to certain other types of client accounts, including, among others: management of cash flows as a result of redemptions and purchases; necessary infrastructure such as officers, office space, technology, legal and distribution; oversight of service providers; costs and business risks associated with launching new funds and sponsoring and maintaining the product line; and compliance with federal and state laws and regulations.

The Board also considered the services that may be provided by the Affiliated Sub-Advisers pursuant to the sub-advisory contracts, as well as the fees payable by Invesco Advisers to the Affiliated Sub-Advisers pursuant to the sub-advisory contracts. The Board noted that Invesco Advisers retains overall responsibility for, and provides services to, sub-advised Invesco Funds, including oversight of the Affiliated Sub-Advisers as well as the additional services described herein other than day-to-day portfolio management.

D. Economies of Scale and Breakpoints

The Board considered the extent to which there may be economies of scale in the provision of advisory services to the Fund. The Board also considered that the Fund may benefit from economies of scale through contractual breakpoints in the Fund’s advisory fee schedule, which generally operate to reduce the Fund’s expense ratio as it grows in size. The Board 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. The Board noted that the Fund may also benefit from economies of scale through initial fee setting, fee waivers and expense reimbursements. The Board also considered Invesco’s reinvestment in its business, including investments in business infrastructure, technology and cybersecurity.

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 Invesco Funds and the profitability of Invesco Advisers and its affiliates in providing these services in the aggregate and on an individual Fund-by-Fund basis. The Board considered the methodology used for calculating profitability and noted the periodic review and enhancement of such methodology. The Board noted that Invesco Advisers continues to operate at a net profit from services Invesco Advisers and its affiliates provide to the Invesco Funds in the aggregate and to certain Funds on an individual fund level. The Board did not deem the level of profits realized by Invesco Advisers and its affiliates from providing such services to be

excessive given the nature, extent and quality of the services provided. The Board received information from Invesco Advisers demonstrating that Invesco Advisers and the Affiliated Sub-Advisers are financially sound and have the resources necessary to perform their obligations under the investment advisory agreement and sub-advisory contracts.

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 providing administrative, transfer agency and distribution services to the Fund. The Board considered comparative information regarding fees charged for these services, including information provided by Broadridge and other independent sources. 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; and that the services are required for the operation of the Fund.

The Board considered the benefits realized by Invesco Advisers and the Affiliated Sub-Advisers as a result of portfolio brokerage transactions executed through “soft dollar” arrangements. The Board noted that soft dollar arrangements may result in the Fund bearing costs to purchase research that may be used by Invesco Advisers or the Affiliated Sub-Advisers with other clients and may reduce Invesco Advisers’ or the Affiliated Sub-Advisers’ expenses. The Board also considered that it receives periodic reports from Invesco representing that these arrangements are consistent with regulatory requirements. The Board did not deem the soft dollar arrangements to be inappropriate.

The Board considered that the Fund’s uninvested cash and cash collateral from any securities lending arrangements may be invested in registered money market funds or, with regard to securities lending cash collateral, unregistered funds that comply with Rule 2a-7 (collectively referred to as “affiliated money market funds”) advised by Invesco Advisers pursuant to procedures approved by the Board. The Board considered information regarding the returns of the affiliated money market funds relative to comparable overnight investments, as well as the costs to the Fund of such investments. 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 with respect to certain investments in the affiliated money market 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 amount of advisory fees received by Invesco Advisers from the Fund’s investment of cash collateral from any securities lending arrangements in the affiliated money market funds is fair and reasonable.

The Board also considered that an affiliated broker may receive commissions for executing certain trades for the Fund. Invesco Advisers and the Affiliated Sub-Advisers may use the affiliated broker to, among

other things, control order routing and minimize information leakage, and the Board was advised that such trades are executed in compliance with rules under the federal securities laws and consistent with best execution obligations.

Invesco V.I. Global Core Equity Fund

	Semiannual Report to Shareholders	June 30, 2020
	Invesco V.I. Global Real Estate Fund

Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, the insurance company that offers your variable annuity or variable life insurance contract may no longer send you paper copies of the Fund’s shareholder reports by mail, unless you specifically request paper copies of the reports from the insurance company or your financial intermediary. Instead of delivering paper copies of the report, the insurance company may choose to make the reports available on a website, and will notify you by mail each time a report is posted and provide you with a website link to access the report. Instructions for requesting paper copies will be provided by your insurance company.

    If the insurance company offers electronic delivery, you may elect to receive shareholder reports and other communications about the Fund electronically by following the instructions provided by the insurance company or by contacting your financial intermediary. If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action.

    You may elect to receive all future reports in paper free of charge from the insurance company. You can inform the insurance company or your financial intermediary that you wish to continue receiving paper copies of your shareholder reports by following the instructions provided by the insurance company or by contacting your financial intermediary. Your election to receive reports in paper will apply to all portfolio companies available under your contract with the insurance company.

    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) as an exhibit to its reports on Form N-PORT. The Fund’s Form N-PORT filings are available on the SEC website, 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-PORT, 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 most recent 12-month period ended June 30 is available at invesco.com/proxysearch. The information is also available on the SEC website, sec.gov.

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

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.

NOT FDIC INSURED   |   MAY LOSE VALUE   |   NO BANK GUARANTEE
Invesco Distributors, Inc.	VIGRE-SAR-1

Fund Performance

Performance summary
Fund vs. Indexes
Cumulative total returns, 12/31/19 to 6/30/20, excluding variable product issuer charges. If variable product issuer charges were included, returns would be lower.
Series I Shares	-20.86	%
Series II Shares	-20.92
MSCI World Indexq (Broad Market Index)	-5.77
Custom Invesco Global Real Estate Index∎ (Style-Specific Index)	-21.45
Lipper VUF Real Estate Funds Classification Average◆ (Peer Group)	-15.52
Source(s): q RIMES Technologies Corp.; ∎ Invesco, RIMES Technologies Corp.; ◆ Lipper Inc.
The MSCI World Index (Net) is an unmanaged index considered representative of stocks of developed countries. The index is computed using the net return, which withholds applicable taxes for non-resident investors.
The Custom Invesco Global Real Estate Index is composed of the FTSE EPRA/NAREIT Developed Index (gross) from fund inception through February 17, 2005; the FTSE EPRA/ NAREIT Developed Index (net) from February 18, 2005, through June 30, 2014; and the FTSE/EPRA NAREIT Global Index (net) thereafter. The FTSE EPRA/NAREIT Developed index is considered representative of global real estate companies and REITs. The FTSE EPRA/NAREIT Global Index is designed to track the performance of listed real estate companies and REITS in developed and emerging markets. The net version of indexes is computed using the net return, which withholds taxes for non-resident investors.
The Lipper VUF Real Estate Funds Classification Average represents an average of all variable insurance underlying funds in the Lipper Real Estate Funds classification.
The Fund is not managed to track the performance of any particular index, including the index(es) described here, and consequently, the performance of the Fund may deviate significantly from the performance of the index(es).
A direct investment cannot be made in an index. Unless otherwise indicated, index results include reinvested dividends, and they do not reflect sales charges. Performance of the peer group, if applicable, reflects fund expenses; performance of a market index does not.

Average Annual Total Returns
As of 6/30/20
Series I Shares
Inception (3/31/98)	6.65%
10 Years	6.23
5 Years	1.16
1 Year	-15.88
Series II Shares
Inception (4/30/04)	6.10%
10 Years	5.98
5 Years	0.91
1 Year	-16.08

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 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. Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares. Investment return and principal value will

fluctuate so that you may have a gain or loss when you sell shares.

    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 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.

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

Invesco V.I. Global Real Estate Fund

Liquidity Risk Management Program

The Securities and Exchange Commission has adopted Rule 22e-4 under the Investment Company Act of 1940 (the “Liquidity Rule”) in order to promote effective liquidity risk management throughout the open-end investment company industry, thereby reducing the risk that funds will be unable to meet their redemption obligations and mitigating dilution of the interests of fund shareholders. The Fund has adopted and implemented a liquidity risk management program in accordance with the Liquidity Rule (the “Program”). The Program is reasonably designed to assess and manage the Fund’s liquidity risk, which is the risk that the Fund could not meet redemption requests without significant dilution of remaining investors’ interests in the Fund. The Board of Trustees of the Fund (the “Board”) has appointed Invesco Advisers, Inc. (“Invesco”), the Fund’s investment adviser, as the Program’s administrator, and Invesco has delegated oversight of the Program to the Liquidity Risk Management Committee (the “Committee”), which is composed of senior representatives from relevant business groups at Invesco.

As required by the Liquidity Rule, the Program includes policies and procedures providing for an assessment, no less frequently than annually, of the Fund’s liquidity risk that takes into account, as relevant to the Fund’s liquidity risk: (1) the Fund’s investment strategy and liquidity of portfolio investments during both normal and reasonably foreseeable stressed conditions; (2) short-term and long-term cash flow projections for the Fund during both normal and reasonably foreseeable stressed conditions; and (3) the Fund’s holdings of cash and cash equivalents and any borrowing arrangements. The Liquidity Rule also requires the classification of the Fund’s investments into categories that reflect the assessment of their relative liquidity under current market conditions. The Fund classifies its investments into one of four categories defined in the Liquidity Rule: “Highly Liquid,” “Moderately Liquid,” “Less Liquid” and “Illiquid.” Funds that are not invested primarily in “Highly Liquid Investments” that are assets (cash or investments that are reasonably expected to be convertible into cash within three business days without significantly changing the market value of the investment) are required to establish a “Highly Liquid Investment Minimum” (“HLIM”), which is the minimum percentage of net assets that must be invested in Highly Liquid Investments. Funds with HLIMs have procedures for addressing HLIM shortfalls, including reporting to the Board and the SEC (on a non-public basis) as required by the Program and the Liquidity Rule. In addition, the Fund may not acquire an investment if, immediately after the acquisition, over 15% of the Fund’s net assets would consist of “Illiquid Investments” that are assets (an investment that cannot reasonably be expected to be sold or disposed of in current market conditions in seven calendar days or less without the sale or disposition significantly changing the market value of the investment). The Liquidity Rule and the Program also require reporting to the Board and the SEC (on a non-public basis) if a Fund’s holdings of Illiquid Investments exceed 15% of the Fund’s assets.

At a meeting held on March 30-April 1, 2020, the Committee presented a report to the Board that addressed the operation of the Program and assessed the Program’s adequacy and effectiveness of implementation (the “Report”). The Report covered the period from December 1, 2018 through December 31, 2019 (the “Program Reporting Period”).

The Report stated, in relevant part, that during the Program Reporting Period:

∎ The Program, as adopted and implemented, remained reasonably designed to assess and manage the Fund’s liquidity risk and was operated effectively to achieve that goal;

∎ The Fund’s investment strategy remained appropriate for an open-end fund;

∎ The Fund was able to meet requests for redemption without significant dilution of remaining investors’ interests in the Fund;

∎ The Fund did not breach the 15% limit on Illiquid Investments; and

∎ The Fund primarily held Highly Liquid Investments and therefore has not adopted an HLIM.

Invesco V.I. Global Real Estate Fund

Schedule of Investments

June 30, 2020

(Unaudited)

	Shares		Value
Common Stocks & Other Equity Interests–98.12%
Australia–3.38%
Charter Hall Long Wale REIT		228,850	$	683,864
Dexus		241,599		1,539,618
Goodman Group		134,152		1,380,662
Scentre Group		675,926		1,017,804
				4,621,948
Belgium–0.97%
Cofinimmo S.A.		5,775		793,389
Montea C.V.A		5,384		539,084
				1,332,473
Brazil–0.41%
BR Properties S.A.		137,900		226,195
Cyrela Brazil Realty S.A. Empreendimentos e Participacoes		28,187		118,437
MRV Engenharia e Participacoes S.A.		64,592		213,798
				558,430
Canada–3.31%
Allied Properties REIT		44,872		1,353,828
Canadian Apartment Properties REIT		36,706		1,313,748
Killam Apartment REIT		61,571		794,582
SmartCentres REIT		69,611		1,072,161
				4,534,319
China–6.85%
CapitaLand Retail China Trust		29,256		26,522
China Jinmao Holdings Group Ltd.		740,000		521,024
China Resources Land Ltd.		382,444		1,445,141
China SCE Group Holdings Ltd.		921,000		402,195
CIFI Holdings Group Co. Ltd.		1,624,000		1,267,379
Country Garden Holdings Co. Ltd.		194,000		238,751
KWG Group Holdings Ltd.		365,500		612,917
Logan Group Co. Ltd.		271,000		484,404
Longfor Group Holdings Ltd.(a)		373,500		1,779,005
Shimao Group Holdings Ltd.		347,000		1,470,509
Times China Holdings Ltd.		411,000		760,507
Yuexiu Property Co. Ltd.		2,042,000		363,901
				9,372,255
France–1.64%
Gecina S.A.		8,832		1,090,246
Unibail-Rodamco-Westfield		20,529		1,156,907
				2,247,153
Germany–6.29%
Deutsche Wohnen SE		29,266		1,312,892
Grand City Properties S.A.		36,500		841,854
Vonovia SE		105,226		6,445,811
				8,600,557
Hong Kong–5.43%
Hang Lung Properties Ltd.		924,000		2,190,482
Link REIT		91,700		748,253
New World Development Co. Ltd.		364,000		1,730,134
Sun Hung Kai Properties Ltd.		136,000		1,733,210

	Shares		Value
Hong Kong–(continued)
Swire Properties Ltd.		407,000	$	1,033,583
				7,435,662
India–0.08%
Oberoi Realty Ltd.		21,908		106,197
Indonesia–0.23%
PT Pakuwon Jati Tbk(b)		10,508,500		307,783
Japan–10.33%
Activia Properties, Inc.		356		1,239,906
Comforia Residential REIT, Inc.		193		576,174
Daiwa House REIT Investment Corp.		527		1,241,186
GLP J-REIT		1,116		1,620,555
Japan Prime Realty Investment Corp.		289		851,764
Japan Retail Fund Investment Corp.		967		1,207,475
LaSalle Logiport REIT		683		1,053,286
Mitsui Fudosan Co. Ltd.		67,358		1,193,525
Mitsui Fudosan Logistics Park, Inc.		233		1,038,217
ORIX JREIT, Inc.		565		741,488
Sumitomo Realty & Development Co. Ltd.		86,189		2,369,974
Tokyu Fudosan Holdings Corp.		215,000		1,006,072
				14,139,622
Malta–0.00%
BGP Holdings PLC (Acquired 08/06/2009; Cost $0)(a)(b)(c)		1,355,927		0
Mexico–0.31%
Macquarie Mexico Real Estate Management S.A. de C.V.(a)		419,000		430,038
Philippines–0.93%
Altus Property Ventures, Inc.(b)		4,684		3,911
Ayala Land, Inc.		675,330		452,113
Megaworld Corp.		10,928,300		673,247
SM Prime Holdings, Inc.		220,700		139,606
				1,268,877
Singapore–2.40%
Ascendas India Trust		444,100		430,778
Ascendas REIT		333,356		760,022
CapitaLand Ltd.(b)		534,500		1,122,632
Keppel DC REIT		330,300		602,631
Mapletree Industrial Trust		175,300		364,307
				3,280,370
South Africa–0.24%
Growthpoint Properties Ltd.		356,809		274,339
SA Corporate Real Estate Ltd.		817,493		60,292
				334,631
Spain–1.29%
Inmobiliaria Colonial SOCIMI S.A.		65,671		577,555
Merlin Properties SOCIMI S.A.		142,933		1,183,910
				1,761,465

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

Invesco V.I. Global Real Estate Fund

	Shares		Value
Sweden–1.72%
Fabege AB		103,933	$	1,213,158
Wihlborgs Fastigheter AB		69,335		1,133,356
				2,346,514
Thailand–0.76%
Central Pattana PCL, Foreign Shares		342,900		548,532
WHA Corp. PCL, Foreign Shares		4,586,700		493,056
				1,041,588
United Kingdom–3.38%
Assura PLC		888,116		863,933
British Land Co. PLC (The)		83,379		398,683
GCP Student Living PLC		233,612		358,616
Land Securities Group PLC		180,160		1,232,828
Tritax Big Box REIT PLC		776,877		1,394,606
Workspace Group PLC		46,818		378,900
				4,627,566
United States–48.17%
Alexandria Real Estate Equities, Inc.		4,648		754,138
American Assets Trust, Inc.		26,404		735,087
American Tower Corp.		10,602		2,741,041
Americold Realty Trust		20,884		758,089
Apartment Investment & Management Co., Class A		57,784		2,174,990
Apple Hospitality REIT, Inc.		114,562		1,106,669
AvalonBay Communities, Inc.		7,856		1,214,852
CubeSmart		28,568		771,050
CyrusOne, Inc.		34,019		2,474,882
Digital Realty Trust, Inc.		25,342		3,601,352
Duke Realty Corp.		93,209		3,298,667
Equity LifeStyle Properties, Inc.		15,882		992,307
Equity Residential		82,536		4,854,767
Essential Properties Realty Trust, Inc.		64,299		954,197
Federal Realty Investment Trust		1,452		123,725
Gaming and Leisure Properties, Inc.		54,313		1,879,230
Healthcare Realty Trust, Inc.		46,226		1,353,960

	Shares		Value
United States–(continued)
Healthcare Trust of America, Inc., Class A		58,012	$	1,538,478
Healthpeak Properties, Inc.		127,310		3,508,664
Invitation Homes, Inc.		147,050		4,048,286
Kimco Realty Corp.(b)		54,176		695,620
National Retail Properties, Inc.		63,059		2,237,333
Pebblebrook Hotel Trust		42,430		579,594
Prologis, Inc.		13,160		1,228,223
Regency Centers Corp.		49,712		2,281,284
Retail Opportunity Investments Corp.		132,857		1,505,270
Rexford Industrial Realty, Inc.		35,469		1,469,481
Simon Property Group, Inc.		16,556		1,132,099
STAG Industrial, Inc.		50,696		1,486,407
Sun Communities, Inc.		8,208		1,113,661
Sunstone Hotel Investors, Inc.		122,349		997,144
UDR, Inc.		86,492		3,233,071
Ventas, Inc.		82,528		3,022,175
VEREIT, Inc.		370,587		2,382,874
VICI Properties, Inc.		142,186		2,870,735
Weyerhaeuser Co.		34,699		779,341
				65,898,743
Total Common Stocks & Other Equity Interests (Cost $135,487,090)				134,246,191
Money Market Funds–0.86%
Invesco Government & Agency Portfolio, Institutional Class, 0.09%(d)(e)		361,289		361,289
Invesco Liquid Assets Portfolio, Institutional Class, 0.39%(d)(e)		401,879		402,160
Invesco Treasury Portfolio, Institutional Class, 0.08%(d)(e)		412,901		412,901
Total Money Market Funds (Cost $1,176,351)				1,176,350
TOTAL INVESTMENTS IN SECURITIES—98.98% (Cost $136,663,441)				135,422,541
OTHER ASSETS LESS LIABILITIES–1.02%				1,394,114
NET ASSETS–100.00%			$	136,816,655

Investment Abbreviations:

REIT - Real Estate Investment Trust

Notes to Schedule of Investments:

^(a)  Security purchased or received in a transaction exempt from registration under the Securities Act of 1933, as amended (the “1933 Act”). The security may be resold pursuant to an exemption from registration under the 1933 Act, typically to qualified institutional buyers. The aggregate value of these securities at June 30, 2020 was $2,209,043, which represented 1.61% of the Fund’s Net Assets.

^(b)  Non-income producing security.

^(c)  Security valued using significant unobservable inputs (Level 3). See Note 3.

^(d)  Affiliated issuer. The issuer and/or the Fund is a wholly-owned subsidiary of Invesco Ltd., or is affiliated by having an investment adviser that is under common control of Invesco Ltd. The table below shows the Fund’s transactions in, and earnings from, its investments in affiliates for the six months ended June 30, 2020.

	Value December 31, 2019			Purchases at Cost			Proceeds from Sales				Change in Unrealized Appreciation			Realized Gain			Value June 30, 2020			Dividend Income
Investments in Affiliated Money Market Funds:
Invesco Government & Agency Portfolio, Institutional Class		$	857,646		$	7,326,247		$	(7,822,604	)		$	-		$	-		$	361,289		$	2,369
Invesco Liquid Assets Portfolio, Institutional Class			618,970			5,280,335			(5,497,816	)			9			662			402,160			2,271
Invesco Treasury Portfolio, Institutional Class			980,167			8,372,854			(8,940,120	)			-			-			412,901			2,554
Total		$	2,456,783		$	20,979,436		$	(22,260,540	)		$	9		$	662		$	1,176,350		$	7,194

^(e)  The rate shown is the 7-day SEC standardized yield as of June 30, 2020.

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, 2020

United States	48.17%
Japan	10.33
China	6.85
Germany	6.29
Hong Kong	5.43
United Kingdom	3.38
Australia	3.38
Canada	3.31
Singapore	2.40
Countries each less than 2% of portfolio	8.58
Money Market Funds Plus Other Assets Less Liabilities	1.88

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, 2020

(Unaudited)

Assets:
Investments in securities, at value (Cost $135,487,090)	$	134,246,191
Investments in affiliated money market funds, at value (Cost $1,176,351)		1,176,350
Foreign currencies, at value (Cost $272,424)		270,368
Receivable for:
Investments sold		573,540
Fund shares sold		85,456
Dividends		788,921
Investment for trustee deferred compensation and retirement plans		69,010
Other assets		22,383
Total assets		137,232,219
Liabilities:
Payable for:
Investments purchased		55,637
Fund shares reacquired		102,818
Accrued foreign taxes		21,156
Accrued fees to affiliates		62,487
Accrued trustees’ and officers’ fees and benefits		1,827
Accrued other operating expenses		94,338
Trustee deferred compensation and retirement plans		77,301
Total liabilities		415,564
Net assets applicable to shares outstanding	$	136,816,655
Net assets consist of:
Shares of beneficial interest	$	145,910,459
Distributable earnings (loss)		(9,093,804	)
	$	136,816,655
Net Assets:
Series I	$	113,683,326
Series II	$	23,133,329
Shares outstanding, no par value, with an unlimited number of shares authorized:
Series I		7,881,207
Series II		1,645,496
Series I:
Net asset value per share	$	14.42
Series II:
Net asset value per share	$	14.06

Statement of Operations

For the six months ended June 30, 2020

(Unaudited)

Investment income:
Dividends (net of foreign withholding taxes of $109,357)	$	2,223,887
Dividends from affiliated money market funds		7,194
Total investment income		2,231,081
Expenses:
Advisory fees		573,244
Administrative services fees		129,068
Custodian fees		39,318
Distribution fees - Series II		38,412
Transfer agent fees		16,731
Trustees’ and officers’ fees and benefits		8,359
Reports to shareholders		4,168
Professional services fees		15,784
Other		(7,178	)
Total expenses		817,906
Less: Fees waived		(1,051	)
Net expenses		816,855
Net investment income		1,414,226
Realized and unrealized gain (loss) from:
Net realized gain (loss) from:
Investment securities (net of foreign taxes of $3,125)		(15,221,986	)
Foreign currencies		(26,665	)
		(15,248,651	)
Change in net unrealized appreciation (depreciation) of:
Investment securities (net of foreign taxes of $16,163)		(25,074,605	)
Foreign currencies		(5,066	)
		(25,079,671	)
Net realized and unrealized gain (loss)		(40,328,322	)
Net increase (decrease) in net assets resulting from operations	$	(38,914,096	)

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, 2020 and the year ended December 31, 2019

(Unaudited)

	June 30, 2020			December 31, 2019
Operations:
Net investment income	$	1,414,226		$	4,028,715
Net realized gain (loss)		(15,248,651	)		6,503,530
Change in net unrealized appreciation (depreciation)		(25,079,671	)		25,179,767
Net increase (decrease) in net assets resulting from operations		(38,914,096	)		35,712,012
Distributions to shareholders from distributable earnings:
Series I		–			(6,628,755	)
Series II		–			(1,565,707	)
Total distributions from distributable earnings		–			(8,194,462	)
Share transactions–net:
Series I		(6,824,326	)		3,645,528
Series II		(12,932,600	)		12,709,777
Net increase (decrease) in net assets resulting from share transactions		(19,756,926	)		16,355,305
Net increase (decrease) in net assets		(58,671,022	)		43,872,855
Net assets:
Beginning of period		195,487,677			151,614,822
End of period	$	136,816,655		$	195,487,677

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

Invesco V.I. Global Real Estate Fund

Financial Highlights

(Unaudited)

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

	Net asset value, beginning of period		Net investment income(a)			Net gains (losses) on securities (both realized and unrealized)			Total from investment operations			Dividends from net investment income			Distributions from net realized gains			Total distributions			Net asset value, end of period		Total return (b)			Net assets, end of period (000’s omitted)		Ratio of expenses to average net assets with fee waivers and/or expenses absorbed			Ratio of expenses to average net assets without fee waivers and/or expenses absorbed			Ratio of net investment income to average net assets			Portfolio turnover (c)
Series I
Six months ended 06/30/20		$18.22		$0.15			$(3.95)			$(3.80)			$       -			$       -			$       -			$14.42		(20.86	)%		$113,683		1.02	%(d)		1.02	%(d)		1.90	%(d)		73	%
Year ended 12/31/19		15.52		0.39			3.15			3.54			(0.82	)		(0.02	)		(0.84	)		18.22		23.00			150,255		1.04			1.04			2.22			61
Year ended 12/31/18		17.38		0.40			(1.41	)		(1.01	)		(0.65	)		(0.20	)		(0.85	)		15.52		(6.10	)		124,816		1.01			1.01			2.38			57
Year ended 12/31/17		16.15		0.45	(e)		1.62			2.07			(0.56	)		(0.28	)		(0.84	)		17.38		12.98			158,229		1.02			1.02			2.63	(e)		50
Year ended 12/31/16		16.36		0.30			0.08			0.38			(0.27	)		(0.32	)		(0.59	)		16.15		2.04			147,382		1.05			1.05			1.81			66
Year ended 12/31/15		17.24		0.31			(0.59	)		(0.28	)		(0.60	)		-			(0.60	)		16.36		(1.48	)		208,796		1.11			1.11			1.79			72
Series II
Six months ended 06/30/20		17.78		0.13			(3.85	)		(3.72	)		-			-			-			14.06		(20.92	)		23,133		1.27	(d)		1.27	(d)		1.65	(d)		73
Year ended 12/31/19		15.03		0.34			3.04			3.38			(0.61	)		(0.02	)		(0.63	)		17.78		22.65			45,233		1.29			1.29			1.97			61
Year ended 12/31/18		16.86		0.34			(1.35	)		(1.01	)		(0.62	)		(0.20	)		(0.82	)		15.03		(6.33	)		26,799		1.26			1.26			2.13			57
Year ended 12/31/17		15.69		0.39	(e)		1.58			1.97			(0.52	)		(0.28	)		(0.80	)		16.86		12.73			260,083		1.27			1.27			2.38	(e)		50
Year ended 12/31/16		15.91		0.25			0.08			0.33			(0.23	)		(0.32	)		(0.55	)		15.69		1.82			216,893		1.30			1.30			1.56			66
Year ended 12/31/15		16.79		0.26			(0.58	)		(0.32	)		(0.56	)		-			(0.56	)		15.91		(1.74	)		208,000		1.36			1.36			1.54			72

^(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 $122,823 and $30,882 for Series I and Series II shares, respectively.

^(e)  Net investment income per share and the ratio of net investment income to average net assets includes significant dividends received during the period. Net investment income per share and the ratio of net investment income to average net assets excluding the significant dividends are $0.38 and 2.18%, $0.32 and 1.93% for Series I and Series II shares, respectively.

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

Invesco V.I. Global Real Estate Fund

Notes to Financial Statements

June 30, 2020

(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. Information presented in these financial statements pertains only to the Fund. Matters affecting the Fund or each class will be voted on exclusively by the shareholders of the Fund or each class. 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 Fund is an investment company and accordingly follows the investment company accounting and reporting guidance in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 946, Financial Services - Investment Companies.

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

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

A security listed or traded on an exchange (except convertible securities) is valued at its last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded, or lacking any sales or official closing price on a particular day, the security may be valued at the closing bid price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued by an independent pricing service they may be considered fair valued. Futures contracts are valued at the final settlement price set by an exchange on which they are principally traded. Listed options are valued at the mean between the last bid and asked 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 asked prices. For purposes of determining net asset value (“NAV”) per share, futures and option contracts generally are valued 15 minutes after the close of the customary trading session of the New York Stock Exchange (“NYSE”).

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

Debt obligations (including convertible securities) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. Pricing services generally value debt obligations assuming orderly transactions of institutional round lot size, but a fund may hold or transact in the same securities in smaller, odd lot sizes. Odd lots often trade at lower prices than institutional round lots. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.

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

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

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

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

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

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

Invesco V.I. Global Real Estate Fund

share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and the Statement of Changes in Net Assets, or the net investment income per share and the ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.

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

The Fund recharacterizes distributions received from REIT investments based on information provided by the REIT into the following categories: ordinary income, long-term and short-term capital gains, and return of capital. If information is not available on a timely basis from the REIT, the recharacterization will be based on available information which may include the previous year’s allocation. If new or additional information becomes available from the REIT at a later date, a recharacterization will be made in the following year. The Fund records as dividend income the amount recharacterized as ordinary income and as realized gain the amount recharacterized as capital gain in the Statement of Operations, and the amount recharacterized as return of capital as a reduction of the cost of the related investment. These recharacterizations are reflected in the accompanying financial statements.

C. Country Determination – For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues 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 net investment income and net realized capital gain, if any, are generally declared and paid to separate accounts of participating insurance companies annually and recorded on the ex-dividend date.

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

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

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

F. Expenses – Fees provided for under the Rule 12b-1 plan of a particular class of the Fund and which are directly attributable to that class are charged to the operations of such class. All other expenses are allocated among the classes based on relative net assets.

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

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

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

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

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

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

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

K. Other Risks - The Fund’s investments are concentrated in a comparatively narrow segment of the economy. Consequently, the Fund may tend to be more volatile than other mutual funds, and the value of the Fund’s investments may tend to rise and fall more rapidly. Because the Fund concentrates its assets in the real

Invesco V.I. Global Real Estate Fund

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.

NOTE 2–Advisory Fees and Other Fees Paid to Affiliates

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

Average Daily Net Assets	Rate
First $ 250 million		0.750%
Next $250 million		0.740%
Next $500 million		0.730%
Next $1.5 billion		0.720%
Next $2.5 billion		0.710%
Next $2.5 billion		0.700%
Next $2.5 billion		0.690%
Over $10 billion		0.680%

For the six months ended June 30, 2020, the effective advisory fee rate incurred by the Fund was 0.75%.

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

The Adviser has contractually agreed, through at least June 30, 2021, 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 2.00% and Series II shares to 2.25% of average daily net assets (the “expense limits”). In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause the total annual fund operating expenses after fee waiver and/or expense reimbursement to exceed the numbers reflected above: (1) interest; (2) taxes; (3) dividend expense on short sales; (4) extraordinary or non-routine items, including litigation expenses; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Unless Invesco continues the fee waiver agreement, it will terminate on June 30, 2021. During its term, the fee waiver agreement cannot be terminated or amended to increase the expense limits or reduce the advisory fee waiver without approval of the Board of Trustees. The Adviser did not waive fees and/or reimburse expenses during the period under these expense limits.

Further, the Adviser has contractually agreed, through at least June 30, 2022, 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, 2020, the Adviser waived advisory fees of $1,051.

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 fees paid to insurance companies that have agreed to provide certain administrative services to the Fund. These administrative services provided by the insurance companies may include, among other things: maintenance of master accounts with the Fund; tracking, recording and transmitting net purchase and redemption orders for Fund shares; maintaining and preserving records related to the purchase, redemption and other account activity of variable product owners; distributing copies of Fund documents such as prospectuses, proxy materials and periodic reports, to variable product owners, and responding to inquiries from variable product owners about the Fund. Pursuant to such agreement, for the six months ended June 30, 2020, Invesco was paid $14,387 for accounting and fund administrative services and was reimbursed $114,681 for fees paid to insurance companies. Invesco has entered into a sub-administration agreement whereby State Street Bank and Trust Company (“SSB”) serves as fund accountant and provides certain administrative services to the Fund. Pursuant to a custody agreement with the Trust on behalf of the Fund, SSB also serves as the Fund’s custodian.

The Trust has entered into a transfer agency and service agreement with Invesco Investment Services, Inc. (“IIS”) pursuant to which the Fund has agreed to pay IIS a fee for providing transfer agency and shareholder services to the Fund and reimburse IIS for certain expenses incurred by IIS in the course of providing such services. For the six months ended June 30, 2020, 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. The fees are accrued daily and paid monthly. 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, 2020, 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, 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. Global Real Estate Fund

The following is a summary of the tiered valuation input levels, as of June 30, 2020. The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

	Level 1		Level 2		Level 3		Total
Investments in Securities
Australia	$	–	$	4,621,948		$ –	$	4,621,948
Belgium		–		1,332,473		–		1,332,473
Brazil		558,430		–		–		558,430
Canada		4,534,319		–		–		4,534,319
China		–		9,372,255		–		9,372,255
France		1,156,907		1,090,246		–		2,247,153
Germany		–		8,600,557		–		8,600,557
Hong Kong		–		7,435,662		–		7,435,662
India		–		106,197		–		106,197
Indonesia		–		307,783		–		307,783
Japan		–		14,139,622		–		14,139,622
Malta		–		–		0		0
Mexico		430,038		–		–		430,038
Philippines		3,911		1,264,966		–		1,268,877
Singapore		–		3,280,370		–		3,280,370
South Africa		–		334,631		–		334,631
Spain		–		1,761,465		–		1,761,465
Sweden		–		2,346,514		–		2,346,514
Thailand		1,041,588		–		–		1,041,588
United Kingdom		–		4,627,566		–		4,627,566
United States		65,898,743		–		–		65,898,743
Money Market Funds		1,176,350		–		–		1,176,350
Total Investments	$	74,800,286	$	60,622,255		$0	$	135,422,541

NOTE 4–Trustees’ and Officers’ Fees and Benefits

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

NOTE 5–Cash Balances

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

NOTE 6–Tax Information

The amount and character of income and gains to be distributed are determined in accordance with income tax regulations, which may differ from GAAP.

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

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

The Fund did not have a capital loss carryforward as of December 31, 2019.

NOTE 7–Investment Transactions

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, 2020 was $112,081,536 and $129,397,552, respectively. Cost of investments, including any derivatives, on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end.

Unrealized Appreciation (Depreciation) of Investments on a Tax Basis
Aggregate unrealized appreciation of investments	$	10,548,905
Aggregate unrealized (depreciation) of investments		(16,795,401	)
Net unrealized appreciation (depreciation) of investments	$	(6,246,496	)

Cost of investments for tax purposes is $141,669,037.

Invesco V.I. Global Real Estate Fund

NOTE 8–Share Information

	Summary of Share Activity
	Six months ended         June 30, 2020(a)						Year ended         December 31, 2019
	Shares			Amount			Shares			Amount
Sold:
Series I		1,335,585		$	19,353,069			1,903,457		$	33,607,781
Series II		167,818			2,481,977			1,239,958			20,535,447
Issued as reinvestment of dividends:
Series I		-			-			375,567			6,628,755
Series II		-			-			90,818			1,565,707
Reacquired:
Series I		(1,702,718	)		(26,177,395	)		(2,070,856	)		(36,591,008	)
Series II		(1,066,983	)		(15,414,577	)		(569,384	)		(9,391,377	)
Net increase (decrease) in share activity		(1,266,298	)	$	(19,756,926	)		969,560		$	16,355,305

^(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 Fund has no knowledge as to whether all or any portion of the shares owned of record by these entities are also owned beneficially.

NOTE 9–Coronavirus (COVID-19) Pandemic

During the first quarter of 2020, the World Health Organization declared COVID-19 to be a public health emergency. COVID-19 has led to increased short-term market volatility and may have adverse long-term effects on U.S. and world economies and markets in general. COVID-19 may adversely impact the Fund’s ability to achieve its investment objective. Because of the uncertainties on valuation, the global economy and business operations, values reflected in these financial statements may materially differ from the value received upon actual sales of those investments.

The extent of the impact on the performance of the Fund and its investments will depend on future developments, including the duration and spread of the COVID-19 outbreak, related restrictions and advisories, and the effects on the financial markets and economy overall, all of which are highly uncertain and cannot be predicted.

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, 2020 through June 30, 2020.

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.

	Beginning Account Value (01/01/20)	ACTUAL		HYPOTHETICAL (5% annual return before expenses)		Annualized Expense Ratio
		Ending Account Value (06/30/20)1	Expenses Paid During Period2	Ending Account Value (06/30/20)	Expenses Paid During Period2
Series I	$1,000.00	$791.40	$4.54	$1,019.79	$5.12	1.02%
Series II	1,000.00	790.80	5.65	1,018.55	6.37	1.27

¹  The actual ending account value is based on the actual total return of the Fund for the period January 1, 2020 through June 30, 2020, 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 182/366 to reflect the most recent fiscal half year.

Invesco V.I. Global Real Estate Fund

Approval of Investment Advisory and Sub-Advisory Contracts

At meetings held on June 3, 2020, the Board of Trustees (the Board or the Trustees) of AIM Variable Insurance Funds (Invesco Variable Insurance Funds) as a whole, and the independent Trustees, who comprise over 75% of the Board, voting separately, approved the continuance of the Invesco V.I. Global Real Estate Fund’s (the Fund) Master Investment Advisory Agreement with Invesco Advisers, Inc. (Invesco Advisers and the investment advisory agreement) and the Master Intergroup Sub-Advisory Contract for Mutual Funds with Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Canada Ltd. and separate sub-advisory contracts with Invesco Capital Management LLC and Invesco Asset Management (India) Private Limited (collectively, the Affiliated Sub-Advisers and the sub-advisory contracts) for another year, effective July 1, 2020. After evaluating the factors discussed below, among others, the Board approved the renewal of the Fund’s investment advisory agreement and the sub-advisory contracts and determined that the compensation payable thereunder by the Fund to Invesco Advisers and by Invesco Advisers to the Affiliated Sub-Advisers is fair and reasonable.

The Board’s Evaluation Process

The Board’s Investments Committee has established Sub-Committees, which meet throughout the year to review the performance of funds advised by Invesco Advisers (the Invesco Funds). The Sub-Committees meet regularly with portfolio managers for their assigned Invesco Funds and other members of management to review detailed information about investment performance and portfolio attributes of these funds. The Board took into account evaluations and reports that it received from the Investments Committee and Sub-Committees, as well as the information provided to such committees and the Board throughout the year, in considering whether to approve each Invesco Fund’s investment advisory agreement and sub-advisory contracts.

As part of the contract renewal process, the Board reviews and considers information provided in response to detailed requests for information submitted to management by the independent Trustees with assistance from legal counsel to the independent Trustees. The Board receives comparative investment performance and fee data regarding the Invesco Funds prepared by Invesco Advisers and Broadridge Financial Solutions, Inc. (Broadridge), an independent mutual fund data provider, as well as information on the composition of the peer groups provided by Broadridge and its methodology for determining peer groups. The Board also receives an independent written evaluation from the Senior Officer, an officer of the Invesco Funds who reports directly to the independent Trustees. 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. In addition to meetings with Invesco Advisers and fund counsel throughout the year, the independent Trustees also

discuss the continuance of the investment advisory agreement and sub-advisory contracts in separate sessions with the Senior Officer and with independent legal counsel.

The discussion below is a summary of 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. The Trustees’ review and conclusions are based on the comprehensive consideration of all information presented to them during the course of the year and in prior years and are not the result of any single determinative factor. Moreover, one Trustee may have weighed a particular piece of information or factor differently than another Trustee. This information is current as of June 3, 2020.

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 nature, extent and quality of the advisory services provided to the Fund by Invesco Advisers under the Fund’s investment advisory agreement, and the credentials and experience of the officers and employees of Invesco Advisers who provide these services, including the Fund’s portfolio manager(s). The Board’s review included consideration of Invesco Advisers’ investment process oversight and structure, credit analysis, investment risk management and research capabilities. The Board also considered non-advisory services that Invesco Advisers and its affiliates provide to the Invesco Funds, such as various back office support functions, third party oversight, internal audit, valuation, portfolio trading and legal and compliance. The Board also received and reviewed information about Invesco Advisers’ role as administrator of the Invesco Funds’ liquidity risk management program. The Board reviewed and considered the benefits to shareholders of investing in a Fund that is part of the Invesco family of funds under the umbrella of Invesco Ltd., Invesco Advisers’ parent company, and noted Invesco Ltd.’s depth and experience in conducting an investment management business, as well as its commitment of financial and other resources to such business. The Board also reviewed and considered information regarding the benefits to the Fund resulting from Invesco Ltd.’s acquisition of OppenheimerFunds, Inc. and its subsidiaries (the Transaction) and the resources that Invesco Advisers has committed to managing the Invesco family of funds following the Transaction. The Board concluded that the nature, extent and quality of the services provided to the Fund by Invesco Advisers are appropriate and satisfactory.

The Board reviewed the services that may be 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 the Affiliated Sub-Advisers’ expertise with respect to certain asset classes and that the Affiliated Sub-Advisers have offices and personnel that are located in financial centers around the world.

As a result, the Board noted that the Affiliated Sub-Advisers can provide research and investment analysis on the markets and economies of various countries in which the Fund may invest, make recommendations regarding securities and assist with security trades. The Board concluded that the sub-advisory contracts may 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 that may be provided by the Affiliated Sub-Advisers are appropriate and satisfactory.

B. Fund Investment Performance

The Board considered Fund investment 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 compared the Fund’s investment performance over multiple time periods ending December 31, 2019 to the performance of funds in the Broadridge performance universe and against the Custom Invesco Global Real Estate Index. The Board noted that performance of Series I shares of the Fund was in the third quintile of its 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 reasonably comparable to the performance of the Index for the one and three year periods and below the performance of the Index for the five year period. The Board recognized that the performance data reflects a snapshot in time as of a particular date and that selecting a different performance period could produce different results. The Board also reviewed more recent Fund performance as well as other performance metrics and this review did not change their conclusions.

C. Advisory and Sub-Advisory Fees and Fund Expenses

The Board compared the Fund’s contractual management fee rate to the contractual management fee rates of funds in the Fund’s Broadridge expense group. The Board noted that the contractual management fee rate for Series I shares of the Fund was below the median contractual management fee rate of funds in its expense group. The Board noted that the term “contractual management fee” for funds in the expense group may include both advisory and certain non-portfolio management administrative services fees, but that Broadridge does not provide information on a fund by fund basis as to what is included. The Board also reviewed the methodology used by Broadridge in providing expense group information, which includes using each fund’s contractual management fee schedule (including any applicable breakpoints) as reported in the most recent prospectus or statement of additional information for each fund in the expense group. The Board also considered comparative information regarding the Fund’s total expense ratio and its various components.

Invesco V.I. Global Real Estate Fund

The Board noted that Invesco Advisers has contractually agreed to waive fees and/or limit expenses of the Fund for the term disclosed in the Fund’s registration statement 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 fees charged by Invesco Advisers and the Affiliated Sub-Advisers to other similarly managed client accounts. Invesco Advisers reviewed with the Board differences in the scope of services it provides to the Invesco Funds relative to certain other types of client accounts, including, among others: management of cash flows as a result of redemptions and purchases; necessary infrastructure such as officers, office space, technology, legal and distribution; oversight of service providers; costs and business risks associated with launching new funds and sponsoring and maintaining the product line; and compliance with federal and state laws and regulations.

The Board also compared the Fund’s effective advisory fee rate (the advisory fee rate after advisory fee waivers and before other expense limitations/ waivers) to the effective advisory fee rates of other similarly managed third-party mutual funds advised or sub-advised by Invesco Advisers and its affiliates, based on asset balances as of December 31, 2019.

The Board also considered the services that may be provided by the Affiliated Sub-Advisers pursuant to the sub-advisory contracts, as well as the fees payable by Invesco Advisers to the Affiliated Sub-Advisers pursuant to the sub-advisory contracts. The Board noted that Invesco Advisers retains overall responsibility for, and provides services to, sub-advised Invesco Funds, including oversight of the Affiliated Sub-Advisers as well as the additional services described herein other than day-to-day portfolio management.

D. Economies of Scale and Breakpoints

The Board considered the extent to which there may be economies of scale in the provision of advisory services to the Fund. The Board also considered that the Fund may benefit from economies of scale through contractual breakpoints in the Fund’s advisory fee schedule, which generally operate to reduce the Fund’s expense ratio as it grows in size. The Board 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. The Board noted that the Fund may also benefit from economies of scale through initial fee setting, fee waivers and expense reimbursements. The Board also considered Invesco’s reinvestment in its business, including investments in business infrastructure, technology and cybersecurity.

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 Invesco Funds and the profitability of Invesco Advisers and its affiliates in providing these services in the aggregate and on an individual Fund-by-Fund basis. The Board considered the methodology used for calculating profitability and noted the periodic review and enhancement of such methodology. The Board noted that Invesco Advisers continues to operate at a net profit from services Invesco Advisers and its affiliates provide to the Invesco Funds in the aggregate and to certain Funds on an individual fund level. The Board did not deem

the level of profits realized by Invesco Advisers and its affiliates from providing such services to be excessive given the nature, extent and quality of the services provided. The Board received information from Invesco Advisers demonstrating that Invesco Advisers and the Affiliated Sub-Advisers are financially sound and have the resources necessary to perform their obligations under the investment advisory agreement and sub-advisory contracts.

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 providing administrative, transfer agency and distribution services to the Fund. The Board considered comparative information regarding fees charged for these services, including information provided by Broadridge and other independent sources. 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; and that the services are required for the operation of the Fund.

The Board considered the benefits realized by Invesco Advisers and the Affiliated Sub-Advisers as a result of portfolio brokerage transactions executed through “soft dollar” arrangements. The Board noted that soft dollar arrangements may result in the Fund bearing costs to purchase research that may be used by Invesco Advisers or the Affiliated Sub-Advisers with other clients and may reduce Invesco Advisers’ or the Affiliated Sub-Advisers’ expenses. The Board also considered that it receives periodic reports from Invesco representing that these arrangements are consistent with regulatory requirements. The Board did not deem the soft dollar arrangements to be inappropriate.

The Board considered that the Fund’s uninvested cash and cash collateral from any securities lending arrangements may be invested in registered money market funds or, with regard to securities lending cash collateral, unregistered funds that comply with Rule 2a-7 (collectively referred to as “affiliated money market funds”) advised by Invesco Advisers pursuant to procedures approved by the Board. The Board considered information regarding the returns of the affiliated money market funds relative to comparable overnight investments, as well as the costs to the Fund of such investments. 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 with respect to certain investments in the affiliated money market 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 amount of advisory fees received by Invesco Advisers from the Fund’s investment of cash collateral from any securities lending arrangements in the affiliated money market funds is fair and reasonable.

The Board also considered that an affiliated broker may receive commissions for executing certain trades

for the Fund. Invesco Advisers and the Affiliated Sub-Advisers may use the affiliated broker to, among other things, control order routing and minimize information leakage, and the Board was advised that such trades are executed in compliance with rules under the federal securities laws and consistent with best execution obligations.

Invesco V.I. Global Real Estate Fund

	Semiannual Report to Shareholders	June 30, 2020
	Invesco V.I. Government Money Market Fund

Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, the insurance company that offers your variable annuity or variable life insurance contract may no longer send you paper copies of the Fund’s shareholder reports by mail, unless you specifically request paper copies of the reports from the insurance company or your financial intermediary. Instead of delivering paper copies of the report, the insurance company may choose to make the reports available on a website, and will notify you by mail each time a report is posted and provide you with a website link to access the report. Instructions for requesting paper copies will be provided by your insurance company.

    If the insurance company offers electronic delivery, you may elect to receive shareholder reports and other communications about the Fund electronically by following the instructions provided by the insurance company or by contacting your financial intermediary. If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action.

    You may elect to receive all future reports in paper free of charge from the insurance company. You can inform the insurance company or your financial intermediary that you wish to continue receiving paper copies of your shareholder reports by following the instructions provided by the insurance company or by contacting your financial intermediary. Your election to receive reports in paper will apply to all portfolio companies available under your contract with the insurance company.

The Fund provides a complete list of its holdings in various monthly and quarterly regulatory filings. The Fund files a complete schedule of portfolio holdings with the Securities and Exchange Commission (SEC) monthly on Form N-MFP. For the second and fourth quarters, the list appears in the Fund’s semiannual and annual reports to shareholders. The Fund’s Form N-MFP filings are available on the SEC website, 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-MFP, 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 most recent 12-month period ended June 30 is available at invesco.com/proxysearch. The information is also available on the SEC website, sec.gov.

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

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.

NOT FDC INSURED   |   MAY LOSE VALUE   |   NO BANK GUARANTEE
Invesco Distributors, Inc.	VIGMKT-SAR-1

About your Fund

Invesco V.I. Government 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 at the Fund level, excluding variable product charges, is available at 800 451 4246. As mentioned above, for the most recent monthend performance including variable product charges, please contact your variable product issuer or financial adviser.

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

You could lose money by investing in the Fund. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. An investment in the Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The Fund’s sponsor has no legal obligation to provide financial support to the Fund, and you should not expect that the sponsor will provide financial support to the Fund at any time.

    The Fund is subject to certain other risks. Please see the current prospectus for more information regarding the risks associated with an investment in the Fund.

Invesco V.I. Government Money Market Fund

Schedule of Investments

June 30, 2020

(Unaudited)

	Interest Rate			Maturity Date		Principal Amount (000)		Value
U.S. Treasury Securities-39.55%
U.S. Treasury Bills-20.22%(a)
U.S. Treasury Bills		0.15	%		08/04/2020	$	16,468	$	16,465,745
U.S. Treasury Bills		1.78	%		08/13/2020		5,000		4,989,549
U.S. Treasury Bills		1.02	%		09/03/2020		20,000		19,964,089
U.S. Treasury Bills		0.20	%		09/10/2020		5,000		4,998,008
U.S. Treasury Bills		0.18	%		09/17/2020		10,000		9,996,208
U.S. Treasury Bills		0.17	%		10/01/2020		5,000		4,997,892
U.S. Treasury Bills		0.16	%		10/08/2020		5,000		4,997,800
U.S. Treasury Bills		0.18	%		10/15/2020		5,000		4,997,350
U.S. Treasury Bills		0.15	%		10/27/2020		10,000		9,995,083
U.S. Treasury Bills		0.15	%		10/29/2020		45,000		44,976,944
U.S. Treasury Bills		0.16	%		11/12/2020		10,000		9,994,230
U.S. Treasury Bills		0.15	%		11/19/2020		10,000		9,994,125
U.S. Treasury Bills		0.19	%		11/24/2020		5,000		4,996,249
U.S. Treasury Bills		0.16	%		11/27/2020		5,000		4,996,689
U.S. Treasury Bills		0.18	%		12/10/2020		5,000		4,995,894
U.S. Treasury Bills		1.47	%		12/31/2020		15,000		14,954,740
U.S. Treasury Bills		0.18	%		05/20/2021		5,000		4,992,149
									181,302,744
U.S. Treasury Notes-19.33%
U.S. Treasury Floating Rate Notes (3 mo. U.S. Treasury Bill Money Market Yield Rate + 0.04%)(b)		0.19	%		07/31/2020		2,000		1,999,988
U.S. Treasury Floating Rate Notes (3 mo. U.S. Treasury Bill Money Market Yield Rate + 0.05%)(b)		0.20	%		10/31/2020		38,000		37,999,637
U.S. Treasury Floating Rate Notes (3 mo. U.S. Treasury Bill Money Market Yield Rate + 0.12%)(b)		0.27	%		01/31/2021		14,000		13,997,025
U.S. Treasury Floating Rate Notes (3 mo. U.S. Treasury Bill Money Market Yield Rate + 0.14%)(b)		0.29	%		04/30/2021		13,000		13,000,370
U.S. Treasury Floating Rate Notes (3 mo. U.S. Treasury Bill Money Market Yield Rate + 0.22%)(b)		0.37	%		07/31/2021		3,000		3,002,429
U.S. Treasury Floating Rate Notes (3 mo. U.S. Treasury Bill Money Market Yield Rate + 0.30%)(b)		0.45	%		10/31/2021		7,000		7,022,596
U.S. Treasury Floating Rate Notes (3 mo. U.S. Treasury Bill Money Market Yield Rate + 0.15%)(b)		0.30	%		01/31/2022		7,000		6,998,756
U.S. Treasury Notes		1.63	%		07/31/2020		15,000		15,014,188
U.S. Treasury Notes		2.63	%		08/31/2020		10,000		10,020,350
U.S. Treasury Notes		1.38	%		09/15/2020		10,000		9,997,619
U.S. Treasury Notes		1.38	%		09/30/2020		7,000		7,006,014
U.S. Treasury Notes		2.75	%		09/30/2020		12,000		12,036,765
U.S. Treasury Notes		1.63	%		10/15/2020		20,000		20,034,810
U.S. Treasury Notes		2.50	%		12/31/2020		5,000		5,052,364
U.S. Treasury Notes		2.13	%		01/31/2021		5,000		5,051,520
U.S. Treasury Notes		3.63	%		02/15/2021		5,000		5,101,933
									173,336,364
Total U.S. Treasury Securities (Cost $354,639,108)									354,639,108
U.S. Government Sponsored Agency Securities-38.28%
Federal Farm Credit Bank (FFCB)-1.67%
Federal Farm Credit Bank(a)		0.25	%		09/01/2020		5,000		4,997,847
Federal Farm Credit Bank(a)		0.40	%		12/31/2020		5,000		4,989,833
Federal Farm Credit Bank Funding Corp. (1 mo. USD LIBOR - 0.06%)(b)		0.12	%		07/29/2020		5,000		4,999,954
									14,987,634
Federal Home Loan Bank (FHLB)-29.43%
Federal Home Loan Bank (1 mo. USD LIBOR - 0.07%)(b)		0.12	%		07/13/2020		10,000		10,000,000
Federal Home Loan Bank(a)		0.44	%		07/13/2020		4,000		3,999,413
Federal Home Loan Bank (SOFR + 0.08%)(b)		0.19	%		07/24/2020		3,000		3,000,000
Federal Home Loan Bank (SOFR + 0.16%)(b)		0.27	%		07/24/2020		55,000		55,000,000
Federal Home Loan Bank (1 mo. USD LIBOR - 0.06%)(b)		0.13	%		08/13/2020		5,000		5,000,000
Federal Home Loan Bank (SOFR + 0.02%)(b)		0.13	%		08/19/2020		5,000		5,000,000
Federal Home Loan Bank (SOFR + 0.09%)(b)		0.20	%		09/11/2020		5,000		5,000,000

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

Invesco V.I. Government Money Market Fund

	Interest Rate			Maturity Date		Principal Amount (000)		Value
Federal Home Loan Bank (FHLB)-(continued)
Federal Home Loan Bank (SOFR + 0.08%)(b)		0.19	%		09/22/2020	$	5,000	$	5,000,000
Federal Home Loan Bank (SOFR + 0.05%)(b)		0.16	%		09/28/2020		10,000		10,000,000
Federal Home Loan Bank (SOFR + 0.10%)(b)		0.21	%		10/19/2020		10,000		10,000,000
Federal Home Loan Bank (SOFR + 0.08%)(b)		0.19	%		10/23/2020		3,000		3,000,000
Federal Home Loan Bank (SOFR + 0.03%)(b)		0.14	%		11/06/2020		4,000		4,000,000
Federal Home Loan Bank(a)		0.52	%		11/09/2020		39,000		38,926,203
Federal Home Loan Bank(a)		0.16	%		11/13/2020		7,000		6,995,800
Federal Home Loan Bank (SOFR + 0.09%)(b)		0.20	%		12/04/2020		15,000		15,000,000
Federal Home Loan Bank (SOFR + 0.14%)(b)		0.25	%		01/08/2021		10,000		10,000,000
Federal Home Loan Bank (SOFR + 0.05%)(b)		0.16	%		01/22/2021		5,000		5,000,000
Federal Home Loan Bank (SOFR + 0.05%)(b)		0.16	%		01/28/2021		12,000		11,999,987
Federal Home Loan Bank (SOFR + 0.04%)(b)		0.15	%		02/09/2021		8,000		8,000,000
Federal Home Loan Bank		1.38	%		02/18/2021		3,000		3,016,907
Federal Home Loan Bank (SOFR + 0.07%)(b)		0.18	%		02/26/2021		5,000		5,000,000
Federal Home Loan Bank (SOFR + 0.13%)(b)		0.24	%		03/11/2021		5,000		5,000,000
Federal Home Loan Bank (SOFR + 0.11%)(b)		0.22	%		03/25/2021		5,000		5,000,000
Federal Home Loan Bank (SOFR + 0.17%)(b)		0.28	%		04/09/2021		5,000		5,000,000
Federal Home Loan Bank (3 mo. USD LIBOR - 0.11%)(b)		1.21	%		04/09/2021		5,000		5,000,000
Federal Home Loan Bank (3 mo. USD LIBOR - 0.11%)(b)		0.20	%		04/13/2021		3,000		3,000,000
Federal Home Loan Bank (3 mo. USD LIBOR - 0.14%)(b)		1.18	%		04/14/2021		3,000		3,000,000
Federal Home Loan Bank (3 mo. USD LIBOR - 0.14%)(b)		1.00	%		04/19/2021		3,000		3,000,000
Federal Home Loan Bank (SOFR + 0.08%)(b)		0.19	%		07/23/2021		2,000		2,000,000
Federal Home Loan Bank (SOFR + 0.14%)(b)		0.25	%		08/18/2021		5,000		5,000,000
Federal Home Loan Bank (SOFR + 0.17%)(b)		0.28	%		11/12/2021		3,000		3,000,000
Federal Home Loan Bank (SOFR + 0.15%)(b)		0.26	%		11/15/2021		2,000		2,000,000
									263,938,310
Federal Home Loan Mortgage Corp. (FHLMC)-2.25%
Federal Home Loan Mortgage Corp. (SOFR + 0.04%)(b)		0.15	%		09/10/2020		4,000		4,000,000
Federal Home Loan Mortgage Corp.		1.88	%		11/17/2020		8,162		8,183,161
Federal Home Loan Mortgage Corp. (SOFR + 0.03%)(b)		0.14	%		02/05/2021		3,000		3,000,000
Federal Home Loan Mortgage Corp. (SOFR + 0.03%)(b)		0.14	%		02/19/2021		3,000		3,000,000
Federal Home Loan Mortgage Corp. (SOFR + 0.12%)(b)		0.23	%		06/04/2021		2,000		2,000,000
									20,183,161
Federal National Mortgage Association (FNMA)-2.23%
Federal National Mortgage Association(a)		0.68	%		07/16/2020		2,000		1,999,433
Federal National Mortgage Association		1.50	%		07/30/2020		5,000		5,003,167
Federal National Mortgage Association (SOFR + 0.23%)(b)		0.34	%		07/06/2021		10,000		10,000,000
Federal National Mortgage Association (SOFR + 0.30%)(b)		0.41	%		01/07/2022		3,000		3,000,000
									20,002,600
U.S. International Development Finance Corp. (DFC)-2.70%
U.S. International Development Finance Corp. VRD Bonds (3 mo. U.S. Treasury Bill Rate)(c)		0.27	%		09/15/2020		5,000		5,000,000
U.S. International Development Finance Corp. VRD Bonds (3 mo. U.S. Treasury Bill Rate)(c)		0.27	%		06/15/2025		3,000		3,000,000
U.S. International Development Finance Corp. VRD Bonds (3 mo. U.S. Treasury Bill Rate)(c)		0.27	%		07/15/2025		272		271,833
U.S. International Development Finance Corp. VRD Bonds (3 mo. U.S. Treasury Bill Rate)(c)		0.27	%		02/15/2028		8,611		8,611,111
U.S. International Development Finance Corp. VRD Bonds (3 mo. U.S. Treasury Bill Rate)(c)		0.29	%		07/07/2040		7,288		7,288,448
									24,171,392
Total U.S. Government Sponsored Agency Securities (Cost $343,283,097)									343,283,097
TOTAL INVESTMENTS IN SECURITIES (excluding Repurchase Agreements)-77.83% (Cost $697,922,205)									697,922,205
						Repurchase Amount
Repurchase Agreements-27.50%(d)
BNP Paribas Securities Corp., joint term agreement dated 04/07/2020, aggregate maturing value of $2,355,706,500 (collateralized by U.S. Treasury obligations, domestic agency mortgage-backed securities and U.S. government sponsored agency obligations valued at $2,402,100,098; 0.00% - 9.00%; 08/15/2020 - 02/20/2069)(e)		0.12	%		07/06/2020		45,013,500		45,000,000

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

Invesco V.I. Government Money Market Fund

	Interest Rate			Maturity Date		Repurchase Amount		Value
CIBC World Markets Corp., joint term agreement dated 04/01/2020, aggregate maturing value of $500,150,000 (collateralized by U.S. Treasury obligations valued at $510,000,213; 0.13% - 3.63%; 11/30/2021 - 02/15/2049)(e)		0.12	%		07/01/2020	$	5,001,500	$	5,000,000
CIBC World Markets Corp., joint term agreement dated 04/29/2020, aggregate maturing value of $525,172,812 (collateralized by U.S. Treasury obligations and domestic agency mortgage-backed securities valued at $535,500,169; 0.00% - 6.00%; 02/15/2022 -03/20/2069)(e)		0.15	%		07/17/2020		15,004,938		15,000,000
Fixed Income Clearing Corp. - Bank of Nova Scotia, joint agreement dated 06/30/2020, aggregate maturing value of $50,000,125 (collateralized by U.S. Treasury obligations valued at $51,047,951; 1.75%; 03/31/2022)		0.09	%		07/01/2020		10,000,025		10,000,000
ING Financial Markets, LLC, joint term agreement dated 06/18/2020, aggregate maturing value of $300,045,333 (collateralized by domestic agency mortgage-backed securities valued at $306,000,000; 2.50% - 5.00%; 10/01/2028 - 06/01/2050)		0.17	%		07/20/2020		10,001,511		10,000,000
J.P. Morgan Securities LLC, joint agreement dated 06/30/2020, aggregate maturing value of $500,001,250 (collateralized by domestic agency mortgage-backed securities valued at $510,000,000; 0.00% - 7.00%; 12/01/2031 - 06/01/2050)		0.09	%		07/01/2020		33,178,407		33,178,324
J.P. Morgan Securities LLC, joint open agreement dated 03/27/2020 (collateralized by U.S. Treasury obligations valued at $867,000,532; 0.00% - 2.75%; 07/21/2020 -05/31/2025)(f)		0.08	%		-		-		5,000,000
J.P. Morgan Securities LLC, joint open agreement dated 05/02/2019 (collateralized by U.S. Treasury obligations and domestic agency mortgage-backed securities valued at $510,000,000; 0.00% - 7.50%; 09/22/2020 - 07/01/2050)(f)		0.09	%		-		-		12,000,000
J.P. Morgan Securities LLC, joint open agreement dated 05/15/2019 (collateralized by U.S. Treasury obligations and domestic agency mortgage-backed securities valued at $295,800,044; 2.00% - 6.00%; 07/31/2020 - 07/01/2050)(f)		0.13	%		-		-		5,000,000
J.P. Morgan Securities LLC, joint open agreement dated 10/15/2019 (collateralized by U.S. Treasury obligations and domestic agency mortgage-backed securities valued at $408,000,000; 0.00% - 7.30%; 11/25/2020 - 07/16/2062)(f)		0.10	%		-		-		10,000,000
Metropolitan Life Insurance Co., joint term agreement dated 06/25/2020, aggregate maturing value of $350,020,343 (collateralized by U.S. Treasury obligations valued at $359,184,560; 0.00% - 2.63%; 07/30/2020 - 05/15/2046)(e)		0.11	%		07/02/2020		15,000,777		15,000,456
Mitsubishi UFJ Trust & Banking Corp., joint term agreement dated 06/25/2020, aggregate maturing value of $1,048,772,432 (collateralized by U.S. Treasury obligations valued at $1,071,387,847; 2.00%; 04/30/2024)(e)		0.11	%		07/02/2020		31,463,173		31,462,500
RBC Capital Markets LLC, joint term agreement dated 06/30/2020, aggregate maturing value of $1,250,000,000 (collateralized by U.S. Treasury obligations, domestic agency and non-agency mortgage-backed securities, domestic and foreign non-agency asset-backed securities, U.S. government sponsored agency obligations, domestic commerical paper and foreign corporate obligations valued at $1,282,327,245; 0.00% - 10.75%; 07/02/2020 -11/20/2068)(b)(e)		0.14	%		08/31/2020		45,000,000		45,000,000
Societe Generale, joint open agreement dated 06/02/2020 (collateralized by U.S. Treasury obligations valued at $1,530,000,063; 0.00% - 8.75%; 07/02/2020 - 05/15/2050)(f)		0.01	%		-		-		5,000,000
Total Repurchase Agreements (Cost $246,641,280)									246,641,280
TOTAL INVESTMENTS IN SECURITIES(g)-105.33% (Cost $944,563,485)									944,563,485
OTHER ASSETS LESS LIABILITIES-(5.33)%									(47,823,035	)
NET ASSETS-100.00%								$	896,740,450

Investment Abbreviations:

LIBOR	-London Interbank Offered Rate
SOFR	-Secured Overnight Financing Rate
USD	-U.S. Dollar
VRD	-Variable Rate Demand

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)  Interest or dividend rate is redetermined periodically. Rate shown is the rate in effect on June 30, 2020.

^(c)  Demand security payable upon demand by the Fund at specified time intervals no greater than thirteen months. Interest rate is redetermined periodically by the issuer or agent based on current market conditions. Rate shown is the rate in effect on June 30, 2020.

^(d)  Principal amount equals value at period end. See Note 1I.

^(e)  The Fund may demand payment of the term repurchase agreement upon one to seven business days’ notice depending on the timing of the demand.

^(f)  Either party may terminate the agreement upon demand. Interest rates, principal amount and collateral are redetermined daily.

^(g)  Also represents cost for federal income tax purposes.

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

Invesco V.I. Government Money Market Fund

Portfolio Composition by Maturity*

In days, as of 06/30/2020

1-7	22.6	%
8-30	10.6
31-60	5.5
61-90	9.5
91-180	30.7
181+	21.1

* The number of days to maturity of each holding is determined in accordance with the provisions of Rule 2a-7 under the Investment Company Act of 1940.

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

Invesco V.I. Government Money Market Fund

Statement of Assets and Liabilities

June 30, 2020

(Unaudited)

Assets:
Investments in securities, excluding repurchase agreements, at value and cost	$	697,922,205
Repurchase agreements, at value and cost		246,641,280
Receivable for:
Fund shares sold		7,627,338
Interest		746,775
Investment for trustee deferred compensation and retirement plans		44,036
Total assets		952,981,634
Liabilities:
Payable for:
Investments purchased		54,968,602
Fund shares reacquired		790,867
Dividends		1,113
Accrued fees to affiliates		382,791
Accrued trustees’ and officers’ fees and benefits		9,486
Accrued operating expenses		35,407
Trustee deferred compensation and retirement plans		52,918
Total liabilities		56,241,184
Net assets applicable to shares outstanding	$	896,740,450
Net assets consist of:
Shares of beneficial interest	$	896,722,490
Distributable earnings		17,960
	$	896,740,450
Net Assets:
Series I	$	795,060,267
Series II	$	101,680,183
Shares outstanding, no par value, unlimited number of shares authorized:
Series I		795,032,911
Series II		101,676,717
Series I:
Net asset value and offering price per share	$	1.00
Series II:
Net asset value and offering price per share	$	1.00

Statement of Operations

For the six months ended June 30, 2020

(Unaudited)

Investment income:
Interest	$	3,706,380
Expenses:
Advisory fees		648,890
Administrative services fees		832,847
Custodian fees		3,819
Distribution fees - Series II		106,872
Transfer agent fees		9,123
Trustees’ and officers’ fees and benefits		12,058
Reports to shareholders		2,276
Professional services fees		13,547
Other		1,060
Total expenses		1,630,492
Less: Fees waived		(43,759	)
Net expenses		1,586,733
Net investment income		2,119,647
Net realized gain from investment securities		23,623
Net increase in net assets resulting from operations	$	2,143,270

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

Invesco V.I. Government Money Market Fund

Statement of Changes in Net Assets

For the six months ended June 30, 2020 and the year ended December 31, 2019

(Unaudited)

	June 30, 2020			December 31, 2019
Operations:
Net investment income	$	2,119,647		$	13,915,957
Net realized gain		23,623			10,478
Net increase in net assets resulting from operations		2,143,270			13,926,435
Distributions to shareholders from distributable earnings:
Series I		(1,970,129	)		(12,604,943	)
Series II		(149,518	)		(1,311,014	)
Total distributions from distributable earnings		(2,119,647	)		(13,915,957	)
Share transactions-net:
Series I		196,369,453			(302,240,128	)
Series II		29,699,781			(24,362,713	)
Net increase (decrease) in net assets resulting from share transactions		226,069,234			(326,602,841	)
Net increase (decrease) in net assets		226,092,857			(326,592,363	)
Net assets:
Beginning of period		670,647,593			997,239,956
End of period	$	896,740,450		$	670,647,593

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

Invesco V.I. Government Money Market Fund

Financial Highlights

June 30, 2020

(Unaudited)

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

	Net asset value, beginning of period		Net investment income(a)		Net gains (losses) on securities (realized)			Total from investment operations		Dividends from net investment income			Net asset value, end of period		Total return(b)			Net assets, end of period (000’s omitted)		Ratio of expenses to average net assets with fee waivers and/or expenses absorbed			Ratio of expenses to average net assets without fee waivers and/or expenses absorbed			Ratio of net investment income to average net assets
Series I
Six months ended 06/30/20		$1.00		$0.00		$ 0.00			$0.00		$(0.00)			$1.00		0.29	%		$795,060		0.35	%(c)		0.35	%(c)		0.51	%(c)
Year ended 12/31/19		1.00		0.02		0.00			0.02		(0.02	)		1.00		1.90			598,670		0.36			0.36			1.90
Year ended 12/31/18		1.00		0.02		(0.00	)		0.02		(0.02	)		1.00		1.55			900,901		0.36			0.36			1.55
Year ended 12/31/17		1.00		0.01		(0.00	)		0.01		(0.01	)		1.00		0.56			656,368		0.40			0.40			0.56
Year ended 12/31/16		1.00		0.00		0.00			0.00		(0.00	)		1.00		0.10			636,532		0.35			0.38			0.10
Year ended 12/31/15		1.00		0.00		0.00			0.00		(0.00	)		1.00		0.01			737,858		0.21			0.51			0.01
Series II
Six months ended 06/30/20		1.00		0.00		0.00			0.00		(0.00	)		1.00		0.21			101,680		0.50	(c)		0.60	(c)		0.36	(c)
Year ended 12/31/19		1.00		0.02		0.00			0.02		(0.02	)		1.00		1.64			71,978		0.61			0.61			1.65
Year ended 12/31/18		1.00		0.01		(0.00	)		0.01		(0.01	)		1.00		1.30			96,339		0.61			0.61			1.30
Year ended 12/31/17		1.00		0.00		(0.00	)		0.00		(0.00	)		1.00		0.31			85,541		0.65			0.65			0.31
Year ended 12/31/16		1.00		0.00		0.00			0.00		(0.00	)		1.00		0.03			97,362		0.43			0.63			0.02
Year ended 12/31/15		1.00		0.00		0.00			0.00		(0.00	)		1.00		0.01			23,940		0.21			0.76			0.01

(a) Calculated using average shares outstanding.

(b) Includes adjustments in accordance with accounting principles generally accepted in the United States of America. 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) Ratios are annualized and based on average daily net assets (000’s omitted) of $784,033 and $85,968 for Series I and Series II shares, respectively.

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

Invesco V.I. Government Money Market Fund

Notes to Financial Statements

June 30, 2020

(Unaudited)

NOTE 1–Significant Accounting Policies

Invesco V.I. Government 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. Information presented in these financial statements pertains only to the Fund. Matters affecting the Fund or each class will be voted on exclusively by the shareholders of the Fund or each class. 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 current income consistent with 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 Fund is an investment company and accordingly follows the investment company accounting and reporting guidance in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 946, Financial Services – Investment Companies.

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

A. Security Valuations - 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.

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

B. Securities Transactions and Investment Income - Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income (net of withholding tax, if any) is recorded on the accrual basis from settlement date. Bond premiums and discounts are amortized and/or accreted over the lives of the respective securities. Pay-in-kind interest income and non-cash dividend income received in the form of securities in-lieu of cash are recorded at the fair value of the securities received. Paydown gains and losses on mortgage and asset-backed securities are recorded as adjustments to interest income.

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

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

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

C. Country Determination - For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues 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 net investment income, if any, are declared daily and paid monthly to separate accounts of participating insurance companies. Distributions from net realized gain, if any, are generally declared and paid annually and recorded on the ex-dividend date.

E. Federal Income Taxes - The Fund intends to comply with the requirements of Subchapter M of the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”), necessary to qualify as a regulated investment company and to distribute substantially all of the Fund’s taxable earnings to shareholders. As such, the Fund will not be subject to federal income taxes on otherwise taxable income (including net realized capital gain) that is distributed to shareholders.

Therefore, no provision for federal income taxes is recorded in the financial statements.

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

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

F. Expenses - Fees provided for under the Rule 12b-1 plan of a particular class of the Fund and which are directly attributable to that class are charged to the operations of such class. All other expenses are allocated among the classes based on relative net assets.

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

H. Indemnifications - Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of the performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements, that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown

Invesco V.I. Government Money Market Fund

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. 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. 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 adviser 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.

J. Other Risks - Investments in obligations issued by agencies and instrumentalities of the U.S. Government may vary in the level of support they receive from the government. The government may choose not to provide financial support to government sponsored agencies or instrumentalities if it is not legally obligated to do so. In this case, if the issuer defaulted, the Fund may not be able to recover its investment in such issuer from the U.S. Government.

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 0.15% 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 Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Canada Ltd. and separate sub-advisory agreements with Invesco Capital Management LLC and Invesco Asset Management (India) Private Limited (collectively, the “Affiliated Sub-Advisers”) the Adviser, not the Fund, will pay 40% of the fees paid to the Adviser to any such Affiliated Sub-Adviser(s) that provide(s) discretionary investment management services to the Fund based on the percentage of assets allocated to such Affiliated Sub-Adviser(s).

The Adviser has contractually agreed, through at least June 30, 2021, to waive advisory fees and/or reimburse expenses to the extent necessary to limit total annual operating expenses after fee waivers and/or expense reimbursements (excluding certain items discussed below) of Series I shares to 1.50% and Series II shares to 1.75% of average daily net assets (the “expense limits”). In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause the total annual operating expenses after fee waivers and/or expense reimbursements to exceed the numbers reflected above: (1) interest; (2) taxes; (3) dividend expense on short sales; (4) extraordinary or non-routine items, including litigation expenses; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Unless Invesco continues the fee waiver agreement, it will terminate on June 30, 2021. During its term, the fee waiver agreement cannot be terminated or amended to increase the expense limits or reduce the advisory fee waiver without approval of the Board of Trustees. The Adviser did not waive fees and/or reimburse expenses during the period under these expense limits.

The 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, 2020, Invesco voluntarily waived fund level expenses $1,497 and class level expenses of $42,262 for Series II shares in order to increase the Fund’s yield.

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 fees paid to insurance companies that have agreed to provide certain administrative services to the Fund. These administrative services provided by the insurance companies may include, among other things: maintenance of master accounts with the Fund; tracking, recording and transmitting net purchase and redemption orders for Fund shares; maintaining and preserving records related to the purchase, redemption and other account activity of variable product owners; distributing copies of Fund documents such as prospectuses, proxy materials and periodic reports, to variable product owners, and responding to inquiries from variable product owners about the Fund. Pursuant to such agreement, for the six months ended June 30, 2020, Invesco was paid $194,007 for accounting and fund administrative services and was reimbursed $638,840 for fees paid to insurance companies. Also, Invesco has entered into a sub-administration agreement whereby The Bank of New York Mellon (“BNY Mellon”) 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, 2020, 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 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. The fees are accrued daily and paid monthly. 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, 2020, 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, 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.

As of June 30, 2020, all of the securities in this Fund were valued based on Level 2 inputs (see the Schedule of Investments for security categories). The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

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

NOTE 5–Cash Balances

The Fund is permitted to temporarily carry a negative or overdrawn balance in its account with The Bank of New York Mellon, the custodian bank. Such balances, if any at period-end, are shown in the Statement of Assets and Liabilities under the payable caption Amount due custodian. To compensate the custodian bank for such overdrafts, the overdrawn Fund may either (1) leave funds as a compensating balance in the account so the custodian bank can be compensated by earning the additional interest; or (2) compensate by paying the custodian bank at a rate agreed upon by the custodian bank and Invesco, not to exceed the contractually agreed upon rate.

NOTE 6–Tax Information

The amount and character of income and gains to be distributed are determined in accordance with income tax regulations, which may differ from GAAP.

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

Capital loss carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Fund to utilize. The ability to utilize capital loss carryforwards 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, 2019, as follows:

Capital Loss Carryforward*
Expiration	Short-Term	Long-Term	Total
Not subject to expiration	$710	$7,570		$8,280

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

NOTE 7—Share Information

	Summary of Share Activity
	Six months ended						Year ended
	June 30, 2020(a)						December 31, 2019
	Shares			Amount			Shares			Amount
Sold:
Series I		962,392,520		$	962,392,520			1,064,989,449		$	1,064,989,449
Series II		60,391,343			60,391,343			42,932,790			42,932,790
Issued as reinvestment of dividends:
Series I		1,916,436			1,916,436			12,291,497			12,291,497
Series II		149,288			149,288			1,311,014			1,311,014
Reacquired:
Series I		(767,939,503	)		(767,939,503	)		(1,379,521,074	)		(1,379,521,074	)
Series II		(30,840,850	)		(30,840,850	)		(68,606,517	)		(68,606,517	)
Net increase (decrease) in share activity		226,069,234		$	226,069,234			(326,602,841	)	$	(326,602,841	)

^(a)  There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 92% of the outstanding shares of the Fund. The Fund and the Fund’s principal underwriter or adviser, are parties to participation agreements with these entities whereby these entities sell units of interest in separate accounts funding variable products that are invested in the Fund. The Fund, Invesco and/or Invesco affiliates may make payments to these entities, which are considered to be related to the Fund, for providing services to the Fund, Invesco and/or Invesco affiliates including but not limited to services such as, securities brokerage, third party record keeping and account servicing and administrative services. The Fund has no knowledge as to whether all or any portion of the shares owned of record by these entities are also owned beneficially.

NOTE 8–Coronavirus (COVID-19) Pandemic

During the first quarter of 2020, the World Health Organization declared COVID-19 to be a public health emergency. COVID-19 has led to increased short-term market volatility and may have adverse long-term effects on U.S. and world economies and markets in general. COVID-19 may adversely impact the Fund’s ability to achieve its investment objective. Because of the uncertainties on valuation, the global economy and business operations, values reflected in these financial statements may materially differ from the value received upon actual sales of those investments.

The extent of the impact on the performance of the Fund and its investments will depend on future developments, including the duration and spread of the COVID-19 outbreak, related restrictions and advisories, and the effects on the financial markets and economy overall, all of which are highly uncertain and cannot be predicted.

Invesco V.I. Government 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, 2020 through June 30, 2020.

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.

	Beginning   Account Value   (01/01/20)	ACTUAL		HYPOTHETICAL (5% annual return before expenses)		Annualized   Expense Ratio
Class		Ending   Account Value   (06/30/20)1	Expenses   Paid During   Period2	Ending Account Value (06/30/20)	Expenses Paid During Period2
Series I	$1,000.00	$1,002.90	$1.74	$1,023.12	$1.76	0.35%
Series II	1,000.00	1,002.10	2.49	1,022.38	2.51	0.50

¹  The actual ending account value is based on the actual total return of the Fund for the period January 1, 2020 through June 30, 2020, 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 182/366 to reflect the most recent fiscal half year.

Invesco V.I. Government Money Market Fund

Approval of Investment Advisory and Sub-Advisory Contracts

At meetings held on June 3, 2020, the Board of Trustees (the Board or the Trustees) of AIM Variable Insurance Funds (Invesco Variable Insurance Funds) as a whole, and the independent Trustees, who comprise over 75% of the Board, voting separately, approved the continuance of the Invesco V.I. Government Money Market Fund’s (the Fund) Master Investment Advisory Agreement with Invesco Advisers, Inc. (Invesco Advisers and the investment advisory agreement) and the Master Intergroup Sub-Advisory Contract for Mutual Funds with Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Canada Ltd. and separate sub-advisory contracts with Invesco Capital Management LLC and Invesco Asset Management (India) Private Limited (collectively, the Affiliated Sub-Advisers and the sub-advisory contracts) for another year, effective July 1, 2020. After evaluating the factors discussed below, among others, the Board approved the renewal of the Fund’s investment advisory agreement and the sub-advisory contracts and determined that the compensation payable thereunder by the Fund to Invesco Advisers and by Invesco Advisers to the Affiliated Sub-Advisers is fair and reasonable.

The Board’s Evaluation Process

The Board’s Investments Committee has established Sub-Committees, which meet throughout the year to review the performance of funds advised by Invesco Advisers (the Invesco Funds). The Sub-Committees meet regularly with portfolio managers for their assigned Invesco Funds and other members of management to review detailed information about investment performance and portfolio attributes of these funds. The Board took into account evaluations and reports that it received from the Investments Committee and Sub-Committees, as well as the information provided to such committees and the Board throughout the year, in considering whether to approve each Invesco Fund’s investment advisory agreement and sub-advisory contracts.

    As part of the contract renewal process, the Board reviews and considers information provided in response to detailed requests for information submitted to management by the independent Trustees with assistance from legal counsel to the independent Trustees. The Board receives comparative investment performance and fee data regarding the Invesco Funds prepared by Invesco Advisers and Broadridge Financial Solutions, Inc. (Broadridge), an independent mutual fund data provider, as well as information on the composition of the peer groups provided by Broadridge and its methodology for determining peer groups. The Board also receives an independent written evaluation from the Senior Officer, an officer of the Invesco Funds who reports directly to the independent Trustees. 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. In addition to meetings with Invesco Advisers and fund counsel throughout the year, the independent Trustees also

discuss the continuance of the investment advisory agreement and sub-advisory contracts in separate sessions with the Senior Officer and with independent legal counsel.

    The discussion below is a summary of 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. The Trustees’ review and conclusions are based on the comprehensive consideration of all information presented to them during the course of the year and in prior years and are not the result of any single determinative factor. Moreover, one Trustee may have weighed a particular piece of information or factor differently than another Trustee. This information is current as of June 3, 2020.

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 nature, extent and quality of the advisory services provided to the Fund by Invesco Advisers under the Fund’s investment advisory agreement, and the credentials and experience of the officers and employees of Invesco Advisers who provide these services, including the Fund’s portfolio manager(s). The Board’s review included consideration of Invesco Advisers’ investment process oversight and structure, credit analysis, investment risk management and research capabilities. The Board also considered non-advisory services that Invesco Advisers and its affiliates provide to the Invesco Funds such as various back office support functions, third party oversight, internal audit, valuation, portfolio trading and legal and compliance. The Board reviewed and considered the benefits to shareholders of investing in a Fund that is part of the Invesco family of funds under the umbrella of Invesco Ltd., Invesco Advisers’ parent company, and noted Invesco Ltd.’s depth and experience in conducting an investment management business, as well as its commitment of financial and other resources to such business. The Board also reviewed and considered information regarding the benefits to the Fund resulting from Invesco Ltd.’s acquisition of OppenheimerFunds, Inc. and its subsidiaries (the Transaction) and the resources that Invesco Advisers has committed to managing the Invesco family of funds following the Transaction. The Board concluded that the nature, extent and quality of the services provided to the Fund by Invesco Advisers are appropriate and satisfactory.

    The Board reviewed the services that may be 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 the Affiliated Sub-Advisers’ expertise with respect to certain asset classes and that the Affiliated Sub-Advisers have offices and personnel that are located in financial centers around the world. As a result, the Board noted that the Affiliated Sub-Advisers can provide research and investment analysis on the markets and economies of various

countries in which the Fund may invest, make recommendations regarding securities and assist with security trades. The Board concluded that the sub-advisory contracts may 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 that may be provided by the Affiliated Sub-Advisers are appropriate and satisfactory.

B. Fund Investment Performance

The Board considered Fund investment performance as a relevant factor in considering whether to approve the investment advisory agreement. The Board did not view Fund investment 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 investment performance over multiple time periods ending December 31, 2019 to the performance of funds in the Broadridge performance universe and against the T-Bill 3 Month Index. The Board noted that performance of Series I shares of the Fund was in the second quintile of its performance universe for the one year period and the first quintile for the three and five year periods (the first quintile being the best performing funds and the fifth quintile being the worst performing funds). The Board noted that 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 recognized that the performance data reflects a snapshot in time as of a particular date and that selecting a different performance period could produce different results. The Board also reviewed more recent Fund performance as well as other performance metrics and this review did not change their conclusions.

C. Advisory and Sub-Advisory Fees and Fund Expenses

The Board compared the Fund’s contractual management fee rate to the contractual management fee rates of funds in the Fund’s Broadridge expense group. The Board noted that the contractual management fee rate for Series I shares of the Fund was below the median contractual management fee rate of funds in its expense group. The Board noted that the term “contractual management fee” for funds in the expense group may include both advisory and certain non-portfolio management administrative services fees, but that Broadridge does not provide information on a fund by fund basis as to what is included. The Board also reviewed the methodology used by Broadridge in providing expense group information, which includes using each fund’s contractual management fee schedule (including any applicable breakpoints) as reported in the most recent prospectus or statement of additional information for each fund in the expense group. The Board also considered comparative information regarding the Fund’s total expense ratio and its various components.

    The Board noted that Invesco Advisers has contractually agreed to waive fees and/or limit expenses of the Fund for the term disclosed in the Fund’s registration statement in an amount necessary to limit total annual operating expenses to a specified

Invesco V.I. Government Money Market Fund

percentage of average daily net assets for each class of the Fund.

    The Board also considered the fees charged by Invesco Advisers and the Affiliated Sub-Advisers to other similarly managed client accounts. Invesco Advisers reviewed with the Board differences in the scope of services it provides to the Invesco Funds relative to certain other types of client accounts, including, among others: management of cash flows as a result of redemptions and purchases; necessary infrastructure such as officers, office space, technology, legal and distribution; oversight of service providers; costs and business risks associated with launching new funds and sponsoring and maintaining the product line; and compliance with federal and state laws and regulations.

    The Board also considered the services that may be provided by the Affiliated Sub-Advisers pursuant to the sub-advisory contracts, as well as the fees payable by Invesco Advisers to the Affiliated Sub-Advisers pursuant to the sub-advisory contracts.

D. Economies of Scale and Breakpoints

The Board considered the extent to which there may be 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. The Board noted that the Fund may also benefit from economies of scale through initial fee setting, fee waivers and expense reimbursements. The Board also considered Invesco’s reinvestment in its business, including investments in business infrastructure, technology and cybersecurity.

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 Invesco Funds and the profitability of Invesco Advisers and its affiliates in providing these services in the aggregate and on an individual Fund-by-Fund basis. The Board considered the methodology used for calculating profitability and noted the periodic review and enhancement of such methodology. The Board noted that Invesco Advisers continues to operate at a net profit from services Invesco Advisers and its affiliates provide to the Invesco Funds in the aggregate and to certain Funds on an individual fund level. The Board did not deem the level of profits realized by Invesco Advisers and its affiliates from providing such services to be excessive given the nature, extent and quality of the services provided. The Board received information from Invesco Advisers demonstrating that Invesco Advisers and the Affiliated Sub-Advisers are financially sound and have the resources necessary to perform their obligations under the investment advisory agreement and sub-advisory contracts.

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 providing administrative, transfer agency and distribution services to the Fund. The Board considered comparative information regarding fees charged for these services, including information provided by Broadridge and other independent sources. 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; and that the services are required for the operation of the Fund.

Invesco V.I. Government Money Market Fund

	Semiannual Report to Shareholders	June 30, 2020
	Invesco V.I. Government Securities Fund

Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, the insurance company that offers your variable annuity or variable life insurance contract may no longer send you paper copies of the Fund’s shareholder reports by mail, unless you specifically request paper copies of the reports from the insurance company or your financial intermediary. Instead of delivering paper copies of the report, the insurance company may choose to make the reports available on a website, and will notify you by mail each time a report is posted and provide you with a website link to access the report. Instructions for requesting paper copies will be provided by your insurance company.

If the insurance company offers electronic delivery, you may elect to receive shareholder reports and other communications about the Fund electronically by following the instructions provided by the insurance company or by contacting your financial intermediary. If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action.

You may elect to receive all future reports in paper free of charge from the insurance company. You can inform the insurance company or your financial intermediary that you wish to continue receiving paper copies of your shareholder reports by following the instructions provided by the insurance company or by contacting your financial intermediary. Your election to receive reports in paper will apply to all portfolio companies available under your contract with the insurance company.

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) as an exhibit to its reports on Form N-PORT. The Fund’s Form N-PORT filings are available on the SEC website, 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-PORT, 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 most recent 12-month period ended June 30 is available at invesco.com/proxysearch. The information is also available on the SEC website, sec.gov.

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

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.

NOT FDIC INSURED  |  MAY LOSE VALUE  |  NO BANK GUARANTEE

Invesco Distributors, Inc. VIGOV-SAR-1                                             

Fund Performance

Performance summary

Fund vs. Indexes

Cumulative total returns, 12/31/19 to 6/30/20, excluding variable product issuer charges. If variable product issuer charges were included, returns would be lower.

Series I Shares	5.00	%
Series II Shares	4.87
Bloomberg Barclays U.S. Aggregate Bond Indexq (Broad Market Index)	6.14
Bloomberg Barclays U.S. Government Intermediate Indexq (Style-Specific Index)	5.75
Lipper VUF Intermediate U.S. Government Funds Classification Average∎ (Peer Group)	5.98

Source(s): ^qRIMES Technologies Corp.; ^∎Lipper Inc.

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

The Bloomberg Barclays U.S. Government Intermediate Index is comprised of the Intermediate U.S. Treasury and U.S. Agency Indices.

The Lipper VUF Intermediate U.S. Government Funds Classification Average represents an average of all variable insurance underlying funds in the Lipper Intermediate U.S. Government Funds classification.

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

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

Average Annual Total Returns

As of 6/30/20

Series I Shares
Inception (5/5/93)	4.27	%
10 Years	2.68
5 Years	2.99
1 Year	6.62
Series II Shares
Inception (9/19/01)	3.39	%
10 Years	2.42
5 Years	2.73
1 Year	6.31

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 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. Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares. Investment return and principal value will

fluctuate so that you may have a gain or loss when you sell shares.

    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 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.

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

Invesco V.I. Government Securities Fund

Liquidity Risk Management Program

The Securities and Exchange Commission has adopted Rule 22e-4 under the Investment Company Act of 1940 (the “Liquidity Rule”) in order to promote effective liquidity risk management throughout the open-end investment company industry, thereby reducing the risk that funds will be unable to meet their redemption obligations and mitigating dilution of the interests of fund shareholders. The Fund has adopted and implemented a liquidity risk management program in accordance with the Liquidity Rule (the “Program”). The Program is reasonably designed to assess and manage the Fund’s liquidity risk, which is the risk that the Fund could not meet redemption requests without significant dilution of remaining investors’ interests in the Fund. The Board of Trustees of the Fund (the “Board”) has appointed Invesco Advisers, Inc. (“Invesco”), the Fund’s investment adviser, as the Program’s administrator, and Invesco has delegated oversight of the Program to the Liquidity Risk Management Committee (the “Committee”), which is composed of senior representatives from relevant business groups at Invesco.

As required by the Liquidity Rule, the Program includes policies and procedures providing for an assessment, no less frequently than annually, of the Fund’s liquidity risk that takes into account, as relevant to the Fund’s liquidity risk: (1) the Fund’s investment strategy and liquidity of portfolio investments during both normal and reasonably foreseeable stressed conditions; (2) short-term and long-term cash flow projections for the Fund during both normal and reasonably foreseeable stressed conditions; and (3) the Fund’s holdings of cash and cash equivalents and any borrowing arrangements. The Liquidity Rule also requires the classification of the Fund’s investments into categories that reflect the assessment of their relative liquidity under current market conditions. The Fund classifies its investments into one of four categories defined in the Liquidity Rule: “Highly Liquid,” “Moderately Liquid,” “Less Liquid” and “Illiquid.” Funds that are not invested primarily in “Highly Liquid Investments” that are assets (cash or investments that are reasonably expected to be convertible into cash within three business days without significantly changing the market value of the investment) are required to establish a “Highly Liquid Investment Minimum” (“HLIM”), which is the minimum percentage of net assets that must be invested in Highly Liquid Investments. Funds with HLIMs have procedures for addressing HLIM shortfalls, including reporting to the Board and the SEC (on a non-public basis) as required by the Program and the Liquidity Rule. In addition, the Fund may not acquire an investment if, immediately after the acquisition, over 15% of the Fund’s net assets would consist of “Illiquid Investments” that are assets (an investment that cannot reasonably be expected to be sold or disposed of in current market conditions in seven calendar days or less without the sale or disposition significantly changing the market value of the investment). The Liquidity Rule and the Program also require reporting to the Board and the SEC (on a non-public basis) if a Fund’s holdings of Illiquid Investments exceed 15% of the Fund’s assets.

At a meeting held on March 30-April 1, 2020, the Committee presented a report to the Board that addressed the operation of the Program and assessed the Program’s adequacy and effectiveness of implementation (the “Report”). The Report covered the period from December 1, 2018 through December 31, 2019 (the “Program Reporting Period”).

The Report stated, in relevant part, that during the Program Reporting Period:

∎ The Program, as adopted and implemented, remained reasonably designed to assess and manage the Fund’s liquidity risk and was operated effectively to achieve that goal;

∎ The Fund’s investment strategy remained appropriate for an open-end fund;

∎ The Fund was able to meet requests for redemption without significant dilution of remaining investors’ interests in the Fund;

∎ The Fund did not breach the 15% limit on Illiquid Investments; and

∎ The Fund primarily held Highly Liquid Investments and therefore has not adopted an HLIM.

Invesco V.I. Government Securities Fund

Schedule of Investments

June 30, 2020

(Unaudited)

	Principal Amount		Value
U.S. Government Sponsored Agency Mortgage-Backed Securities-95.85%
Collateralized Mortgage Obligations-17.89%
Fannie Mae ACES,
2.76% (1 mo. USD LIBOR + 0.59%), 09/25/2023(a)	$	515,248	$	516,504
3.27%, 02/25/2029		5,000,000		5,786,963
Fannie Mae REMICs,
3.00%, 10/25/2025		12,099		12,129
2.50%, 03/25/2026		24,723		24,792
7.00%, 09/18/2027		142,895		158,857
1.50%, 01/25/2028		2,499,956		2,529,860
6.50%, 03/25/2032		483,233		569,083
5.75%, 10/25/2035		157,021		177,606
0.48% (1 mo. USD LIBOR + 0.30%), 05/25/2036(a)		1,642,681		1,637,778
4.25%, 02/25/2037		142,145		144,471
0.63% (1 mo. USD LIBOR + 0.45%), 03/25/2037(a)		819,966		821,894
0.58% (1 mo. USD LIBOR + 0.40%), 06/25/2038(a)		223,548		223,582
6.60%, 06/25/2039(b)		2,192,025		2,626,354
0.68%, 03/25/2040 to 05/25/2041		1,669,584		1,672,729
4.00%, 07/25/2040		1,426,829		1,574,316
0.73% (1 mo. USD LIBOR + 0.55%), 02/25/2041(a)		1,408,310		1,411,415
0.70% (1 mo. USD LIBOR + 0.52%), 11/25/2041(a)		1,482,506		1,487,001
0.69% (1 mo. USD LIBOR + 0.32%), 08/25/2044(a)		1,406,595		1,405,926
0.85% (1 mo. USD LIBOR + 0.48%), 02/25/2056(a)		2,662,568		2,670,811
0.79% (1 mo. USD LIBOR + 0.42%), 12/25/2056(a)		3,233,695		3,234,762
Freddie Mac Multifamily Structured Pass Through Ctfs.,
Series K714, Class A2, 3.03%, 10/25/2020(b)		3,978,316		3,982,804
Series KLU1, Class A2, 2.51%, 12/25/2025		5,000,000		5,345,457
Series KG01, Class A7, 2.88%, 04/25/2026		5,000,000		5,531,000
Series KS11, Class AFX1, 2.15%, 12/25/2028		5,000,000		5,339,701
Series K093, Class A1, 2.76%, 12/25/2028		1,952,498		2,152,237
Series K092, Class AM, 3.02%, 04/25/2029		5,000,000		5,733,261

	Principal Amount		Value
Collateralized Mortgage Obligations–(continued)
Freddie Mac REMICs,
3.00%, 04/15/2026	$	13,976	$	14,025
0.68%, 12/15/2035 to 03/15/2040		3,013,167		3,020,434
0.48%, 03/15/2036 to 09/15/2044		6,666,782		6,632,749
0.72% (1 mo. USD LIBOR + 0.35%), 11/15/2036(a)		1,970,711		1,939,819
0.55% (1 mo. USD LIBOR + 0.37%), 03/15/2037(a)		877,772		877,796
0.58%, 05/15/2037 to 06/15/2037		1,466,136		1,466,514
1.04% (1 mo. USD LIBOR + 0.86%), 11/15/2039(a)		472,303		481,635
0.63%, 03/15/2040 to 02/15/2042		4,919,629		4,925,724
Freddie Mac STRIPS, 0.72% (1 mo. USD LIBOR + 0.35%), 10/15/2037(a)		1,574,166		1,555,067
Freddie Mac Whole Loan Securities Trust, Series 2017-SC02, Class 2A1, 3.50%, 05/25/2047		570,964		576,463
				78,261,519
Federal Home Loan Mortgage Corp. (FHLMC)–15.70%
6.50%, 02/01/2021 to 12/01/2035		1,478,212		1,707,036
6.00%, 03/01/2021 to 07/01/2038		164,852		184,238
10.00%, 03/01/2021		2		2
7.00%, 12/01/2021 to 11/01/2035		1,920,493		2,232,954
8.00%, 12/01/2021 to 02/01/2035		328,759		350,201
7.50%, 09/01/2022 to 06/01/2035		608,317		703,303
8.50%, 11/17/2022 to 08/01/2031		114,765		122,645
5.50%, 12/01/2022		2,618		2,637
3.50%, 08/01/2026 to 12/01/2049		6,208,543		6,666,162
3.00%, 05/01/2027 to 01/01/2050		18,945,859		20,174,314
7.05%, 05/20/2027		56,795		61,794
6.03%, 10/20/2030		555,836		648,553
2.50%, 09/01/2034 to 10/01/2034		16,167,522		16,984,395
5.00%, 01/01/2037 to 01/01/2040		783,700		900,740
4.50%, 01/01/2040 to 08/01/2041		5,278,598		5,936,378
ARM,
4.12% (1 yr. USD LIBOR + 1.88%), 09/01/2035(a)		2,016,688		2,132,827
3.68% (1 yr. USD LIBOR + 1.88%), 07/01/2036(a)		1,780,525		1,882,640
3.96% (1 yr. USD LIBOR + 1.91%), 10/01/2036(a)		73,012		77,513

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 Home Loan Mortgage Corp. (FHLMC)–(continued)
3.97% (1 yr. USD LIBOR + 1.55%), 10/01/2036(a)	$	1,053,537	$	1,102,097
3.88% (1 yr. USD LIBOR + 1.97%), 11/01/2037(a)		515,009		547,521
4.08% (1 yr. USD LIBOR + 2.01%), 01/01/2038(a)		19,913		20,091
3.31% (1 yr. USD LIBOR + 1.84%), 07/01/2038(a)		593,485		628,624
3.84% (1 yr. USD LIBOR + 1.79%), 06/01/2043(a)		700,514		735,912
2.90% (1 yr. USD LIBOR + 1.64%), 01/01/2048(a)		4,675,817		4,900,796
				68,703,373
Federal National Mortgage Association (FNMA)–41.10%
7.00%, 08/01/2020 to 04/01/2036		1,495,057		1,646,862
8.00%, 02/01/2021 to 10/01/2037		1,765,493		2,114,362
8.50%, 02/01/2021 to 08/01/2037		432,607		497,020
5.50%, 03/01/2021 to 05/01/2035		888,156		1,014,001
6.00%, 08/01/2021 to 10/01/2038		981,474		1,127,687
7.50%, 11/01/2022 to 08/01/2037		2,738,584		3,179,917
6.50%, 06/01/2023 to 11/01/2037		1,510,280		1,731,914
6.75%, 07/01/2024		107,939		120,112
4.50%, 11/01/2024 to 12/01/2048		9,529,183		10,429,532
6.95%, 10/01/2025		11,614		11,781
3.50%, 03/01/2027 to 08/01/2027		4,537,590		4,809,132
3.00%, 05/01/2027 to 03/01/2050		17,565,809		18,632,535
3.59%, 10/01/2028		4,000,000		4,666,236
3.79%, 11/01/2028		4,000,000		4,683,171
5.00%, 08/01/2033 to 12/01/2033		146,791		158,390
2.50%, 12/01/2034 to 03/01/2035		11,178,730		11,763,902
4.00%, 09/01/2043 to 12/01/2048		15,650,756		17,322,387
ARM,
4.05% (1 yr. U.S. Treasury Yield Curve Rate + 2.36%), 10/01/2034(a)		1,307,145		1,376,689
3.53% (1 yr. U.S. Treasury Yield Curve Rate + 2.21%), 05/01/2035(a)		133,727		139,887
3.70% (1 yr. USD LIBOR + 1.72%), 03/01/2038(a)		32,494		34,303
3.74% (1 yr. USD LIBOR + 1.75%), 02/01/2042(a)		299,948		301,613
2.18% (1 yr. USD LIBOR + 1.52%), 08/01/2043(a)		952,919		981,763
2.68% (1 yr. U.S. Treasury Yield Curve Rate + 1.88%), 05/01/2044(a)		1,392,984		1,438,257

	Principal Amount		Value
Federal National Mortgage Association (FNMA)–(continued)
TBA,
2.00%, 07/01/2035(c)	$	21,050,000	$	21,772,772
2.50%, 07/01/2035 to 07/01/2050(c)		67,000,000		69,870,961
				179,825,186
Government National Mortgage Association (GNMA)–21.16%
6.50%, 07/15/2020 to 09/15/2034		2,070,971		2,309,041
7.50%, 09/15/2022 to 10/15/2035		1,330,335		1,508,359
8.00%, 01/15/2023 to 01/15/2037		776,452		891,138
7.00%, 04/15/2023 to 12/15/2036		613,985		690,700
6.00%, 01/16/2025 to 08/15/2033		415,420		460,919
5.00%, 02/15/2025		109,047		119,329
8.50%, 02/15/2025 to 01/15/2037		122,886		129,748
6.95%, 08/20/2025 to 08/20/2027		115,059		115,494
6.38%, 10/20/2027 to 02/20/2028		147,283		158,252
6.10%, 12/20/2033		2,880,424		3,276,249
5.71%, 08/20/2034(b)		799,140		927,347
5.88%, 01/20/2039(b)		2,855,424		3,345,512
1.00% (1 mo. USD LIBOR + 0.80%), 09/16/2039(a)		838,063		851,035
0.89% (1 mo. USD LIBOR + 0.70%), 05/20/2040(a)		1,977,105		1,993,067
4.50%, 07/20/2041(b)		548,683		615,901
3.29%, 09/20/2041(b)		1,898,098		1,948,710
0.44% (1 mo. USD LIBOR + 0.25%), 01/20/2042(a)		280,554		280,078
3.50%, 10/20/2042 to 06/20/2050		12,121,364		12,944,964
0.47% (1 mo. USD LIBOR + 0.30%), 08/20/2047(a)		4,560,527		4,546,243
2.50%, 07/20/2049		5,895,258		6,122,433
3.00%, 10/20/2049 to 11/20/2049		10,147,604		10,770,408
Series 2019-29, Class PE, 3.00%, 10/20/2048		4,362,017		4,608,737
Series 2019-52, Class JL, 3.00%, 11/20/2048		4,686,705		4,942,125
Series 2019-30, Class MA, 3.50%, 03/20/2049		1,107,229		1,171,003
TBA, 2.50%, 07/01/2050(c)		26,500,000		27,886,074
				92,612,866
Total U.S. Government Sponsored Agency Mortgage-Backed Securities (Cost $408,186,613)				419,402,944
U.S. Treasury Securities–15.88%
U.S. Treasury Bills–0.33%(d)
0.01% - 0.12%, 09/03/2020(e)		1,465,000		1,464,665
U.S. Treasury Bonds–1.29%
5.38%, 02/15/2031		3,800,000		5,648,269

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

Invesco V.I. Government Securities Fund

	Principal Amount		Value
U.S. Treasury Inflation – Indexed Bonds–0.99%
0.13%, 04/15/2021(f)	$	2,164,040	$	2,176,429
0.50%, 04/15/2024(f)		2,033,600		2,139,876
				4,316,305
U.S. Treasury Inflation – Indexed Notes–0.64%
0.63%, 04/15/2023(f)		2,684,318		2,794,205
U.S. Treasury Notes–12.63%
1.50%, 09/15/2022		2,700,000		2,780,314
2.00%, 11/30/2022		2,700,000		2,819,285
2.38%, 01/31/2023		2,000,000		2,113,555
1.63%, 04/30/2023		4,000,000		4,163,906
2.75%, 05/31/2023		6,300,000		6,771,516
1.63%, 10/31/2023		625,000		654,919
2.63%, 12/31/2023		4,000,000		4,338,984
2.13%, 03/31/2024		4,000,000		4,286,406
2.00%, 05/31/2024		2,500,000		2,673,975
2.25%, 11/15/2024		3,000,000		3,262,148
2.88%, 05/31/2025		4,000,000		4,504,766
2.88%, 11/30/2025		2,500,000		2,840,527
1.50%, 08/15/2026		4,250,000		4,528,908
1.13%, 02/28/2027		4,759,000		4,965,998
2.38%, 05/15/2027		1,000,000		1,128,848
2.38%, 05/15/2029		2,600,000		3,000,918
1.63%, 08/15/2029		400,000		436,469
				55,271,442
Total U.S. Treasury Securities (Cost $63,522,074)				69,494,886
Asset-Backed Securities–10.36%(g)
Banc of America Commercial Mortgage Trust, Series 2015- UBS7, Class XA, IO, 0.94%, 09/15/2048(b)		15,758,183		517,135
Bear Stearns Adjustable Rate Mortgage Trust, Series 2004-10, Class 12A1, 3.83%, 01/25/2035(b)		360,792		342,162
Chase Mortgage Finance Corp.,
Series 2016-SH1, Class M3, 3.75%, 04/25/2045(b)(h)		1,646,684		1,639,684
Series 2016-SH2, Class M3, 3.75%, 12/25/2045(b)(h)		1,955,789		1,947,043
COLT Mortgage Loan Trust,
Series 2020-1, Class A3, 2.90%, 02/25/2050(b)(h)		4,464,917		4,489,698
Series 2020-2, Class A1, 1.85%, 03/25/2065(b)(h)		3,866,120		3,879,733
Commercial Mortgage Trust, Series 2015-CR24, Class B, 4.52%, 08/10/2048(b)		6,200,000		6,469,232
FRESB Mortgage Trust, Series 2019-SB63, Class A5, 2.55% (1 mo. USD LIBOR + 2.55%), 02/25/2039(a)		3,730,708		3,879,293
Galton Funding Mortgage Trust, Series 2018-2, Series A41, 4.50%, 10/25/2058(b)(h)		1,844,140		1,895,183

	Principal Amount		Value
GCAT Trust, Series 2020-NQM1, Class A3, 2.55%, 01/25/2060(h)(i)	$	3,940,217	$	3,950,389
JP Morgan Mortgage Trust, Series 2018-8, Class A15, 4.00%, 01/25/2049(b)(h)		279,583		280,590
New Residential Mortgage Loan Trust,
Series 2018-4A, Class A1S, 0.93% (1 mo. USD LIBOR + 0.75%), 01/25/2048(a)(h)		2,774,044		2,752,527
Series 2020-NQM1, Class A3, 2.77%, 01/26/2060(b)(h)		4,714,454		4,639,887
Towd Point Mortgage Trust, Series 2015-1, Class AES, 3.00%, 10/25/2053(b)(h)		355,264		356,962
Verus Securitization Trust, Series 2018-3, Class A-2, 4.18%, 10/25/2058(b)(h)		2,215,173		2,221,856
Wells Fargo Commercial Mortgage Trust, Series 2015-C28, Class B, 4.24%, 05/15/2048(b)		5,900,000		6,076,908
Total Asset-Backed Securities (Cost $44,994,948)				45,338,282
U.S. Dollar Denominated Bonds & Notes–1.41%
Other Diversified Financial Services–0.37%
Private Export Funding Corp., Series BB, 4.30%, 12/15/2021		1,540,000		1,625,246
Sovereign Debt–1.04%
Israel Government AID Bond, 5.13%, 11/01/2024		3,800,000		4,540,850
Total U.S. Dollar Denominated Bonds & Notes (Cost $5,348,008)				6,166,096
Agency Credit Risk Transfer Notes–0.65%
Fannie Mae Connecticut Avenue SecuritiesSeries 2015-C02, Class 1M2, 4.18%, (1 mo. USD LIBOR + 4.00%), 05/25/2025 (Cost $2,599,383)(a)		2,785,835		2,836,415
U.S. Government Sponsored Agency Securities–0.47%
Tennessee Valley Authority (TVA)–0.47%
Tennessee Valley Authority, 1.88%, 08/15/2022 (Cost $1,992,202)		2,000,000		2,061,601
	Shares
Money Market Funds–2.29%
Invesco Government & Agency Portfolio, Institutional Class, 0.09% (Cost $10,029,511)(j)(k)		10,029,511		10,029,511
TOTAL INVESTMENTS IN SECURITIES–126.91% (Cost $536,672,739)				555,329,735
OTHER ASSETS LESS LIABILITIES–(26.91)%				(117,746,190	)
NET ASSETS–100.00%			$	437,583,545

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

Invesco V.I. Government Securities Fund

Investment Abbreviations:

ACES	- Automatically Convertible Extendable Security
ARM	- Adjustable Rate Mortgage
Ctfs.	- Certificates
IO	- Interest Only
LIBOR	- London Interbank Offered Rate
REMICs	- Real Estate Mortgage Investment Conduits
STRIPS	- Separately Traded Registered Interest and Principal Security
TBA	- To Be Announced
USD	- U.S. Dollar

Notes to Schedule of Investments:

^(a)  Interest or dividend rate is redetermined periodically. Rate shown is the rate in effect on June 30, 2020.

^(b)  Interest rate is redetermined periodically based on the cash flows generated by the pool of assets backing the security, less any applicable fees. The rate shown is the rate in effect on June 30, 2020.

^(c)  Security purchased on a forward commitment basis. This security is subject to dollar roll transactions. See Note 1M.

^(d)  All or a portion of the value was pledged as collateral to cover margin requirements for open futures contracts. See Note 1J.

^(e)  Security traded on a discount basis. The interest rate shown represents the discount rate at the time of purchase by the Fund.

^(f)  Principal amount of security and interest payments are adjusted for inflation. See Note 1I.

^(g)  Non-U.S. government sponsored securities.

^(h)  Security purchased or received in a transaction exempt from registration under the Securities Act of 1933, as amended (the “1933 Act”). The security may be resold pursuant to an exemption from registration under the 1933 Act, typically to qualified institutional buyers. The aggregate value of these securities at June 30, 2020 was $28,053,552, which represented 6.41% of the Fund’s Net Assets.

⁽ⁱ⁾  Step coupon bond. The interest rate represents the coupon rate at which the bond will accrue at a specified future date.

^(j)  Affiliated issuer. The issuer and/or the Fund is a wholly-owned subsidiary of Invesco Ltd., or is affiliated by having an investment adviser that is under common control of Invesco Ltd. The table below shows the Fund’s transactions in, and earnings from, its investments in affiliates for the six months ended June 30, 2020.

	Value December 31, 2019		Purchases at Cost		Proceeds from Sales		Change in Unrealized Appreciation		Realized Gain		Value June 30, 2020		Dividend Income
Investments in Affiliated Money Market Funds:
Invesco Government & Agency Portfolio, Institutional Class		$8,520,491		$129,672,042		$(128,163,022)		$-		$-		$10,029,511		$28,205

^(k)  The rate shown is the 7-day SEC standardized yield as of June 30, 2020.

Portfolio Composition

By security type, based on Total Investments

as of June 30, 2020

U.S. Government Sponsored Agency Mortgage-Backed Securities	75.52	%
U.S. Treasury Securities	12.51
Asset-Backed Securities	8.17
U.S. Dollar Denominated Bonds & Notes	1.11
Security types each less than 1% portfolio	0.88
Money Market Funds	1.81

Open Futures Contracts
Long Futures Contracts	Number of Contracts		Expiration Month		Notional Value			Value			Unrealized Appreciation (Depreciation)(a)
Interest Rate Risk
U.S. Treasury 2 Year Notes		117		September-2020	$	25,836,891		$	12,038		$	12,038
U.S. Treasury 5 Year Notes		403		September-2020		50,674,102			98,759			98,759
U.S. Treasury 10 Year Notes		183		September-2020		25,468,453			76,956			76,956
Subtotal-Long Futures Contracts									187,753			187,753
Short Futures Contracts
Interest Rate Risk
U.S. Treasury Bond		72		September-2020		(15,707,250	)		(118,285	)		(118,285	)
Total Futures Contracts								$	69,468		$	69,468

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

Invesco V.I. Government Securities Fund

^(a)  The daily variation margin receivable (payable) at period end is recorded in the Statement of Assets and Liabilities.

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, 2020

(Unaudited)

Assets:
Investments in securities, at value (Cost $ 526,643,228)	$	545,300,224
Investments in affiliated money market funds, at value (Cost $ 10,029,511)		10,029,511
Other investments:
Variation margin receivable – futures contracts		45,634
Cash		140,240
Receivable for:
Investments sold		21,766,807
Fund shares sold		138,572
Dividends		674
Interest		1,198,796
Principal paydowns		234,881
Investment for trustee deferred compensation and retirement plans		224,529
Other assets		381
Total assets		579,080,249
Liabilities:
Payable for:
Investments purchased		140,862,413
Fund shares reacquired		101,572
Accrued fees to affiliates		213,416
Accrued trustees’ and officers’ fees and benefits		2,224
Accrued other operating expenses		75,394
Trustee deferred compensation and retirement plans		241,685
Total liabilities		141,496,704
Net assets applicable to shares outstanding	$	437,583,545
Net assets consist of:
Shares of beneficial interest	$	411,070,843
Distributable earnings		26,512,702
	$	437,583,545
Net Assets:
Series I	$	257,408,508
Series II	$	180,175,037
Shares outstanding, no par value, with an unlimited number of shares authorized:
Series I		21,112,413
Series II		14,933,925
Series I:
Net asset value per share	$	12.19
Series II:
Net asset value per share	$	12.06

Statement of Operations

For the six months ended June 30, 2020

(Unaudited)

Investment income:
Interest	$	5,591,589
Dividends from affiliated money market funds		28,205
Total investment income		5,619,794
Expenses:
Advisory fees		1,059,049
Administrative services fees		357,123
Custodian fees		16,536
Distribution fees - Series II		229,900
Transfer agent fees		15,538
Trustees’ and officers’ fees and benefits		9,494
Reports to shareholders		6,005
Professional services fees		17,573
Other		(1,406	)
Total expenses		1,709,812
Less: Fees waived		(4,067	)
Net expenses		1,705,745
Net investment income		3,914,049
Realized and unrealized gain (loss) from:
Net realized gain (loss) from:
Investment securities		13,514,520
Futures contracts		(2,668,090	)
		10,846,430
Change in net unrealized appreciation (depreciation) of:
Investment securities		7,314,456
Futures contracts		(146,289	)
		7,168,167
Net realized and unrealized gain		18,014,597
Net increase in net assets resulting from operations	$	21,928,646

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, 2020 and the year ended December 31, 2019

(Unaudited)

	June 30, 2020			December 31, 2019
Operations:
Net investment income	$	3,914,049		$	9,424,865
Net realized gain		10,846,430			3,838,737
Change in net unrealized appreciation		7,168,167			13,152,012
Net increase in net assets resulting from operations		21,928,646			26,415,614
Distributions to shareholders from distributable earnings:
Series I		–			(6,666,815	)
Series II		–			(4,034,804	)
Total distributions from distributable earnings		–			(10,701,619	)
Share transactions–net:
Series I		(7,007,320	)		(37,212,596	)
Series II		(3,606,200	)		(23,434,778	)
Net increase (decrease) in net assets resulting from share transactions		(10,613,520	)		(60,647,374	)
Net increase (decrease) in net assets		11,315,126			(44,933,379	)
Net assets:
Beginning of period		426,268,419			471,201,798
End of period	$	437,583,545		$	426,268,419

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

Invesco V.I. Government Securities Fund

Financial Highlights

(Unaudited)

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

	Net asset value, beginning of period			Net investment income(a)			Net gains (losses) on securities (both realized and unrealized)				Total from investment operations			Dividends from net investment income				Net asset value, end of period			Total return (b)			Net assets, end of period (000’s omitted)			Ratio of expenses to average net assets with fee waivers and/or expenses absorbed			Ratio of expenses to average net assets without fee waivers and/or expenses absorbed			Ratio of net investment income to average net assets			Portfolio turnover (c)
Series I
Six months ended 06/30/20		$	11.61		$	0.11		$	0.47			$	0.58		$	–			$	12.19		5.00	%		$	257,409		0.67	%(d)		0.67	%(d)		1.87	%(d)		31	%
Year ended 12/31/19			11.22			0.25			0.43				0.68			(0.29	)			11.61		6.07				251,440		0.68			0.68			2.18			35
Year ended 12/31/18			11.41			0.25			(0.19	)			0.06			(0.25	)			11.22		0.56				279,476		0.69			0.69			2.25			25
Year ended 12/31/17			11.44			0.22			(0.01	)			0.21			(0.24	)			11.41		1.87				318,298		0.70			0.70			1.97			35
Year ended 12/31/16			11.52			0.23			(0.07	)			0.16			(0.24	)			11.44		1.32				353,614		0.73			0.73			1.93			31
Year ended 12/31/15			11.74			0.17			(0.13	)			0.04			(0.26	)			11.52		0.34				393,090		0.77			0.77			1.44			59
Series II
Six months ended 06/30/20			11.50			0.10			0.46				0.56			–				12.06		4.87				180,175		0.92	(d)		0.92	(d)		1.62	(d)		31
Year ended 12/31/19			11.12			0.22			0.42				0.64			(0.26	)			11.50		5.75				174,828		0.93			0.93			1.93			35
Year ended 12/31/18			11.31			0.22			(0.19	)			0.03			(0.22	)			11.12		0.29				191,725		0.94			0.94			2.00			25
Year ended 12/31/17			11.33			0.19			(0.00	)			0.19			(0.21	)			11.31		1.72				207,086		0.95			0.95			1.72			35
Year ended 12/31/16			11.42			0.20			(0.08	)			0.12			(0.21	)			11.33		1.00				205,010		0.98			0.98			1.68			31
Year ended 12/31/15			11.64			0.14			(0.13	)			0.01			(0.23	)			11.42		0.06				195,392		1.02			1.02			1.19			59

^(a)  Calculated using average shares outstanding.

^(b)  Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. 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 $260,472 and $185,025 for Series I and Series II shares, respectively.

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

Invesco V.I. Government Securities Fund

Notes to Financial Statements

June 30, 2020

(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. Information presented in these financial statements pertains only to the Fund. Matters affecting the Fund or each class will be voted on exclusively by the shareholders of the Fund or each class. 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 Fund is an investment company and accordingly follows the investment company accounting and reporting guidance in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 946, Financial Services – Investment Companies.

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

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

Debt obligations (including convertible securities) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. Pricing services generally value debt obligations assuming orderly transactions of institutional round lot size, but a fund may hold or transact in the same securities in smaller, odd lot sizes. Odd lots often trade at lower prices than institutional round lots. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.

A security listed or traded on an exchange (except convertible securities) is valued at its last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded, or lacking any sales or official closing price on a particular day, the security may be valued at the closing bid price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued by an independent pricing service they may be considered fair valued. Futures contracts are valued at the final settlement price set by an exchange on which they are principally traded. Listed options are valued at the mean between the last bid and asked 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 asked prices. For purposes of determining net asset value (“NAV”) 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, if available, provided by an independent pricing service. Evaluated quotes provided by the pricing service are valued based on a model which may include end-of-day net present values, spreads, ratings, industry, company performance and returns of referenced assets. Centrally cleared swap agreements are valued at the daily settlement price determined by the relevant exchange or clearinghouse.

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

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

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

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

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

B. Securities Transactions and Investment Income – Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income (net of withholding tax, if any) is recorded on an accrual basis from settlement date. Bond premiums and discounts are amortized and/or accreted over the lives of the respective securities. Pay-in-kind interest income and non-cash

Invesco V.I. Government Securities Fund

dividend income received in the form of securities in-lieu of cash are recorded at the fair value of the securities received. Paydown gains and losses on mortgage and asset-backed securities are recorded as adjustments to interest income. Dividend income (net of withholding tax, if any) is recorded on the ex-dividend date.

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

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

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

C. Country Determination – For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues 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 net investment income and net realized capital gain, if any, are generally declared and paid to separate accounts of participating insurance companies annually and recorded on the ex-dividend date.

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

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

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

F. Expenses – Fees provided for under the Rule 12b-1 plan of a particular class of the Fund and which are directly attributable to that class are charged to the operations of such class. All other expenses are allocated among the classes based on relative net assets.

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

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

I. Treasury Inflation-Protected Securities – The Fund may invest in Treasury Inflation-Protected Securities (“TIPS”). TIPS are fixed income securities whose principal value is periodically adjusted to the rate of inflation. The principal value of TIPS will be adjusted upward or downward, and any increase or decrease in the principal amount of TIPS will be shown as Treasury Inflation-Protected Securities inflation adjustments in the Statement of Operations, even though investors do not receive their principal until maturity.

J. Futures Contracts – The Fund may enter into futures contracts to manage exposure to interest rate, equity and market price movements and/or currency risks. A futures contract is an agreement between two parties (“Counterparties”) to purchase or sell a specified underlying security, currency or commodity (or delivery of a cash settlement price, in the case of an index future) for a fixed price at a future date. The Fund currently invests only in exchange-traded futures and they are standardized as to maturity date and underlying financial instrument. Initial margin deposits required upon entering into futures contracts are satisfied by the segregation of specific securities or cash as collateral at the futures commission merchant (broker). During the period the futures contracts are open, changes in the value of the contracts are recognized as unrealized gains or losses by recalculating the value of the contracts on a daily basis. Subsequent or variation margin payments are received or made depending upon whether unrealized gains or losses are incurred. These amounts are reflected as receivables or payables on the Statement of Assets and Liabilities. When the contracts are closed or expire, the Fund recognizes a realized gain or loss equal to the difference between the proceeds from, or cost of, the closing transaction and the Fund’s basis in the contract. The net realized gain (loss) and the change in unrealized gain (loss) on futures contracts held during the period is included on the Statement of Operations. The primary risks associated with futures contracts are market risk and the absence of a liquid secondary market. If the Fund were unable to liquidate a futures contract and/or enter into an offsetting closing transaction, the Fund would continue to be subject to market risk with respect to the value of the contracts and continue to be required to maintain the margin deposits on the futures contracts. Futures contracts have minimal Counterparty risk since the exchange’s clearinghouse, as Counterparty to all exchange-traded futures, guarantees the futures against default. Risks may exceed amounts recognized in the Statement of Assets and Liabilities.

K. Put Options Purchased – The Fund may purchase put options including options on securities indexes, or foreign currency 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.

Additionally, the Fund may enter into an option on a swap agreement, also called a “swaption”. A swaption is an option that gives the buyer the right, but not the obligation, to enter into a swap on a future date in exchange for paying a market-based premium. A receiver swaption gives the owner the right to receive the total return of a specified asset, reference rate or index. Swaptions also include options that allow an existing swap to be terminated or extended by one of the Counterparties.

Put options may be used by the Fund to hedge securities it owns by locking in a minimum price at which the Fund can sell. If security prices fall, the put option could be exercised to offset all or a portion of the Fund’s resulting losses. At the same time, because the maximum the Fund has at risk is the cost of the option, purchasing put options does not eliminate the potential for the Fund to profit from an increase in the value of the securities hedged. Realized and unrealized gains and losses on put options purchased are included in the Statement of Operations as Net realized gain (loss) from and Change in net unrealized appreciation

Invesco V.I. Government Securities Fund

(depreciation) of Investment securities. A risk in buying an option is that the Fund pays a premium whether or not the option is exercised. In addition, there can be no assurance that a liquid secondary market will exist for any option purchased.

L. Swap Agreements – The Fund may enter into various swap transactions, including interest rate, total return, index, currency and credit default swap contracts (“CDS”) for investment purposes or to manage interest rate, currency or credit risk. Such transactions are agreements between Counterparties. A swap agreement may be negotiated bilaterally and traded over-the-counter (“OTC”) between two parties (“uncleared/ OTC”) or, in some instances, must be transacted through a future commission merchant (“FCM”) and cleared through a clearinghouse that serves as a central Counterparty (“centrally cleared swap”). These agreements may contain among other conditions, events of default and termination events, and various covenants and representations such as provisions that require the Fund to maintain a pre-determined level of net assets, and/ or provide limits regarding the decline of the Fund’s NAV over specific periods of time. If the Fund were to trigger such provisions and have open derivative positions at that time, the Counterparty may be able to terminate such agreement and request immediate payment in an amount equal to the net liability positions, if any.

Interest rate, total return, index, and currency swap agreements are two-party contracts entered into primarily to exchange the returns (or differentials in rates of returns) earned or realized on particular predetermined investments or instruments. The gross returns to be exchanged or “swapped” between the parties are calculated with respect to a notional amount, i.e., the return on or increase in value of a particular dollar amount invested at a particular interest rate or return of an underlying asset, in a particular foreign currency, or in a “basket” of securities representing a particular index.

In a centrally cleared swap, the Fund’s ultimate Counterparty is a central clearinghouse. The Fund initially will enter into centrally cleared swaps through an executing broker. When a fund enters into a centrally cleared swap, it must deliver to the central Counterparty (via the FCM) an amount referred to as “initial margin.” Initial margin requirements are determined by the central Counterparty, but an FCM may require additional initial margin above the amount required by the central Counterparty. Initial margin deposits required upon entering into centrally cleared swaps are satisfied by cash or securities as collateral at the FCM. Securities deposited as initial margin are designated on the Schedule of Investments and cash deposited is recorded on the Statement of Assets and Liabilities. During the term of a cleared swap agreement, a “variation margin” amount may be required to be paid by the Fund or may be received by the Fund, based on the daily change in price of the underlying reference instrument subject to the swap agreement and is recorded as a receivable or payable for variation margin in the Statement of Assets and Liabilities until the centrally cleared swap is terminated at which time a realized gain or loss is recorded.

A CDS is an agreement between Counterparties to exchange the credit risk of an issuer. A buyer of a CDS is said to buy protection by paying a fixed payment over the life of the agreement and in some situations an upfront payment to the seller of the CDS. If a defined credit event occurs (such as payment default or bankruptcy), the Fund as a protection buyer would cease paying its fixed payment, the Fund would deliver eligible bonds issued by the reference entity to the seller, and the seller would pay the full notional value, or the “par value”, of the referenced obligation to the Fund. A seller of a CDS is said to sell protection and thus would receive a fixed payment over the life of the agreement and an upfront payment, if applicable. If a credit event occurs, the Fund as a protection seller would cease to receive the fixed payment stream, the Fund would pay the buyer “par value” or the full notional value of the referenced obligation, and the Fund would receive the eligible bonds issued by the reference entity. In turn, these bonds may be sold in order to realize a recovery value. Alternatively, the seller of the CDS and its Counterparty may agree to net the notional amount and the market value of the bonds and make a cash payment equal to the difference to the buyer of protection. If no credit event occurs, the Fund receives the fixed payment over the life of the agreement. As the seller, the Fund would effectively add leverage to its portfolio because, in addition to its total net assets, the Fund would be subject to investment exposure on the notional amount of the CDS. In connection with these agreements, cash and securities may be identified as collateral in accordance with the terms of the respective swap agreements to provide assets of value and recourse in the event of default under the swap agreement or bankruptcy/insolvency of a party to the swap agreement. If a Counterparty becomes bankrupt or otherwise fails to perform its obligations due to financial difficulties, the Fund may experience significant delays in obtaining any recovery in a bankruptcy or other reorganization proceeding. The Fund may obtain only limited recovery or may obtain no recovery in such circumstances. The Fund’s maximum risk of loss from Counterparty risk, either as the protection seller or as the protection buyer, is the value of the contract. The risk may be mitigated by having a master netting arrangement between the Fund and the Counterparty and by the designation of collateral by the Counterparty to cover the Fund’s exposure to the Counterparty.

Implied credit spreads represent the current level at which protection could be bought or sold given the terms of the existing CDS contract and serve as an indicator of the current status of the payment/performance risk of the CDS. An implied spread that has widened or increased since entry into the initial contract may indicate a deteriorating credit profile and increased risk of default for the reference entity. A declining or narrowing spread may indicate an improving credit profile or decreased risk of default for the reference entity. Alternatively, credit spreads may increase or decrease reflecting the general tolerance for risk in the credit markets.

An interest rate swap is an agreement between Counterparties pursuant to which the parties exchange a floating rate payment for a fixed rate payment based on a specified notional amount.

Changes in the value of centrally cleared and OTC swap agreements are recognized as unrealized gains (losses) in the Statement of Operations by “marking to market” on a daily basis to reflect the value of the swap agreement at the end of each trading day. Payments received or paid at the beginning of the agreement are reflected as such on the Statement of Assets and Liabilities and may be referred to as upfront payments. The Fund accrues for the fixed payment stream and amortizes upfront payments, if any, on swap agreements on a daily basis with the net amount, recorded as a component of realized gain (loss) on the Statement of Operations. A liquidation payment received or made at the termination of a swap agreement is recorded as realized gain (loss) on the Statement of Operations. The Fund segregates cash or liquid securities having a value at least equal to the amount of the potential obligation of a Fund under any swap transaction. Cash held as collateral is recorded as deposits with brokers on the Statement of Assets and Liabilities. Entering into these agreements involves, to varying degrees, lack of liquidity and elements of credit, market, and Counterparty risk in excess of amounts recognized on the Statement of Assets and Liabilities. Such risks involve the possibility that a swap is difficult to sell or liquidate; the Counterparty does not honor its obligations under the agreement and unfavorable interest rates and market fluctuations. It is possible that developments in the swaps market, including potential government regulation, could adversely affect the Fund’s ability to terminate existing swap agreements or to realize amounts to be received under such agreements. A short position in a security poses more risk than holding the same security long. As there is no limit on how much the price of the security can increase, the Fund’s exposure is unlimited.

Notional amounts of each individual credit default swap agreement outstanding as of June 30, 2020 for which the Fund is the seller of protection are disclosed in the open swap agreements table. These potential amounts would be partially offset by any recovery values of the respective referenced obligations, upfront payments received upon entering into the agreement, or net amounts received from the settlement of buy protection credit default swap agreements entered into by the Fund for the same referenced entity or entities.

M. Dollar Rolls and Forward Commitment Transactions – The Fund may enter into dollar roll transactions to enhance the Fund’s performance. The Fund executes its dollar roll transactions in the to be announced (“TBA”) market whereby the Fund makes a forward commitment to purchase a security and, instead of accepting delivery, the position is offset by the sale of the security with a simultaneous agreement to repurchase at a future date.

The Fund accounts for dollar roll transactions as purchases and sales and realizes gains and losses on these transactions. These transactions increase the Fund’s portfolio turnover rate. The Fund will segregate liquid assets in an amount equal to its dollar roll commitments.

Dollar roll transactions involve the risk that a Counterparty to the transaction may fail to complete the transaction. If this occurs, the Fund may lose the opportunity to purchase or sell the security at the agreed upon price. Dollar roll transactions also involve the risk that the value of the securities retained by the Fund may decline below the price of the securities that the Fund has sold but is obligated to purchase under the agreement. Dollar roll transactions covered in this manner are not treated as senior securities for purposes of a Fund’s fundamental investment limitation on borrowings.

N. Other Risks – The Fund may invest in obligations issued by agencies and instrumentalities of the U.S. Government that may vary in the level of support they

Invesco V.I. Government Securities Fund

receive from the government. The government may choose not to provide financial support to government sponsored agencies or instrumentalities if it is not legally obligated to do so. In this case, if the issuer defaulted, the Fund may not be able to recover its investment in such issuer from the U.S. Government. Many securities purchased by the Fund are not guaranteed by the U.S. Government.

O. Leverage Risk – Leverage exists when the Fund can lose more than it originally invests because it purchases or sells an instrument or enters into a transaction without investing an amount equal to the full economic exposure of the instrument or transaction.

P. Collateral – To the extent the Fund has designated or segregated a security as collateral and that security is subsequently sold, it is the Fund’s practice to replace such collateral no later than the next business day.

NOTE 2—Advisory Fees and Other Fees Paid to Affiliates

The Trust has entered into a master investment advisory agreement with Invesco Advisers, Inc. (the “Adviser” or “Invesco”). Under the terms of the investment advisory agreement, the Fund accrues daily and pays monthly an 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		0.500%
Over $250 million		0.450%

For the six months ended June 30, 2020, the effective advisory fee rate incurred by the Fund was 0.48%.

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

The Adviser has contractually agreed, through at least June 30, 2021, 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 1.50% and Series II shares to 1.75% of average daily net assets (the “expense limits”). In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause the total annual fund operating expenses after fee waiver and/or expense reimbursement to exceed the numbers reflected above: (1) interest; (2) taxes; (3) dividend expense on short sales; (4) extraordinary or non-routine items, including litigation expenses; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Unless Invesco continues the fee waiver agreement, it will terminate on June 30, 2021. During its term, the fee waiver agreement cannot be terminated or amended to increase the expense limits or reduce the advisory fee waiver without approval of the Board of Trustees. The Adviser did not waive fees and/or reimburse expenses during the period under these expense limits.

Further, the Adviser has contractually agreed, through at least June 30, 2022, 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, 2020, the Adviser waived advisory fees of $4,067.

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 fees paid to insurance companies that have agreed to provide certain administrative services to the Fund. These administrative services provided by the insurance companies may include, among other things: maintenance of master accounts with the Fund; tracking, recording and transmitting net purchase and redemption orders for Fund shares; maintaining and preserving records related to the purchase, redemption and other account activity of variable product owners; distributing copies of Fund documents such as prospectuses, proxy materials and periodic reports, to variable product owners, and responding to inquiries from variable product owners about the Fund. Pursuant to such agreement, for the six months ended June 30, 2020, Invesco was paid $32,619 for accounting and fund administrative services and was reimbursed $324,504 for fees paid to insurance companies. Invesco has entered into a sub-administration agreement whereby State Street Bank and Trust Company (“SSB”) serves as fund accountant and provides certain administrative services to the Fund. Pursuant to a custody agreement with the Trust on behalf of the Fund, SSB also serves as the Fund’s custodian.

The Trust has entered into a transfer agency and service agreement with Invesco Investment Services, Inc. (“IIS”) pursuant to which the Fund has agreed to pay IIS a fee for providing transfer agency and shareholder services to the Fund and reimburse IIS for certain expenses incurred by IIS in the course of providing such services. For the six months ended June 30, 2020, 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. The fees are accrued daily and paid monthly. 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, 2020, 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, 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, 2020. 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. Government Securities Fund

	Level 1			Level 2		Level 3		Total
Investments in Securities
U.S. Government Sponsored Agency Mortgage-Backed Securities	$	–		$	419,402,944		$–	$	419,402,944
U.S. Treasury Securities		–			69,494,886		–		69,494,886
Asset-Backed Securities		–			45,338,282		–		45,338,282
U.S. Dollar Denominated Bonds & Notes		–			6,166,096		–		6,166,096
Agency Credit Risk Transfer Notes		–			2,836,415		–		2,836,415
U.S. Government Sponsored Agency Securities		–			2,061,601		–		2,061,601
Money Market Funds		10,029,511			–		–		10,029,511
Total Investments in Securities		10,029,511			545,300,224		–		555,329,735
Other Investments - Assets*
Futures Contracts		187,753			–		–		187,753
Other Investments - Liabilities*
Futures Contracts		(118,285	)		–		–		(118,285	)
Total Other Investments		69,468			–		–		69,468
Total Investments	$	10,098,979		$	545,300,224		$–	$	555,399,203

* Unrealized appreciation (depreciation).

NOTE 4—Derivative Investments

The Fund may enter into an International Swaps and Derivatives Association Master Agreement (“ISDA Master Agreement”) under which a fund may trade OTC derivatives. An OTC transaction entered into under an ISDA Master Agreement typically involves a collateral posting arrangement, payment netting provisions and close-out netting provisions. These netting provisions allow for reduction of credit risk through netting of contractual obligations. The enforceability of the netting provisions of the ISDA Master Agreement depends on the governing law of the ISDA Master Agreement, among other factors.

For financial reporting purposes, the Fund does not offset OTC derivative assets or liabilities that are subject to ISDA Master Agreements in the Statement of Assets and Liabilities.

Value of Derivative Investments at Period-End

The table below summarizes the value of the Fund’s derivative investments, detailed by primary risk exposure, held as of June 30, 2020:

	Value
	Interest
Derivative Assets	Rate Risk
Unrealized appreciation on futures contracts – Exchange-Traded(a)	$	187,753
Derivatives not subject to master netting agreements		(187,753	)
Total Derivative Assets subject to master netting agreements	$	-
	Value
	Interest
Derivative Liabilities	Rate Risk
Unrealized depreciation on futures contracts – Exchange-Traded(a)	$	(118,285	)
Derivatives not subject to master netting agreements		118,285
Total Derivative Liabilities subject to master netting agreements	$	-

^(a)  The daily variation margin receivable (payable) at period-end is recorded in the Statement of Assets and Liabilities.

Effect of Derivative Investments for the six months ended June 30, 2020

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

	Location of Gain (Loss) on
	Statement of Operations
	Interest
	Rate Risk
Realized Gain (Loss):
Futures contracts	$	(2,668,090	)
Change in Net Unrealized Appreciation (Depreciation):
Futures contracts		(146,289	)
Total	$	(2,814,379	)

The table below summarizes the average notional value of derivatives held during the period.

	Futures
	Contracts
Average notional value	$	134,206,137

Invesco V.I. Government Securities Fund

NOTE 5—Trustees’ and Officers’ Fees and Benefits

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

NOTE 6—Cash Balances

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

NOTE 7—Tax Information

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

Capital loss carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Fund to utilize. The ability to utilize capital loss carryforwards 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, 2019, as follows:

Capital Loss Carryforward*
Expiration	Short-Term		Long-Term		Total
Not subject to expiration	$	7,872,584	$	8,820,405	$	16,692,989

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

NOTE 8—Investment Transactions

The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Fund during the six months ended June 30, 2020 was $18,095,889 and $7,869,930, respectively. During the same period, purchases and sales of U.S. Treasury obligations were $119,043,785 and $142,927,653, respectively. Cost of investments, including any derivatives, on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end.

Unrealized Appreciation (Depreciation) of Investments on a Tax Basis
Aggregate unrealized appreciation of investments	$	18,777,086
Aggregate unrealized (depreciation) of investments		(492,152	)
Net unrealized appreciation of investments	$	18,284,934

Cost of investments for tax purposes is $537,114,269.

NOTE 9—Share Information

	Summary of Share Activity
	Six months ended				Year ended
	June 30, 2020(a)				December 31, 2019
	Shares		Amount		Shares		Amount
Sold:
Series I		3,548,204	$	42,266,754		3,053,546	$	35,296,652
Series II		2,419,221		28,453,054		1,618,892		18,750,084
Issued as reinvestment of dividends:
Series I		-		-		571,278		6,666,815
Series II		-		-		348,730		4,034,804

Invesco V.I. Government Securities Fund

	Summary of Share Activity
	Six months ended						Year ended
	June 30, 2020(a)						December 31, 2019
	Shares			Amount			Shares			Amount
Reacquired:
Series I		(4,102,178	)	$	(49,274,074	)		(6,860,415	)	$	(79,176,063	)
Series II		(2,690,384	)		(32,059,254	)		(4,004,398	)		(46,219,666	)
Net increase (decrease) in share activity		(825,137	)	$	(10,613,520	)		(5,272,367	)	$	(60,647,374	)

^(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 Fund 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—Coronavirus (COVID-19) Pandemic

During the first quarter of 2020, the World Health Organization declared COVID-19 to be a public health emergency. COVID-19 has led to increased short-term market volatility and may have adverse long-term effects on U.S. and world economies and markets in general. COVID-19 may adversely impact the Fund’s ability to achieve its investment objective. Because of the uncertainties on valuation, the global economy and business operations, values reflected in these financial statements may materially differ from the value received upon actual sales of those investments.

The extent of the impact on the performance of the Fund and its investments will depend on future developments, including the duration and spread of the COVID-19 outbreak, related restrictions and advisories, and the effects on the financial markets and economy overall, all of which are highly uncertain and cannot be predicted.

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, 2020 through June 30, 2020.

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
	(01/01/20)	(06/30/20)1	Period2	(06/30/20)	Period2	Ratio
Series I	$1,000.00	$1,050.00	$3.41	$1,021.53	$3.37	0.67%
Series II	1,000.00	1,048.70	4.69	1,020.29	4.62	0.92

¹ The actual ending account value is based on the actual total return of the Fund for the period January 1, 2020 through June 30, 2020, 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 182/366 to reflect the most recent fiscal half year.

Invesco V.I. Government Securities Fund

Approval of Investment Advisory and Sub-Advisory Contracts

At meetings held on June 3, 2020, the Board of Trustees (the Board or the Trustees) of AIM Variable Insurance Funds (Invesco Variable Insurance Funds) as a whole, and the independent Trustees, who comprise over 75% of the Board, voting separately, approved the continuance of the Invesco V.I. Government Securities Fund’s (the Fund) Master Investment Advisory Agreement with Invesco Advisers, Inc. (Invesco Advisers and the investment advisory agreement) and the Master Intergroup Sub-Advisory Contract for Mutual Funds with Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Canada Ltd. and separate sub-advisory contracts with Invesco Capital Management LLC and Invesco Asset Management (India) Private Limited (collectively, the Affiliated Sub-Advisers and the sub-advisory contracts) for another year, effective July 1, 2020. After evaluating the factors discussed below, among others, the Board approved the renewal of the Fund’s investment advisory agreement and the sub-advisory contracts and determined that the compensation payable thereunder by the Fund to Invesco Advisers and by Invesco Advisers to the Affiliated Sub-Advisers is fair and reasonable.

The Board’s Evaluation Process

The Board’s Investments Committee has established Sub-Committees, which meet throughout the year to review the performance of funds advised by Invesco Advisers (the Invesco Funds). The Sub-Committees meet regularly with portfolio managers for their assigned Invesco Funds and other members of management to review detailed information about investment performance and portfolio attributes of these funds. The Board took into account evaluations and reports that it received from the Investments Committee and Sub-Committees, as well as the information provided to such committees and the Board throughout the year, in considering whether to approve each Invesco Fund’s investment advisory agreement and sub-advisory contracts.

As part of the contract renewal process, the Board reviews and considers information provided in response to detailed requests for information submitted to management by the independent Trustees with assistance from legal counsel to the independent Trustees. The Board receives comparative investment performance and fee data regarding the Invesco Funds prepared by Invesco Advisers and Broadridge Financial Solutions, Inc. (Broadridge), an independent mutual fund data provider, as well as information on the composition of the peer groups provided by Broadridge and its methodology for determining peer groups. The Board also receives an independent written evaluation from the Senior Officer, an officer of the Invesco Funds who reports directly to the independent Trustees. 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. In addition to meetings with Invesco Advisers and fund counsel throughout the year, the independent Trustees also

discuss the continuance of the investment advisory agreement and sub-advisory contracts in separate sessions with the Senior Officer and with independent legal counsel.

The discussion below is a summary of 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. The Trustees’ review and conclusions are based on the comprehensive consideration of all information presented to them during the course of the year and in prior years and are not the result of any single determinative factor. Moreover, one Trustee may have weighed a particular piece of information or factor differently than another Trustee. This information is current as of June 3, 2020.

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 nature, extent and quality of the advisory services provided to the Fund by Invesco Advisers under the Fund’s investment advisory agreement, and the credentials and experience of the officers and employees of Invesco Advisers who provide these services, including the Fund’s portfolio manager(s). The Board’s review included consideration of Invesco Advisers’ investment process oversight and structure, credit analysis, investment risk management and research capabilities. The Board also considered non-advisory services that Invesco Advisers and its affiliates provide to the Invesco Funds, such as various back office support functions, third party oversight, internal audit, valuation, portfolio trading and legal and compliance. The Board also received and reviewed information about Invesco Advisers’ role as administrator of the Invesco Funds’ liquidity risk management program. The Board reviewed and considered the benefits to shareholders of investing in a Fund that is part of the Invesco family of funds under the umbrella of Invesco Ltd., Invesco Advisers’ parent company, and noted Invesco Ltd.’s depth and experience in conducting an investment management business, as well as its commitment of financial and other resources to such business. The Board also reviewed and considered information regarding the benefits to the Fund resulting from Invesco Ltd.’s acquisition of OppenheimerFunds, Inc. and its subsidiaries (the Transaction) and the resources that Invesco Advisers has committed to managing the Invesco family of funds following the Transaction. The Board concluded that the nature, extent and quality of the services provided to the Fund by Invesco Advisers are appropriate and satisfactory.

The Board reviewed the services that may be 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 the Affiliated Sub-Advisers’ expertise with respect to certain asset classes and that the Affiliated Sub-Advisers have offices and personnel that are located in financial centers around the world.

As a result, the Board noted that the Affiliated Sub-Advisers can provide research and investment analysis on the markets and economies of various countries in which the Fund may invest, make recommendations regarding securities and assist with security trades. The Board concluded that the sub-advisory contracts may 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 that may be provided by the Affiliated Sub-Advisers are appropriate and satisfactory.

B. Fund Investment Performance

The Board considered Fund investment performance as a relevant factor in considering whether to approve the investment advisory agreement. The Board did not view Fund investment 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 investment performance over multiple time periods ending December 31, 2019 to the performance of funds in the Broadridge performance universe and against the Bloomberg Barclays U.S. Government Index. The Board noted that performance of Series I shares of the Fund was in the second quintile of its performance universe for the one and three year periods 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 below the performance of the Index for the one, three and five year periods. The Board recognized that the performance data reflects a snapshot in time as of a particular date and that selecting a different performance period could produce different results. The Board also reviewed more recent Fund performance as well as other performance metrics and this review did not change their conclusions.

C. Advisory and Sub-Advisory Fees and Fund Expenses

The Board compared the Fund’s contractual management fee rate to the contractual management fee rates of funds in the Fund’s Broadridge expense group. The Board noted that the contractual management fee rate for Series I shares of the Fund was below the median contractual management fee rate of funds in its expense group. The Board noted that the term “contractual management fee” for funds in the expense group may include both advisory and certain non-portfolio management administrative services fees, but that Broadridge does not provide information on a fund by fund basis as to what is included. The Board also reviewed the methodology used by Broadridge in providing expense group information, which includes using each fund’s contractual management fee schedule (including any applicable breakpoints) as reported in the most recent prospectus or statement of additional information for each fund in the expense group. The Board also considered comparative information regarding the Fund’s total expense ratio and its various components.

The Board noted that Invesco Advisers has contractually agreed to waive fees and/or limit

Invesco V.I. Government Securities Fund

expenses of the Fund for the term disclosed in the Fund’s registration statement 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 Invesco Advisers and the Affiliated Sub-Advisers do not manage other similarly managed mutual funds or client accounts.

The Board also considered the services that may be provided by the Affiliated Sub-Advisers pursuant to the sub-advisory contracts, as well as the fees payable by Invesco Advisers to the Affiliated Sub-Advisers pursuant to the sub-advisory contracts.

D. Economies of Scale and Breakpoints

The Board considered the extent to which there may be economies of scale in the provision of advisory services to the Fund. The Board also considered that the Fund benefits from economies of scale through contractual breakpoints in the Fund’s advisory fee schedule, which generally operate to reduce the Fund’s expense ratio as it grows in size. The Board 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. The Board noted that the Fund may also benefit from economies of scale through initial fee setting, fee waivers and expense reimbursements. The Board also considered Invesco’s reinvestment in its business, including investments in business infrastructure, technology and cybersecurity.

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 Invesco Funds and the profitability of Invesco Advisers and its affiliates in providing these services in the aggregate and on an individual Fund-by-Fund basis. The Board considered the methodology used for calculating profitability and noted the periodic review and enhancement of such methodology. The Board noted that Invesco Advisers continues to operate at a net profit from services Invesco Advisers and its affiliates provide to the Invesco Funds in the aggregate and to certain Funds on an individual fund level. The Board did not deem the level of profits realized by Invesco Advisers and its affiliates from providing such services to be excessive given the nature, extent and quality of the services provided. The Board received information from Invesco Advisers demonstrating that Invesco Advisers and the Affiliated Sub-Advisers are financially sound and have the resources necessary to perform their obligations under the investment advisory agreement and sub-advisory contracts.

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 providing administrative, transfer agency and distribution services to the Fund. The Board considered comparative information regarding fees charged for these services, including information provided by Broadridge and other independent sources. 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; and that the services are required for the operation of the Fund.

The Board considered the benefits realized by Invesco Advisers and the Affiliated Sub-Advisers as a result of portfolio brokerage transactions executed through “soft dollar” arrangements. Invesco Advisers noted that the Fund does not execute brokerage transactions through “soft dollar” arrangements to any significant degree.

The Board considered that the Fund’s uninvested cash and cash collateral from any securities lending arrangements may be invested in registered money market funds or, with regard to securities lending cash collateral, unregistered funds that comply with Rule 2a-7 (collectively referred to as “affiliated money market funds”) advised by Invesco Advisers pursuant to procedures approved by the Board. The Board considered information regarding the returns of the affiliated money market funds relative to comparable overnight investments, as well as the costs to the Fund of such investments. 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 with respect to certain investments in the affiliated money market 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 amount of advisory fees received by Invesco Advisers from the Fund’s investment of cash collateral from any securities lending arrangements in the affiliated money market funds is fair and reasonable.

Invesco V.I. Government Securities Fund

	Semiannual Report to Shareholders	June 30, 2020
	Invesco V.I. Growth and Income Fund

Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, the insurance company that offers your variable annuity or variable life insurance contract may no longer send you paper copies of the Fund’s shareholder reports by mail, unless you specifically request paper copies of the reports from the insurance company or your financial intermediary. Instead of delivering paper copies of the report, the insurance company may choose to make the reports available on a website, and will notify you by mail each time a report is posted and provide you with a website link to access the report. Instructions for requesting paper copies will be provided by your insurance company.

If the insurance company offers electronic delivery, you may elect to receive shareholder reports and other communications about the Fund electronically by following the instructions provided by the insurance company or by contacting your financial intermediary. If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action.

You may elect to receive all future reports in paper free of charge from the insurance company. You can inform the insurance company or your financial intermediary that you wish to continue receiving paper copies of your shareholder reports by following the instructions provided by the insurance company or by contacting your financial intermediary. Your election to receive reports in paper will apply to all portfolio companies available under your contract with the insurance company.

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) as an exhibit to its reports on Form N-PORT. The Fund’s Form N-PORT filings are available on the SEC website, 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-PORT, 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 most recent 12-month period ended June 30 is available at invesco.com/proxysearch. The information is also available on the SEC website, sec.gov.

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

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.

NOT FDIC INSURED  |  MAY LOSE VALUE  |  NO BANK GUARANTEE

Invesco Distributors, Inc. VK-VIGRI-SAR-1                                 

Fund Performance

Performance summary
Fund vs. Indexes
Cumulative total returns, 12/31/19 to 6/30/20, excluding variable product issuer charges. If variable product issuer charges were included, returns would be lower.
Series I Shares	–19.80%
Series II Shares	–19.88
S&P 500 Indexq (Broad Market Index)	–3.08
Russell 1000 Value Indexq (Style-Specific Index)	–16.26
Lipper VUF Large-Cap Value Funds Index∎ (Peer Group Index)	–15.82
Source(s): qRIMES Technologies Corp.; ∎Lipper Inc.
The S&P 500® Index is an unmanaged index considered representative of the US stock market.
The Russell 1000® Value Index is an unmanaged index considered representative of large-cap value stocks. The Russell 1000 Value Index is a trademark/service mark of the Frank Russell Co. Russell® is a trademark of the Frank Russell Co.
The Lipper 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) described here, and consequently, the performance of the Fund may deviate significantly from the performance of the index(es).
A direct investment cannot be made in an index. Unless otherwise indicated, index results include reinvested dividends, and they do not reflect sales charges. Performance of the peer group, if applicable, reflects fund expenses; performance of a market index does not.

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 (renamed Invesco V.I. Growth and Income Fund on April 29, 2013). Returns shown above, prior to June 1, 2010, for Series I and Series II shares are those of the Class I shares and Class II shares of the predecessor fund. Share class returns will differ from the predecessor fund because of different expenses.

The performance data quoted represent past performance and cannot guarantee future results; current performance may be lower or higher. Please 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. Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares. Investment return and principal value will fluctuate so that you may have a gain or loss when you sell shares.

Invesco 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

Average Annual Total Returns As of 6/30/20
Series I Shares
Inception (12/23/96)	7.62	%
10 Years	8.92
5 Years	2.49
1 Year	–13.53
Series II Shares
Inception (9/18/00)	5.39	%
10 Years	8.65
5 Years	2.23
1 Year	–13.74

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 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.

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

Invesco V.I. Growth and Income Fund

Liquidity Risk Management Program

The Securities and Exchange Commission has adopted Rule 22e-4 under the Investment Company Act of 1940 (the “Liquidity Rule”) in order to promote effective liquidity risk management throughout the open-end investment company industry, thereby reducing the risk that funds will be unable to meet their redemption obligations and mitigating dilution of the interests of fund shareholders. The Fund has adopted and implemented a liquidity risk management program in accordance with the Liquidity Rule (the “Program”). The Program is reasonably designed to assess and manage the Fund’s liquidity risk, which is the risk that the Fund could not meet redemption requests without significant dilution of remaining investors’ interests in the Fund. The Board of Trustees of the Fund (the “Board”) has appointed Invesco Advisers, Inc. (“Invesco”), the Fund’s investment adviser, as the Program’s administrator, and Invesco has delegated oversight of the Program to the Liquidity Risk Management Committee (the “Committee”), which is composed of senior representatives from relevant business groups at Invesco.

As required by the Liquidity Rule, the Program includes policies and procedures providing for an assessment, no less frequently than annually, of the Fund’s liquidity risk that takes into account, as relevant to the Fund’s liquidity risk: (1) the Fund’s investment strategy and liquidity of portfolio investments during both normal and reasonably foreseeable stressed conditions; (2) short-term and long-term cash flow projections for the Fund during both normal and reasonably foreseeable stressed conditions; and (3) the Fund’s holdings of cash and cash equivalents and any borrowing arrangements. The Liquidity Rule also requires the classification of the Fund’s investments into categories that reflect the assessment of their relative liquidity under current market conditions. The Fund classifies its investments into one of four categories defined in the Liquidity Rule: “Highly Liquid,” “Moderately Liquid,” “Less Liquid” and “Illiquid.” Funds that are not invested primarily in “Highly Liquid Investments” that are assets (cash or investments that are reasonably expected to be convertible into cash within three business days without significantly changing the market value of the investment) are required to establish a “Highly Liquid Investment Minimum” (“HLIM”), which is the minimum percentage of net assets that must be invested in Highly Liquid Investments. Funds with HLIMs have procedures for addressing HLIM shortfalls, including reporting to the Board and the SEC (on a non-public basis) as required by the Program and the Liquidity Rule. In addition, the Fund may not acquire an investment if, immediately after the acquisition, over 15% of the Fund’s net assets would consist of “Illiquid Investments” that are assets (an investment that cannot reasonably be expected to be sold or disposed of in current market conditions in seven calendar days or less without the sale or disposition significantly changing the market value of the investment). The Liquidity Rule and the Program also require reporting to the Board and the SEC (on a non-public basis) if a Fund’s holdings of Illiquid Investments exceed 15% of the Fund’s assets.

At a meeting held on March 30-April 1, 2020, the Committee presented a report to the Board that addressed the operation of the Program and assessed the Program’s adequacy and effectiveness of implementation (the “Report”). The Report covered the period from December 1, 2018 through December 31, 2019 (the “Program Reporting Period”).

The Report stated, in relevant part, that during the Program Reporting Period:

∎ The Program, as adopted and implemented, remained reasonably designed to assess and manage the Fund’s liquidity risk and was operated effectively to achieve that goal;

∎ The Fund’s investment strategy remained appropriate for an open-end fund;

∎ The Fund was able to meet requests for redemption without significant dilution of remaining investors’ interests in the Fund;

∎ The Fund did not breach the 15% limit on Illiquid Investments; and

∎ The Fund primarily held Highly Liquid Investments and therefore has not adopted an HLIM.

Invesco V.I. Growth and Income Fund

Schedule of Investments^(a)

June 30, 2020

(Unaudited)

	Shares		Value
Common Stocks & Other Equity Interests–97.64%
Aerospace & Defense–4.49%
General Dynamics Corp.		196,674	$     29,394,896
Raytheon Technologies Corp.		170,632	10,514,344
Textron, Inc.		315,338	10,377,773
			50,287,013
Apparel Retail–1.04%
TJX Cos., Inc. (The)		230,460	11,652,058
Apparel, Accessories & Luxury Goods–0.91%
Capri Holdings Ltd.(b)		653,659	10,216,690
Automobile Manufacturers–2.62%
General Motors Co.		1,156,901	29,269,595
Building Products–3.29%
Johnson Controls International PLC		637,998	21,781,252
Trane Technologies PLC		168,871	15,026,141
			36,807,393
Cable & Satellite–2.77%
Charter Communications, Inc., Class A(b)		26,784	13,660,911
Comcast Corp., Class A		444,717	17,335,069
			30,995,980
Commodity Chemicals–1.09%
Dow, Inc.		298,194	12,154,387
Communications Equipment–0.39%
Cisco Systems, Inc.		94,037	4,385,886
Diversified Banks–6.13%
Bank of America Corp.		1,382,495	32,834,256
Citigroup, Inc.		699,454	35,742,100
			68,576,356
Electric Utilities–2.93%
Duke Energy Corp.		132,971	10,623,053
Exelon Corp.		325,645	11,817,657
FirstEnergy Corp.		268,089	10,396,492
			32,837,202
Electronic Components–1.18%
Corning, Inc.		509,785	13,203,432
Fertilizers & Agricultural Chemicals–2.61%
Corteva, Inc.		848,389	22,728,342
Nutrien Ltd. (Canada)		202,982	6,515,722
			29,244,064
Food Distributors–2.35%
Sysco Corp.		240,357	13,137,913
US Foods Holding Corp.(b)		664,847	13,110,783
			26,248,696
Health Care Distributors–1.62%
McKesson Corp.		118,478	18,176,895

	Shares		Value
Health Care Equipment–2.84%
Medtronic PLC		201,377	$     18,466,271
Zimmer Biomet Holdings, Inc.		111,300	13,284,768
			31,751,039
Health Care Services–1.28%
CVS Health Corp.		220,155	14,303,470
Health Care Supplies–0.98%
Alcon, Inc. (Switzerland)(b)		191,881	10,994,057
Home Improvement Retail–0.94%
Kingfisher PLC (United Kingdom)		3,845,072	10,505,132
Human Resource & Employment Services–0.04%
Adecco Group AG (Switzerland)		9,803	459,307
Insurance Brokers–1.13%
Willis Towers Watson PLC		64,400	12,683,580
Integrated Oil & Gas–3.89%
BP PLC (United Kingdom)		2,912,536	11,068,865
Chevron Corp.		224,203	20,005,634
Royal Dutch Shell PLC, Class A (United Kingdom)		783,480	12,466,968
			43,541,467
Internet & Direct Marketing Retail–1.22%
Booking Holdings, Inc.(b)		8,567	13,641,577
Investment Banking & Brokerage–5.77%
Charles Schwab Corp. (The)		230,013	7,760,639
Goldman Sachs Group, Inc. (The)		148,763	29,398,544
Morgan Stanley		566,757	27,374,363
			64,533,546
IT Consulting & Other Services–2.25%
Cognizant Technology Solutions Corp., Class A		442,314	25,132,282
Managed Health Care–2.06%
Anthem, Inc.		87,542	23,021,795
Multi-line Insurance–2.58%
American International Group, Inc.		927,795	28,928,648
Oil & Gas Exploration & Production–2.71%
Canadian Natural Resources Ltd. (Canada)		390,167	6,768,144
Devon Energy Corp.		674,927	7,653,672
Marathon Oil Corp.		1,552,168	9,499,268
Parsley Energy, Inc., Class A		600,595	6,414,355
			30,335,439
Other Diversified Financial Services–1.96%
Equitable Holdings, Inc.		457,886	8,832,621
Voya Financial, Inc.		281,176	13,116,860
			21,949,481
Packaged Foods & Meats–1.47%
Kellogg Co.		110,750	7,316,145

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

Invesco V.I. Growth and Income Fund

	Shares		Value
Packaged Foods & Meats–(continued)
Mondelez International, Inc., Class A		179,419	$      9,173,693
			16,489,838
Pharmaceuticals–8.37%
Bristol-Myers Squibb Co.		380,668	22,383,279
GlaxoSmithKline PLC (United Kingdom)		430,050	8,713,648
Johnson & Johnson		229,956	32,338,712
Pfizer, Inc.		379,116	12,397,093
Sanofi (France)		175,039	17,808,295
			93,641,027
Railroads–2.37%
CSX Corp.		380,050	26,504,687
Regional Banks–6.22%
Citizens Financial Group, Inc.		898,400	22,675,616
PNC Financial Services Group, Inc. (The)		236,709	24,904,154
Truist Financial Corp.		588,139	22,084,619
			69,664,389
Semiconductors–5.69%
Intel Corp.		410,839	24,580,497
NXP Semiconductors N.V. (Netherlands)		145,535	16,596,812
QUALCOMM, Inc.		246,819	22,512,361
			63,689,670
Specialty Chemicals–1.03%
DuPont de Nemours, Inc.		216,779	11,517,468

	Shares		Value
Systems Software–2.01%
Oracle Corp.		407,986	$      22,549,386
Technology Hardware, Storage & Peripherals–1.85%
Apple, Inc.		56,907	20,759,674
Tobacco–3.01%
Philip Morris International, Inc.		481,171	33,710,840
Wireless Telecommunication Services–2.55%
Vodafone Group PLC (United Kingdom)		17,924,523	28,581,729
Total Common Stocks & Other Equity Interests (Cost $1,067,006,953)			1,092,945,175
Money Market Funds–2.23%
Invesco Government & Agency Portfolio, Institutional Class, 0.09%(c)(d)		10,354,368	10,354,368
Invesco Liquid Assets Portfolio, Institutional Class, 0.39%(c)(d)		2,765,543	2,767,479
Invesco Treasury Portfolio, Institutional Class, 0.08%(c)(d)		11,833,564	11,833,564
Total Money Market Funds (Cost $24,951,941)			24,955,411
TOTAL INVESTMENTS IN SECURITIES–99.87% (Cost $1,091,958,894)			1,117,900,586
OTHER ASSETS LESS LIABILITIES–0.13%			1,480,040
NET ASSETS–100.00%			$1,119,380,626

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 issuer. The issuer and/or the Fund is a wholly-owned subsidiary of Invesco Ltd., or is affiliated by having an investment adviser that is under common control of Invesco Ltd. The table below shows the Fund’s transactions in, and earnings from, its investments in affiliates for the six months ended June 30, 2020.

	Value December 31, 2019		Purchases at Cost		Proceeds from Sales			Change in Unrealized Appreciation		Realized Gain (Loss)			Value June 30, 2020		Dividend Income
Investments in Affiliated Money Market Funds:
Invesco Government & Agency Portfolio, Institutional Class		$  36,165,254	$	65,420,798	$	(91,231,684	)		$       -		$          -		$	10,354,368		$  73,856
Invesco Liquid Assets Portfolio, Institutional Class		25,915,806		46,729,143		(69,893,205	)		3,788		11,947			2,767,479		62,546
Invesco Treasury Portfolio, Institutional Class		41,331,718		74,766,628		(104,264,782	)		-		-			11,833,564		80,764
Investments Purchased with Cash Collateral from Securities on Loan:
Invesco Government & Agency Portfolio, Institutional Class		-		14,382,025		(14,382,025	)		-		-			-		768
Invesco Liquid Assets Portfolio, Institutional Class		-		4,786,313		(4,784,001	)		-		(2,312	)		-		1,134
Invesco Private Government Fund		-		23,496,781		(23,496,781	)		-		-			-		122
Invesco Private Prime Fund		-		3,102,212		(3,102,212	)		-		-			-		28
Total		$103,412,778	$	232,683,900	$	(311,154,690	)		$3,788		$  9,635		$	24,955,411	$	219,218

^(d)  The rate shown is the 7-day SEC standardized yield as of June 30, 2020.

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

Invesco V.I. Growth and Income Fund

Portfolio Composition

By sector, based on Net Assets

as of June 30, 2020

Financials	23.79	%
Health Care	17.14
Information Technology	13.38
Industrials	10.19
Consumer Staples	6.83
Consumer Discretionary	6.73
Energy	6.60
Communication Services	5.32
Materials	4.73
Utilities	2.93
Money Market Funds Plus Other Assets Less Liabilities	2.36

Open Forward Foreign Currency Contracts
Settlement Date		Contract to				Unrealized Appreciation (Depreciation)
	Counterparty	Deliver		Receive
Currency Risk
07/10/2020	Bank of New York Mellon (The)	GBP	21,866,926	USD	27,447,584	$ 350,987
07/10/2020	State Street Bank & Trust Co.	CAD	8,573,765	USD	6,340,156	24,618
07/10/2020	State Street Bank & Trust Co.	EUR	711,532	USD	804,445	4,908
07/10/2020	State Street Bank & Trust Co.	GBP	27,201,861	USD	34,174,296	466,865
07/10/2020	State Street Bank & Trust Co.	USD	1,225,669	CAD	1,667,964	2,973
07/10/2020	State Street Bank & Trust Co.	USD	1,486,273	CHF	1,415,262	7,814
07/10/2020	State Street Bank & Trust Co.	USD	655,223	EUR	584,193	1,225
Subtotal–Appreciation						859,390
Currency Risk
07/10/2020	State Street Bank & Trust Co.	CAD	313,109	USD	230,065	(575)
07/10/2020	State Street Bank & Trust Co.	CHF	9,859,151	USD	10,266,012	(142,263)
07/10/2020	State Street Bank & Trust Co.	EUR	11,989,734	USD	13,405,710	(66,968)
07/10/2020	State Street Bank & Trust Co.	GBP	1,008,598	USD	1,248,609	(1,204)
07/10/2020	State Street Bank & Trust Co.	USD	182,684	CAD	245,650	(1,736)
07/10/2020	State Street Bank & Trust Co.	USD	288,301	CHF	272,255	(882)
07/10/2020	State Street Bank & Trust Co.	USD	183,319	EUR	162,786	(399)
07/10/2020	State Street Bank & Trust Co.	USD	7,962,311	GBP	6,343,168	(102,118)
Subtotal–Depreciation						(316,145)
Total Forward Foreign Currency Contracts						$ 543,245

Abbreviations:

CAD – Canadian Dollar

CHF – Swiss Franc

EUR – Euro

GBP – British Pound Sterling

USD – U.S. Dollar

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

Invesco V.I. Growth and Income Fund

Statement of Assets and Liabilities

June 30, 2020

(Unaudited)

Assets:
Investments in securities, at value (Cost $1,067,006,953)	$	1,092,945,175
Investments in affiliated money market funds, at value (Cost $24,951,941)		24,955,411
Other investments:
Unrealized appreciation on forward foreign currency contracts outstanding		859,390
Foreign currencies, at value (Cost $408,901)		408,749
Receivable for:
Investments sold		2,855
Fund shares sold		52,994
Dividends		2,715,320
Investment for trustee deferred compensation and retirement plans		203,625
Other assets		56,687
Total assets		1,122,200,206
Liabilities:
Other investments:
Unrealized depreciation on forward foreign currency contracts outstanding		316,145
Payable for:
Fund shares reacquired		1,674,970
Amount due custodian		2,855
Accrued fees to affiliates		595,026
Accrued trustees’ and officers’ fees and benefits		3,737
Trustee deferred compensation and retirement plans		226,847
Total liabilities		2,819,580
Net assets applicable to shares outstanding	$	1,119,380,626
Net assets consist of:
Shares of beneficial interest	$	1,146,888,282
Distributable earnings (loss)		(27,507,656	)
	$	1,119,380,626
Net Assets:
Series I	$	140,391,648
Series II	$	978,988,978
Shares outstanding, no par value, with an unlimited number of shares authorized:
Series I		9,167,487
Series II		64,101,479
Series I:
Net asset value per share	$	15.31
Series II:
Net asset value per share	$	15.27

Statement of Operations

For the six months ended June 30, 2020

(Unaudited)

Investment income:
Dividends (net of foreign withholding taxes of $268,803)	$	18,330,916
Dividends from affiliated money market funds (includes securities lending income of $119,725)		336,891
Total investment income		18,667,807
Expenses:
Advisory fees		3,581,856
Administrative services fees		1,068,910
Distribution fees - Series II		1,389,346
Transfer agent fees		14,523
Trustees’ and officers’ fees and benefits		14,059
Professional services fees		1,519
Other		(78,164	)
Total expenses		5,992,049
Less: Fees waived		(30,269	)
Net expenses		5,961,780
Net investment income		12,706,027
Realized and unrealized gain (loss) from:
Net realized gain (loss) from:
Investment securities		(77,003,160	)
Foreign currencies		778,287
Forward foreign currency contracts		912,299
		(75,312,574	)
Change in net unrealized appreciation (depreciation) of:
Investment securities		(277,225,225	)
Foreign currencies		(22,653	)
Forward foreign currency contracts		3,078,454
		(274,169,424	)
Net realized and unrealized gain (loss)		(349,481,998	)
Net increase (decrease) in net assets resulting from operations	$	(336,775,971	)

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

Invesco V.I. Growth and Income Fund

Statement of Changes in Net Assets

For the six months ended June 30, 2020 and the year ended December 31, 2019

(Unaudited)

	June 30, 2020			December 31, 2019
Operations:
Net investment income	$	12,706,027		$	25,947,061
Net realized gain (loss)		(75,312,574	)		(6,838,792	)
Change in net unrealized appreciation (depreciation)		(274,169,424	)		279,095,156
Net increase (decrease) in net assets resulting from operations		(336,775,971	)		298,203,425
Distributions to shareholders from distributable earnings:
Series I		–			(23,474,054	)
Series II		–			(173,791,397	)
Total distributions from distributable earnings		–			(197,265,451	)
Share transactions–net:
Series I		(12,087,998	)		4,136,745
Series II		(231,956,682	)		343,560,704
Net increase (decrease) in net assets resulting from share transactions		(244,044,680	)		347,697,449
Net increase (decrease) in net assets		(580,820,651	)		448,635,423
Net assets:
Beginning of period		1,700,201,277			1,251,565,854
End of period	$	1,119,380,626		$	1,700,201,277

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

Invesco V.I. Growth and Income Fund

Financial Highlights

(Unaudited)

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

																																					Ratio of			Ratio of
																																					expenses			expenses
								Net gains																													to average			to average net
								(losses)																													net assets			assets without			Ratio of net
	Net asset							on securities								Dividends				Distributions																	with fee waivers			fee waivers			investment
	value,			Net				(both				Total from				from net				from net								Net asset						Net assets,			and/or			and/or			income
	beginning			investment				realized and				investment				investment				realized				Total				value, end			Total			end of period			expenses			expenses			to average			Portfolio
	of period			income(a)				unrealized)				operations				income				gains				distributions				of period			return (b)			(000’s omitted)			absorbed			absorbed			net assets			turnover (c)
Series I
Six months ended 06/30/20		$	19.09		$	0.18			$	(3.96	)		$	(3.78	)		$	–			$	–			$	–			$	15.31		(19.80	)%		$	140,392		0.73	%(d)		0.73	%(d)		2.24	%(d)		16	%
Year ended 12/31/19			17.51			0.37				3.84				4.21				(0.38	)			(2.25	)			(2.63	)			19.09		25.19				187,097		0.73			0.74			1.91			62
Year ended 12/31/18			22.70			0.36				(2.95	)			(2.59	)			(0.47	)			(2.13	)			(2.60	)			17.51		(13.38	)			166,306		0.75			0.75			1.63			32
Year ended 12/31/17			21.05			0.41	(e)			2.52				2.93				(0.34	)			(0.94	)			(1.28	)			22.70		14.32				187,254		0.76			0.76			1.90	(e)		17
Year ended 12/31/16			19.60			0.33				3.29				3.62				(0.23	)			(1.94	)			(2.17	)			21.05		19.69				168,082		0.77			0.79			1.69			28
Year ended 12/31/15			25.15			0.33				(1.30	)			(0.97	)			(0.74	)			(3.84	)			(4.58	)			19.60		(3.06	)			149,066		0.78			0.84			1.41			22
Series II
Six months ended 06/30/20			19.06			0.16				(3.95	)			(3.79	)			–				–				–				15.27		(19.88	)			978,989		0.98	(d)		0.98	(d)		1.99	(d)		16
Year ended 12/31/19			17.48			0.32				3.83				4.15				(0.32	)			(2.25	)			(2.57	)			19.06		24.85				1,513,105		0.98			0.99			1.66			62
Year ended 12/31/18			22.66			0.30				(2.95	)			(2.65	)			(0.40	)			(2.13	)			(2.53	)			17.48		(13.59	)			1,085,260		1.00			1.00			1.38			32
Year ended 12/31/17			21.02			0.36	(e)			2.51				2.87				(0.29	)			(0.94	)			(1.23	)			22.66		14.04				1,823,085		1.01			1.01			1.65	(e)		17
Year ended 12/31/16			19.58			0.28				3.28				3.56				(0.18	)			(1.94	)			(2.12	)			21.02		19.37				1,838,074		1.02			1.04			1.44			28
Year ended 12/31/15			25.09			0.27				(1.29	)			(1.02	)			(0.65	)			(3.84	)			(4.49	)			19.58		(3.26	)			1,435,111		1.03			1.09			1.16			22

^(a)  Calculated using average shares outstanding.

^(b)  Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Total returns 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 $148,224 and $1,115,971 for Series I and Series II shares, respectively.

^(e)  Net investment income per share and the ratio of net investment income to average net assets include significant dividends received during the period. Net investment income per share and the ratio of net investment income to average net assets excluding the significant dividends are $0.30 and 1.42%, and $0.25 and 1.17%, for Series I and Series II, respectively.

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

Invesco V.I. Growth and Income Fund

Notes to Financial Statements

June 30, 2020

(Unaudited)

NOTE 1–Significant Accounting Policies

Invesco 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. Information presented in these financial statements pertains only to the Fund. Matters affecting the Fund or each class will be voted on exclusively by the shareholders of the Fund or each class. 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 long-term growth of capital and 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 Fund is an investment company and accordingly follows the investment company accounting and reporting guidance in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 946, Financial Services – Investment Companies.

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

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

A security listed or traded on an exchange (except convertible securities) is valued at its last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded, or lacking any sales or official closing price on a particular day, the security may be valued at the closing bid price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued by an independent pricing service they may be considered fair valued. Futures contracts are valued at the final settlement price set by an exchange on which they are principally traded. Listed options are valued at the mean between the last bid and asked 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 asked prices. For purposes of determining net asset value (“NAV”) per share, futures and option contracts generally are valued 15 minutes after the close of the customary trading session of the New York Stock Exchange (“NYSE”).

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

Debt obligations (including convertible securities) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. Pricing services generally value debt obligations assuming orderly transactions of institutional round lot size, but a fund may hold or transact in the same securities in smaller, odd lot sizes. Odd lots often trade at lower prices than institutional round lots. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.

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

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

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

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

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

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

Invesco V.I. Growth and Income Fund

share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and the Statement of Changes in Net Assets, or the net investment income per share and the ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.

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

C. Country Determination – For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues 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 net investment income and net realized capital gain, if any, are generally declared and paid to separate accounts of participating insurance companies annually and recorded on the ex-dividend date.

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

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

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

F. Expenses – Fees provided for under the Rule 12b-1 plan of a particular class of the Fund and which are directly attributable to that class are charged to the operations of such class. All other expenses are allocated among the classes based on relative net assets.

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

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

I. 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. The Fund bears the risk of loss with respect to the investment of collateral. It is the Fund’s policy to obtain additional collateral from or return excess collateral to the borrower by the end of the next business day, following the valuation date of the securities loaned. Therefore, the value of the collateral held may be temporarily less than the value of the securities on loan. When loaning securities, the Fund retains certain benefits of owning the securities, including the economic equivalent of dividends or interest generated by the security. Lending securities entails a risk of loss to the Fund if, and to the extent that, the market value of the securities loaned were to increase and the borrower did not increase the collateral accordingly, and the borrower failed to return the securities. The securities loaned are subject to termination at the option of the borrower or the Fund. Upon termination, the borrower will return to the Fund the securities loaned and the Fund will return the collateral. Upon the failure of the borrower to return the securities, collateral may be liquidated and the securities may be purchased on the open market to replace the loaned securities. The Fund could experience delays and costs in gaining access to the collateral and the securities may lose value during the delay which could result in potential losses to the Fund. Some of these losses may be indemnified by the lending agent. The Fund bears the risk of any deficiency in the amount of the collateral available for return to the borrower due to any loss on the collateral invested. Dividends received on cash collateral investments for securities lending transactions, which are net of compensation to counterparties, are included in Dividends from affiliated money market funds on the Statement of Operations. The aggregate value of securities out on loan, if any, is shown as a footnote on the Statement of Assets and Liabilities.

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

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

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

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

Invesco V.I. Growth and Income Fund

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

NOTE 2–Advisory Fees and Other Fees Paid to Affiliates

The Trust has entered into a master investment advisory agreement with Invesco Advisers, Inc. (the “Adviser” or “Invesco”). Under the terms of the investment advisory agreement, the Fund accrues daily and pays monthly an 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		0.600	%
Over $500 million		0.550	%

For the six months ended June 30, 2020, the effective advisory fee rate incurred by the Fund was 0.57%.

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

The Adviser has contractually agreed, through at least April 30, 2021, 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 0.78% and Series II shares to 1.03% of average daily net assets (the “expense limits”). In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause the total annual fund operating expenses after fee waiver and/or expense reimbursement to exceed the numbers reflected above: (1) interest; (2) taxes; (3) dividend expense on short sales; (4) extraordinary or non-routine items, including litigation expenses; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Unless Invesco continues the fee waiver agreement, it will terminate on April 30, 2021. During its term, the fee waiver agreement cannot be terminated or amended to increase the expense limits or reduce the advisory fee waiver without approval of the Board of Trustees. The Adviser did not waive fees and/or reimburse expenses during the period under these expense limits.

Further, the Adviser has contractually agreed, through at least June 30, 2022, 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, 2020, the Adviser waived advisory fees of $30,269.

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 fees paid to insurance companies that have agreed to provide certain administrative services to the Fund. These administrative services provided by the insurance companies may include, among other things: maintenance of master accounts with the Fund; tracking, recording and transmitting net purchase and redemption orders for Fund shares; maintaining and preserving records related to the purchase, redemption and other account activity of variable product owners; distributing copies of Fund documents such as prospectuses, proxy materials and periodic reports, to variable product owners, and responding to inquiries from variable product owners about the Fund. Pursuant to such agreement, for the six months ended June 30, 2020, Invesco was paid $124,589 for accounting and fund administrative services and was reimbursed $944,321 for fees paid to insurance companies. Invesco has entered into a sub-administration agreement whereby State Street Bank and Trust Company (“SSB”) serves as fund accountant and provides certain administrative services to the Fund. Pursuant to a custody agreement with the Trust on behalf of the Fund, SSB also serves as the Fund’s custodian.

The Trust has entered into a transfer agency and service agreement with Invesco Investment Services, Inc. (“IIS”) pursuant to which the Fund has agreed to pay IIS a fee for providing transfer agency and shareholder services to the Fund and reimburse IIS for certain expenses incurred by IIS in the course of providing such services. For the six months ended June 30, 2020, 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. The fees are accrued daily and paid monthly. 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, 2020, expenses incurred under the Plan are detailed in the Statement of Operations as Distribution fees.

For the six months ended June 30, 2020, the Fund incurred $747 in brokerage commissions with Invesco Capital Markets, Inc., an affiliate of the Adviser and IDI, for portfolio transactions executed on behalf of the Fund.

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

NOTE 3–Additional Valuation Information

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

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

Level 2 - Prices are determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk, yield curves, loss severities, default rates, discount rates, volatilities and others.

Level 3 - Prices are determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. 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. Growth and Income Fund

The following is a summary of the tiered valuation input levels, as of June 30, 2020. The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

	Level 1		Level 2			Level 3		Total
Investments in Securities
Common Stocks & Other Equity Interests	$	992,347,174	$	100,598,001			$–	$	1,092,945,175
Money Market Funds		24,955,411		–			–		24,955,411
Total Investments in Securities		1,017,302,585		100,598,001			–		1,117,900,586
Other Investments - Assets*
Forward Foreign Currency Contracts		–		859,390			–		859,390
Other Investments - Liabilities*
Forward Foreign Currency Contracts		–		(316,145	)		–		(316,145	)
Total Other Investments		–		543,245			–		543,245
Total Investments	$	1,017,302,585	$	101,141,246			$–	$	1,118,443,831

* Unrealized appreciation (depreciation).

NOTE 4–Derivative Investments

The Fund may enter into an International Swaps and Derivatives Association Master Agreement (“ISDA Master Agreement”) under which a fund may trade OTC derivatives. An OTC transaction entered into under an ISDA Master Agreement typically involves a collateral posting arrangement, payment netting provisions and close-out netting provisions. These netting provisions allow for reduction of credit risk through netting of contractual obligations. The enforceability of the netting provisions of the ISDA Master Agreement depends on the governing law of the ISDA Master Agreement, among other factors.

For financial reporting purposes, the Fund does not offset OTC derivative assets or liabilities that are subject to ISDA Master Agreements in the Statement of Assets and Liabilities.

Value of Derivative Investments at Period-End

The table below summarizes the value of the Fund’s derivative investments, detailed by primary risk exposure, held as of June 30, 2020:

	Value
	Currency
Derivative Assets	Risk
Unrealized appreciation on forward foreign currency contracts outstanding	$	859,390
Derivatives not subject to master netting agreements		-
Total Derivative Assets subject to master netting agreements	$	859,390
	Value
	Currency
Derivative Liabilities	Risk
Unrealized depreciation on forward foreign currency contracts outstanding	$	(316,145	)
Derivatives not subject to master netting agreements		-
Total Derivative Liabilities subject to master netting agreements	$	(316,145	)

Offsetting Assets and Liabilities

The table below reflects the Fund’s exposure to Counterparties subject to either an ISDA Master Agreement or other agreement for OTC derivative transactions as of June 30, 2020.

	Financial Derivative Assets	Financial Derivative Liabilities		Collateral (Received)/Pledged
	Forward Foreign	Forward Foreign	Net Value of			Net
Counterparty	Currency Contracts	Currency Contracts	Derivatives	Non-Cash	Cash	Amount
Bank of New York Mellon (The)	$350,987	$              -	$350,987	$-	$-	$	350,987
State Street Bank & Trust Co.	508,403	(316,145)	192,258	-	-		192,258
Total	$859,390	$(316,145)	$543,245	$-	$-	$	543,245

Invesco V.I. Growth and Income Fund

Effect of Derivative Investments for the six months ended June 30, 2020

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

	Location of Gain on Statement of Operations
	Currency
	Risk
Realized Gain:
Forward foreign currency contracts		$	912,299
Change in Net Unrealized Appreciation:
Forward foreign currency contracts			3,078,454
Total		$	3,990,753

The table below summarizes the average notional value of derivatives held during the period.

	Forward Foreign Currency Contracts
Average notional value	$134,231,964

NOTE 5–Trustees’ and Officers’ Fees and Benefits

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

NOTE 6–Cash Balances

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

NOTE 7–Tax Information

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

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

The Fund did not have a capital loss carryforward as of December 31, 2019.

NOTE 8–Investment Transactions

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, 2020 was $193,070,790 and $377,432,337, respectively. Cost of investments, including any derivatives, on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end.

Unrealized Appreciation (Depreciation) of Investments on a Tax Basis
Aggregate unrealized appreciation of investments	$	117,488,635
Aggregate unrealized (depreciation) of investments		(130,337,463	)
Net unrealized appreciation (depreciation) of investments	$	(12,848,828	)

Cost of investments for tax purposes is $1,131,292,659.

NOTE 9–Share Information

	Summary of Share Activity
	Six months ended				Year ended
	June 30, 2020(a)				December 31, 2019
	Shares		Amount		Shares		Amount
Sold:
Series I		716,249	$	10,612,962		961,502	$	18,593,160
Series II		5,584,449		74,894,752		46,991,194		937,263,516

Invesco V.I. Growth and Income Fund

	Summary of Share Activity
	Six months ended June 30, 2020(a)						Year ended December 31, 2019
	Shares			Amount			Shares			Amount
Issued as reinvestment of dividends:
Series I		-		$	-			1,324,721		$	23,474,054
Series II		-			-			9,813,179			173,791,397
Reacquired:
Series I		(1,351,853	)		(22,700,960	)		(1,980,258	)		(37,930,469	)
Series II		(20,880,761	)		(306,851,434	)		(39,496,692	)		(767,494,209	)
Net increase (decrease) in share activity		(15,931,916	)	$	(244,044,680	)		17,613,646		$	347,697,449

^(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 Fund 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–Coronavirus (COVID-19) Pandemic

During the first quarter of 2020, the World Health Organization declared COVID-19 to be a public health emergency. COVID-19 has led to increased short-term market volatility and may have adverse long-term effects on U.S. and world economies and markets in general. COVID-19 may adversely impact the Fund’s ability to achieve its investment objective. Because of the uncertainties on valuation, the global economy and business operations, values reflected in these financial statements may materially differ from the value received upon actual sales of those investments.

The extent of the impact on the performance of the Fund and its investments will depend on future developments, including the duration and spread of the COVID-19 outbreak, related restrictions and advisories, and the effects on the financial markets and economy overall, all of which are highly uncertain and cannot be predicted.

Invesco 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, 2020 through June 30, 2020.

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.

				ACTUAL						HYPOTHETICAL (5% annual return before expenses)
	Beginning			Ending			Expenses			Ending			Expenses			Annualized
	Account Value			Account Value			Paid During			Account Value			Paid During			Expense
	(01/01/20)			(06/30/20)1			Period2			(06/30/20)			Period2			Ratio
Series I		$	1,000.00		$	802.00		$	3.27		$	1,021.23		$	3.67		0.73	%
Series II			1,000.00			801.20			4.39			1,019.99			4.92		0.98

¹  The actual ending account value is based on the actual total return of the Fund for the period January 1, 2020 through June 30, 2020, 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 182/366 to reflect the most recent fiscal half year.

Invesco V.I. Growth and Income Fund

Approval of Investment Advisory and Sub-Advisory Contracts

At meetings held on June 3, 2020, the Board of Trustees (the Board or the Trustees) of AIM Variable Insurance Funds (Invesco Variable Insurance Funds) as a whole, and the independent Trustees, who comprise over 75% of the Board, voting separately, approved the continuance of the Invesco V.I. Growth and Income Fund’s (the Fund) Master Investment Advisory Agreement with Invesco Advisers, Inc. (Invesco Advisers and the investment advisory agreement) and the Master Intergroup Sub-Advisory Contract for Mutual Funds with Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Canada Ltd. and separate sub-advisory contracts with Invesco Capital Management LLC and Invesco Asset Management (India) Private Limited (collectively, the Affiliated Sub-Advisers and the sub-advisory contracts) for another year, effective July 1, 2020. After evaluating the factors discussed below, among others, the Board approved the renewal of the Fund’s investment advisory agreement and the sub-advisory contracts and determined that the compensation payable thereunder by the Fund to Invesco Advisers and by Invesco Advisers to the Affiliated Sub-Advisers is fair and reasonable.

The Board’s Evaluation Process

The Board’s Investments Committee has established Sub-Committees, which meet throughout the year to review the performance of funds advised by Invesco Advisers (the Invesco Funds). The Sub-Committees meet regularly with portfolio managers for their assigned Invesco Funds and other members of management to review detailed information about investment performance and portfolio attributes of these funds. The Board took into account evaluations and reports that it received from the Investments Committee and Sub-Committees, as well as the information provided to such committees and the Board throughout the year, in considering whether to approve each Invesco Fund’s investment advisory agreement and sub-advisory contracts.

As part of the contract renewal process, the Board reviews and considers information provided in response to detailed requests for information submitted to management by the independent Trustees with assistance from legal counsel to the independent Trustees. The Board receives comparative investment performance and fee data regarding the Invesco Funds prepared by Invesco Advisers and Broadridge Financial Solutions, Inc. (Broadridge), an independent mutual fund data provider, as well as information on the composition of the peer groups provided by Broadridge and its methodology for determining peer groups. The Board also receives an independent written evaluation from the Senior Officer, an officer of the Invesco Funds who reports directly to the independent Trustees. 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. In addition to meetings with Invesco Advisers and fund counsel throughout the year, the independent Trustees also

discuss the continuance of the investment advisory agreement and sub-advisory contracts in separate sessions with the Senior Officer and with independent legal counsel.

The discussion below is a summary of 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. The Trustees’ review and conclusions are based on the comprehensive consideration of all information presented to them during the course of the year and in prior years and are not the result of any single determinative factor. Moreover, one Trustee may have weighed a particular piece of information or factor differently than another Trustee. This information is current as of June 3, 2020.

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 nature, extent and quality of the advisory services provided to the Fund by Invesco Advisers under the Fund’s investment advisory agreement, and the credentials and experience of the officers and employees of Invesco Advisers who provide these services, including the Fund’s portfolio manager(s). The Board’s review included consideration of Invesco Advisers’ investment process oversight and structure, credit analysis, investment risk management and research capabilities. The Board also considered non-advisory services that Invesco Advisers and its affiliates provide to the Invesco Funds, such as various back office support functions, third party oversight, internal audit, valuation, portfolio trading and legal and compliance. The Board also received and reviewed information about Invesco Advisers’ role as administrator of the Invesco Funds’ liquidity risk management program. The Board reviewed and considered the benefits to shareholders of investing in a Fund that is part of the Invesco family of funds under the umbrella of Invesco Ltd., Invesco Advisers’ parent company, and noted Invesco Ltd.’s depth and experience in conducting an investment management business, as well as its commitment of financial and other resources to such business. The Board also reviewed and considered information regarding the benefits to the Fund resulting from Invesco Ltd.’s acquisition of OppenheimerFunds, Inc. and its subsidiaries (the Transaction) and the resources that Invesco Advisers has committed to managing the Invesco family of funds following the Transaction. The Board concluded that the nature, extent and quality of the services provided to the Fund by Invesco Advisers are appropriate and satisfactory.

The Board reviewed the services that may be 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 the Affiliated Sub-Advisers’ expertise with respect to certain asset classes and that the Affiliated Sub-Advisers have offices and personnel that are located in financial centers around the world.

As a result, the Board noted that the Affiliated Sub-Advisers can provide research and investment analysis on the markets and economies of various countries in which the Fund may invest, make recommendations regarding securities and assist with security trades. The Board concluded that the sub-advisory contracts may 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 that may be provided by the Affiliated Sub-Advisers are appropriate and satisfactory.

B. Fund Investment Performance

The Board considered Fund investment performance as a relevant factor in considering whether to approve the investment advisory agreement. The Board did not view Fund investment 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 investment performance over multiple time periods ending December 31, 2019 to the performance of funds in the Broadridge performance universe and against the Russell 1000^® Value Index. The Board noted that performance of Series I shares of the Fund was in the fourth quintile of its performance universe for the one and five year periods and the fifth 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 below the performance of the Index for the one, three and five year periods. The Board noted that the Fund’s valuation focused style of investing, including its overweight and underweight exposures to and stock selection in certain sectors, negatively impacted performance. The Board recognized that the performance data reflects a snapshot in time as of a particular date and that selecting a different performance period could produce different results. The Board also reviewed more recent Fund performance as well as other performance metrics and this review did not change their conclusions.

C. Advisory and Sub-Advisory Fees and Fund Expenses

The Board compared the Fund’s contractual management fee rate to the contractual management fee rates of funds in the Fund’s Broadridge expense group. The Board noted that the contractual management fee rate for Series I shares of the Fund was below the median contractual management fee rate of funds in its expense group. The Board noted that the term “contractual management fee” for funds in the expense group may include both advisory and certain non-portfolio management administrative services fees, but that Broadridge does not provide information on a fund by fund basis as to what is included. The Board also reviewed the methodology used by Broadridge in providing expense group information, which includes using each fund’s contractual management fee schedule (including any applicable breakpoints) as reported in the most recent prospectus or statement of additional information for each fund in the expense group. The Board also considered comparative information

Invesco V.I. Growth and Income Fund

regarding the Fund’s total expense ratio and its various components.

The Board noted that Invesco Advisers has contractually agreed to waive fees and/or limit expenses of the Fund for the term disclosed in the Fund’s registration statement 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 fees charged by Invesco Advisers and the Affiliated Sub-Advisers to other similarly managed client accounts. Invesco Advisers reviewed with the Board differences in the scope of services it provides to the Invesco Funds relative to certain other types of client accounts, including, among others: management of cash flows as a result of redemptions and purchases; necessary infrastructure such as officers, office space, technology, legal and distribution; oversight of service providers; costs and business risks associated with launching new funds and sponsoring and maintaining the product line; and compliance with federal and state laws and regulations.

The Board also compared the Fund’s effective advisory fee rate (the advisory fee rate after advisory fee waivers and before other expense limitations/ waivers) to the effective advisory fee rates of other similarly managed third-party mutual funds advised or sub-advised by Invesco Advisers and its affiliates, based on asset balances as of December 31, 2019.

The Board also considered the services that may be provided by the Affiliated Sub-Advisers pursuant to the sub-advisory contracts, as well as the fees payable by Invesco Advisers to the Affiliated Sub-Advisers pursuant to the sub-advisory contracts.

D. Economies of Scale and Breakpoints

The Board considered the extent to which there may be economies of scale in the provision of advisory services to the Fund. The Board also considered that the Fund benefits from economies of scale through contractual breakpoints in the Fund’s advisory fee schedule, which generally operate to reduce the Fund’s expense ratio as it grows in size. The Board 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. The Board noted that the Fund may also benefit from economies of scale through initial fee setting, fee waivers and expense reimbursements. The Board also considered Invesco’s reinvestment in its business, including investments in business infrastructure, technology and cybersecurity.

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 Invesco Funds and the profitability of Invesco Advisers and its affiliates in providing these services in the aggregate and on an individual Fund-by-Fund basis. The Board considered the methodology used for calculating profitability and noted the periodic review and enhancement of such methodology. The Board noted that Invesco Advisers continues to operate at a net profit from services Invesco Advisers and its affiliates provide to the Invesco Funds in the aggregate and to certain Funds on an individual fund level. The Board did not deem the level of profits realized by Invesco Advisers and its affiliates from providing such services to be excessive given the nature, extent and quality of the services provided. The Board received information

from Invesco Advisers demonstrating that Invesco Advisers and the Affiliated Sub-Advisers are financially sound and have the resources necessary to perform their obligations under the investment advisory agreement and sub-advisory contracts.

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 providing administrative, transfer agency and distribution services to the Fund. The Board considered comparative information regarding fees charged for these services, including information provided by Broadridge and other independent sources. 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; and that the services are required for the operation of the Fund.

The Board considered the benefits realized by Invesco Advisers and the Affiliated Sub-Advisers as a result of portfolio brokerage transactions executed through “soft dollar” arrangements. The Board noted that soft dollar arrangements may result in the Fund bearing costs to purchase research that may be used by Invesco Advisers or the Affiliated Sub-Advisers with other clients and may reduce Invesco Advisers’ or the Affiliated Sub-Advisers’ expenses. The Board also considered that it receives periodic reports from Invesco representing that these arrangements are consistent with regulatory requirements. The Board did not deem the soft dollar arrangements to be inappropriate.

The Board considered that the Fund’s uninvested cash and cash collateral from any securities lending arrangements may be invested in registered money market funds or, with regard to securities lending cash collateral, unregistered funds that comply with Rule 2a-7 (collectively referred to as “affiliated money market funds”) advised by Invesco Advisers pursuant to procedures approved by the Board. The Board considered information regarding the returns of the affiliated money market funds relative to comparable overnight investments, as well as the costs to the Fund of such investments. 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 with respect to certain investments in the affiliated money market 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 amount of advisory fees received by Invesco Advisers from the Fund’s investment of cash collateral from any securities lending arrangements in the affiliated money market funds is fair and reasonable.

The Board also considered that an affiliated broker may receive commissions for executing certain trades for the Fund. Invesco Advisers and the Affiliated Sub-Advisers may use the affiliated broker to, among other things, control order routing and minimize information leakage, and the Board was advised that

such trades are executed in compliance with rules under the federal securities laws and consistent with best execution obligations.

Invesco V.I. Growth and Income Fund

	Semiannual Report to Shareholders	June 30, 2020
	Invesco V.I. Health Care Fund

Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, the insurance company that offers your variable annuity or variable life insurance contract may no longer send you paper copies of the Fund’s shareholder reports by mail, unless you specifically request paper copies of the reports from the insurance company or your financial intermediary. Instead of delivering paper copies of the report, the insurance company may choose to make the reports available on a website, and will notify you by mail each time a report is posted and provide you with a website link to access the report. Instructions for requesting paper copies will be provided by your insurance company.

If the insurance company offers electronic delivery, you may elect to receive shareholder reports and other communications about the Fund electronically by following the instructions provided by the insurance company or by contacting your financial intermediary. If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action.

You may elect to receive all future reports in paper free of charge from the insurance company. You can inform the insurance company or your financial intermediary that you wish to continue receiving paper copies of your shareholder reports by following the instructions provided by the insurance company or by contacting your financial intermediary. Your election to receive reports in paper will apply to all portfolio companies available under your contract with the insurance company.

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) as an exhibit to its reports on Form N-PORT. The Fund’s Form N-PORT filings are available on the SEC website, 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-PORT, 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 most recent 12-month period ended June 30 is available at invesco.com/proxysearch. The information is also available on the SEC website, sec.gov.

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

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.

NOT FDIC INSURED  |  MAY LOSE VALUE  |  NO BANK GUARANTEE

Invesco Distributors, Inc. I-VIGHC-SAR-1                                 

Fund Performance

Performance summary

Fund vs. Indexes

Cumulative total returns, 12/31/19 to 6/30/20, excluding variable product issuer charges. If variable product issuer charges were included, returns would be lower.

Series I Shares	–2.65	%
Series II Shares	–2.74
MSCI World Indexq (Broad Market Index)	–5.77
MSCI World Health Care Indexq (Style-Specific Index)	1.41
Lipper VUF Health/Biotechnology Funds Classification Average∎ (Peer Group)	3.96
Source(s): qRIMES Technologies Corp.; ∎ Lipper Inc.

The MSCI World Index^SM(Net) is an unmanaged index considered representative of stocks of developed countries. The index is computed using the net return, which withholds applicable taxes for non-resident investors.

The MSCI World Health Care Index is an unmanaged index considered representative of health care stocks of developed countries. The index is computed using the net return, which withholds applicable taxes for non-resident investors.

The Lipper VUF Health/Biotechnology Funds Classification Average represents an average of all variable insurance underlying funds in the Lipper Health/Biotechnology Funds classification.

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

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

Average Annual Total Returns
As of 6/30/20
Series I Shares
Inception (5/21/97)	8.76	%
10 Years	12.73
5 Years	4.33
1 Year	11.72
Series II Shares
Inception (4/30/04)	8.14	%
10 Years	12.45
5 Years	4.08
1 Year	11.44

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 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. Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares. Investment return and principal value will

fluctuate so that you may have a gain or loss when you sell shares.

Invesco V.I. 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 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.

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

Invesco V.I. Health Care Fund

Liquidity Risk Management Program

The Securities and Exchange Commission has adopted Rule 22e-4 under the Investment Company Act of 1940 (the “Liquidity Rule”) in order to promote effective liquidity risk management throughout the open-end investment company industry, thereby reducing the risk that funds will be unable to meet their redemption obligations and mitigating dilution of the interests of fund shareholders. The Fund has adopted and implemented a liquidity risk management program in accordance with the Liquidity Rule (the “Program”). The Program is reasonably designed to assess and manage the Fund’s liquidity risk, which is the risk that the Fund could not meet redemption requests without significant dilution of remaining investors’ interests in the Fund. The Board of Trustees of the Fund (the “Board”) has appointed Invesco Advisers, Inc. (“Invesco”), the Fund’s investment adviser, as the Program’s administrator, and Invesco has delegated oversight of the Program to the Liquidity Risk Management Committee (the “Committee”), which is composed of senior representatives from relevant business groups at Invesco.

As required by the Liquidity Rule, the Program includes policies and procedures providing for an assessment, no less frequently than annually, of the Fund’s liquidity risk that takes into account, as relevant to the Fund’s liquidity risk: (1) the Fund’s investment strategy and liquidity of portfolio investments during both normal and reasonably foreseeable stressed conditions; (2) short-term and long-term cash flow projections for the Fund during both normal and reasonably foreseeable stressed conditions; and (3) the Fund’s holdings of cash and cash equivalents and any borrowing arrangements. The Liquidity Rule also requires the classification of the Fund’s investments into categories that reflect the assessment of their relative liquidity under current market conditions. The Fund classifies its investments into one of four categories defined in the Liquidity Rule: “Highly Liquid,” “Moderately Liquid,” “Less Liquid” and “Illiquid.” Funds that are not invested primarily in “Highly Liquid Investments” that are assets (cash or investments that are reasonably expected to be convertible into cash within three business days without significantly changing the market value of the investment) are required to establish a “Highly Liquid Investment Minimum” (“HLIM”), which is the minimum percentage of net assets that must be invested in Highly Liquid Investments. Funds with HLIMs have procedures for addressing HLIM shortfalls, including reporting to the Board and the SEC (on a non-public basis) as required by the Program and the Liquidity Rule. In addition, the Fund may not acquire an investment if, immediately after the acquisition, over 15% of the Fund’s net assets would consist of “Illiquid Investments” that are assets (an investment that cannot reasonably be expected to be sold or disposed of in current market conditions in seven calendar days or less without the sale or disposition significantly changing the market value of the investment). The Liquidity Rule and the Program also require reporting to the Board and the SEC (on a non-public basis) if a Fund’s holdings of Illiquid Investments exceed 15% of the Fund’s assets.

At a meeting held on March 30-April 1, 2020, the Committee presented a report to the Board that addressed the operation of the Program and assessed the Program’s adequacy and effectiveness of implementation (the “Report”). The Report covered the period from December 1, 2018 through December 31, 2019 (the “Program Reporting Period”).

The Report stated, in relevant part, that during the Program Reporting Period:

∎ The Program, as adopted and implemented, remained reasonably designed to assess and manage the Fund’s liquidity risk and was operated effectively to achieve that goal;

∎ The Fund’s investment strategy remained appropriate for an open-end fund;

∎ The Fund was able to meet requests for redemption without significant dilution of remaining investors’ interests in the Fund;

∎ The Fund did not breach the 15% limit on Illiquid Investments; and

∎ The Fund primarily held Highly Liquid Investments and therefore has not adopted an HLIM.

Invesco V.I. Health Care Fund

Schedule of Investments^(a)

June 30, 2020

(Unaudited)

	Shares		Value
Common Stocks & Other Equity Interests–97.96%
Biotechnology–18.55%
ACADIA Pharmaceuticals, Inc.(b)		28,599	$    1,386,193
Altimmune, Inc.(b)		23,754	254,405
Amarin Corp. PLC, ADR (Ireland)(b)		52,454	362,982
Arcus Biosciences, Inc.(b)		28,519	705,560
Ascendis Pharma A/S, ADR (Denmark)(b)		9,226	1,364,525
Biogen, Inc.(b)		18,247	4,881,985
BioMarin Pharmaceutical, Inc.(b)		35,230	4,345,268
BioNTech SE, ADR (Germany)(b)		10,201	680,815
Exact Sciences Corp.(b)		30,317	2,635,760
Fusion Pharmaceuticals, Inc. (Canada)(b)		17,583	307,175
Global Blood Therapeutics, Inc.(b)(c)		18,430	1,163,486
Immunomedics, Inc.(b)		54,286	1,923,896
Incyte Corp.(b)		19,774	2,055,903
Iovance Biotherapeutics, Inc.(b)		36,351	997,835
Kadmon Holdings, Inc.(b)		184,283	943,529
Keros Therapeutics, Inc.(b)(c)		31,134	1,167,836
Legend Biotech Corp., ADR(b)		5,185	220,674
Mersana Therapeutics, Inc.(b)		41,544	972,130
Neurocrine Biosciences, Inc.(b)		13,704	1,671,888
Rocket Pharmaceuticals, Inc.(b)		40,504	847,749
Sarepta Therapeutics, Inc.(b)		11,016	1,766,305
Vertex Pharmaceuticals, Inc.(b)		20,615	5,984,741
Zentalis Pharmaceuticals, Inc.(b)		28,606	1,373,660
			38,014,300
Drug Retail–0.47%
Raia Drogasil S.A. (Brazil)		47,560	967,449
Health Care Equipment–17.60%
Abbott Laboratories		60,092	5,494,212
Baxter International, Inc.		30,702	2,643,442
Becton, Dickinson and Co.		7,801	1,866,545
Boston Scientific Corp.(b)		142,053	4,987,481
Edwards Lifesciences Corp.(b)		51,207	3,538,916
Globus Medical, Inc., Class A(b)		8,958	427,386
Intuitive Surgical, Inc.(b)		1,940	1,105,470
Koninklijke Philips N.V. (Netherlands)		77,819	3,623,768
Medtronic PLC		78,767	7,222,934
Stryker Corp.		5,601	1,009,244
Zimmer Biomet Holdings, Inc.		34,899	4,165,545
			36,084,943
Health Care Facilities–1.11%
HCA Healthcare, Inc.(b)		23,336	2,264,992
Health Care Services–2.69%
Cigna Corp.		16,092	3,019,664
CVS Health Corp.		38,327	2,490,105
			5,509,769
Health Care Supplies–2.78%
Alcon, Inc. (Switzerland)(b)		19,741	1,131,554
Align Technology, Inc.(b)		4,958	1,360,673
Ansell Ltd. (Australia)		27,343	694,585

	Shares		Value
Health Care Supplies–(continued)
Silk Road Medical, Inc.(b)		60,112	$    2,518,092
			5,704,904
Health Care Technology–1.94%
HMS Holdings Corp.(b)		31,271	1,012,868
Inspire Medical Systems, Inc.(b)		24,657	2,145,652
Ping An Healthcare and Technology Co. Ltd. (China)(b)(d)		53,200	808,258
			3,966,778
Household Products–0.28%
Reckitt Benckiser Group PLC (United Kingdom)		6,245	574,718
Life Sciences Tools & Services–7.94%
10X Genomics, Inc., Class A(b)		9,303	830,851
Bio-Rad Laboratories, Inc., Class A(b)		3,159	1,426,257
Eurofins Scientific SE (Luxembourg)(b)		1,771	1,110,247
Illumina, Inc.(b)		3,560	1,318,446
IQVIA Holdings, Inc.(b)		3,471	492,465
Lonza Group AG (Switzerland)		1,198	631,698
Thermo Fisher Scientific, Inc.		28,908	10,474,526
			16,284,490
Managed Health Care–11.53%
Anthem, Inc.		12,523	3,293,299
Centene Corp.(b)		41,649	2,646,794
Hapvida Participacoes e Investimentos S.A. (Brazil)(d)		145,500	1,663,400
HealthEquity, Inc.(b)		11,198	656,987
Humana, Inc.		9,536	3,697,584
Notre Dame Intermedica Participacoes S.A. (Brazil)		145,483	1,819,440
UnitedHealth Group, Inc.		33,435	9,861,653
			23,639,157
Pharmaceuticals–33.07%
AstraZeneca PLC, ADR (United Kingdom)		161,064	8,518,675
Avadel Pharmaceuticals PLC, ADR(b)		77,015	622,281
Axsome Therapeutics, Inc.(b)		44,001	3,620,402
Bristol-Myers Squibb Co.		75,948	4,465,742
Elanco Animal Health, Inc.(b)		56,225	1,206,026
Eli Lilly and Co.		38,230	6,276,601
Johnson & Johnson		59,326	8,343,015
Liquidia Technologies, Inc.(b)		107,188	902,523
Lyra Therapeutics, Inc.(b)		20,722	234,988
Merck & Co., Inc.		49,496	3,827,526
Milestone Pharmaceuticals, Inc. (Canada)(b)		33,711	127,428
Novartis AG, ADR (Switzerland)		97,228	8,491,894
Novo Nordisk A/S, Class B (Denmark)		68,492	4,432,198
Odonate Therapeutics, Inc.(b)		27,023	1,144,154
Pfizer, Inc.		87,366	2,856,868
Relmada Therapeutics, Inc.(b)(c)		27,852	1,246,377
Roche Holding AG (Switzerland)		12,226	4,233,027
Sanofi, ADR (France)		111,635	5,698,967
Zoetis, Inc.		7,920	1,085,357

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

Invesco V.I. Health Care Fund

	Shares		Value
Pharmaceuticals–(continued)
Zogenix, Inc.(b)		17,233	$      465,463
			67,799,512
Total Common Stocks & Other Equity Interests (Cost $137,051,519)			200,811,012
Money Market Funds–2.32%
Invesco Government & Agency Portfolio, Institutional Class, 0.09%(e)(f)		1,580,735	1,580,735
Invesco Liquid Assets Portfolio, Institutional Class, 0.39%(e)(f)		1,370,495	1,371,454
Invesco Treasury Portfolio, Institutional Class, 0.08%(e)(f)		1,806,555	1,806,555
Total Money Market Funds (Cost $4,757,535)			4,758,744
TOTAL INVESTMENTS IN SECURITIES (excluding investments purchased with cash collateral from securities on loan)-100.28% (Cost $141,809,054)			205,569,756

	Shares		Value
Investments Purchased with Cash Collateral from Securities on Loan
Money Market Funds–1.21%
Invesco Private Government Fund, 0.05%(e)(f)(g)		1,859,488	$    1,859,488
Invesco Private Prime Fund, 0.11%(e)(f)(g)		619,705	619,829
Total Investments Purchased with Cash Collateral from Securities on Loan (Cost $2,479,275)			2,479,317
TOTAL INVESTMENTS IN SECURITIES–101.49% (Cost $144,288,329)			208,049,073
OTHER ASSETS LESS LIABILITIES–(1.49)%			(3,056,918)
NET ASSETS–100.00%			$204,992,155

Investment Abbreviations:

ADR – American Depositary Receipt

Notes to Schedule of Investments:

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

^(b) Non-income producing security.

^(c)  All or a portion of this security was out on loan at June 30, 2020.

^(d) Security purchased or received in a transaction exempt from registration under the Securities Act of 1933, as amended (the “1933 Act”). The security may be resold pursuant to an exemption from registration under the 1933 Act, typically to qualified institutional buyers. The aggregate value of these securities at June 30, 2020 was $2,471,658, which represented 1.21% of the Fund’s Net Assets.

^(e) Affiliated issuer. The issuer and/or the Fund is a wholly-owned subsidiary of Invesco Ltd., or is affiliated by having an investment adviser that is under common control of Invesco Ltd. The table below shows the Fund’s transactions in, and earnings from, its investments in affiliates for the six months ended June 30, 2020.

	Value December 31, 2019		Purchases at Cost		Proceeds from Sales		Change in Unrealized Appreciation		Realized Gain		Value June 30, 2020		Dividend Income
Investments in Affiliated Money Market Funds:
Invesco Government & Agency Portfolio, Institutional Class		$  1,366,547		$  8,786,786		$  (8,572,598)		$       -		$     -		$1,580,735		$  4,890
Invesco Liquid Assets Portfolio, Institutional Class		893,809		6,536,418		(6,060,550)		1,249		528		1,371,454		7,268
Invesco Treasury Portfolio, Institutional Class		1,561,768		10,042,042		(9,797,255)		-		-		1,806,555		4,647
Investments Purchased with Cash Collateral from Securities on Loan:
Invesco Private Government Fund		-		5,716,317		(3,856,829)		-		-		1,859,488		61
Invesco Private Prime Fund		-		2,060,465		(1,440,677)		41		-		619,829		30
Total		$3,822,124		$33,142,028		$(29,727,909)		$1,290		$528		$7,238,061		$16,896

^(f)  The rate shown is the 7-day SEC standardized yield as of June 30, 2020.

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

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

Invesco V.I. Health Care Fund

Portfolio Composition

By country, based on Net Assets

as of June 30, 2020

United States	74.91%
Switzerland	7.06
United Kingdom	4.44
Denmark	2.83
France	2.78
Brazil	2.17
Countries each less than 2% of portfolio	3.77
Money Market Funds Plus Other Assets Less Liabilities	2.04

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

Invesco V.I. Health Care Fund

Statement of Assets and Liabilities

June 30, 2020

(Unaudited)

Assets:
Investments in securities, at value (Cost $137,051,519)*	$200,811,012
Investments in affiliated money market funds, at value (Cost $7,236,810)	7,238,061
Foreign currencies, at value (Cost $11,329)	11,493
Receivable for:
Fund shares sold	67,769
Dividends	370,078
Investment for trustee deferred compensation and retirement plans	74,184
Total assets	208,572,597
Liabilities:
Payable for:
Investments purchased	766,125
Fund shares reacquired	128,212
Collateral upon return of securities loaned	2,479,275
Accrued fees to affiliates	92,697
Accrued trustees’ and officers’ fees and benefits	1,579
Accrued other operating expenses	30,053
Trustee deferred compensation and retirement plans	82,501
Total liabilities	3,580,442
Net assets applicable to shares outstanding	$204,992,155
Net assets consist of:
Shares of beneficial interest	$132,101,592
Distributable earnings	72,890,563
	$204,992,155
Net Assets:
Series I	$138,267,024
Series II	$66,725,131
Shares outstanding, no par value, with an unlimited number of shares authorized:
Series I	4,696,804
Series II	2,407,525
Series I:
Net asset value per share	$29.44
Series II:
Net asset value per share	$27.72

* At June 30, 2020, securities with an aggregate value of $2,422,629 were on loan to brokers.

Statement of Operations

For the six months ended June 30, 2020

(Unaudited)

Investment income:
Dividends (net of foreign withholding taxes of $101,758)	$	1,524,338
Dividends from affiliated money market funds (includes securities lending income of $91)		16,896
Total investment income		1,541,234
Expenses:
Advisory fees		750,709
Administrative services fees		163,887
Custodian fees		7,157
Distribution fees - Series II		80,428
Transfer agent fees		18,516
Trustees’ and officers’ fees and benefits		8,616
Reports to shareholders		4,623
Professional services fees		21,519
Other		1,789
Total expenses		1,057,244
Less: Fees waived		(4,000	)
Net expenses		1,053,244
Net investment income		487,990
Realized and unrealized gain (loss) from:
Net realized gain from:
Investment securities		3,349,728
Foreign currencies		13,151
		3,362,879
Change in net unrealized appreciation (depreciation) of:
Investment securities		(10,105,873	)
Foreign currencies		(1,405	)
		(10,107,278	)
Net realized and unrealized gain (loss)		(6,744,399	)
Net increase (decrease) in net assets resulting from operations	$	(6,256,409	)

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

Invesco V.I. Health Care Fund

Statement of Changes in Net Assets

For the six months ended June 30, 2020 and the year ended December 31, 2019

(Unaudited)

	June 30, 2020			December 31, 2019
Operations:
Net investment income	$	487,990		$	476,623
Net realized gain		3,362,879			5,111,934
Change in net unrealized appreciation (depreciation)		(10,107,278	)		50,736,226
Net increase (decrease) in net assets resulting from operations		(6,256,409	)		56,324,783
Distributions to shareholders from distributable earnings:
Series I		–			(3,345,368	)
Series II		–			(1,628,278	)
Total distributions from distributable earnings		–			(4,973,646	)
Share transactions-net:
Series I		(7,593,349	)		(14,313,793	)
Series II		(1,875,444	)		(6,003,015	)
Net increase (decrease) in net assets resulting from share transactions		(9,468,793	)		(20,316,808	)
Net increase (decrease) in net assets		(15,725,202	)		31,034,329
Net assets:
Beginning of period		220,717,357			189,683,028
End of period	$	204,992,155		$	220,717,357

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

Invesco V.I. Health Care Fund

Financial Highlights

(Unaudited)

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
								(losses)																													net assets			assets without			investment
	Net asset			Net				on securities								Dividends				Distributions																	with fee waivers			fee waivers			income
	value,			investment				(both				Total from				from net				from net								Net asset						Net assets,			and/or			and/or			(loss)
	beginning			income				realized and				investment				investment				realized				Total				value, end			Total			end of period			expenses			expenses			to average			Portfolio
	of period			(loss)(a)				unrealized)				operations				income				gains				distributions				of period			return (b)			(000’s omitted)			absorbed			absorbed			net assets			turnover (c)
Series I
Six months ended 06/30/20		$	30.23		$	0.08	(d)		$	(0.87	)		$	(0.79	)		$	–			$	–			$	–			$	29.44		(2.61	)%		$	138,267		0.98	%(e)		0.98	%(e)		0.56	%(d)(e)		9	%
Year ended 12/31/19			23.41			0.08				7.40				7.48				(0.01	)			(0.65	)			(0.66	)			30.23		32.50				149,954		0.97			0.97			0.32			8
Year ended 12/31/18			26.44			0.03	(d)			0.59				0.62				–				(3.65	)			(3.65	)			23.41		0.90				129,377		1.00			1.00			0.10	(d)		35
Year ended 12/31/17			24.11			(0.02	)			3.86				3.84				(0.10	)			(1.41	)			(1.51	)			26.44		15.83				144,038		1.01			1.01			(0.08	)		37
Year ended 12/31/16			31.75			0.09				(3.36	)			(3.27	)			–				(4.37	)			(4.37	)			24.11		(11.46	)			145,408		1.04			1.04			0.31			23
Year ended 12/31/15			33.78			0.00				1.08				1.08				–				(3.11	)			(3.11	)			31.75		3.16				209,511		1.06			1.07			0.01			42
Series II
Six months ended 06/30/20			28.49			0.04	(d)			(0.81	)			(0.77	)			–				–				–				27.72		(2.70	)			66,725		1.23	(e)		1.23	(e)		0.31	(d)(e)		9
Year ended 12/31/19			22.14			0.02				6.98				7.00				–				(0.65	)			(0.65	)			28.49		32.18				70,763		1.22			1.22			0.07			8
Year ended 12/31/18			25.25			(0.04	)(d)			0.58				0.54				–				(3.65	)			(3.65	)			22.14		0.62				60,306		1.25			1.25			(0.15	)(d)		35
Year ended 12/31/17			23.07			(0.08	)			3.69				3.61				(0.02	)			(1.41	)			(1.43	)			25.25		15.55				67,240		1.26			1.26			(0.33	)		37
Year ended 12/31/16			30.65			0.02				(3.23	)			(3.21	)			–				(4.37	)			(4.37	)			23.07		(11.69	)			69,190		1.29			1.29			0.06			23
Year ended 12/31/15			32.80			(0.08	)			1.04				0.96				–				(3.11	)			(3.11	)			30.65		2.89				103,464		1.31			1.32			(0.24	)		42

^(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)  Net investment income per share and the ratio of net investment income to average net assets include significant dividends received during the six months ended June 30, 2020. Net investment income per share and the ratio of net investment income to average net assets excluding the significant dividends are $0.01 and 0.31%, $(0.03) and 0.06%, for Series I and Series II shares, respectively.

Net investment income per share and the ratio of net investment income to average net assets include significant dividends received during the year ended December 31, 2018. Net investment income per share and the ratio of net investment income to average net assets excluding the significant dividends are $0.00 and (0.03)%, $(0.07) and (0.28)%, for Series I and Series II shares, respectively.

^(e)  Ratios are annualized and based on average daily net assets (000’s omitted) of $136,585 and $64,704 for Series I and Series II shares, respectively.

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

Invesco V.I. Health Care Fund

Notes to Financial Statements

June 30, 2020

(Unaudited)

NOTE 1–Significant Accounting Policies

Invesco V.I. 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. Information presented in these financial statements pertains only to the Fund. Matters affecting the Fund or each class will be voted on exclusively by the shareholders of the Fund or each class. 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 Fund is an investment company and accordingly follows the investment company accounting and reporting guidance in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 946, Financial Services – Investment Companies.

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

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

A security listed or traded on an exchange (except convertible securities) is valued at its last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded, or lacking any sales or official closing price on a particular day, the security may be valued at the closing bid price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued by an independent pricing service they may be considered fair valued. Futures contracts are valued at the final settlement price set by an exchange on which they are principally traded. Listed options are valued at the mean between the last bid and asked 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 asked prices. For purposes of determining net asset value (“NAV”) per share, futures and option contracts generally are valued 15 minutes after the close of the customary trading session of the New York Stock Exchange (“NYSE”).

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

Debt obligations (including convertible securities) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. Pricing services generally value debt obligations assuming orderly transactions of institutional round lot size, but a fund may hold or transact in the same securities in smaller, odd lot sizes. Odd lots often trade at lower prices than institutional round lots. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.

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

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

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

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

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

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

Invesco V.I. Health Care Fund

returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and the Statement of Changes in Net Assets, or the net investment income per share and the ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.

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

C. Country Determination – For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues 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 net investment income and net realized capital gain, if any, are generally declared and paid to separate accounts of participating insurance companies annually and recorded on the ex-dividend date.

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

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

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

F. Expenses – Fees provided for under the Rule 12b-1 plan of a particular class of the Fund and which are directly attributable to that class are charged to the operations of such class. All other expenses are allocated among the classes based on relative net assets.

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

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

I. 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. The Fund bears the risk of loss with respect to the investment of collateral. It is the Fund’s policy to obtain additional collateral from or return excess collateral to the borrower by the end of the next business day, following the valuation date of the securities loaned. Therefore, the value of the collateral held may be temporarily less than the value of the securities on loan. When loaning securities, the Fund retains certain benefits of owning the securities, including the economic equivalent of dividends or interest generated by the security. Lending securities entails a risk of loss to the Fund if, and to the extent that, the market value of the securities loaned were to increase and the borrower did not increase the collateral accordingly, and the borrower failed to return the securities. The securities loaned are subject to termination at the option of the borrower or the Fund. Upon termination, the borrower will return to the Fund the securities loaned and the Fund will return the collateral. Upon the failure of the borrower to return the securities, collateral may be liquidated and the securities may be purchased on the open market to replace the loaned securities. The Fund could experience delays and costs in gaining access to the collateral and the securities may lose value during the delay which could result in potential losses to the Fund. Some of these losses may be indemnified by the lending agent. The Fund bears the risk of any deficiency in the amount of the collateral available for return to the borrower due to any loss on the collateral invested. Dividends received on cash collateral investments for securities lending transactions, which are net of compensation to counterparties, are included in Dividends from affiliated money market funds on the Statement of Operations. The aggregate value of securities out on loan, if any, is shown as a footnote on the Statement of Assets and Liabilities.

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

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

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

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

Invesco V.I. Health Care Fund

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

L. Other Risks – The Fund’s performance is vulnerable to factors affecting the health care industry, including government regulation, obsolescence caused by scientific advances and technological innovations.

NOTE 2–Advisory Fees and Other Fees Paid to Affiliates

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

Average Daily Net Assets	Rate
First $ 250 million		0.750%
Next $250 million		0.740%
Next $500 million		0.730%
Next $1.5 billion		0.720%
Next $2.5 billion		0.710%
Next $2.5 billion		0.700%
Next $2.5 billion		0.690%
Over $10 billion		0.680%

For the six months ended June 30, 2020, the effective advisory fee rate incurred by the Fund was 0.75%.

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

The Adviser has contractually agreed, through at least June 30, 2021, 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 2.00% and Series II shares to 2.25% of average daily net assets (the “expense limits”). In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause the total annual fund operating expenses after fee waiver and/or expense reimbursement to exceed the numbers reflected above: (1) interest; (2) taxes; (3) dividend expense on short sales; (4) extraordinary or non-routine items, including litigation expenses; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Unless Invesco continues the fee waiver agreement, it will terminate on June 30, 2021. During its term, the fee waiver agreement cannot be terminated or amended to increase the expense limits or reduce the advisory fee waiver without approval of the Board of Trustees. The Adviser did not waive fees and/or reimburse expenses during the period under these expense limits.

Further, the Adviser has contractually agreed, through at least June 30, 2022, 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, 2020, the Adviser waived advisory fees of $4,000.

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 fees paid to insurance companies that have agreed to provide certain administrative services to the Fund. These administrative services provided by the insurance companies may include, among other things: maintenance of master accounts with the Fund; tracking, recording and transmitting net purchase and redemption orders for Fund shares; maintaining and preserving records related to the purchase, redemption and other account activity of variable product owners; distributing copies of Fund documents such as prospectuses, proxy materials and periodic reports, to variable product owners, and responding to inquiries from variable product owners about the Fund. Pursuant to such agreement, for the six months ended June 30, 2020, Invesco was paid $15,602 for accounting and fund administrative services and was reimbursed $148,285 for fees paid to insurance companies. Invesco has entered into a sub-administration agreement whereby State Street Bank and Trust Company (“SSB”) serves as fund accountant and provides certain administrative services to the Fund. Pursuant to a custody agreement with the Trust on behalf of the Fund, SSB also serves as the Fund’s custodian.

The Trust has entered into a transfer agency and service agreement with Invesco Investment Services, Inc. (“IIS”) pursuant to which the Fund has agreed to pay IIS a fee for providing transfer agency and shareholder services to the Fund and reimburse IIS for certain expenses incurred by IIS in the course of providing such services. For the six months ended June 30, 2020, 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. The fees are accrued daily and paid monthly. 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, 2020, 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, 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. Health Care 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, 2020. The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

	Level 1		Level 2		Level 3		Total
Investments in Securities
Common Stocks & Other Equity Interests	$	184,702,513	$	16,108,499		$–	$	200,811,012
Money Market Funds		4,758,744		2,479,317		–		7,238,061
Total Investments	$	189,461,257	$	18,587,816		$–	$	208,049,073

NOTE 4–Trustees’ and Officers’ Fees and Benefits

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

NOTE 5–Cash Balances

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

NOTE 6–Tax Information

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

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

The Fund did not have a capital loss carryforward as of December 31, 2019.

NOTE 7–Investment Transactions

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, 2020 was $17,711,417 and $27,315,039, respectively. Cost of investments, including any derivatives, on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end.

Unrealized Appreciation (Depreciation) of Investments on a Tax Basis
Aggregate unrealized appreciation of investments	$	66,500,462
Aggregate unrealized (depreciation) of investments		(2,776,039	)
Net unrealized appreciation of investments	$	63,724,423

Cost of investments for tax purposes is $144,324,650.

NOTE 8–Share Information

	Summary of Share Activity
	Six months ended				Year ended
	June 30, 2020(a)				December 31, 2019
	Shares		Amount		Shares		Amount
Sold:
Series I		347,990	$	9,618,875		588,096	$	15,603,976
Series II		173,465		4,619,901		184,379		4,579,271
Issued as reinvestment of dividends:
Series I		-		-		131,915		3,345,368
Series II		-		-		68,072		1,628,278

Invesco V.I. Health Care Fund

	Summary of Share Activity
	Six months ended						Year ended
	June 30, 2020(a)						December 31, 2019
	Shares			Amount			Shares			Amount
Reacquired:
Series I		(612,082	)	$	(17,212,224	)		(1,286,131	)	$	(33,263,137	)
Series II		(249,445	)		(6,495,345	)		(492,335	)		(12,210,564	)
Net increase (decrease) in share activity		(340,072	)	$	(9,468,793	)		(806,004	)	$	(20,316,808	)

^(a)  There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 45% 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 Fund has no knowledge as to whether all or any portion of the shares owned of record by these entities are also owned beneficially.

NOTE 9–Coronavirus (COVID-19) Pandemic

During the first quarter of 2020, the World Health Organization declared COVID-19 to be a public health emergency. COVID-19 has led to increased short-term market volatility and may have adverse long-term effects on U.S. and world economies and markets in general. COVID-19 may adversely impact the Fund’s ability to achieve its investment objective. Because of the uncertainties on valuation, the global economy and business operations, values reflected in these financial statements may materially differ from the value received upon actual sales of those investments.

The extent of the impact on the performance of the Fund and its investments will depend on future developments, including the duration and spread of the COVID-19 outbreak, related restrictions and advisories, and the effects on the financial markets and economy overall, all of which are highly uncertain and cannot be predicted.

Invesco V.I. 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, 2020 through June 30, 2020.

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.

		ACTUAL		HYPOTHETICAL (5% annual return before expenses)
	Beginning   Account Value     (01/01/20)	Ending   Account Value     (06/30/20)1	Expenses       Paid During       Period2	Ending Account Value       (06/30/20)	Expenses   Paid During     Period2	Annualized     Expense Ratio
Series I	$1,000.00	$974.00	$4.81	$1,019.99	$4.92	0.98%
Series II	1,000.00	973.00	6.03	1,018.75	6.17	1.23

¹  The actual ending account value is based on the actual total return of the Fund for the period January 1, 2020 through June 30, 2020, 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 182/366 to reflect the most recent fiscal half year.

Invesco V.I. Health Care Fund

Approval of Investment Advisory and Sub-Advisory Contracts

At meetings held on June 3, 2020, the Board of Trustees (the Board or the Trustees) of AIM Variable Insurance Funds (Invesco Variable Insurance Funds) as a whole, and the independent Trustees, who comprise over 75% of the Board, voting separately, approved the continuance of the Invesco V.I. Health Care Fund’s (the Fund) Master Investment Advisory Agreement with Invesco Advisers, Inc. (Invesco Advisers and the investment advisory agreement) and the Master Intergroup Sub-Advisory Contract for Mutual Funds with Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Canada Ltd. and separate sub-advisory contracts with Invesco Capital Management LLC and Invesco Asset Management (India) Private Limited (collectively, the Affiliated Sub-Advisers and the sub-advisory contracts) for another year, effective July 1, 2020. After evaluating the factors discussed below, among others, the Board approved the renewal of the Fund’s investment advisory agreement and the sub-advisory contracts and determined that the compensation payable thereunder by the Fund to Invesco Advisers and by Invesco Advisers to the Affiliated Sub-Advisers is fair and reasonable.

The Board’s Evaluation Process

The Board’s Investments Committee has established Sub-Committees, which meet throughout the year to review the performance of funds advised by Invesco Advisers (the Invesco Funds). The Sub-Committees meet regularly with portfolio managers for their assigned Invesco Funds and other members of management to review detailed information about investment performance and portfolio attributes of these funds. The Board took into account evaluations and reports that it received from the Investments Committee and Sub-Committees, as well as the information provided to such committees and the Board throughout the year, in considering whether to approve each Invesco Fund’s investment advisory agreement and sub-advisory contracts.

As part of the contract renewal process, the Board reviews and considers information provided in response to detailed requests for information submitted to management by the independent Trustees with assistance from legal counsel to the independent Trustees. The Board receives comparative investment performance and fee data regarding the Invesco Funds prepared by Invesco Advisers and Broadridge Financial Solutions, Inc. (Broadridge), an independent mutual fund data provider, as well as information on the composition of the peer groups provided by Broadridge and its methodology for determining peer groups. The Board also receives an independent written evaluation from the Senior Officer, an officer of the Invesco Funds who reports directly to the independent Trustees. 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. In addition to meetings with Invesco Advisers and fund counsel throughout the year, the independent Trustees also

discuss the continuance of the investment advisory agreement and sub-advisory contracts in separate sessions with the Senior Officer and with independent legal counsel.

The discussion below is a summary of 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. The Trustees’ review and conclusions are based on the comprehensive consideration of all information presented to them during the course of the year and in prior years and are not the result of any single determinative factor. Moreover, one Trustee may have weighed a particular piece of information or factor differently than another Trustee. This information is current as of June 3, 2020.

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 nature, extent and quality of the advisory services provided to the Fund by Invesco Advisers under the Fund’s investment advisory agreement, and the credentials and experience of the officers and employees of Invesco Advisers who provide these services, including the Fund’s portfolio manager(s). The Board’s review included consideration of Invesco Advisers’ investment process oversight and structure, credit analysis, investment risk management and research capabilities. The Board also considered non-advisory services that Invesco Advisers and its affiliates provide to the Invesco Funds, such as various back office support functions, third party oversight, internal audit, valuation, portfolio trading and legal and compliance. The Board also received and reviewed information about Invesco Advisers’ role as administrator of the Invesco Funds’ liquidity risk management program. The Board reviewed and considered the benefits to shareholders of investing in a Fund that is part of the Invesco family of funds under the umbrella of Invesco Ltd., Invesco Advisers’ parent company, and noted Invesco Ltd.’s depth and experience in conducting an investment management business, as well as its commitment of financial and other resources to such business. The Board also reviewed and considered information regarding the benefits to the Fund resulting from Invesco Ltd.’s acquisition of OppenheimerFunds, Inc. and its subsidiaries (the Transaction) and the resources that Invesco Advisers has committed to managing the Invesco family of funds following the Transaction. The Board concluded that the nature, extent and quality of the services provided to the Fund by Invesco Advisers are appropriate and satisfactory.

The Board reviewed the services that may be 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 the Affiliated Sub-Advisers’ expertise with respect to certain asset classes and that the Affiliated Sub-Advisers have offices and personnel that are located in financial centers around the world.

As a result, the Board noted that the Affiliated Sub-Advisers can provide research and investment analysis on the markets and economies of various countries in which the Fund may invest, make recommendations regarding securities and assist with security trades. The Board concluded that the sub-advisory contracts may 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 that may be provided by the Affiliated Sub-Advisers are appropriate and satisfactory.

B. Fund Investment Performance

The Board considered Fund investment performance as a relevant factor in considering whether to approve the investment advisory agreement. The Board did not view Fund investment 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 investment performance over multiple time periods ending December 31, 2019 to the performance of funds in the Broadridge performance universe and against the MSCI World Health Care Index. The Board noted that performance of Series I shares of the Fund was in the first quintile of its performance universe for the one year period, the fourth quintile for the three year period, and the fifth quintile for the five year period (the first quintile being the best performing funds and the fifth quintile being the worst performing funds). The Board noted that performance of Series I shares of the Fund was above the performance of the Index for the one and three year periods and below the performance of the Index for the five year period. The Board acknowledged limitations regarding the Broadridge data, in particular that differences may exist between a Fund and its performance peer funds and specifically that, unlike the Fund, several peers in the health care space focus narrowly on certain sub-sectors. The Board noted that security selection in certain health care industries and sub-sectors negatively impacted performance. The Board recognized that the performance data reflects a snapshot in time as of a particular date and that selecting a different performance period could produce different results. The Board also reviewed more recent Fund performance as well as other performance metrics and this review did not change their conclusions.

C. Advisory and Sub-Advisory Fees and Fund Expenses

The Board compared the Fund’s contractual management fee rate to the contractual management fee rates of funds in the Fund’s Broadridge expense group. The Board noted that the contractual management fee rate for Series I shares of the Fund was below the median contractual management fee rate of funds in its expense group. The Board noted that the term “contractual management fee” for funds in the expense group may include both advisory and certain non-portfolio management administrative services fees, but that Broadridge does not provide information on a fund by fund basis as to what is included. The Board also reviewed the methodology used by Broadridge in providing expense group information, which includes using each fund’s

Invesco V.I. Health Care Fund

contractual management fee schedule (including any applicable breakpoints) as reported in the most recent prospectus or statement of additional information for each fund in the expense group. The Board also considered comparative information regarding the Fund’s total expense ratio and its various components.

The Board noted that Invesco Advisers has contractually agreed to waive fees and/or limit expenses of the Fund for the term disclosed in the Fund’s registration statement 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 fees charged by Invesco Advisers and the Affiliated Sub-Advisers to other similarly managed client accounts. Invesco Advisers reviewed with the Board differences in the scope of services it provides to the Invesco Funds relative to certain other types of client accounts, including, among others: management of cash flows as a result of redemptions and purchases; necessary infrastructure such as officers, office space, technology, legal and distribution; oversight of service providers; costs and business risks associated with launching new funds and sponsoring and maintaining the product line; and compliance with federal and state laws and regulations.

The Board also considered the services that may be provided by the Affiliated Sub-Advisers pursuant to the sub-advisory contracts, as well as the fees payable by Invesco Advisers to the Affiliated Sub-Advisers pursuant to the sub-advisory contracts.

D. Economies of Scale and Breakpoints

The Board considered the extent to which there may be economies of scale in the provision of advisory services to the Fund. The Board also considered that the Fund may benefit from economies of scale through contractual breakpoints in the Fund’s advisory fee schedule, which generally operate to reduce the Fund’s expense ratio as it grows in size. The Board 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. The Board noted that the Fund may also benefit from economies of scale through initial fee setting, fee waivers and expense reimbursements. The Board also considered Invesco’s reinvestment in its business, including investments in business infrastructure, technology and cybersecurity.

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 Invesco Funds and the profitability of Invesco Advisers and its affiliates in providing these services in the aggregate and on an individual Fund-by-Fund basis. The Board considered the methodology used for calculating profitability and noted the periodic review and enhancement of such methodology. The Board noted that Invesco Advisers continues to operate at a net profit from services Invesco Advisers and its affiliates provide to the Invesco Funds in the aggregate and to certain Funds on an individual fund level. The Board did not deem the level of profits realized by Invesco Advisers and its affiliates from providing such services to be excessive given the nature, extent and quality of the services provided. The Board received information from Invesco Advisers demonstrating that Invesco Advisers and the Affiliated Sub-Advisers are

financially sound and have the resources necessary to perform their obligations under the investment advisory agreement and sub-advisory contracts.

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 providing administrative, transfer agency and distribution services to the Fund. The Board considered comparative information regarding fees charged for these services, including information provided by Broadridge and other independent sources. 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; and that the services are required for the operation of the Fund.

The Board considered the benefits realized by Invesco Advisers and the Affiliated Sub-Advisers as a result of portfolio brokerage transactions executed through “soft dollar” arrangements. The Board noted that soft dollar arrangements may result in the Fund bearing costs to purchase research that may be used by Invesco Advisers or the Affiliated Sub-Advisers with other clients and may reduce Invesco Advisers’ or the Affiliated Sub-Advisers’ expenses. The Board also considered that it receives periodic reports from Invesco representing that these arrangements are consistent with regulatory requirements. The Board did not deem the soft dollar arrangements to be inappropriate.

The Board considered that the Fund’s uninvested cash and cash collateral from any securities lending arrangements may be invested in registered money market funds or, with regard to securities lending cash collateral, unregistered funds that comply with Rule 2a-7 (collectively referred to as “affiliated money market funds”) advised by Invesco Advisers pursuant to procedures approved by the Board. The Board considered information regarding the returns of the affiliated money market funds relative to comparable overnight investments, as well as the costs to the Fund of such investments. 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 with respect to certain investments in the affiliated money market 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 amount of advisory fees received by Invesco Advisers from the Fund’s investment of cash collateral from any securities lending arrangements in the affiliated money market funds is fair and reasonable.

The Board also considered that an affiliated broker may receive commissions for executing certain trades for the Fund. Invesco Advisers and the Affiliated Sub-Advisers may use the affiliated broker to, among other things, control order routing and minimize information leakage, and the Board was advised that such trades are executed in compliance with rules

under the federal securities laws and consistent with best execution obligations.

Invesco V.I. Health Care Fund

	Semiannual Report to Shareholders	June 30, 2020
	Invesco V.I. High Yield Fund

Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, the insurance company that offers your variable annuity or variable life insurance contract may no longer send you paper copies of the Fund’s shareholder reports by mail, unless you specifically request paper copies of the reports from the insurance company or your financial intermediary. Instead of delivering paper copies of the report, the insurance company may choose to make the reports available on a website, and will notify you by mail each time a report is posted and provide you with a website link to access the report. Instructions for requesting paper copies will be provided by your insurance company.

    If the insurance company offers electronic delivery, you may elect to receive shareholder reports and other communications about the Fund electronically by following the instructions provided by the insurance company or by contacting your financial intermediary. If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action.

    You may elect to receive all future reports in paper free of charge from the insurance company. You can inform the insurance company or your financial intermediary that you wish to continue receiving paper copies of your shareholder reports by following the instructions provided by the insurance company or by contacting your financial intermediary. Your election to receive reports in paper will apply to all portfolio companies available under your contract with the insurance company.

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) as an exhibit to its reports on Form N-PORT. The Fund’s Form N-PORT filings are available on the SEC website, 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-PORT, 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 most recent 12-month period ended June 30 is available at invesco.com/proxysearch. The information is also available on the SEC website, sec.gov.

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

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.

NOT FDIC INSURED   |   MAY LOSE VALUE   |   NO BANK GUARANTEE
Invesco Distributors, Inc.	VIHYI-SAR-1

Fund Performance

Performance summary
Fund vs. Indexes
Cumulative total returns, 12/31/19 to 6/30/20, excluding variable product issuer charges. If variable product issuer charges were included, returns would be lower.
Series I Shares	-7.58	%
Series II Shares	-7.65
Bloomberg Barclays U.S. Aggregate Bond Indexq (Broad Market Index)	6.14
Bloomberg Barclays U.S. Corporate High Yield 2% Issuer Cap Indexq (Style-Specific Index)	-3.83
Lipper VUF High Yield Bond Funds Classification Average∎ (Peer Group)	-4.62
Source(s): qRIMES Technologies Corp.; ∎ Lipper Inc.
The Bloomberg Barclays U.S. Aggregate Bond Index is an unmanaged index considered representative of the US investment grade, fixed-rate bond market.
The Bloomberg Barclays U.S. Corporate High Yield 2% Issuer Cap Index is an unmanaged index considered representative of the US high-yield, fixed-rate corporate bond market. Index weights for each issuer are capped at 2%.
The Lipper VUF High Yield Bond Funds Classification Average represents an average of all variable insurance underlying funds in the Lipper High Yield Bond Funds classification.
The Fund is not managed to track the performance of any particular index, including the index(es) described here, and consequently, the performance of the Fund may deviate significantly from the performance of the index(es).
A direct investment cannot be made in an index. Unless otherwise indicated, index results include reinvested dividends, and they do not reflect sales charges. Performance of the peer group, if applicable, reflects fund expenses; performance of a market index does not.

Average Annual Total Returns
As of 6/30/20
Series I Shares
Inception (5/1/98)	3.91%
10 Years	5.06
5 Years	2.51
1 Year	-4.53
Series II Shares
Inception (3/26/02)	5.96%
10 Years	4.81
5 Years	2.26
1 Year	-4.79

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 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. Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares. Investment return and principal value will

fluctuate so that you may have a gain or loss when you sell shares.

    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.

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

Invesco V.I. High Yield Fund

Liquidity Risk Management Program

The Securities and Exchange Commission has adopted Rule 22e-4 under the Investment Company Act of 1940 (the “Liquidity Rule”) in order to promote effective liquidity risk management throughout the open-end investment company industry, thereby reducing the risk that funds will be unable to meet their redemption obligations and mitigating dilution of the interests of fund shareholders. The Fund has adopted and implemented a liquidity risk management program in accordance with the Liquidity Rule (the “Program”). The Program is reasonably designed to assess and manage the Fund’s liquidity risk, which is the risk that the Fund could not meet redemption requests without significant dilution of remaining investors’ interests in the Fund. The Board of Trustees of the Fund (the “Board”) has appointed Invesco Advisers, Inc. (“Invesco”), the Fund’s investment adviser, as the Program’s administrator, and Invesco has delegated oversight of the Program to the Liquidity Risk Management Committee (the “Committee”), which is composed of senior representatives from relevant business groups at Invesco.

As required by the Liquidity Rule, the Program includes policies and procedures providing for an assessment, no less frequently than annually, of the Fund’s liquidity risk that takes into account, as relevant to the Fund’s liquidity risk: (1) the Fund’s investment strategy and liquidity of portfolio investments during both normal and reasonably foreseeable stressed conditions; (2) short-term and long-term cash flow projections for the Fund during both normal and reasonably foreseeable stressed conditions; and (3) the Fund’s holdings of cash and cash equivalents and any borrowing arrangements. The Liquidity Rule also requires the classification of the Fund’s investments into categories that reflect the assessment of their relative liquidity under current market conditions. The Fund classifies its investments into one of four categories defined in the Liquidity Rule: “Highly Liquid,” “Moderately Liquid,” “Less Liquid” and “Illiquid.” Funds that are not invested primarily in “Highly Liquid Investments” that are assets (cash or investments that are reasonably expected to be convertible into cash within three business days without significantly changing the market value of the investment) are required to establish a “Highly Liquid Investment Minimum” (“HLIM”), which is the minimum percentage of net assets that must be invested in Highly Liquid Investments. Funds with HLIMs have procedures for addressing HLIM shortfalls, including reporting to the Board and the SEC (on a non-public basis) as required by the Program and the Liquidity Rule. In addition, the Fund may not acquire an investment if, immediately after the acquisition, over 15% of the Fund’s net assets would consist of “Illiquid Investments” that are assets (an investment that cannot reasonably be expected to be sold or disposed of in current market conditions in seven calendar days or less without the sale or disposition significantly changing the market value of the investment). The Liquidity Rule and the Program also require reporting to the Board and the SEC (on a non-public basis) if a Fund’s holdings of Illiquid Investments exceed 15% of the Fund’s assets.

At a meeting held on March 30-April 1, 2020, the Committee presented a report to the Board that addressed the operation of the Program and assessed the Program’s adequacy and effectiveness of implementation (the “Report”). The Report covered the period from December 1, 2018 through December 31, 2019 (the “Program Reporting Period”).

The Report stated, in relevant part, that during the Program Reporting Period:

∎ The Program, as adopted and implemented, remained reasonably designed to assess and manage the Fund’s liquidity risk and was operated effectively to achieve that goal;

∎ The Fund’s investment strategy remained appropriate for an open-end fund;

∎ The Fund was able to meet requests for redemption without significant dilution of remaining investors’ interests in the Fund;

∎ The Fund did not breach the 15% limit on Illiquid Investments; and

∎ The Fund primarily held Highly Liquid Investments and therefore has not adopted an HLIM.

Invesco V.I. High Yield Fund

Schedule of Investments^(a)

June 30, 2020

(Unaudited)

	Principal Amount		Value
U.S. Dollar Denominated Bonds & Notes-91.36%
Aerospace & Defense-2.56%
Bombardier, Inc. (Canada),
8.75%, 12/01/2021(b)	$	170,000	$	138,938
5.75%, 03/15/2022(b)		215,000		159,159
7.50%, 03/15/2025(b)		982,000		643,922
7.88%, 04/15/2027(b)		161,000		105,726
BWX Technologies, Inc., 4.13%, 06/30/2028(b)		103,000		103,129
Spirit AeroSystems, Inc., 7.50%, 04/15/2025(b)		132,000		130,762
TransDigm UK Holdings PLC, 6.88%, 05/15/2026		600,000		560,136
TransDigm, Inc.,
6.50%, 07/15/2024		157,000		151,489
6.50%, 05/15/2025		574,000		538,237
Triumph Group, Inc.,
5.25%, 06/01/2022		229,000		196,600
7.75%, 08/15/2025		819,000		619,369
				3,347,467
Agricultural & Farm Machinery-0.59%
Titan International, Inc., 6.50%, 11/30/2023		1,181,000		775,510
Airlines-0.47%
Delta Air Lines, Inc.,
7.00%, 05/01/2025(b)		359,000		370,962
7.38%, 01/15/2026		255,000		246,961
				617,923
Alternative Carriers-1.07%
CenturyLink, Inc., Series Y, 7.50%, 04/01/2024		696,000		766,059
Level 3 Financing, Inc.,
5.38%, 05/01/2025		215,000		220,129
5.25%, 03/15/2026		400,000		413,066
				1,399,254
Aluminum-0.23%
Novelis Corp., 4.75%, 01/30/2030(b)		320,000		306,394
Apparel Retail-1.06%
L Brands, Inc.,
6.88%, 11/01/2035		684,000		571,790
6.75%, 07/01/2036		101,000		83,148
Michaels Stores, Inc., 8.00%, 07/15/2027(b)		830,000		722,772
				1,377,710
Apparel, Accessories & Luxury Goods-0.54%
Hanesbrands, Inc., 5.38%, 05/15/2025(b)		398,000		403,224
William Carter Co. (The),
5.50%, 05/15/2025(b)		126,000		130,174
5.63%, 03/15/2027(b)		167,000		172,495
				705,893

	Principal Amount		Value
Auto Parts & Equipment-1.57%
Adient Global Holdings Ltd., 4.88%, 08/15/2026(b)	$	350,000	$	290,250
Adient US LLC, 9.00%, 04/15/2025(b)		118,000		127,626
Clarios Global L.P., 6.75%, 05/15/2025(b)		158,000		164,814
Clarios Global L.P./Clarios US Finance Co., 8.50%, 05/15/2027(b)		354,000		356,646
Dana, Inc.,
5.50%, 12/15/2024		498,000		503,550
5.38%, 11/15/2027		119,000		118,405
5.63%, 06/15/2028		68,000		67,673
Hertz Corp. (The), 7.63%,
06/01/2022(b)(c)		152,000		114,475
7.13%, 08/01/2026(b)(c)		198,000		62,517
Tenneco, Inc., 5.00%, 07/15/2026		365,000		238,175
				2,044,131
Automobile Manufacturers-2.29%
Ford Motor Co.,
8.50%, 04/21/2023		215,000		227,766
9.00%, 04/22/2025		201,000		217,708
9.63%, 04/22/2030		108,000		128,107
4.75%, 01/15/2043		305,000		241,635
Ford Motor Credit Co. LLC,
5.13%, 06/16/2025		204,000		204,975
4.39%, 01/08/2026		282,000		267,769
5.11%, 05/03/2029		616,000		603,350
J.B. Poindexter & Co., Inc., 7.13%, 04/15/2026(b)		1,086,000		1,100,726
Motors Liquidation Co., 8.38%, 07/15/2033(c)(d)		1,060,000		0
				2,992,036
Automotive Retail-2.02%
Asbury Automotive Group, Inc., 4.75%, 03/01/2030(b)		78,000		76,245
Capitol Investment Merger Sub 2 LLC, 10.00%, 08/01/2024(b)		1,002,000		1,002,822
Lithia Motors, Inc.,
5.25%, 08/01/2025(b)		248,000		248,904
4.63%, 12/15/2027(b)		169,000		167,732
Murphy Oil USA, Inc.,
5.63%, 05/01/2027		208,000		215,500
4.75%, 09/15/2029		202,000		207,013
Penske Automotive Group, Inc., 5.50%, 05/15/2026		723,000		722,866
				2,641,082
Broadcasting-2.24%
AMC Networks, Inc.,
5.00%, 04/01/2024		486,000		482,659
4.75%, 08/01/2025		127,000		124,981
Clear Channel Worldwide Holdings, Inc., 9.25%, 02/15/2024		929,000		864,188
Gray Television, Inc., 7.00%, 05/15/2027(b)		564,000		579,595
iHeartCommunications, Inc., 8.38%, 05/01/2027		817,000		750,157

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

Invesco V.I. High Yield Fund

	Principal
	Amount		Value
Broadcasting-(continued)
TV Azteca S.A.B. de C.V. (Mexico), 8.25%, 08/09/2024(b)	$	270,000	$	119,109
				2,920,689
Building Products-0.31%
Standard Industries, Inc., 5.00%, 02/15/2027(b)		400,000		406,162
Cable & Satellite-5.30%
Altice Financing S.A. (Luxembourg), 7.50%, 05/15/2026(b)		430,000		452,586
CCO Holdings LLC/CCO Holdings Capital Corp., 5.75%, 02/15/2026(b)		1,128,000		1,169,223
CSC Holdings LLC,
10.88%, 10/15/2025(b)		445,000		479,419
6.50%, 02/01/2029(b)		745,000		815,309
4.63%, 12/01/2030(b)		400,000		390,544
DISH DBS Corp.,
5.88%, 11/15/2024		986,000		981,844
7.75%, 07/01/2026		220,000		233,636
DISH Network Corp., Conv., 3.38%, 08/15/2026		534,000		491,875
Intelsat Jackson Holdings S.A. (Luxembourg),
5.50%, 08/01/2023(c)		731,000		418,296
8.50%, 10/15/2024(b)(c)		292,000		176,498
9.75%, 07/15/2025(b)(c)		210,000		129,339
Telenet Finance Luxembourg Notes S.a.r.l. (Belgium), 5.50%, 03/01/2028(b)		400,000		420,000
Virgin Media Secured Finance PLC (United Kingdom), 5.50%, 08/15/2026(b)		300,000		307,753
VTR Finance B.V. (Chile), 6.88%, 01/15/2024(b)		440,000		450,085
				6,916,407
Casinos & Gaming-3.60%
Boyd Gaming Corp.,
8.63%, 06/01/2025(b)		158,000		165,406
6.00%, 08/15/2026		226,000		210,985
Cirsa Finance International S.a.r.l. (Spain), 7.88%, 12/20/2023(b)		200,000		185,500
Codere Finance 2 (Luxembourg) S.A. (Spain), 7.63%, 11/01/2021(b)		448,000		295,465
Colt Merger Sub, Inc.,
5.75%, 07/01/2025(b)		86,000		86,645
8.13%, 07/01/2027(b)		245,000		238,875
Melco Resorts Finance Ltd. (Hong Kong), 5.63%, 07/17/2027(b)		229,000		231,953
MGM China Holdings Ltd. (Macau), 5.88%, 05/15/2026(b)		206,000		212,600
MGM Resorts International,
7.75%, 03/15/2022		519,000		529,082
6.00%, 03/15/2023		305,000		308,845
6.75%, 05/01/2025		412,000		409,715
Scientific Games International, Inc.,
8.63%, 07/01/2025(b)		177,000		165,884
8.25%, 03/15/2026(b)		158,000		140,494
7.00%, 05/15/2028(b)		251,000		201,224
Station Casinos LLC, 4.50%, 02/15/2028(b)		204,000		171,998
Studio City Finance Ltd. (Macau), 7.25%, 02/11/2024(b)		505,000		518,299

	Principal
	Amount		Value
Casinos & Gaming-(continued)
Wynn Las Vegas LLC/Wynn Las Vegas Capital Corp., 5.50%, 03/01/2025(b)	$	685,000	$	628,964
				4,701,934
Coal & Consumable Fuels-0.89%
Parsley Energy LLC/Parsley Finance Corp.,
5.38%, 01/15/2025(b)		145,000		141,330
4.13%, 02/15/2028(b)		105,000		95,287
SunCoke Energy Partners L.P./SunCoke Energy Partners Finance Corp., 7.50%, 06/15/2025(b)		1,097,000		930,602
				1,167,219
Commodity Chemicals-0.67%
Koppers, Inc., 6.00%, 02/15/2025(b)		460,000		448,781
Olin Corp., 5.63%, 08/01/2029		466,000		429,314
				878,095
Communications Equipment-0.38%
CommScope Technologies LLC, 6.00%, 06/15/2025(b)		152,000		147,182
Hughes Satellite Systems Corp., 7.63%, 06/15/2021		342,000		353,038
				500,220
Construction & Engineering-0.33%
Valmont Industries, Inc., 5.00%, 10/01/2044		408,000		425,143
Construction Materials-0.19%
Cemex S.A.B. de C.V. (Mexico), 5.45%, 11/19/2029(b)		270,000		249,653
Consumer Finance-1.54%
Navient Corp.,
7.25%, 01/25/2022		345,000		346,630
7.25%, 09/25/2023		1,005,000		985,407
5.00%, 03/15/2027		208,000		175,177
Springleaf Finance Corp., 8.88%, 06/01/2025		465,000		498,045
				2,005,259
Copper-1.88%
First Quantum Minerals Ltd. (Zambia), 7.50%, 04/01/2025(b)		672,000		644,525
Freeport-McMoRan, Inc., 5.40%, 11/14/2034		1,118,000		1,108,321
Taseko Mines Ltd. (Canada), 8.75%, 06/15/2022(b)		840,000		704,353
				2,457,199
Data Processing & Outsourced Services-0.49%
Alliance Data Systems Corp., 4.75%, 12/15/2024(b)		394,000		355,831
Cardtronics, Inc./Cardtronics USA, Inc., 5.50%, 05/01/2025(b)		290,000		282,357
				638,188
Department Stores-0.93%
Kohl’s Corp.,
9.50%, 05/15/2025		40,000		45,666
5.55%, 07/17/2045		407,000		364,452
Macy’s, Inc., 8.38%, 06/15/2025(b)		416,000		414,700

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

Invesco V.I. High Yield Fund

	Principal
	Amount		Value
Department Stores-(continued)
Nordstrom, Inc., 8.75%, 05/15/2025(b)	$	365,000	$	393,115
				1,217,933
Distributors-0.75%
Core & Main Holdings L.P., 9.38% PIK Rate, 8.63% Cash Rate, 09/15/2024(b)(e)		975,000		979,504
Diversified Banks-1.06%
Barclays Bank PLC (United Kingdom), 7.63%, 11/21/2022		200,000		217,859
Credit Agricole S.A. (France), 8.13%(b)(f)		507,000		580,832
Societe Generale S.A. (France), 7.38%(b)(f)		308,000		311,364
Standard Chartered PLC (United Kingdom), 7.50%(b)(f)		263,000		272,598
				1,382,653
Diversified Chemicals-0.37%
Chemours Co. (The), 7.00%, 05/15/2025		220,000		210,721
Trinseo Materials Operating S.C.A./Trinseo Materials Finance, Inc., 5.38%, 09/01/2025(b)		285,000		270,928
				481,649
Diversified Metals & Mining-0.29%
Hudbay Minerals, Inc. (Peru), 7.63%, 01/15/2025(b)		396,000		380,202
Diversified REITs-1.10%
Colony Capital, Inc., Conv.,
3.88%, 01/15/2021		34,000		32,489
5.00%, 04/15/2023		268,000		231,485
iStar, Inc., 4.75%, 10/01/2024		803,000		751,391
VICI Properties L.P./VICI Note Co., Inc.,
3.50%, 02/15/2025(b)		147,000		138,525
3.75%, 02/15/2027(b)		148,000		139,374
4.13%, 08/15/2030(b)		148,000		141,387
				1,434,651
Diversified Support Services-0.22%
IAA, Inc., 5.50%, 06/15/2027(b)		274,000		283,890
Electric Utilities-0.71%
DPL, Inc., 4.35%, 04/15/2029		405,000		410,706
NRG Energy, Inc., 5.25%, 06/15/2029(b)		274,000		288,962
Talen Energy Supply LLC, 7.63%, 06/01/2028(b)		221,000		221,414
				921,082
Electrical Components & Equipment-0.52%
EnerSys, 5.00%, 04/30/2023(b)		331,000		340,482
WESCO Distribution, Inc., 7.25%, 06/15/2028(b)		319,000		337,205
				677,687
Electronic Equipment & Instruments-0.40%
MTS Systems Corp., 5.75%, 08/15/2027(b)		560,000		515,794

	Principal
	Amount		Value
Environmental & Facilities Services-0.35%
GFL Environmental, Inc. (Canada), 7.00%, 06/01/2026(b)	$	85,000	$	88,702
Waste Pro USA, Inc., 5.50%, 02/15/2026(b)		382,000		365,725
				454,427
Fertilizers & Agricultural Chemicals-0.18%
OCI N.V. (Netherlands), 6.63%, 04/15/2023(b)		231,000		233,310
Food Retail-0.86%
Albertsons Cos., Inc./Safeway, Inc./New Albertsons L.P./Albertson’s LLC,
7.50%, 03/15/2026(b)		278,000		301,797
5.88%, 02/15/2028(b)		309,000		319,339
Simmons Foods, Inc., 5.75%, 11/01/2024(b)		530,000		504,881
				1,126,017
Forest Products-0.44%
Norbord, Inc. (Canada), 5.75%, 07/15/2027(b)		560,000		573,194
Gas Utilities-0.61%
AmeriGas Partners L.P./AmeriGas Finance Corp., 5.88%, 08/20/2026		341,000		360,544
Suburban Propane Partners L.P./Suburban Energy Finance Corp., 5.50%, 06/01/2024		375,000		372,418
Superior Plus L.P./Superior General Partner, Inc. (Canada), 7.00%, 07/15/2026(b)		59,000		62,013
				794,975
Health Care Facilities-1.79%
Community Health Systems, Inc.,
9.88%, 06/30/2023(b)(g)		226,000		176,640
6.63%, 02/15/2025(b)		338,000		318,565
8.00%, 03/15/2026(b)		449,000		424,844
Encompass Health Corp., 4.75%, 02/01/2030		160,000		153,070
HCA, Inc.,
5.38%, 02/01/2025		490,000		526,287
5.88%, 02/15/2026		281,000		308,809
5.50%, 06/15/2047		170,000		207,419
Tenet Healthcare Corp.,
7.50%, 04/01/2025(b)		147,000		156,831
4.63%, 06/15/2028(b)		65,000		63,842
				2,336,307
Health Care REITs-0.31%
MPT Operating Partnership L.P./MPT Finance Corp., 5.00%, 10/15/2027		395,000		407,109
Health Care Services-0.89%
DaVita, Inc., 4.63%, 06/01/2030(b)		219,000		217,932
Hadrian Merger Sub, Inc., 8.50%, 05/01/2026(b)		795,000		722,607
Team Health Holdings, Inc., 6.38%, 02/01/2025(b)		384,000		224,120
				1,164,659

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

Invesco V.I. High Yield Fund

	Principal Amount		Value
Home Improvement Retail–0.18%
Hillman Group, Inc. (The), 6.38%, 07/15/2022(b)	$	255,000	$	236,254
Homebuilding–2.18%
Ashton Woods USA LLC/Ashton Woods Finance Co., 9.88%, 04/01/2027(b)		566,000		603,390
KB Home, 4.80%, 11/15/2029		300,000		295,687
Lennar Corp.,
8.38%, 01/15/2021		112,000		116,026
5.38%, 10/01/2022		254,000		267,910
Mattamy Group Corp. (Canada), 5.25%, 12/15/2027(b)		284,000		283,468
Meritage Homes Corp., 5.13%, 06/06/2027		350,000		361,746
PulteGroup, Inc., 6.38%, 05/15/2033		11,000		12,914
Taylor Morrison Communities, Inc.,
6.63%, 07/15/2027(b)		562,000		581,496
5.75%, 01/15/2028(b)		320,000		330,739
				2,853,376
Hotel & Resort REITs–0.26%
Service Properties Trust, 4.95%, 10/01/2029		407,000		345,362
Hotels, Resorts & Cruise Lines–0.59%
Carnival Corp., 11.50%, 04/01/2023(b)		294,000		318,237
Royal Caribbean Cruises Ltd.,
10.88%, 06/01/2023(b)		198,000		203,573
9.13%, 06/15/2023(b)		194,000		192,570
11.50%, 06/01/2025(b)		50,000		52,162
				766,542
Household Products–0.81%
Energizer Holdings, Inc.,
6.38%, 07/15/2026(b)		77,000		79,808
7.75%, 01/15/2027(b)		275,000		293,861
4.75%, 06/15/2028(b)		69,000		67,859
Reynolds Group Issuer, Inc./LLC, 7.00%, 07/15/2024(b)		329,000		330,696
Spectrum Brands, Inc., 5.75%, 07/15/2025		275,000		283,081
				1,055,305
Housewares & Specialties–0.14%
Newell Brands, Inc., 4.88%, 06/01/2025		173,000		181,504
Human Resource & Employment Services–0.40%
ASGN, Inc., 4.63%, 05/15/2028(b)		534,000		522,418
Independent Power Producers & Energy Traders–0.26%
Calpine Corp., 5.50%, 02/01/2024		334,000		335,040
Industrial Machinery–1.85%
Clark Equipment Co. (South Korea), 5.88%, 06/01/2025(b)		144,000		147,870
Cleaver-Brooks, Inc., 7.88%, 03/01/2023(b)		866,000		737,092
EnPro Industries, Inc., 5.75%, 10/15/2026		545,000		546,940
Hillenbrand, Inc., 5.75%, 06/15/2025		165,000		170,981
Mueller Industries, Inc., 6.00%, 03/01/2027		825,000		809,374
				2,412,257

	Principal Amount		Value
Integrated Oil & Gas–2.04%
Cenovus Energy, Inc. (Canada), 4.25%, 04/15/2027	$	496,000	$	450,521
Occidental Petroleum Corp.,
2.70%, 08/15/2022		560,000		522,365
2.90%, 08/15/2024		323,000		276,808
3.20%, 08/15/2026		670,000		543,776
3.50%, 08/15/2029		180,000		132,462
6.20%, 03/15/2040		318,000		267,716
4.10%, 02/15/2047		475,000		322,406
Petroleos Mexicanos (Mexico), 5.95%, 01/28/2031(b)		185,000		152,894
				2,668,948
Integrated Telecommunication Services–3.05%
Altice France Holding S.A. (Luxembourg), 10.50%, 05/15/2027(b)		410,000		453,429
Altice France S.A. (France), 7.38%, 05/01/2026(b)		764,000		798,372
CommScope, Inc.,
6.00%, 03/01/2026(b)		467,000		479,903
8.25%, 03/01/2027(b)		536,000		551,791
Embarq Corp., 8.00%, 06/01/2036		431,000		484,970
Frontier Communications Corp.,
10.50%, 09/15/2022(c)		1,501,000		523,121
11.00%, 09/15/2025(c)		264,000		92,128
Telecom Italia Capital S.A. (Italy),
6.38%, 11/15/2033		95,000		107,214
7.20%, 07/18/2036		417,000		497,585
				3,988,513
Interactive Media & Services–1.29%
Cable Onda S.A. (Panama), 4.50%, 01/30/2030(b)		210,000		213,189
Cumulus Media New Holdings, Inc., 6.75%, 07/01/2026(b)		684,000		633,018
Diamond Sports Group LLC/Diamond Sports Finance Co.,
5.38%, 08/15/2026(b)		579,000		422,624
6.63%, 08/15/2027(b)		784,000		422,207
				1,691,038
Internet & Direct Marketing Retail–0.28%
QVC, Inc., 5.45%, 08/15/2034		407,000		370,073
Internet Services & Infrastructure–0.43%
EIG Investors Corp., 10.88%, 02/01/2024		44,000		42,840
Rackspace Hosting, Inc., 8.63%, 11/15/2024(b)		509,000		518,671
				561,511
Leisure Facilities–0.05%
Viking Cruises Ltd., 13.00%, 05/15/2025(b)		63,000		66,741
Leisure Products–0.24%
Mattel, Inc., 6.75%, 12/31/2025(b)		303,000		314,888

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

Invesco V.I. High Yield Fund

	Principal Amount		Value
Managed Health Care-1.02%
Centene Corp.,
5.25%, 04/01/2025(b)	$	367,000	$	378,419
5.38%, 06/01/2026(b)		356,000		370,498
5.38%, 08/15/2026(b)		310,000		323,725
4.63%, 12/15/2029		250,000		265,318
				1,337,960
Metal & Glass Containers-0.75%
Flex Acquisition Co., Inc., 7.88%, 07/15/2026(b)		445,000		432,943
Owens-Brockway Glass Container, Inc., 6.63%, 05/13/2027(b)		124,000		129,193
Trivium Packaging Finance B.V. (Netherlands),
5.50%, 08/15/2026(b)		206,000		208,832
8.50%, 08/15/2027(b)		200,000		214,213
				985,181
Movies & Entertainment-1.50%
AMC Entertainment Holdings, Inc.,
10.50%, 04/15/2025(b)		672,000		547,730
5.75%, 06/15/2025		735,000		237,038
6.13%, 05/15/2027		308,000		97,790
Netflix, Inc.,
5.88%, 11/15/2028		577,000		657,252
5.38%, 11/15/2029(b)		383,000		421,193
				1,961,003
Oil & Gas Drilling-0.74%
Diamond Offshore Drilling, Inc., 4.88%, 11/01/2043(c)		240,000		28,369
Ensign Drilling, Inc. (Canada), 9.25%, 04/15/2024(b)		395,000		177,006
Nabors Industries, Inc., 5.75%, 02/01/2025		286,000		116,873
Precision Drilling Corp. (Canada),
7.75%, 12/15/2023		94,000		64,733
5.25%, 11/15/2024		405,000		272,020
Transocean, Inc.,
8.00%, 02/01/2027(b)		129,000		73,046
7.50%, 04/15/2031		662,000		195,290
Valaris PLC (Saudi Arabia), 7.75%, 02/01/2026		544,000		42,516
				969,853
Oil & Gas Equipment & Services-0.13%
SESI LLC, 7.13%, 12/15/2021(b)		396,000		175,230
Oil & Gas Exploration & Production-4.91%
Antero Resources Corp.,
5.63%, 06/01/2023		212,000		136,343
5.00%, 03/01/2025		107,000		63,464
Apache Corp.,
5.10%, 09/01/2040		414,000		340,621
4.75%, 04/15/2043		92,000		74,187
Ascent Resources Utica Holdings LLC/ARU Finance Corp., 10.00%, 04/01/2022(b)		344,000		294,332
California Resources Corp., 8.00%, 12/15/2022(b)		559,000		25,504
Callon Petroleum Co.,
6.13%, 10/01/2024		441,000		151,318
6.38%, 07/01/2026		169,000		56,372

	Principal Amount		Value
Oil & Gas Exploration & Production-(continued)
Centennial Resource Production LLC, 6.88%, 04/01/2027(b)	$	111,000	$	59,152
Chesapeake Energy Corp., 11.50%, 01/01/2025(b)		173,000		18,732
CNX Resources Corp., 7.25%, 03/14/2027(b)		145,000		133,584
Comstock Resources, Inc., 9.75%, 08/15/2026		179,000		167,964
Continental Resources, Inc.,
4.50%, 04/15/2023		505,000		483,310
3.80%, 06/01/2024		78,000		73,794
Denbury Resources, Inc., 5.50%, 05/01/2022		323,000		25,840
Endeavor Energy Resources L.P./EER Finance, Inc.,
6.63%, 07/15/2025(b)		84,000		84,867
5.75%, 01/30/2028(b)		151,000		145,310
EP Energy LLC/Everest Acquisition Finance, Inc., 8.00%, 11/29/2024(b)(c)		420,000		12,600
EQT Corp.,
6.13%, 02/01/2025		116,000		115,798
3.90%, 10/01/2027		134,000		109,564
7.00%, 02/01/2030		150,000		154,705
Genesis Energy L.P./Genesis Energy Finance Corp.,
6.25%, 05/15/2026		940,000		809,754
7.75%, 02/01/2028		212,000		188,879
Gulfport Energy Corp.,
6.63%, 05/01/2023		108,000		64,639
6.00%, 10/15/2024		354,000		181,646
Hilcorp Energy I L.P./Hilcorp Finance Co., 6.25%, 11/01/2028(b)		244,000		196,679
Laredo Petroleum, Inc., 10.13%, 01/15/2028		160,000		110,800
MEG Energy Corp. (Canada), 6.50%, 01/15/2025(b)		262,000		244,519
Oasis Petroleum, Inc., 6.88%, 01/15/2023		164,000		27,880
PDC Energy, Inc., 5.75%, 05/15/2026		118,000		107,752
QEP Resources, Inc., 5.25%, 05/01/2023		375,000		248,672
Range Resources Corp., 4.88%, 05/15/2025		311,000		234,331
SM Energy Co.,
6.75%, 09/15/2026		429,000		217,263
6.63%, 01/15/2027		96,000		47,319
Southwestern Energy Co.,
7.50%, 04/01/2026		109,000		95,752
7.75%, 10/01/2027		344,000		300,365
Whiting Petroleum Corp.,
5.75%, 03/15/2021(c)		379,000		73,431
6.25%, 04/01/2023(c)		514,000		90,914
6.63%, 01/15/2026(c)		519,000		93,043
WPX Energy, Inc.,
5.75%, 06/01/2026		240,000		233,497
5.25%, 10/15/2027		60,000		56,153
5.88%, 06/15/2028		33,000		31,680
4.50%, 01/15/2030		27,000		23,910
				6,406,239

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 Refining & Marketing-1.93%
Calumet Specialty Products Partners L.P./Calumet Finance Corp., 7.63%, 01/15/2022	$	700,000	$	670,960
EnLink Midstream Partners L.P., 5.60%, 04/01/2044		282,000		173,231
NuStar Logistics L.P., 6.00%, 06/01/2026		681,000		668,548
Parkland Corp. (Canada), 6.00%, 04/01/2026(b)		676,000		694,465
PBF Holding Co. LLC/PBF Finance Corp., 6.00%, 02/15/2028(b)		379,000		315,518
				2,522,722
Oil & Gas Storage & Transportation-3.06%
Antero Midstream Partners L.P./Antero Midstream Finance Corp., 5.75%, 01/15/2028(b)		537,000		425,589
Crestwood Midstream Partners L.P./Crestwood Midstream Finance Corp., 5.75%, 04/01/2025		196,000		169,909
DCP Midstream Operating L.P.,
5.38%, 07/15/2025		379,000		377,338
5.63%, 07/15/2027		104,000		105,040
EQM Midstream Partners L.P.,
6.50%, 07/01/2027(b)		345,000		354,256
5.50%, 07/15/2028		334,000		318,880
Holly Energy Partners L.P./Holly Energy Finance Corp., 5.00%, 02/01/2028(b)		151,000		144,182
NGL Energy Partners L.P./NGL Energy Finance Corp., 7.50%, 04/15/2026		781,000		595,388
Targa Resources Partners L.P./Targa Resources Partners Finance Corp.,
5.88%, 04/15/2026		743,000		737,309
5.50%, 03/01/2030(b)		100,000		96,656
Western Midstream Operating L.P.,
3.10%, 02/01/2025		163,000		154,814
4.50%, 03/01/2028		148,000		139,860
4.75%, 08/15/2028		391,000		376,337
				3,995,558
Other Diversified Financial Services-1.60%
eG Global Finance PLC (United Kingdom),
6.75%, 02/07/2025(b)		449,000		443,154
8.50%, 10/30/2025(b)		212,000		217,720
Lions Gate Capital Holdings LLC, 6.38%, 02/01/2024(b)		457,000		446,998
LPL Holdings, Inc., 5.75%, 09/15/2025(b)		509,000		516,948
Tempo Acquisition LLC/Tempo Acquisition Finance Corp., 6.75%, 06/01/2025(b)		458,000		465,152
				2,089,972
Packaged Foods & Meats-2.85%
B&G Foods, Inc., 5.25%, 04/01/2025		389,000		392,306
JBS USA LUX S.A./JBS USA Finance, Inc., 5.75%, 06/15/2025(b)		180,000		182,700
JBS USA LUX S.A./JBS USA Food Co./JBS USA Finance, Inc., 5.50%, 01/15/2030(b)		439,000		450,717

	Principal Amount		Value
Packaged Foods & Meats-(continued)
Kraft Heinz Foods Co. (The),
6.88%, 01/26/2039	$	407,000	$	503,796
5.00%, 06/04/2042		369,000		389,202
5.50%, 06/01/2050(b)		457,000		488,796
Pilgrim’s Pride Corp., 5.88%, 09/30/2027(b)		343,000		343,863
Post Holdings, Inc.,
5.63%, 01/15/2028(b)		355,000		368,247
4.63%, 04/15/2030(b)		317,000		311,658
TreeHouse Foods, Inc., 6.00%, 02/15/2024(b)		289,000		295,533
				3,726,818
Paper Products-0.68%
Mercer International, Inc. (Germany), 5.50%, 01/15/2026		162,000		152,791
Schweitzer-Mauduit International, Inc., 6.88%, 10/01/2026(b)		713,000		731,581
				884,372
Personal Products-0.39%
Edgewell Personal Care Co., 5.50%, 06/01/2028(b)		156,000		160,778
Herbalife Nutrition Ltd./HLF Financing, Inc., 7.88%, 09/01/2025(b)		337,000		348,584
				509,362
Pharmaceuticals-2.11%
Bausch Health Americas, Inc., 9.25%, 04/01/2026(b)		372,000		404,067
Bausch Health Cos., Inc.,
9.00%, 12/15/2025(b)		974,000		1,050,371
6.25%, 02/15/2029(b)		391,000		393,688
Endo DAC/ Endo Finance LLC/Endo Finco, Inc.,
9.50%, 07/31/2027(b)		86,000		91,392
6.00%, 06/30/2028(b)		109,000		70,850
HLF Financing S.a.r.l. LLC/Herbalife International, Inc., 7.25%, 08/15/2026(b)		400,000		402,626
Par Pharmaceutical, Inc., 7.50%, 04/01/2027(b)		336,000		345,927
				2,758,921
Property & Casualty Insurance-0.14%
AmWINS Group, Inc., 7.75%, 07/01/2026(b)		169,000		178,052
Publishing-0.47%
Meredith Corp., 6.88%, 02/01/2026		735,000		611,983
Railroads-0.85%
Kenan Advantage Group, Inc. (The), 7.88%, 07/31/2023(b)		1,250,000		1,104,556
Research & Consulting Services-0.22%
Dun & Bradstreet Corp. (The), 10.25%, 02/15/2027(b)		257,000		285,865
Restaurants-0.73%
1011778 BC ULC/New Red Finance, Inc. (Canada), 5.00%, 10/15/2025(b)		332,000		330,903

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

Invesco V.I. High Yield Fund

	Principal Amount		Value
Restaurants-(continued)
IRB Holding Corp.,
7.00%, 06/15/2025(b)	$	110,000	$	113,369
6.75%, 02/15/2026(b)		531,000		508,995
				953,267
Security & Alarm Services-0.76%
Brink’s Co. (The),
5.50%, 07/15/2025(b)		69,000		70,451
4.63%, 10/15/2027(b)		545,000		524,783
Garda World Security Corp. (Canada), 9.50%, 11/01/2027(b)		207,000		219,252
Prime Security Services Borrower LLC/ Prime Finance, Inc., 5.75%, 04/15/2026(b)		172,000		178,638
				993,124
Specialized Consumer Services-0.64%
ServiceMaster Co. LLC (The), 7.45%, 08/15/2027		765,000		830,606
Specialized REITs-1.77%
Iron Mountain US Holdings, Inc., 5.38%, 06/01/2026(b)		248,000		250,123
Iron Mountain, Inc.,
5.75%, 08/15/2024		377,000		381,793
5.25%, 03/15/2028(b)		578,000		576,448
5.25%, 07/15/2030(b)		519,000		509,827
Rayonier A.M. Products, Inc., 5.50%, 06/01/2024(b)		985,000		587,410
				2,305,601
Specialty Chemicals-0.88%
Element Solutions, Inc., 5.88%, 12/01/2025(b)		578,000		585,400
GCP Applied Technologies, Inc., 5.50%, 04/15/2026(b)		567,000		567,601
				1,153,001
Specialty Stores-0.20%
Sally Holdings LLC/Sally Capital, Inc., 8.75%, 04/30/2025(b)		238,000		258,676
Steel-0.15%
Cleveland-Cliffs, Inc., 9.88%, 10/17/2025(b)		182,000		191,250
Systems Software-0.32%
Boxer Parent Co., Inc.,
7.13%, 10/02/2025(b)		136,000		143,096
9.13%, 03/01/2026(b)		269,000		279,592
				422,688
Technology Hardware, Storage & Peripherals-0.48%
Dell International LLC/EMC Corp.,
7.13%, 06/15/2024(b)		396,000		410,627
8.10%, 07/15/2036(b)		91,000		118,660
Exela Intermediate LLC/Exela Finance, Inc., 10.00%, 07/15/2023(b)		114,000		28,215
Presidio Holdings, Inc., 8.25%, 02/01/2028(b)		72,000		72,225
				629,727

	Principal Amount		Value
Textiles-0.44%
Eagle Intermediate Global Holding B.V./Ruyi US Finance LLC (China), 7.50%, 05/01/2025(b)	$	814,000	$	569,800
Thrifts & Mortgage Finance-0.15%
Nationstar Mortgage Holdings, Inc., 6.00%, 01/15/2027(b)		109,000		103,737
NMI Holdings, Inc., 7.38%, 06/01/2025(b)		83,000		87,057
				190,794
Trading Companies & Distributors-1.88%
AerCap Global Aviation Trust (Ireland), 6.50% (3 mo. USD LIBOR + 4.30%), 06/15/2045(b)(h)		434,000		324,089
BMC East LLC, 5.50%, 10/01/2024(b)		649,000		656,233
Herc Holdings, Inc., 5.50%, 07/15/2027(b)		653,000		656,056
United Rentals North America, Inc.,
5.50%, 07/15/2025		41,000		42,124
6.50%, 12/15/2026		188,000		197,757
5.25%, 01/15/2030		562,000		581,566
				2,457,825
Trucking-0.29%
Avis Budget Car Rental LLC/Avis Budget Finance, Inc.,
6.38%, 04/01/2024(b)		76,000		62,692
5.25%, 03/15/2025(b)		192,000		154,560
10.50%, 05/15/2025(b)		139,000		154,898
				372,150
Wireless Telecommunication Services-3.27%
Digicel Group 0.5 Ltd. (Jamaica), 2.00% PIK Rate, 8.00% Cash Rate, 04/01/2024(e)		192,905		134,059
3.00% PIK Rate, 5.00% Cash Rate, 04/01/2025(b)(e)		62,080		18,386
2.00% PIK Rate, 5.00% Cash Rate, Conv.(b)(e)(f)		10,282		874
Intelsat (Luxembourg) S.A. (Luxembourg), 7.75%, 06/01/2021(c)		347,000		25,158
Intelsat Connect Finance S.A. (Luxembourg), 9.50%, 02/15/2023(b)(c)		159,000		40,247
Oztel Holdings SPC Ltd. (Oman), 5.63%, 10/24/2023(b)		477,000		479,468
Sprint Capital Corp., 8.75%, 03/15/2032		297,000		424,856
Sprint Corp.,
7.25%, 09/15/2021		414,000		434,495
7.88%, 09/15/2023		1,429,000		1,611,190
7.63%, 02/15/2025		275,000		317,875
7.63%, 03/01/2026		73,000		86,336
T-Mobile USA, Inc., 6.50%, 01/15/2026		671,000		701,990
				4,274,934
Total U.S. Dollar Denominated Bonds & Notes (Cost $129,817,343)				119,315,471

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

Invesco V.I. High Yield Fund

		Principal Amount		Value
Asset-Backed Securities-1.98%
Apidos CLO XV, Series 2013-15A, Class CRR, 2.99% (3 mo. USD LIBOR + 1.85%), 04/20/2031(b)(h)		$	474,000	$	439,232
Bain Capital Credit CLO Ltd. (Cayman Islands), Series 2019-1A, Class C, 3.89% (3 mo. USD LIBOR + 2.75%), 04/18/2032(b)(h)			420,000		417,355
Series 2019-3A, Class C, 3.96% (3 mo. USD LIBOR + 2.85%), 10/21/2032(b)(h)			308,000		305,086
Magnetite XXIII Ltd., Series 2019-23A, Class C, 3.39% (3 mo. USD LIBOR + 2.40%), 10/25/2032(b)(h)			474,000		466,895
Neuberger Berman Loan Advisers CLO 34 Ltd., Series 2019-34A, Class C1, 3.74% (3 mo. USD LIBOR + 2.60%), 01/20/2033(b)(h)			475,000		471,567
Sonic Capital LLC, Series 2020-1A, Class A2I, 3.85%, 01/20/2050(b)			455,477		480,089
Total Asset-Backed Securities (Cost $2,590,474)					2,580,224
Non-U.S. Dollar Denominated Bonds & Notes-0.83%(i)
Construction & Engineering-0.12%
Sarens Finance Co. N.V. (Belgium), 5.75%, 02/21/2027(b)	EUR		179,000		159,025
Diversified Banks-0.18%
Erste Group Bank AG (Austria), 6.50%(b)(f)	EUR		200,000		234,811
Food Retail-0.30%
Iceland Bondco PLC (United Kingdom), 4.63%, 03/15/2025(b)	GBP		350,000		390,703
Highways & Railtracks-0.09%
Rubis Terminal Infra S.A.S (France), 5.63%, 05/15/2025(b)	EUR		100,000		116,668
Pharmaceuticals-0.08%
Nidda Healthcare Holding GmbH (Germany), 3.50%, 09/30/2024(b)	EUR		100,000		109,872
Textiles-0.06%
Eagle Intermediate Global Holding B.V./Ruyi US Finance LLC (China), 5.38%, 05/01/2023(b)	EUR		100,000		74,151
Total Non-U.S. Dollar Denominated Bonds & Notes (Cost $1,165,812)					1,085,230

	Principal Amount		Value
U.S. Treasury Securities-0.69%
U.S. Treasury Bills-0.69%
0.01% - 0.40%, 09/03/2020 (Cost $899,876)(j)(k)	$	900,000	$	899,794
Variable Rate Senior Loan Interests-0.54%(l)(m)
Cable & Satellite-0.23%
Altice Financing S.A. (Luxembourg), Term Loan, 2.93% (1 mo. USD LIBOR + 2.75%), 07/15/2025		324,715		308,276
Pharmaceuticals-0.31%
Bausch Health Americas, Inc. (Canada), First Lien Incremental Term Loan, 2.94% (1 mo. USD LIBOR + 2.75%), 11/27/2025		414,172		401,575
Total Variable Rate Senior Loan Interests (Cost $734,003)				709,851
Agency Credit Risk Transfer Notes-0.08%
Freddie Mac Multifamily Connecticut Avenue Securities TrustSeries 2019-01, Class M10, 3.43% (1 mo. USD LIBOR + 3.25%), 10/15/2049 (Cost $107,000)(b)(h)		107,000		98,159
		Shares
Common Stocks & Other Equity Interests-0.00%
Asset Management & Custody Banks-0.00%
Motors Liquidation Co. GUC Trust(n)		1		2
Diversified Support Services-0.00%
ACC Claims Holdings LLC(d)(n)		269,616		0
Total Common Stocks & Other Equity Interests (Cost $5)				2
Money Market Funds-4.00%
Invesco Government & Agency Portfolio, Institutional Class, 0.09%(o)(p)		1,798,022		1,798,022
Invesco Liquid Assets Portfolio, Institutional Class, 0.39%(o)(p)		1,372,125		1,373,086
Invesco Treasury Portfolio, Institutional Class, 0.08%(o)(p)		2,054,882		2,054,882
Total Money Market Funds (Cost $5,225,861)				5,225,990
TOTAL INVESTMENTS IN SECURITIES-99.48% (Cost $140,540,374)				129,914,721
OTHER ASSETS LESS LIABILITIES-0.52%				681,381
NET ASSETS-100.00%			$	130,596,102

Investment Abbreviations:

CLO	-	Collateralized Loan Obligation
Conv.	-	Convertible
EUR	-	Euro
GBP	-	British Pound Sterling
GUC	-	General Unsecured Creditors
LIBOR	-	London Interbank Offered Rate
PIK	-	Pay-in-Kind
REIT	-	Real Estate Investment Trust
USD	-	U.S. Dollar

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

Invesco V.I. High Yield 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 “1933 Act”). The security may be resold pursuant to an exemption from registration under the 1933 Act, typically to qualified institutional buyers. The aggregate value of these securities at June 30, 2020 was $71,408,129, which represented 54.68% of the Fund’s Net Assets.

^(c)  Defaulted security. Currently, the issuer is in default with respect to principal and/or interest payments. The aggregate value of these securities at June 30, 2020 was $1,880,136, which represented 1.44% of the Fund’s Net Assets.

^(d)  Security valued using significant unobservable inputs (Level 3). See Note 3.

^(e)  All or a portion of this security is Pay-in-Kind. Pay-in-Kind securities pay interest income in the form of securities.

^(f)  Perpetual bond with no specified maturity date.

^(g) Step coupon bond. The interest rate represents the coupon rate at which the bond will accrue at a specified future date.

^(h)  Interest or dividend rate is redetermined periodically. Rate shown is the rate in effect on June 30, 2020.

⁽ⁱ⁾  Foreign denominated security. Principal amount is denominated in the currency indicated.

^(j) All or a portion of the value was designated as collateral to cover margin requirements for swap agreements. See Note 1O.

^(k)  Security traded on a discount basis. The interest rate shown represents the discount rate at the time of purchase by the Fund.

^(l) Variable rate senior loan interests often require prepayments from excess cash flow or permit the borrower to repay at its election. The degree to which borrowers repay, whether as a contractual requirement or at their election, cannot be predicted with any accuracy. As a result, the actual remaining maturity may be substantially less than the stated maturities shown. However, it is anticipated that the variable rate senior loan interests will have an expected average life of three to five years.

^(m)  Variable rate senior loan interests are, at present, not readily marketable, not registered under the 1933 Act and may be subject to contractual and legal restrictions on sale. Variable rate senior loan interests in the Fund’s portfolio generally have variable rates which adjust to a base, such as the London Interbank Offered Rate (“LIBOR”), on set dates, typically every 30 days, but not greater than one year, and/or have interest rates that float at margin above a widely recognized base lending rate such as the Prime Rate of a designated U.S. bank.

⁽ⁿ⁾  Non-income producing security.

^(o)  Affiliated issuer. The issuer and/or the Fund is a wholly-owned subsidiary of Invesco Ltd., or is affiliated by having an investment adviser that is under common control of Invesco Ltd. The table below shows the Fund’s transactions in, and earnings from, its investments in affiliates for the six months ended June 30, 2020.

							Change in
	Value		Purchases		Proceeds		Unrealized		Realized		Value		Dividend
	December 31, 2019		at Cost		from Sales		Appreciation		Gain		June 30, 2020		Income
Investments in Affiliated Money Market Funds:
Invesco Government & Agency Portfolio, Institutional Class		$  4,401,627		$17,459,620		$(20,063,225)		$    -		$    -		$1,798,022		$  7,479
Invesco Liquid Assets Portfolio, Institutional Class		3,245,601		13,162,017		(15,035,627)		130		965		1,373,086		7,066
Invesco Treasury Portfolio, Institutional Class		5,030,431		19,953,851		(22,929,400)		-		-		2,054,882		8,339
Total		$12,677,659		$50,575,488		$(58,028,252)		$130		$965		$5,225,990		$22,884

^(p)  The rate shown is the 7-day SEC standardized yield as of June 30, 2020.

Portfolio Composition*

By credit quality, based on total investments as of June 30, 2020.

A	1.60	%
BBB	2.48
BB	39.15
B	30.16
CCC	18.78
Non-rated	7.83

* Source: Standard & Poor’s. A credit rating is an assessment provided by a nationally recognized statistical rating organization (NRSRO) of the creditworthiness of an issuer with respect to debt obligations, including specific securities, money market instruments or other debts. Ratings are measured on a scale that generally ranges from AAA (highest) to D (lowest); ratings are subject to change without notice. “Non- Rated” indicates the debtor was not rated, and should not be interpreted as indicating low quality. For more information on Standard & Poor’s rating methodology, please visit standardandpoors.com and select “Understanding Ratings” under Rating Resources on the homepage.

Open Over-The-Counter Credit Default Swaptions Written

Counterparty

Type of Contract

Exercise Rate

Reference Entity

(Pay)/ Receive Fixed Rate

Payment Frequency

Expiration Date

Implied Credit Spread(a)

Premiums Received

Notional Value

Value

Unrealized Appreciation (Depreciation)

Credit Risk

Morgan Stanley & Co. International PLC

Put

0.98%

Markit Markit CDX North America High Yield Index, Series 34, Version 4

(5.00)%

Quarterly

08/19/2020

5.162%

$(16,733)

$(2,500,000)

$(72,815)

$(56,082)

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

Invesco V.I. High Yield Fund

^(a)  Implied credit spreads represent the current level, as of June 30, 2020, at which protection could be bought or sold given the terms of the existing credit default swap agreement and serve as an indicator of the current status of the payment/performance risk of the credit default swap agreement. An implied credit spread that has widened or increased since entry into the initial agreement 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 generally.

Open Forward Foreign Currency Contracts
Settlement Date		Contract to				Unrealized Appreciation (Depreciation)
	Counterparty	Deliver		Receive
Currency Risk
08/28/2020	Barclays Bank PLC	GBP	146,765	USD	181,076		$     (841)
08/28/2020	Citibank, N.A.	EUR	500,629	USD	551,228		(11,928)
Total Forward Foreign Currency Contracts							$(12,769)

Abbreviations:

EUR – Euro

GBP – British Pound Sterling

USD – U.S. Dollar

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

Invesco V.I. High Yield Fund

Statement of Assets and Liabilities

June 30, 2020

(Unaudited)

Assets:
Investments in securities, at value (Cost $135,314,513)	$	124,688,731
Investments in affiliated money market funds, at value (Cost $5,225,861)		5,225,990
Cash		4,188
Foreign currencies, at value (Cost $7,845)		7,540
Receivable for:
Investments sold		1,176,034
Fund shares sold		332,140
Dividends		719
Interest		2,479,374
Investments matured, at value (Cost $61,000)		9,303
Investment for trustee deferred compensation and retirement plans		75,271
Total assets		133,999,290
Liabilities:
Other investments:
Options written, at value (premiums received $16,733)		72,815
Unrealized depreciation on forward foreign currency contracts outstanding		12,769
Payable for:
Investments purchased		1,367,726
Fund shares reacquired		1,788,714
Accrued fees to affiliates		78,827
Accrued trustees’ and officers’ fees and benefits		1,905
Trustee deferred compensation and retirement plans		80,432
Total liabilities		3,403,188
Net assets applicable to shares outstanding	$	130,596,102
Net assets consist of:
Shares of beneficial interest	$	152,505,640
Distributable earnings (loss)		(21,909,538	)
	$	130,596,102
Net Assets:
Series I	$	36,035,268
Series II	$	94,560,834
Shares outstanding, no par value, with an unlimited number of shares authorized:
Series I		7,203,048
Series II		19,113,859
Series I:
Net asset value per share	$	5.00
Series II:
Net asset value per share	$	4.95

Statement of Operations

For the six months ended June 30, 2020

(Unaudited)

Investment income:
Interest	$	4,497,445
Dividends		48,034
Dividends from affiliated money market funds		22,884
Total investment income		4,568,363
Expenses:
Advisory fees		419,174
Administrative services fees		111,909
Custodian fees		1,156
Distribution fees - Series II		119,292
Transfer agent fees		14,184
Trustees’ and officers’ fees and benefits		8,288
Reports to shareholders		1,971
Professional services fees		19,591
Other		(763	)
Total expenses		694,802
Less: Expenses reimbursed		(2,973	)
Net expenses		691,829
Net investment income		3,876,534
Realized and unrealized gain (loss) from:
Net realized gain (loss) from:
Investment securities		(2,793,911	)
Foreign currencies		(16,253	)
Forward foreign currency contracts		21,320
Option contracts written		29,700
Swap agreements		(682,414	)
		(3,441,558	)
Change in net unrealized appreciation (depreciation) of:
Investment securities		(11,916,594	)
Foreign currencies		(11,909	)
Forward foreign currency contracts		4,066
Option contracts written		(66,807	)
Swap agreements		(21,369	)
		(12,012,613	)
Net realized and unrealized gain (loss)		(15,454,171	)
Net increase (decrease) in net assets resulting from operations	$	(11,577,637	)

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

Invesco V.I. High Yield Fund

Statement of Changes in Net Assets

For the six months ended June 30, 2020 and the year ended December 31, 2019

(Unaudited)

	June 30,			December 31,
	2020			2019
Operations:
Net investment income	$	3,876,534		$	8,009,131
Net realized gain (loss)		(3,441,558	)		(7,514,703	)
Change in net unrealized appreciation (depreciation)		(12,012,613	)		18,190,282
Net increase (decrease) in net assets resulting from operations		(11,577,637	)		18,684,710
Distributions to shareholders from distributable earnings:
Series I		–			(3,070,770	)
Series II		–			(5,696,932	)
Total distributions from distributable earnings		–			(8,767,702	)
Share transactions–net:
Series I		(10,929,589	)		(9,441,935	)
Series II		(2,014,954	)		12,704,138
Net increase (decrease) in net assets resulting from share transactions		(12,944,543	)		3,262,203
Net increase (decrease) in net assets		(24,522,180	)		13,179,211
Net assets:
Beginning of period		155,118,282			141,939,071
End of period	$	130,596,102		$	155,118,282

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

Invesco V.I. High Yield Fund

Financial Highlights

(Unaudited)

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

	Net asset value, beginning of period		Net investment income (a)		Net gains (losses) on securities (both realized and unrealized)			Total from investment operations			Dividends from net investment income			Net asset value, end of period		Total return (b)			Net assets, end of period (000’s omitted)		Ratio of expenses to average net assets with fee waivers and/or expenses absorbed			Ratio of expenses to average net assets without fee waivers and/or expenses absorbed			Ratio of net investment income to average net assets			Portfolio turnover (c)
Series I
Six months ended 06/30/20		$5.41		$0.15		$(0.56	)		$(0.41	)		$      –			$5.00		(7.58	)%		$  36,035		0.86	%(d)		0.86	%(d)		5.95	%(d)		38	%
Year ended 12/31/19		5.06		0.29		0.39			0.68			(0.33	)		5.41		13.51			50,190		0.88			0.89			5.45			54
Year ended 12/31/18		5.51		0.26		(0.43	)		(0.17	)		(0.28	)		5.06		(3.35	)		55,703		1.17			1.17			4.84			66
Year ended 12/31/17		5.40		0.26		0.08			0.34			(0.23	)		5.51		6.30			80,372		0.99			1.00			4.73			73
Year ended 12/31/16		5.06		0.28		0.28			0.56			(0.22	)		5.40		11.21			94,653		0.96			0.96			5.25			99
Year ended 12/31/15		5.53		0.29		(0.46	)		(0.17	)		(0.30	)		5.06		(3.17	)		73,594		1.03			1.03			5.23			99
Series II
Six months ended 06/30/20		5.36		0.14		(0.55	)		(0.41	)		–			4.95		(7.65	)		94,561		1.11	(d)		1.11	(d)		5.70	(d)		38
Year ended 12/31/19		5.02		0.28		0.37			0.65			(0.31	)		5.36		13.16			104,929		1.13			1.14			5.20			54
Year ended 12/31/18		5.46		0.25		(0.42	)		(0.17	)		(0.27	)		5.02		(3.43	)		86,236		1.42			1.42			4.59			66
Year ended 12/31/17		5.36		0.25		0.07			0.32			(0.22	)		5.46		5.93			91,802		1.24			1.25			4.48			73
Year ended 12/31/16		5.03		0.26		0.28			0.54			(0.21	)		5.36		10.83			82,971		1.21			1.21			5.00			99
Year ended 12/31/15		5.50		0.27		(0.45	)		(0.18	)		(0.29	)		5.03		(3.37	)		70,840		1.28			1.28			4.98			99

^(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 $38,905 and $95,968 for Series I and Series II shares, respectively.

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

Invesco V.I. High Yield Fund

Notes to Financial Statements

June 30, 2020

(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. Information presented in these financial statements pertains only to the Fund. Matters affecting the Fund or each class will be voted on exclusively by the shareholders of the Fund or each class. 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 Fund is an investment company and accordingly follows the investment company accounting and reporting guidance in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 946, Financial Services – Investment Companies.

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

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

Debt obligations (including convertible securities) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. Pricing services generally value debt obligations assuming orderly transactions of institutional round lot size, but a fund may hold or transact in the same securities in smaller, odd lot sizes. Odd lots often trade at lower prices than institutional round lots. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.

Variable rate senior loan interests are fair valued using quotes provided by an independent pricing service. Quotes provided by the pricing service may reflect appropriate factors such as ratings, tranche type, industry, company performance, spread, individual trading characteristics, institution-size trading in similar groups of securities and other market data.

A security listed or traded on an exchange (except convertible securities) is valued at its last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded, or lacking any sales or official closing price on a particular day, the security may be valued at the closing bid price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued by an independent pricing service they may be considered fair valued. Futures contracts are valued at the final settlement price set by an exchange on which they are principally traded. Listed options are valued at the mean between the last bid and asked 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 asked prices. For purposes of determining net asset value (“NAV”) 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, if available, provided by an independent pricing service. Evaluated quotes provided by the pricing service are valued based on a model which may include end-of-day net present values, spreads, ratings, industry, company performance and returns of referenced assets. Centrally cleared swap agreements are valued at the daily settlement price determined by the relevant exchange or clearinghouse.

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

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

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

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

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

B. Securities Transactions and Investment Income – Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income (net of withholding tax, if any) is recorded on an accrual basis from settlement date. Bond premiums and discounts are amortized and/or accreted over the lives of the respective securities. Pay-in-kind interest income and non-cash

Invesco V.I. High Yield Fund

dividend income received in the form of securities in-lieu of cash are recorded at the fair value of the securities received. Dividend income (net of withholding tax, if any) is recorded on the ex-dividend date.

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

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

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

C. Country Determination – For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues 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 net investment income and net realized capital gain, if any, are generally declared and paid to separate accounts of participating insurance companies annually and recorded on the ex-dividend date.

E. Securities Purchased on a When-Issued and Delayed Delivery Basis – The Fund may purchase and sell interests in corporate loans and corporate debt securities and other portfolio securities on a when-issued and delayed delivery basis, with payment and delivery scheduled for a future date. No income accrues to the Fund on such interests or securities in connection with such transactions prior to the date the Fund actually takes delivery of such interests or securities. These transactions are subject to market fluctuations and are subject to the risk that the value at delivery may be more or less than the trade date purchase price. Although the Fund will generally purchase these securities with the intention of acquiring such securities, they may sell such securities prior to the settlement date.

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

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

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

G. 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.

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

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

J. 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.

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

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

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

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

Invesco V.I. High Yield Fund

based upon an agreed upon notional amount (non-deliverable forwards). The Fund will set aside liquid assets in an amount equal to the daily mark-to-market obligation for forward foreign currency contracts.

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

M. Call Options Purchased and Written – The Fund may write covered call options and/or buy call options. A covered call option gives the purchaser of such option the right to buy, and the writer the obligation to sell, the underlying security or foreign currency at the stated exercise price during the option period. Options written by the Fund normally will have expiration dates between three and nine months from the date written. The exercise price of a call option may be below, equal to, or above the current market value of the underlying security at the time the option is written.

Additionally, the Fund may enter into an option on a swap agreement, also called a “swaption”. A swaption is an option that gives the buyer the right, but not the obligation, to enter into a swap on a future date in exchange for paying a market-based premium. A receiver swaption gives the owner the right to receive the total return of a specified asset, reference rate or index. Swaptions also include options that allow an existing swap to be terminated or extended by one of the Counterparties.

When the Fund writes a covered call option, an amount equal to the premium received by the Fund is recorded as an asset and an equivalent liability in the Statement of Assets and Liabilities. The amount of the liability is subsequently “marked-to-market” to reflect the current market value of the option written. If a written covered call option expires on the stipulated expiration date, or if the Fund enters into a closing purchase transaction, the Fund realizes a gain (or a loss if the closing purchase transaction exceeds the premium received when the option was written) without regard to any unrealized gain or loss on the underlying security, and the liability related to such option is extinguished. If a written covered call option is exercised, the Fund realizes a gain or a loss from the sale of the underlying security and the proceeds of the sale are increased by the premium originally received. Realized and unrealized gains and losses on call options written are included in the Statement of Operations as Net realized gain (loss) from and Change in net unrealized appreciation (depreciation) of Option contracts written. A risk in writing a covered call option is that the Fund gives up the opportunity for profit if the market price of the security increases and the option is exercised.

When the Fund buys a call option, an amount equal to the premium paid by the Fund is recorded as an investment on the Statement of Assets and Liabilities. The amount of the investment is subsequently “marked-to-market” to reflect the current value of the option purchased. Realized and unrealized gains and losses on call options purchased are included in the Statement of Operations as Net realized gain (loss) from and Change in net unrealized appreciation (depreciation) of Investment securities. A risk in buying an option is that the Fund pays a premium whether or not the option is exercised. In addition, there can be no assurance that a liquid secondary market will exist for any option purchased.

N. Put Options Purchased and Written – The Fund may purchase and write put options including options on securities indexes, or foreign currency and/or futures contracts. By purchasing a put option, the Fund obtains the right (but not the obligation) to sell the option’s underlying instrument at a fixed strike price. In return for this right, the Fund pays an option premium. The option’s underlying instrument may be a security, securities index, or a futures contract.

Additionally, the Fund may enter into an option on a swap agreement, also called a “swaption”. A swaption is an option that gives the buyer the right, but not the obligation, to enter into a swap on a future date in exchange for paying a market-based premium. A receiver swaption gives the owner the right to receive the total return of a specified asset, reference rate or index. Swaptions also include options that allow an existing swap to be terminated or extended by one of the Counterparties.

Put options may be used by the Fund to hedge securities it owns by locking in a minimum price at which the Fund can sell. If security prices fall, the put option could be exercised to offset all or a portion of the Fund’s resulting losses. At the same time, because the maximum the Fund has at risk is the cost of the option, purchasing put options does not eliminate the potential for the Fund to profit from an increase in the value of the underlying portfolio securities. The Fund may write put options to earn additional income in the form of option premiums if it expects the price of the underlying instrument to remain stable or rise during the option period so that the option will not be exercised. The risk in this strategy is that the price of the underlying securities may decline by an amount greater than the premium received. Put options written are reported as a liability in the Statement of Assets and Liabilities. Realized and unrealized gains and losses on put options purchased and put options written are included in the Statement of Operations as Net realized gain (loss) from and Change in net unrealized appreciation (depreciation) of Investment securities and Option contracts written, respectively. A risk in buying an option is that the Fund pays a premium whether or not the option is exercised. In addition, there can be no assurance that a liquid secondary market will exist for any option purchased.

O. Swap Agreements – The Fund may enter into various swap transactions, including interest rate, total return, index, currency and credit default swap contracts (“CDS”) for investment purposes or to manage interest rate, currency or credit risk. Such transactions are agreements between Counterparties. A swap agreement may be negotiated bilaterally and traded over-the-counter (“OTC”) between two parties (“uncleared/ OTC”) or, in some instances, must be transacted through a future commission merchant (“FCM”) and cleared through a clearinghouse that serves as a central Counterparty (“centrally cleared swap”). These agreements may contain among other conditions, events of default and termination events, and various covenants and representations such as provisions that require the Fund to maintain a pre-determined level of net assets, and/ or provide limits regarding the decline of the Fund’s NAV over specific periods of time. If the Fund were to trigger such provisions and have open derivative positions at that time, the Counterparty may be able to terminate such agreement and request immediate payment in an amount equal to the net liability positions, if any.

Interest rate, total return, index, and currency swap agreements are two-party contracts entered into primarily to exchange the returns (or differentials in rates of returns) earned or realized on particular predetermined investments or instruments. The gross returns to be exchanged or “swapped” between the parties are calculated with respect to a notional amount, i.e., the return on or increase in value of a particular dollar amount invested at a particular interest rate or return of an underlying asset, in a particular foreign currency, or in a “basket” of securities representing a particular index.

In a centrally cleared swap, the Fund’s ultimate Counterparty is a central clearinghouse. The Fund initially will enter into centrally cleared swaps through an executing broker. When a fund enters into a centrally cleared swap, it must deliver to the central Counterparty (via the FCM) an amount referred to as “initial margin.” Initial margin requirements are determined by the central Counterparty, but an FCM may require additional initial margin above the amount required by the central Counterparty. Initial margin deposits required upon entering into centrally cleared swaps are satisfied by cash or securities as collateral at the FCM. Securities deposited as initial margin are designated on the Schedule of Investments and cash deposited is recorded on the Statement of Assets and Liabilities. During the term of a cleared swap agreement, a “variation margin” amount may be required to be paid by the Fund or may be received by the Fund, based on the daily change in price of the underlying reference instrument subject to the swap agreement and is recorded as a receivable or payable for variation margin in the Statement of Assets and Liabilities until the centrally cleared swap is terminated at which time a realized gain or loss is recorded.

A CDS is an agreement between Counterparties to exchange the credit risk of an issuer. A buyer of a CDS is said to buy protection by paying a fixed payment over the life of the agreement and in some situations an upfront payment to the seller of the CDS. If a defined credit event occurs (such as payment default or bankruptcy), the Fund as a protection buyer would cease paying its fixed payment, the Fund would deliver eligible bonds issued by the reference entity to the seller, and the seller would pay the full notional value, or the “par value”, of the referenced obligation to the Fund. A seller of a CDS is said to sell protection and thus would receive a fixed payment over the life of the agreement and an upfront payment, if applicable. If a credit event occurs, the Fund as a protection seller would cease to receive the fixed payment stream, the Fund would pay the buyer “par value” or the full notional value of the referenced obligation, and the Fund

Invesco V.I. High Yield Fund

would receive the eligible bonds issued by the reference entity. In turn, these bonds may be sold in order to realize a recovery value. Alternatively, the seller of the CDS and its Counterparty may agree to net the notional amount and the market value of the bonds and make a cash payment equal to the difference to the buyer of protection. If no credit event occurs, the Fund receives the fixed payment over the life of the agreement. As the seller, the Fund would effectively add leverage to its portfolio because, in addition to its total net assets, the Fund would be subject to investment exposure on the notional amount of the CDS. In connection with these agreements, cash and securities may be identified as collateral in accordance with the terms of the respective swap agreements to provide assets of value and recourse in the event of default under the swap agreement or bankruptcy/insolvency of a party to the swap agreement. If a Counterparty becomes bankrupt or otherwise fails to perform its obligations due to financial difficulties, the Fund may experience significant delays in obtaining any recovery in a bankruptcy or other reorganization proceeding. The Fund may obtain only limited recovery or may obtain no recovery in such circumstances. The Fund’s maximum risk of loss from Counterparty risk, either as the protection seller or as the protection buyer, is the value of the contract. The risk may be mitigated by having a master netting arrangement between the Fund and the Counterparty and by the designation of collateral by the Counterparty to cover the Fund’s exposure to the Counterparty.

Implied credit spreads represent the current level at which protection could be bought or sold given the terms of the existing CDS contract and serve as an indicator of the current status of the payment/performance risk of the CDS. An implied spread that has widened or increased since entry into the initial contract may indicate a deteriorating credit profile and increased risk of default for the reference entity. A declining or narrowing spread may indicate an improving credit profile or decreased risk of default for the reference entity. Alternatively, credit spreads may increase or decrease reflecting the general tolerance for risk in the credit markets.

An interest rate swap is an agreement between Counterparties pursuant to which the parties exchange a floating rate payment for a fixed rate payment based on a specified notional amount.

Changes in the value of centrally cleared and OTC swap agreements are recognized as unrealized gains (losses) in the Statement of Operations by “marking to market” on a daily basis to reflect the value of the swap agreement at the end of each trading day. Payments received or paid at the beginning of the agreement are reflected as such on the Statement of Assets and Liabilities and may be referred to as upfront payments. The Fund accrues for the fixed payment stream and amortizes upfront payments, if any, on swap agreements on a daily basis with the net amount, recorded as a component of realized gain (loss) on the Statement of Operations. A liquidation payment received or made at the termination of a swap agreement is recorded as realized gain (loss) on the Statement of Operations. The Fund segregates cash or liquid securities having a value at least equal to the amount of the potential obligation of a Fund under any swap transaction. Cash held as collateral is recorded as deposits with brokers on the Statement of Assets and Liabilities. Entering into these agreements involves, to varying degrees, lack of liquidity and elements of credit, market, and Counterparty risk in excess of amounts recognized on the Statement of Assets and Liabilities. Such risks involve the possibility that a swap is difficult to sell or liquidate; the Counterparty does not honor its obligations under the agreement and unfavorable interest rates and market fluctuations. It is possible that developments in the swaps market, including potential government regulation, could adversely affect the Fund’s ability to terminate existing swap agreements or to realize amounts to be received under such agreements. A short position in a security poses more risk than holding the same security long. As there is no limit on how much the price of the security can increase, the Fund’s exposure is unlimited.

Notional amounts of each individual credit default swap agreement outstanding as of June 30, 2020 for which the Fund is the seller of protection are disclosed in the open swap agreements table. These potential amounts would be partially offset by any recovery values of the respective referenced obligations, upfront payments received upon entering into the agreement, or net amounts received from the settlement of buy protection credit default swap agreements entered into by the Fund for the same referenced entity or entities.

P. Other Risks – The Fund invests in corporate loans from U.S. or non-U.S. companies (the “Borrowers”). The investment of the Fund in a corporate loan may take the form of participation interests or assignments. If the Fund purchases a participation interest from a syndicate of lenders (“Lenders”) or one of the participants in the syndicate (“Participant”), one or more of which administers the loan on behalf of all the Lenders (the “Agent Bank”), the Fund would be required to rely on the Lender that sold the participation interest not only for the enforcement of the Fund’s rights against the Borrower but also for the receipt and processing of payments due to the Fund under the corporate loans. As such, the Fund is subject to the credit risk of the Borrower and the Participant. Lenders and Participants interposed between the Fund and a Borrower, together with Agent Banks, are referred to as “Intermediate Participants”.

Q. Leverage Risk – Leverage exists when the Fund can lose more than it originally invests because it purchases or sells an instrument or enters into a transaction without investing an amount equal to the full economic exposure of the instrument or transaction.

R. Collateral – To the extent the Fund has designated or segregated a security as collateral and that security is subsequently sold, it is the Fund’s practice to replace such collateral no later than the next business day.

NOTE 2–Advisory Fees and Other Fees Paid to Affiliates

The Trust has entered into a master investment advisory agreement with Invesco Advisers, Inc. (the “Adviser” or “Invesco”). Under the terms of the investment advisory agreement, the Fund accrues daily and pays monthly an 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		0.550%
Next $500 million		0.500%
Over $1 billion		0.450%

For the six months ended June 30, 2020, the effective advisory fee rate incurred by the Fund was 0.625%.

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

The Adviser has contractually agreed, through at least June 30, 2021, 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 1.50% and Series II shares to 1.75% of average daily net assets (the “expense limits”). In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause the total annual fund operating expenses after fee waiver and/or expense reimbursement to exceed the numbers reflected above: (1) interest; (2) taxes; (3) dividend expense on short sales; (4) extraordinary or non-routine items, including litigation expenses; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Unless Invesco continues the fee waiver agreement, it will terminate on June 30, 2021. During its term, the fee waiver agreement cannot be terminated or amended to increase the expense limits or reduce the advisory fee waiver without approval of the Board of Trustees. To the extent that the annualized expense ratio does not exceed the expense limits, the Adviser will retain its ability to be reimbursed for such fee waivers or reimbursements prior to the end of each fiscal year.

Invesco V.I. High Yield Fund

Further, the Adviser has contractually agreed, through at least June 30, 2022, 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, 2020, the Adviser waived advisory fees of $2,973.

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 fees paid to insurance companies that have agreed to provide certain administrative services to the Fund. These administrative services provided by the insurance companies may include, among other things: maintenance of master accounts with the Fund; tracking, recording and transmitting net purchase and redemption orders for Fund shares; maintaining and preserving records related to the purchase, redemption and other account activity of variable product owners; distributing copies of Fund documents such as prospectuses, proxy materials and periodic reports, to variable product owners, and responding to inquiries from variable product owners about the Fund. Pursuant to such agreement, for the six months ended June 30, 2020, Invesco was paid $11,346 for accounting and fund administrative services and was reimbursed $100,563 for fees paid to insurance companies. Invesco has entered into a sub-administration agreement whereby State Street Bank and Trust Company (“SSB”) serves as fund accountant and provides certain administrative services to the Fund. Pursuant to a custody agreement with the Trust on behalf of the Fund, SSB also serves as the Fund’s custodian.

The Trust has entered into a transfer agency and service agreement with Invesco Investment Services, Inc. (“IIS”) pursuant to which the Fund has agreed to pay IIS a fee for providing transfer agency and shareholder services to the Fund and reimburse IIS for certain expenses incurred by IIS in the course of providing such services. For the six months ended June 30, 2020, 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. The fees are accrued daily and paid monthly. 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, 2020, 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, 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, 2020. The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

	Level 1		Level 2			Level 3		Total
Investments in Securities
U.S. Dollar Denominated Bonds & Notes	$	–	$	119,315,471		$	0	$	119,315,471
Asset-Backed Securities		–		2,580,224			–		2,580,224
Non-U.S. Dollar Denominated Bonds & Notes		–		1,085,230			–		1,085,230
U.S. Treasury Securities		–		899,794			–		899,794
Variable Rate Senior Loan Interests		–		709,851			–		709,851
Agency Credit Risk Transfer Notes		–		98,159			–		98,159
Common Stocks & Other Equity Interests		2		–			0		2
Money Market Funds		5,225,990		–			–		5,225,990
Total Investments in Securities		5,225,992		124,688,729			0		129,914,721
Other Investments - Assets1
Investments Matured		–		9,303			–		9,303
Other Investments - Liabilities1
Forward Foreign Currency Contracts		–		(12,769	)		–		(12,769	)
Options Written		–		(72,815	)		–		(72,815	)
		–		(85,584	)		–		(85,584	)
Total Other Investments		–		(76,281	)		–		(76,281	)
Total Investments	$	5,225,992	$	124,612,448		$	0	$	129,838,440

1 Forward foreign currency contracts are valued at unrealized appreciation (depreciation). Investments matured and options written are shown at value.

NOTE 4–Derivative Investments

The Fund may enter into an International Swaps and Derivatives Association Master Agreement (“ISDA Master Agreement”) under which a fund may trade OTC derivatives. An OTC transaction entered into under an ISDA Master Agreement typically involves a collateral posting arrangement, payment netting provisions and

Invesco V.I. High Yield Fund

close-out netting provisions. These netting provisions allow for reduction of credit risk through netting of contractual obligations. The enforceability of the netting provisions of the ISDA Master Agreement depends on the governing law of the ISDA Master Agreement, among other factors.

For financial reporting purposes, the Fund does not offset OTC derivative assets or liabilities that are subject to ISDA Master Agreements in the Statement of Assets and Liabilities.

Value of Derivative Investments at Period-End

The table below summarizes the value of the Fund’s derivative investments, detailed by primary risk exposure, held as of June 30, 2020:

	Value
Derivative Liabilities	Credit Risk			Currency Risk			Total
Unrealized depreciation on forward foreign currency contracts outstanding	$	-		$	(12,769	)	$	(12,769	)
Options written, at value – OTC		(72,815	)		-			(72,815	)
Total Derivative Liabilities		(72,815	)		(12,769	)		(85,584	)
Derivatives not subject to master netting agreements		-			-			-
Total Derivative Liabilities subject to master netting agreements	$	(72,815	)	$	(12,769	)	$	(85,584	)

Offsetting Assets and Liabilities

The table below reflects the Fund’s exposure to Counterparties subject to either an ISDA Master Agreement or other agreement for OTC derivative transactions as of June 30, 2020.

	Financial Derivative Liabilities												Collateral (Received)/Pledged
Counterparty	Forward Foreign Currency Contracts				Options Written				Net Value of Derivatives				Non-Cash			Cash			Net Amount
Barclays Bank PLC		$	(841	)		$	-			$	(841	)		$	-		$	-		$	(841	)
Citibank, N.A.			(11,928	)			-				(11,928	)			-			-			(11,928	)
Morgan Stanley & Co. International PLC			-				(72,815	)			(72,815	)			-			-			(72,815	)
Total		$	(12,769	)		$	(72,815	)		$	(85,584	)		$	-		$	-		$	(85,584	)

Effect of Derivative Investments for the six months ended June 30, 2020

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

	Location of Gain (Loss) on Statement of Operations
	Credit Risk			Currency Risk		Equity Risk			Total
Realized Gain (Loss):
Forward foreign currency contracts	$	-		$	21,320	$	-		$	21,320
Options purchased(a)		(80,190	)		-		-			(80,190	)
Options written		29,700			-		-			29,700
Swap agreements		(163,623	)		-		(518,791	)		(682,414	)
Change in Net Unrealized Appreciation (Depreciation):
Forward foreign currency contracts		-			4,066		-			4,066
Options purchased(a)		30,182			-		-			30,182
Options written		(66,807	)		-		-			(66,807	)
Swap agreements		(4,885	)		-		(16,484	)		(21,369	)
Total	$	(255,623	)	$	25,386	$	(535,275	)	$	(765,512	)

^(a)  Options purchased are included in the net realized gain (loss) from investment securities and the change in net unrealized appreciation (depreciation) of investment securities.

    The table below summarizes the average notional value of derivatives held during the period.

	Forward Foreign Currency Contracts		Swaptions Purchased		Swaptions Written		Swap Agreements
Average notional value	$	978,990	$	15,000,000	$	8,750,000	$	13,476,800

NOTE 5–Trustees’ and Officers’ Fees and Benefits

Trustees’ and Officers’ Fees and Benefits include amounts accrued by the Fund to pay remuneration to certain Trustees and Officers of the Fund. Trustees have the option to defer compensation payable by the Fund, and Trustees’ and Officers’ Fees and Benefits also include amounts accrued by the Fund to fund such deferred compensation amounts. Those Trustees who defer compensation have the option to select various Invesco Funds in which their deferral accounts shall be deemed to be invested. Finally, certain current Trustees were eligible to participate in a retirement plan that provided for benefits to be paid upon retirement to Trustees over a

Invesco V.I. High Yield Fund

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

NOTE 6–Cash Balances

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

NOTE 7–Tax Information

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

    Capital loss carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Fund to utilize. The ability to utilize capital loss carryforwards 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, 2019, as follows:

Capital Loss Carryforward*
Expiration	Short-Term		Long-Term		Total
Not subject to expiration	$	6,519,207	$	12,938,153	$	19,457,360

NOTE 8–Investment Transactions

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, 2020 was $49,345,711 and $52,727,273, respectively. Cost of investments, including any derivatives, on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end.

Unrealized Appreciation (Depreciation) of Investments on a Tax Basis
Aggregate unrealized appreciation of investments	$	3,458,318
Aggregate unrealized (depreciation) of investments		(14,272,429	)
Net unrealized appreciation (depreciation) of investments	$	(10,814,111	)

    Cost of investments for tax purposes is $140,652,551.

NOTE 9–Share Information

	Summary of Share Activity
	Six months ended June 30, 2020(a)						Year ended December 31, 2019
	Shares			Amount			Shares			Amount
Sold:
Series I		6,513,821		$	33,576,745			10,060,540		$	54,316,527
Series II		1,661,584			8,191,951			3,671,455			19,825,254
Issued as reinvestment of dividends:
Series I		-			-			581,585			3,070,770
Series II		-			-			1,089,280			5,696,932
Reacquired:
Series I		(8,584,443	)		(44,506,334	)		(12,378,602	)		(66,829,232	)
Series II		(2,126,601	)		(10,206,905	)		(2,376,915	)		(12,818,048	)
Net increase (decrease) in share activity		(2,535,639	)	$	(12,944,543	)		647,343		$	3,262,203

^(a)  There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 68% 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 Fund 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–Coronavirus (COVID-19) Pandemic

During the first quarter of 2020, the World Health Organization declared COVID-19 to be a public health emergency. COVID-19 has led to increased short-term market volatility and may have adverse long-term effects on U.S. and world economies and markets in general. COVID-19 may adversely impact the Fund’s ability to achieve its investment objective. Because of the uncertainties on valuation, the global economy and business operations, values reflected in these financial statements may materially differ from the value received upon actual sales of those investments.

Invesco V.I. High Yield Fund

    The extent of the impact on the performance of the Fund and its investments will depend on future developments, including the duration and spread of the COVID-19 outbreak, related restrictions and advisories, and the effects on the financial markets and economy overall, all of which are highly uncertain and cannot be predicted.

Invesco V.I. High Yield Fund

Calculating your ongoing Fund expenses

Example

As a shareholder of the Fund, you incur ongoing costs, including management fees; distribution and/or service fees (12b-1); and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period January 1, 2020 through June 30, 2020.

    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.

		ACTUAL		HYPOTHETICAL (5% annual return before expenses)
	Beginning   Account Value   (01/01/20)	Ending   Account Value   (06/30/20)1	Expenses   Paid During   Period2	Ending   Account Value   (06/30/20)	Expenses   Paid During   Period2	Annualized   Expense Ratio
Series I	$1,000.00	$924.20	$4.11	$1,020.59	$4.32	0.86%
Series II	1,000.00	923.50	5.31	1,019.34	5.57	1.11

¹  The actual ending account value is based on the actual total return of the Fund for the period January 1, 2020 through June 30, 2020, 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 182/366 to reflect the most recent fiscal half year.

Invesco V.I. High Yield Fund

Approval of Investment Advisory and Sub-Advisory Contracts

At meetings held on June 3, 2020, the Board of Trustees (the Board or the Trustees) of AIM Variable Insurance Funds (Invesco Variable Insurance Funds) as a whole, and the independent Trustees, who comprise over 75% of the Board, voting separately, approved the continuance of the Invesco V.I. High Yield Fund’s (the Fund) Master Investment Advisory Agreement with Invesco Advisers, Inc. (Invesco Advisers and the investment advisory agreement) and the Master Intergroup Sub-Advisory Contract for Mutual Funds with Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Canada Ltd. and separate sub-advisory contracts with Invesco Capital Management LLC and Invesco Asset Management (India) Private Limited (collectively, the Affiliated Sub-Advisers and the sub-advisory contracts) for another year, effective July 1, 2020. After evaluating the factors discussed below, among others, the Board approved the renewal of the Fund’s investment advisory agreement and the sub-advisory contracts and determined that the compensation payable thereunder by the Fund to Invesco Advisers and by Invesco Advisers to the Affiliated Sub-Advisers is fair and reasonable.

The Board’s Evaluation Process

The Board’s Investments Committee has established Sub-Committees, which meet throughout the year to review the performance of funds advised by Invesco Advisers (the Invesco Funds). The Sub-Committees meet regularly with portfolio managers for their assigned Invesco Funds and other members of management to review detailed information about investment performance and portfolio attributes of these funds. The Board took into account evaluations and reports that it received from the Investments Committee and Sub-Committees, as well as the information provided to such committees and the Board throughout the year, in considering whether to approve each Invesco Fund’s investment advisory agreement and sub-advisory contracts.

    As part of the contract renewal process, the Board reviews and considers information provided in response to detailed requests for information submitted to management by the independent Trustees with assistance from legal counsel to the independent Trustees. The Board receives comparative investment performance and fee data regarding the Invesco Funds prepared by Invesco Advisers and Broadridge Financial Solutions, Inc. (Broadridge), an independent mutual fund data provider, as well as information on the composition of the peer groups provided by Broadridge and its methodology for determining peer groups. The Board also receives an independent written evaluation from the Senior Officer, an officer of the Invesco Funds who reports directly to the independent Trustees. 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. In addition to meetings with Invesco Advisers and fund counsel throughout the year, the independent Trustees also

discuss the continuance of the investment advisory agreement and sub-advisory contracts in separate sessions with the Senior Officer and with independent legal counsel.

    The discussion below is a summary of 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. The Trustees’ review and conclusions are based on the comprehensive consideration of all information presented to them during the course of the year and in prior years and are not the result of any single determinative factor. Moreover, one Trustee may have weighed a particular piece of information or factor differently than another Trustee. This information is current as of June 3, 2020.

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 nature, extent and quality of the advisory services provided to the Fund by Invesco Advisers under the Fund’s investment advisory agreement, and the credentials and experience of the officers and employees of Invesco Advisers who provide these services, including the Fund’s portfolio manager(s). The Board’s review included consideration of Invesco Advisers’ investment process oversight and structure, credit analysis, investment risk management and research capabilities. The Board also considered non-advisory services that Invesco Advisers and its affiliates provide to the Invesco Funds, such as various back office support functions, third party oversight, internal audit, valuation, portfolio trading and legal and compliance. The Board also received and reviewed information about Invesco Advisers’ role as administrator of the Invesco Funds’ liquidity risk management program. The Board reviewed and considered the benefits to shareholders of investing in a Fund that is part of the Invesco family of funds under the umbrella of Invesco Ltd., Invesco Advisers’ parent company, and noted Invesco Ltd.’s depth and experience in conducting an investment management business, as well as its commitment of financial and other resources to such business. The Board also reviewed and considered information regarding the benefits to the Fund resulting from Invesco Ltd.’s acquisition of OppenheimerFunds, Inc. and its subsidiaries (the Transaction) and the resources that Invesco Advisers has committed to managing the Invesco family of funds following the Transaction. The Board concluded that the nature, extent and quality of the services provided to the Fund by Invesco Advisers are appropriate and satisfactory.

  The Board reviewed the services that may be 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 the Affiliated Sub-Advisers’ expertise with respect to certain asset classes and that the Affiliated Sub-Advisers have offices and personnel that are located in financial centers around the world.

As a result, the Board noted that the Affiliated Sub-Advisers can provide research and investment analysis on the markets and economies of various countries in which the Fund may invest, make recommendations regarding securities and assist with security trades. The Board concluded that the sub-advisory contracts may 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 that may be provided by the Affiliated Sub-Advisers are appropriate and satisfactory.

B. Fund Investment Performance

The Board considered Fund investment 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 Canada Ltd. currently manages assets of the Fund.

    The Board compared the Fund’s investment performance over multiple time periods ending December 31, 2019 to the performance of funds in the Broadridge performance universe and against the Bloomberg Barclays U.S. Corporate High Yield 2% Issuer Cap Index. The Board noted that performance of Series I shares of the Fund was in the third quintile of its performance universe for the one year period and the fourth quintile for the three and five year periods (the first quintile being the best performing funds and the fifth quintile being the worst performing funds). The Board noted that 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 Fund’s security selection in and underweight exposure to certain industries and sectors negatively impacted Fund performance. Additionally, the Board noted that an underweight allocation to BB-rated bonds also negatively impacted Fund performance. The Board recognized that the performance data reflects a snapshot in time as of a particular date and that selecting a different performance period could produce different results. The Board also reviewed more recent Fund performance as well as other performance metrics and this review did not change their conclusions.

C. Advisory and Sub-Advisory Fees and Fund Expenses

The Board compared the Fund’s contractual management fee rate to the contractual management fee rates of funds in the Fund’s Broadridge expense group. The Board noted that the contractual management fee rate for Series I shares of the Fund was below the median contractual management fee rate of funds in its expense group. The Board noted that the term “contractual management fee” for funds in the expense group may include both advisory and certain non-portfolio management administrative services fees, but that Broadridge does not provide information on a fund by fund basis as to what is included. The Board also reviewed the methodology used by Broadridge in providing expense group information, which includes using each fund’s contractual management fee schedule (including any applicable breakpoints) as reported in the most recent prospectus or statement of additional information for each fund in the expense group. The

Invesco V.I. High Yield Fund

Board also considered comparative information regarding the Fund’s total expense ratio and its various components.

    The Board noted that Invesco Advisers has contractually agreed to waive fees and/or limit expenses of the Fund for the term disclosed in the Fund’s registration statement 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 fees charged by Invesco Advisers and the Affiliated Sub-Advisers to other similarly managed client accounts. Invesco Advisers reviewed with the Board differences in the scope of services it provides to the Invesco Funds relative to certain other types of client accounts, including, among others: management of cash flows as a result of redemptions and purchases; necessary infrastructure such as officers, office space, technology, legal and distribution; oversight of service providers; costs and business risks associated with launching new funds and sponsoring and maintaining the product line; and compliance with federal and state laws and regulations.

    The Board also considered the services that may be provided by the Affiliated Sub-Advisers pursuant to the sub-advisory contracts, as well as the fees payable by Invesco Advisers to the Affiliated Sub-Advisers pursuant to the sub-advisory contracts. The Board noted that Invesco Advisers retains overall responsibility for, and provides services to, sub-advised Invesco Funds, including oversight of the Affiliated Sub-Advisers as well as the additional services described herein other than day-to-day portfolio management.

D. Economies of Scale and Breakpoints

The Board considered the extent to which there may be economies of scale in the provision of advisory services to the Fund. The Board also considered that the Fund benefits from economies of scale through contractual breakpoints in the Fund’s advisory fee schedule, which generally operate to reduce the Fund’s expense ratio as it grows in size. The Board 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. The Board noted that the Fund may also benefit from economies of scale through initial fee setting, fee waivers and expense reimbursements. The Board also considered Invesco’s reinvestment in its business, including investments in business infrastructure, technology and cybersecurity.

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 Invesco Funds and the profitability of Invesco Advisers and its affiliates in providing these services in the aggregate and on an individual Fund-by-Fund basis. The Board considered the methodology used for calculating profitability and noted the periodic review and enhancement of such methodology. The Board noted that Invesco Advisers continues to operate at a net profit from services Invesco Advisers and its affiliates provide to the Invesco Funds in the aggregate and to certain Funds on an individual fund level. The Board did not deem the level of profits realized by Invesco Advisers and its affiliates from providing such services to be excessive given the nature, extent and quality of the services provided. The Board received information

from Invesco Advisers demonstrating that Invesco Advisers and the Affiliated Sub-Advisers are financially sound and have the resources necessary to perform their obligations under the investment advisory agreement and sub-advisory contracts.

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 providing administrative, transfer agency and distribution services to the Fund. The Board considered comparative information regarding fees charged for these services, including information provided by Broadridge and other independent sources. 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; and that the services are required for the operation of the Fund.

    The Board considered the benefits realized by Invesco Advisers and the Affiliated Sub-Advisers as a result of portfolio brokerage transactions executed through “soft dollar” arrangements. Invesco Advisers noted that the Fund does not execute brokerage transactions through “soft dollar” arrangements to any significant degree.

    The Board considered that the Fund’s uninvested cash and cash collateral from any securities lending arrangements may be invested in registered money market funds or, with regard to securities lending cash collateral, unregistered funds that comply with Rule 2a-7 (collectively referred to as “affiliated money market funds”) advised by Invesco Advisers pursuant to procedures approved by the Board.

    The Board considered information regarding the returns of the affiliated money market funds relative to comparable overnight investments, as well as the costs to the Fund of such investments. 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 with respect to certain investments in the affiliated money market 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 amount of advisory fees received by Invesco Advisers from the Fund’s investment of cash collateral from any securities lending arrangements in the affiliated money market funds is fair and reasonable.

Invesco V.I. High Yield Fund

	Semiannual Report to Shareholders	June 30, 2020
	Invesco V.I. International Growth Fund

Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, the insurance company that offers your variable annuity or variable life insurance contract may no longer send you paper copies of the Fund’s shareholder reports by mail, unless you specifically request paper copies of the reports from the insurance company or your financial intermediary. Instead of delivering paper copies of the report, the insurance company may choose to make the reports available on a website, and will notify you by mail each time a report is posted and provide you with a website link to access the report. Instructions for requesting paper copies will be provided by your insurance company.

If the insurance company offers electronic delivery, you may elect to receive shareholder reports and other communications about the Fund electronically by following the instructions provided by the insurance company or by contacting your financial intermediary. If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action.

You may elect to receive all future reports in paper free of charge from the insurance company. You can inform the insurance company or your financial intermediary that you wish to continue receiving paper copies of your shareholder reports by following the instructions provided by the insurance company or by contacting your financial intermediary. Your election to receive reports in paper will apply to all portfolio companies available under your contract with the insurance company.

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) as an exhibit to its reports on Form N-PORT. The Fund’s Form N-PORT filings are available on the SEC website, 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-PORT, 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 most recent 12-month period ended June 30 is available at invesco.com/proxysearch. The information is also available on the SEC website, sec.gov.

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

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.

NOT FDIC INSURED  |  MAY LOSE VALUE  |  NO BANK GUARANTEE

Invesco Distributors, Inc. VIIGR-SAR-1                                 

Fund Performance

Performance summary

Fund vs. Indexes

Cumulative total returns, 12/31/19 to 6/30/20, excluding variable product issuer charges. If variable product issuer charges were included, returns would be lower.

Series I Shares	-8.24	%
Series II Shares	-8.31
MSCI ACWI Index ex USA Indexq (Broad Market Index)	-11.00
Custom Invesco International Growth Index∎ (Style-Specific Index)	-2.62
Lipper VUF International Large-Cap Growth Funds Index¨ (Peer Group)	-4.24
Source(s): qRIMES Technologies Corp.; ∎ Invesco, RIMES Technologies Corp.; ¨Lipper Inc.

The MSCI ACWI ex USA^® Index (Net) is an index considered representative of developed and emerging stock markets, excluding the US. The index is computed using the net return, which withholds applicable taxes for non-resident investors.

The Custom Invesco International Growth Index is composed of the MSCI EAFE Growth Index through February 28, 2013, and the MSCI All Country World ex-U.S. Growth Index thereafter. The MSCI EAFE^® Growth Index is an unmanaged index considered representative of growth stocks of Europe, Australasia and the Far East. The MSCI All Country World ex-U.S. Growth Index is a market capitalization weighted index that includes growth companies in developed and emerging markets, excluding the US. Both MSCI indexes are computed using the net return, which withholds applicable taxes for non-resident investors.

The Lipper VUF International Large-Cap Growth Funds Index is an unmanaged index considered representative of international 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) described here, and consequently, the performance of the Fund may deviate significantly from the performance of the index(es).

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

Average Annual Total Returns
As of 6/30/20
Series I Shares
Inception (5/5/93)	6.71	%
10 Years	6.64
5 Years	3.02
1 Year	-1.57
Series II Shares
Inception (9/19/01)	6.64	%
10 Years	6.38
5 Years	2.77
1 Year	-1.82

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 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. Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares. Investment return and principal value will

fluctuate so that you may have a gain or loss when you sell shares.

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 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.

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

Invesco V.I. International Growth Fund

Liquidity Risk Management Program

The Securities and Exchange Commission has adopted Rule 22e-4 under the Investment Company Act of 1940 (the “Liquidity Rule”) in order to promote effective liquidity risk management throughout the open-end investment company industry, thereby reducing the risk that funds will be unable to meet their redemption obligations and mitigating dilution of the interests of fund shareholders. The Fund has adopted and implemented a liquidity risk management program in accordance with the Liquidity Rule (the “Program”). The Program is reasonably designed to assess and manage the Fund’s liquidity risk, which is the risk that the Fund could not meet redemption requests without significant dilution of remaining investors’ interests in the Fund. The Board of Trustees of the Fund (the “Board”) has appointed Invesco Advisers, Inc. (“Invesco”), the Fund’s investment adviser, as the Program’s administrator, and Invesco has delegated oversight of the Program to the Liquidity Risk Management Committee (the “Committee”), which is composed of senior representatives from relevant business groups at Invesco.

As required by the Liquidity Rule, the Program includes policies and procedures providing for an assessment, no less frequently than annually, of the Fund’s liquidity risk that takes into account, as relevant to the Fund’s liquidity risk: (1) the Fund’s investment strategy and liquidity of portfolio investments during both normal and reasonably foreseeable stressed conditions; (2) short-term and long-term cash flow projections for the Fund during both normal and reasonably foreseeable stressed conditions; and (3) the Fund’s holdings of cash and cash equivalents and any borrowing arrangements. The Liquidity Rule also requires the classification of the Fund’s investments into categories that reflect the assessment of their relative liquidity under current market conditions. The Fund classifies its investments into one of four categories defined in the Liquidity Rule: “Highly Liquid,” “Moderately Liquid,” “Less Liquid” and “Illiquid.” Funds that are not invested primarily in “Highly Liquid Investments” that are assets (cash or investments that are reasonably expected to be convertible into cash within three business days without significantly changing the market value of the investment) are required to establish a “Highly Liquid Investment Minimum” (“HLIM”), which is the minimum percentage of net assets that must be invested in Highly Liquid Investments. Funds with HLIMs have procedures for addressing HLIM shortfalls, including reporting to the Board and the SEC (on a non-public basis) as required by the Program and the Liquidity Rule. In addition, the Fund may not acquire an investment if, immediately after the acquisition, over 15% of the Fund’s net assets would consist of “Illiquid Investments” that are assets (an investment that cannot reasonably be expected to be sold or disposed of in current market conditions in seven calendar days or less without the sale or disposition significantly changing the market value of the investment). The Liquidity Rule and the Program also require reporting to the Board and the SEC (on a non-public basis) if a Fund’s holdings of Illiquid Investments exceed 15% of the Fund’s assets.

At a meeting held on March 30-April 1, 2020, the Committee presented a report to the Board that addressed the operation of the Program and assessed the Program’s adequacy and effectiveness of implementation (the “Report”). The Report covered the period from December 1, 2018 through December 31, 2019 (the “Program Reporting Period”).

The Report stated, in relevant part, that during the Program Reporting Period:

∎ The Program, as adopted and implemented, remained reasonably designed to assess and manage the Fund’s liquidity risk and was operated effectively to achieve that goal;

∎ The Fund’s investment strategy remained appropriate for an open-end fund;

∎ The Fund was able to meet requests for redemption without significant dilution of remaining investors’ interests in the Fund;

∎ The Fund did not breach the 15% limit on Illiquid Investments; and

∎ The Fund primarily held Highly Liquid Investments and therefore has not adopted an HLIM.

Invesco V.I. International Growth Fund

Schedule of Investments

June 30, 2020

(Unaudited)

	Shares		Value
Common Stocks & Other Equity Interests–96.20%
Australia–0.57%
CSL Ltd.		36,657	$       7,267,362
Brazil–2.28%
B3 S.A. - Brasil, Bolsa, Balcao		2,089,334	21,165,740
Banco Bradesco S.A., ADR		2,022,897	7,707,237
			28,872,977
Canada–5.30%
Canadian National Railway Co.		310,505	27,471,093
CGI, Inc., Class A(a)		466,872	29,413,348
Suncor Energy, Inc.		601,020	10,133,580
			67,018,021
China–10.03%
Alibaba Group Holding Ltd., ADR(a)		161,209	34,772,781
China Mengniu Dairy Co. Ltd.		3,178,000	12,119,600
Kweichow Moutai Co. Ltd., A Shares		46,513	9,626,025
New Oriental Education & Technology Group, Inc., ADR(a)		112,130	14,602,690
Tencent Holdings Ltd.		345,900	22,218,474
Wuliangye Yibin Co. Ltd., A Shares		637,297	15,429,866
Yum China Holdings, Inc.		375,052	18,028,750
			126,798,186
Denmark–2.65%
Carlsberg A/S, Class B		173,561	22,927,400
Novo Nordisk A/S, Class B		163,414	10,574,712
			33,502,112
France–5.20%
EssilorLuxottica S.A.(a)		126,091	16,161,000
LVMH Moet Hennessy Louis Vuitton SE		18,770	8,221,236
Pernod Ricard S.A.		79,500	12,494,956
Schneider Electric SE		260,643	28,896,884
			65,774,076
Germany–7.89%
Allianz SE		76,096	15,521,580
Beiersdorf AG		108,628	12,324,373
Deutsche Boerse AG		173,060	31,280,404
Knorr-Bremse AG		113,187	11,452,277
SAP SE		208,868	29,073,486
			99,652,120
Hong Kong–1.43%
AIA Group Ltd.		1,937,800	18,035,237
India–0.84%
HDFC Bank Ltd., ADR		233,541	10,616,774
Ireland–2.15%
Flutter Entertainment PLC(a)		44,617	5,850,698
ICON PLC(a)		126,569	21,321,814
			27,172,512
Italy–2.61%
FinecoBank Banca Fineco S.p.A.(a)		2,443,734	32,929,565

	Shares		Value
Japan–13.49%
Asahi Group Holdings Ltd.		639,800	$     22,414,265
FANUC Corp.		130,400	23,301,523
Hoya Corp.		294,200	28,174,055
Kao Corp.		155,600	12,318,429
Keyence Corp.		40,600	16,951,403
Koito Manufacturing Co. Ltd.		283,100	11,396,174
Komatsu Ltd.		824,800	16,862,826
Nidec Corp.		183,300	12,238,370
SMC Corp.		32,600	16,639,050
Sony Corp.		148,400	10,162,629
			170,458,724
Macau–1.62%
Galaxy Entertainment Group Ltd.		3,009,000	20,430,674
Mexico–2.35%
Fomento Economico Mexicano, S.A.B. de C.V., ADR		179,933	11,157,645
Wal-Mart de Mexico S.A.B. de C.V., Series V		7,754,400	18,606,242
			29,763,887
Netherlands–5.30%
ASML Holding N.V.		34,968	12,818,508
ING Groep N.V.(a)		705,408	4,900,348
Prosus N.V.(a)		233,273	21,650,130
Wolters Kluwer N.V.		353,745	27,595,762
			66,964,748
Singapore–1.36%
United Overseas Bank Ltd.		1,180,366	17,170,206
South Korea–3.18%
NAVER Corp.		88,344	19,812,655
Samsung Electronics Co. Ltd.		458,350	20,318,257
			40,130,912
Spain–0.65%
Amadeus IT Group S.A.		156,882	8,163,013
Sweden–3.24%
Investor AB, Class B		572,842	30,184,179
Sandvik AB		576,093	10,745,099
			40,929,278
Switzerland–9.60%
Alcon, Inc.(a)		246,441	14,120,139
Kuehne + Nagel International AG		139,321	23,118,638
Logitech International S.A.		172,691	11,260,180
Nestle S.A.		206,437	22,806,167
Novartis AG		321,799	27,961,328
Roche Holding AG		63,557	22,005,438
			121,271,890
Taiwan–2.47%
Taiwan Semiconductor Manufacturing Co. Ltd., ADR		550,088	31,228,496

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

Invesco V.I. International Growth Fund

	Shares		Value
United Kingdom–4.53%
British American Tobacco PLC		461,049	$     17,714,169
Linde PLC		82,292	17,454,956
RELX PLC		952,304	22,041,338
			57,210,463
United States–7.46%
Amcor PLC, CDI		1,588,934	16,011,018
Booking Holdings, Inc.(a)		10,769	17,147,910
Broadcom, Inc.		105,712	33,363,764
Philip Morris International, Inc.		395,232	27,689,954
			94,212,646
Total Common Stocks & Other Equity Interests (Cost $862,309,941)			1,215,573,879

	Shares		Value
Money Market Funds–3.20%
Invesco Government & Agency Portfolio, Institutional Class, 0.09%(b)(c)		14,219,081	$     14,219,081
Invesco Liquid Assets Portfolio, Institutional Class, 0.39%(b)(c)		9,949,491	9,956,456
Invesco Treasury Portfolio, Institutional Class, 0.08%(b)(c)		16,250,378	16,250,378
Total Money Market Funds (Cost $40,415,522)			40,425,915
TOTAL INVESTMENTS IN SECURITIES–99.40% (Cost $902,725,463)			1,255,999,794
OTHER ASSETS LESS LIABILITIES–0.60%			7,590,200
NET ASSETS–100.00%			$1,263,589,994

Investment Abbreviations:

ADR - American Depositary Receipt

CDI - CREST Depository Interest

Notes to Schedule of Investments:

^(a)  Non-income producing security.

^(b)  Affiliated issuer. The issuer and/or the Fund is a wholly-owned subsidiary of Invesco Ltd., or is affiliated by having an investment adviser that is under common control of Invesco Ltd. The table below shows the Fund’s transactions in, and earnings from, its investments in affiliates for the six months ended June 30, 2020.

	Value December 31, 2019		Purchases at Cost		Proceeds from Sales		Change in Unrealized Appreciation		Realized Gain		Value June 30, 2020		Dividend Income
Investments in Affiliated Money Market Funds:
Invesco Government & Agency Portfolio, Institutional Class		$14,279,963		$  82,032,547		$ (82,093,429)		$        -		$        -		$14,219,081		$  56,785
Invesco Liquid Assets Portfolio, Institutional Class		10,203,588		58,594,677		(58,853,352)		8,400		3,143		9,956,456		59,199
Invesco Treasury Portfolio, Institutional Class		16,319,957		93,751,483		(93,821,062)		-		-		16,250,378		60,553
Total		$40,803,508		$234,378,707		$(234,767,843)		$8,400		$3,143		$40,425,915		$176,537

^(c)  The rate shown is the 7-day SEC standardized yield as of June 30, 2020.

Portfolio Composition

By sector, based on Net Assets

as of June 30, 2020

Industrials	17.44%
Consumer Staples	17.22
Information Technology	15.24
Financials	15.00
Consumer Discretionary	14.12
Health Care	10.40
Communication Services	3.33
Materials	2.65
Other Sectors, Each Less than 2% of Net Assets	0.80
Money Market Funds Plus Other Assets Less Liabilities	3.80

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, 2020

(Unaudited)

Assets:
Investments in securities, at value (Cost $862,309,941)	$	1,215,573,879
Investments in affiliated money market funds, at value (Cost $40,415,522)		40,425,915
Foreign currencies, at value (Cost $2,811,984)		2,810,751
Receivable for:
Investments sold		7,580,971
Fund shares sold		189,618
Dividends		3,232,895
Investment for trustee deferred compensation and retirement plans		244,413
Total assets		1,270,058,442
Liabilities:
Payable for:
Investments purchased		4,442,979
Fund shares reacquired		1,012,743
Accrued fees to affiliates		669,762
Accrued trustees’ and officers’ fees and benefits		6,432
Accrued other operating expenses		67,920
Trustee deferred compensation and retirement plans		268,612
Total liabilities		6,468,448
Net assets applicable to shares outstanding	$	1,263,589,994
Net assets consist of:
Shares of beneficial interest	$	879,986,107
Distributable earnings		383,603,887
	$	1,263,589,994
Net Assets:
Series I	$	407,592,933
Series II	$	855,997,061
Shares outstanding, no par value, with an unlimited number of shares authorized:
Series I		11,371,549
Series II		24,265,858
Series I:
Net asset value per share	$	35.84
Series II:
Net asset value per share	$	35.28

Statement of Operations

For the six months ended June 30, 2020

(Unaudited)

Investment income:
Dividends (net of foreign withholding taxes of $1,499,774)	$	12,356,945
Dividends from affiliated money market funds		176,537
Total investment income		12,533,482
Expenses:
Advisory fees		4,446,410
Administrative services fees		1,045,399
Custodian fees		44,392
Distribution fees - Series II		1,059,464
Transfer agent fees		37,544
Trustees’ and officers’ fees and benefits		12,258
Reports to shareholders		2,970
Professional services fees		17,371
Other		4,164
Total expenses		6,669,972
Less: Expenses reimbursed		(26,289	)
Net expenses		6,643,683
Net investment income		5,889,799
Realized and unrealized gain (loss) from:
Net realized gain (loss) from:
Investment securities		(3,847,294	)
Foreign currencies		70,532
		(3,776,762	)
Change in net unrealized appreciation (depreciation) of:
Investment securities		(127,217,672	)
Foreign currencies		(3,337	)
		(127,221,009	)
Net realized and unrealized gain (loss)		(130,997,771	)
Net increase (decrease) in net assets resulting from operations	$	(125,107,972	)

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, 2020 and the year ended December 31, 2019

(Unaudited)

	June 30, 2020			December 31, 2019
Operations:
Net investment income	$	5,889,799		$	19,460,503
Net realized gain (loss)		(3,776,762	)		36,486,226
Change in net unrealized appreciation (depreciation)		(127,221,009	)		292,289,985
Net increase (decrease) in net assets resulting from operations		(125,107,972	)		348,236,714
Distributions to shareholders from distributable earnings:
Series I		–			(35,398,141	)
Series II		–			(74,537,058	)
Total distributions from distributable earnings		–			(109,935,199	)
Share transactions–net:
Series I		(20,019,378	)		(25,039,724	)
Series II		(63,315,370	)		(18,732,098	)
Net increase (decrease) in net assets resulting from share transactions		(83,334,748	)		(43,771,822	)
Net increase (decrease) in net assets		(208,442,720	)		194,529,693
Net assets:
Beginning of period		1,472,032,714			1,277,503,021
End of period	$	1,263,589,994		$	1,472,032,714

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

Invesco V.I. International Growth Fund

Financial Highlights

(Unaudited)

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

																																				Ratio of			Ratio of
																																				expenses			expenses
							Net gains																													to average			to average net
							(losses)																													net assets			assets without			Ratio of net
	Net asset						on securities								Dividends				Distributions																	with fee waivers			fee waivers			investment
	value,			Net			(both				Total from				from net				from net								Net asset						Net assets,			and/or			and/or			income
	beginning			investment			realized and				investment				investment				realized				Total				value, end			Total			end of period			expenses			expenses			to average			Portfolio
	of period			income(a)			unrealized)				operations				income				gains				distributions				of period			return (b)			(000’s omitted)			absorbed			absorbed			net assets			turnover (c)
Series I
Six months ended 06/30/20		$	39.05		$	0.19		$	(3.40	)		$	(3.21	)		$	–			$	–			$	–			$	35.84		(8.22	)%		$	407,593		0.90	%(d)		0.90	%(d)		1.10	%(d)		30	%
Year ended 12/31/19			32.98			0.58			8.60				9.18				(0.62	)			(2.49	)			(3.11	)			39.05		28.54				466,401		0.89			0.89			1.54			31
Year ended 12/31/18			39.89			0.66			(6.51	)			(5.85	)			(0.79	)			(0.27	)			(1.06	)			32.98		(14.97	)			414,774		0.92			0.93			1.74			35
Year ended 12/31/17			32.89			0.49			7.06				7.55				(0.55	)			–				(0.55	)			39.89		23.00				627,894		0.92			0.93			1.34			34
Year ended 12/31/16			33.49			0.50			(0.63	)			(0.13	)			(0.47	)			–				(0.47	)			32.89		(0.45	)			540,460		0.95			0.96			1.51			18
Year ended 12/31/15			34.87			0.48			(1.33	)			(0.85	)			(0.53	)			–				(0.53	)			33.49		(2.34	)			601,760		1.00			1.01			1.35			22
Series II
Six months ended 06/30/20			38.48			0.15			(3.35	)			(3.20	)			–				–				–				35.28		(8.31	)			855,997		1.15	(d)		1.15	(d)		0.85	(d)		30
Year ended 12/31/19			32.52			0.48			8.47				8.95				(0.50	)			(2.49	)			(2.99	)			38.48		28.20				1,005,632		1.14			1.14			1.29			31
Year ended 12/31/18			39.33			0.56			(6.42	)			(5.86	)			(0.68	)			(0.27	)			(0.95	)			32.52		(15.18	)			862,729		1.17			1.18			1.49			35
Year ended 12/31/17			32.44			0.40			6.96				7.36				(0.47	)			–				(0.47	)			39.33		22.73				1,448,723		1.17			1.18			1.09			34
Year ended 12/31/16			33.04			0.41			(0.62	)			(0.21	)			(0.39	)			–				(0.39	)			32.44		(0.70	)			1,167,820		1.20			1.21			1.26			18
Year ended 12/31/15			34.42			0.38			(1.31	)			(0.93	)			(0.45	)			–				(0.45	)			33.04		(2.61	)			1,169,823		1.25			1.26			1.10			22

^(a)  Calculated using average shares outstanding.

^(b)  Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Total returns 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 $407,700 and $851,826 for Series I and Series II shares, respectively.

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

Invesco V.I. International Growth Fund

Notes to Financial Statements

June 30, 2020

(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. Information presented in these financial statements pertains only to the Fund. Matters affecting the Fund or each class will be voted on exclusively by the shareholders of the Fund or each class. 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 Fund is an investment company and accordingly follows the investment company accounting and reporting guidance in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 946, Financial Services - Investment Companies.

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

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

A security listed or traded on an exchange (except convertible securities) is valued at its last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded, or lacking any sales or official closing price on a particular day, the security may be valued at the closing bid price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued by an independent pricing service they may be considered fair valued. Futures contracts are valued at the final settlement price set by an exchange on which they are principally traded. Listed options are valued at the mean between the last bid and asked 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 asked prices. For purposes of determining net asset value (“NAV”) per share, futures and option contracts generally are valued 15 minutes after the close of the customary trading session of the New York Stock Exchange (“NYSE”).

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

Debt obligations (including convertible securities) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. Pricing services generally value debt obligations assuming orderly transactions of institutional round lot size, but a fund may hold or transact in the same securities in smaller, odd lot sizes. Odd lots often trade at lower prices than institutional round lots. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.

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

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

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

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

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

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

Invesco V.I. International Growth Fund

share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and the Statement of Changes in Net Assets, or the net investment income per share and the ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.

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

C. Country Determination – For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues 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 net investment income and net realized capital gain, if any, are generally declared and paid to separate accounts of participating insurance companies annually and recorded on the ex-dividend date.

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

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

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

F. Expenses – Fees provided for under the Rule 12b-1 plan of a particular class of the Fund and which are directly attributable to that class are charged to the operations of such class. All other expenses are allocated among the classes based on relative net assets.

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

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

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

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

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

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

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

NOTE 2–Advisory Fees and Other Fees Paid to Affiliates

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

Average Daily Net Assets	Rate
First $ 250 million		0.750%
Over $250 million		0.700%

Invesco V.I. International Growth Fund

For the six months ended June 30, 2020, the effective advisory fee rate incurred by the Fund was 0.71%.

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

The Adviser has contractually agreed, through at least June 30, 2021, 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 2.25% and Series II shares to 2.50% of average daily net assets (the “expense limits”). In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause the total annual fund operating expenses after fee waiver and/or expense reimbursement to exceed the numbers reflected above: (1) interest; (2) taxes; (3) dividend expense on short sales; (4) extraordinary or non-routine items, including litigation expenses; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Unless Invesco continues the fee waiver agreement, it will terminate on June 30, 2021. During its term, the fee waiver agreement cannot be terminated or amended to increase the expense limits or reduce the advisory fee waiver without approval of the Board of Trustees. The Adviser did not waive fees and/or reimburse expenses during the period under these expense limits.

Further, the Adviser has contractually agreed, through at least June 30, 2022, 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, 2020, the Adviser waived advisory fees of $26,289.

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 fees paid to insurance companies that have agreed to provide certain administrative services to the Fund. These administrative services provided by the insurance companies may include, among other things: maintenance of master accounts with the Fund; tracking, recording and transmitting net purchase and redemption orders for Fund shares; maintaining and preserving records related to the purchase, redemption and other account activity of variable product owners; distributing copies of Fund documents such as prospectuses, proxy materials and periodic reports, to variable product owners, and responding to inquiries from variable product owners about the Fund. Pursuant to such agreement, for the six months ended June 30, 2020, Invesco was paid $105,993 for accounting and fund administrative services and was reimbursed $939,406 for fees paid to insurance companies. Invesco has entered into a sub-administration agreement whereby State Street Bank and Trust Company (“SSB”) serves as fund accountant and provides certain administrative services to the Fund. Pursuant to a custody agreement with the Trust on behalf of the Fund, SSB also serves as the Fund’s custodian.

The Trust has entered into a transfer agency and service agreement with Invesco Investment Services, Inc. (“IIS”) pursuant to which the Fund has agreed to pay IIS a fee for providing transfer agency and shareholder services to the Fund and reimburse IIS for certain expenses incurred by IIS in the course of providing such services. For the six months ended June 30, 2020, 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. The fees are accrued daily and paid monthly. 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, 2020, expenses incurred under the Plan are detailed in the Statement of Operations as Distribution fees.

For the six months ended June 30, 2020, the Fund incurred $116 in brokerage commissions with Invesco Capital Markets, Inc., an affiliate of the Adviser and IDI, for portfolio transactions executed on behalf of the Fund.

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

NOTE 3–Additional Valuation Information

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

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

Level 2 - Prices are determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk, yield curves, loss severities, default rates, discount rates, volatilities and others.

Level 3 - Prices are determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. 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, 2020. 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. International Growth Fund

	Level 1		Level 2		Level 3		Total
Investments in Securities
Australia		$                  –		$     7,267,362		$–		$     7,267,362
Brazil		28,872,977		–		–		28,872,977
Canada		67,018,021		–		–		67,018,021
China		67,404,221		59,393,965		–		126,798,186
Denmark		–		33,502,112		–		33,502,112
France		–		65,774,076		–		65,774,076
Germany		–		99,652,120		–		99,652,120
Hong Kong		–		18,035,237		–		18,035,237
India		10,616,774		–		–		10,616,774
Ireland		21,321,814		5,850,698		–		27,172,512
Italy		–		32,929,565		–		32,929,565
Japan		–		170,458,724		–		170,458,724
Macau		–		20,430,674		–		20,430,674
Mexico		29,763,887		–		–		29,763,887
Netherlands		–		66,964,748		–		66,964,748
Singapore		–		17,170,206		–		17,170,206
South Korea		–		40,130,912		–		40,130,912
Spain		–		8,163,013		–		8,163,013
Sweden		–		40,929,278		–		40,929,278
Switzerland		–		121,271,890		–		121,271,890
Taiwan		31,228,496		–		–		31,228,496
United Kingdom		17,454,956		39,755,507		–		57,210,463
United States		78,201,628		16,011,018		–		94,212,646
Money Market Funds		40,425,915		–		–		40,425,915
Total Investments		$392,308,689		$863,691,105		$–		$1,255,999,794

NOTE 4–Trustees’ and Officers’ Fees and Benefits

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

NOTE 5–Cash Balances

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

NOTE 6–Tax Information

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

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

The Fund did not have a capital loss carryforward as of December 31, 2019.

NOTE 7–Investment Transactions

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, 2020 was $371,123,883 and $449,057,651, respectively. Cost of investments, including any derivatives, on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end.

Unrealized Appreciation (Depreciation) of Investments on a Tax Basis
Aggregate unrealized appreciation of investments	$358,115,109
Aggregate unrealized (depreciation) of investments	(33,923,177	)
Net unrealized appreciation of investments	$324,191,932

Cost of investments for tax purposes is $931,807,862.

Invesco V.I. International Growth Fund

NOTE 8–Share Information

	Summary of Share Activity
	Six months ended						Year ended
	June 30, 2020(a)						December 31, 2019
	Shares			Amount			Shares			Amount
Sold:
Series I		1,001,030		$	33,735,589			1,348,893		$	50,918,059
Series II		1,432,807			47,645,270			2,347,857			86,070,698
Issued as reinvestment of dividends:
Series I		-			-			964,334			35,063,198
Series II		-			-			2,079,137			74,537,058
Reacquired:
Series I		(1,571,709	)		(53,754,967	)		(2,946,756	)		(111,020,981	)
Series II		(3,297,838	)		(110,960,640	)		(4,827,830	)		(179,339,854	)
Net increase (decrease) in share activity		(2,435,710	)	$	(83,334,748	)		(1,034,365	)	$	(43,771,822	)

^(a)  There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 45% 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 Fund has no knowledge as to whether all or any portion of the shares owned of record by these entities are also owned beneficially.

NOTE 9–Coronavirus (COVID-19) Pandemic

During the first quarter of 2020, the World Health Organization declared COVID-19 to be a public health emergency. COVID-19 has led to increased short-term market volatility and may have adverse long-term effects on U.S. and world economies and markets in general. COVID-19 may adversely impact the Fund’s ability to achieve its investment objective. Because of the uncertainties on valuation, the global economy and business operations, values reflected in these financial statements may materially differ from the value received upon actual sales of those investments.

The extent of the impact on the performance of the Fund and its investments will depend on future developments, including the duration and spread of the COVID-19 outbreak, related restrictions and advisories, and the effects on the financial markets and economy overall, all of which are highly uncertain and cannot be predicted.

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, 2020 through June 30, 2020.

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.

		ACTUAL		HYPOTHETICAL (5% annual return before expenses)		Annualized   Expense Ratio
	Beginning   Account Value   (01/01/20)	Ending   Account Value   (06/30/20)1	Expenses   Paid During   Period2	Ending   Account Value   (06/30/20)	Expenses   Paid During   Period2
Series I	$1,000.00	$917.60	$4.29	$1,020.39	$4.52	0.90%
Series II	1,000.00	916.90	5.48	1,019.14	5.77	1.15

¹  The actual ending account value is based on the actual total return of the Fund for the period January 1, 2020 through June 30, 2020, 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 182/366 to reflect the most recent fiscal half year.

Invesco V.I. International Growth Fund

Approval of Investment Advisory and Sub-Advisory Contracts

At meetings held on June 3, 2020, the Board of Trustees (the Board or the Trustees) of AIM Variable Insurance Funds (Invesco Variable Insurance Funds) as a whole, and the independent Trustees, who comprise over 75% of the Board, voting separately, approved the continuance of the Invesco V.I. International Growth Fund’s (the Fund) Master Investment Advisory Agreement with Invesco Advisers, Inc. (Invesco Advisers and the investment advisory agreement) and the Master Intergroup Sub-Advisory Contract for Mutual Funds with Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Canada Ltd. and separate sub-advisory contracts with Invesco Capital Management LLC and Invesco Asset Management (India) Private Limited (collectively, the Affiliated Sub-Advisers and the sub-advisory contracts) for another year, effective July 1, 2020. After evaluating the factors discussed below, among others, the Board approved the renewal of the Fund’s investment advisory agreement and the sub-advisory contracts and determined that the compensation payable thereunder by the Fund to Invesco Advisers and by Invesco Advisers to the Affiliated Sub-Advisers is fair and reasonable.

The Board’s Evaluation Process

The Board’s Investments Committee has established Sub-Committees, which meet throughout the year to review the performance of funds advised by Invesco Advisers (the Invesco Funds). The Sub-Committees meet regularly with portfolio managers for their assigned Invesco Funds and other members of management to review detailed information about investment performance and portfolio attributes of these funds. The Board took into account evaluations and reports that it received from the Investments Committee and Sub-Committees, as well as the information provided to such committees and the Board throughout the year, in considering whether to approve each Invesco Fund’s investment advisory agreement and sub-advisory contracts.

As part of the contract renewal process, the Board reviews and considers information provided in response to detailed requests for information submitted to management by the independent Trustees with assistance from legal counsel to the independent Trustees. The Board receives comparative investment performance and fee data regarding the Invesco Funds prepared by Invesco Advisers and Broadridge Financial Solutions, Inc. (Broadridge), an independent mutual fund data provider, as well as information on the composition of the peer groups provided by Broadridge and its methodology for determining peer groups. The Board also receives an independent written evaluation from the Senior Officer, an officer of the Invesco Funds who reports directly to the independent Trustees. 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. In addition to meetings with Invesco Advisers and fund counsel throughout the year, the independent Trustees also

discuss the continuance of the investment advisory agreement and sub-advisory contracts in separate sessions with the Senior Officer and with independent legal counsel.

The discussion below is a summary of 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. The Trustees’ review and conclusions are based on the comprehensive consideration of all information presented to them during the course of the year and in prior years and are not the result of any single determinative factor. Moreover, one Trustee may have weighed a particular piece of information or factor differently than another Trustee. This information is current as of June 3, 2020.

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 nature, extent and quality of the advisory services provided to the Fund by Invesco Advisers under the Fund’s investment advisory agreement, and the credentials and experience of the officers and employees of Invesco Advisers who provide these services, including the Fund’s portfolio manager(s). The Board’s review included consideration of Invesco Advisers’ investment process oversight and structure, credit analysis, investment risk management and research capabilities. The Board also considered non-advisory services that Invesco Advisers and its affiliates provide to the Invesco Funds, such as various back office support functions, third party oversight, internal audit, valuation, portfolio trading and legal and compliance. The Board also received and reviewed information about Invesco Advisers’ role as administrator of the Invesco Funds’ liquidity risk management program. The Board reviewed and considered the benefits to shareholders of investing in a Fund that is part of the Invesco family of funds under the umbrella of Invesco Ltd., Invesco Advisers’ parent company, and noted Invesco Ltd.’s depth and experience in conducting an investment management business, as well as its commitment of financial and other resources to such business. The Board also reviewed and considered information regarding the benefits to the Fund resulting from Invesco Ltd.’s acquisition of OppenheimerFunds, Inc. and its subsidiaries (the Transaction) and the resources that Invesco Advisers has committed to managing the Invesco family of funds following the Transaction. The Board concluded that the nature, extent and quality of the services provided to the Fund by Invesco Advisers are appropriate and satisfactory.

The Board reviewed the services that may be 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 the Affiliated Sub-Advisers’ expertise with respect to certain asset classes and that the Affiliated Sub-Advisers have offices and personnel that are located in financial centers around the world.

As a result, the Board noted that the Affiliated Sub-Advisers can provide research and investment analysis on the markets and economies of various countries in which the Fund may invest, make recommendations regarding securities and assist with security trades. The Board concluded that the sub-advisory contracts may 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 that may be provided by the Affiliated Sub-Advisers are appropriate and satisfactory.

B. Fund Investment Performance

The Board considered Fund investment performance as a relevant factor in considering whether to approve the investment advisory agreement. The Board did not view Fund investment 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 investment performance over multiple time periods ending December 31, 2019 to the performance of funds in the Broadridge performance universe and against the Custom Invesco International Growth Index. The Board noted that performance of Series I shares of the Fund was in the first quintile of its performance universe for the one year period and the fourth quintile for the three and five year periods (the first quintile being the best performing funds and the fifth quintile being the worst performing funds). The Board noted that performance of Series I shares of the Fund was reasonably comparable to the performance of the Index for the one year period and below the performance of the Index for the three and five year periods. The Board noted that stock selection in and overweight and underweight exposures to certain sectors as well as the Fund’s cash position detracted from Fund performance. The Board recognized that the performance data reflects a snapshot in time as of a particular date and that selecting a different performance period could produce different results. The Board also reviewed more recent Fund performance as well as other performance metrics and this review did not change their conclusions.

C. Advisory and Sub-Advisory Fees and Fund Expenses

The Board compared the Fund’s contractual management fee rate to the contractual management fee rates of funds in the Fund’s Broadridge expense group. The Board noted that the contractual management fee rate for Series I shares of the Fund was the same as the median contractual management fee rate of funds in its expense group. The Board noted that the term “contractual management fee” for funds in the expense group may include both advisory and certain non-portfolio management administrative services fees, but that Broadridge does not provide information on a fund by fund basis as to what is included. The Board also reviewed the methodology used by Broadridge in providing expense group information, which includes using each fund’s contractual management fee schedule (including any applicable breakpoints) as reported in the most recent prospectus or statement of additional information for each fund in the expense group. The Board also considered comparative

Invesco V.I. International Growth Fund

information regarding the Fund’s total expense ratio and its various components.

The Board noted that Invesco Advisers has contractually agreed to waive fees and/or limit expenses of the Fund for the term disclosed in the Fund’s registration statement 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 fees charged by Invesco Advisers and the Affiliated Sub-Advisers to other similarly managed client accounts. Invesco Advisers reviewed with the Board differences in the scope of services it provides to the Invesco Funds relative to certain other types of client accounts, including, among others: management of cash flows as a result of redemptions and purchases; necessary infrastructure such as officers, office space, technology, legal and distribution; oversight of service providers; costs and business risks associated with launching new funds and sponsoring and maintaining the product line; and compliance with federal and state laws and regulations.

The Board also compared the Fund’s effective advisory fee rate (the advisory fee rate after advisory fee waivers and before other expense limitations/ waivers) to the effective advisory fee rates of other similarly managed third-party mutual funds advised or sub-advised by Invesco Advisers and its affiliates, based on asset balances as of December 31, 2019.

The Board also considered the services that may be provided by the Affiliated Sub-Advisers pursuant to the sub-advisory contracts, as well as the fees payable by Invesco Advisers to the Affiliated Sub-Advisers pursuant to the sub-advisory contracts.

D. Economies of Scale and Breakpoints

The Board considered the extent to which there may be economies of scale in the provision of advisory services to the Fund. The Board also considered that the Fund benefits from economies of scale through contractual breakpoints in the Fund’s advisory fee schedule, which generally operate to reduce the Fund’s expense ratio as it grows in size. The Board 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. The Board noted that the Fund may also benefit from economies of scale through initial fee setting, fee waivers and expense reimbursements. The Board also considered Invesco’s reinvestment in its business, including investments in business infrastructure, technology and cybersecurity.

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 Invesco Funds and the profitability of Invesco Advisers and its affiliates in providing these services in the aggregate and on an individual Fund-by-Fund basis. The Board considered the methodology used for calculating profitability and noted the periodic review and enhancement of such methodology. The Board noted that Invesco Advisers continues to operate at a net profit from services Invesco Advisers and its affiliates provide to the Invesco Funds in the aggregate and to certain Funds on an individual fund level. The Board did not deem the level of profits realized by Invesco Advisers and its affiliates from providing such services to be excessive given the nature, extent and quality of the services provided. The Board received information

from Invesco Advisers demonstrating that Invesco Advisers and the Affiliated Sub-Advisers are financially sound and have the resources necessary to perform their obligations under the investment advisory agreement and sub-advisory contracts.

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 providing administrative, transfer agency and distribution services to the Fund. The Board considered comparative information regarding fees charged for these services, including information provided by Broadridge and other independent sources. 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; and that the services are required for the operation of the Fund.

The Board considered the benefits realized by Invesco Advisers and the Affiliated Sub-Advisers as a result of portfolio brokerage transactions executed through “soft dollar” arrangements. The Board noted that soft dollar arrangements may result in the Fund bearing costs to purchase research that may be used by Invesco Advisers or the Affiliated Sub-Advisers with other clients and may reduce Invesco Advisers’ or the Affiliated Sub-Advisers’ expenses. The Board also considered that it receives periodic reports from Invesco representing that these arrangements are consistent with regulatory requirements. The Board did not deem the soft dollar arrangements to be inappropriate.

The Board considered that the Fund’s uninvested cash and cash collateral from any securities lending arrangements may be invested in registered money market funds or, with regard to securities lending cash collateral, unregistered funds that comply with Rule 2a-7 (collectively referred to as “affiliated money market funds”) advised by Invesco Advisers pursuant to procedures approved by the Board. The Board considered information regarding the returns of the affiliated money market funds relative to comparable overnight investments, as well as the costs to the Fund of such investments. 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 with respect to certain investments in the affiliated money market 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 amount of advisory fees received by Invesco Advisers from the Fund’s investment of cash collateral from any securities lending arrangements in the affiliated money market funds is fair and reasonable.

The Board also considered that an affiliated broker may receive commissions for executing certain trades for the Fund. Invesco Advisers and the Affiliated Sub-Advisers may use the affiliated broker to, among other things, control order routing and minimize information leakage, and the Board was advised that

such trades are executed in compliance with rules under the federal securities laws and consistent with best execution obligations.

Invesco V.I. International Growth Fund

	Semiannual Report to Shareholders	June 30, 2020
	Invesco V.I. Managed Volatility Fund

    

Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, the insurance company that offers your variable annuity or variable life insurance contract may no longer send you paper copies of the Fund’s shareholder reports by mail, unless you specifically request paper copies of the reports from the insurance company or your financial intermediary. Instead of delivering paper copies of the report, the insurance company may choose to make the reports available on a website, and will notify you by mail each time a report is posted and provide you with a website link to access the report. Instructions for requesting paper copies will be provided by your insurance company.

    If the insurance company offers electronic delivery, you may elect to receive shareholder reports and other communications about the Fund electronically by following the instructions provided by the insurance company or by contacting your financial intermediary. If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action.

    You may elect to receive all future reports in paper free of charge from the insurance company. You can inform the insurance company or your financial intermediary that you wish to continue receiving paper copies of your shareholder reports by following the instructions provided by the insurance company or by contacting your financial intermediary. Your election to receive reports in paper will apply to all portfolio companies available under your contract with the insurance company.

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) as an exhibit to its reports on Form N-PORT. The Fund’s Form N-PORT filings are available on the SEC website, 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-PORT, 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 most recent 12-month period ended June 30 is available at invesco.com/proxysearch. The information is also available on the SEC website, sec.gov.

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

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.

NOT FDIC INSURED   |   MAY LOSE VALUE   |   NO BANK GUARANTEE
Invesco Distributors, Inc.	I-VIMGV-SAR-1

Fund Performance

Performance summary
Fund vs. Indexes
Cumulative total returns, 12/31/19 to 6/30/20, excluding variable product issuer charges. If variable product issuer charges were included, returns would be lower.
Series I Shares	-12.65	%
Series II Shares	-12.72
Russell 1000 Value Indexq (Broad Market Index)	-16.26
Bloomberg Barclays U.S. Government/Credit Indexq (Style-Specific Index)	7.21
Lipper VUF Mixed-Asset Target Allocation Growth Funds Index∎ (Peer Group Index)	-4.14
Source(s): ÚRIMES Technologies Corp.; ∎ Lipper Inc.
The Russell 1000® Value Index is an unmanaged index considered representative of large-cap value stocks. The Russell 1000 Value Index is a trademark/service mark of the Frank Russell Co. Russell® is a trademark of the Frank Russell Co.
The Bloomberg Barclays U.S. Government/Credit Index is a broad-based benchmark that includes investment-grade, US dollar-denominated, fixed-rate Treasuries, government-related and corporate securities.
The Lipper VUF Mixed-Asset Target Allocation Growth Funds Index is an unmanaged index considered representative of mixed-asset target allocation 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) described here, and consequently, the performance of the Fund may deviate significantly from the performance of the index(es).
A direct investment cannot be made in an index. Unless otherwise indicated, index results include reinvested dividends, and they do not reflect sales charges. Performance of the peer group, if applicable, reflects fund expenses; performance of a market index does not.

Average Annual Total Returns
As of 6/30/20
Series I Shares
Inception (12/30/94)	6.39%
10 Years	7.46
5 Years	1.79
1 Year	- 7.56
Series II Shares
Inception (4/30/04)	7.21%
10 Years	7.20
5 Years	1.53
1 Year	- 7.75

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 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. Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares. Investment return and principal value will

fluctuate so that you may have a gain or loss when you sell shares.

    Invesco V.I. Managed Volatility 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 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.

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

Invesco V.I. Managed Volatility Fund

Liquidity Risk Management Program

The Securities and Exchange Commission has adopted Rule 22e-4 under the Investment Company Act of 1940 (the “Liquidity Rule”) in order to promote effective liquidity risk management throughout the open-end investment company industry, thereby reducing the risk that funds will be unable to meet their redemption obligations and mitigating dilution of the interests of fund shareholders. The Fund has adopted and implemented a liquidity risk management program in accordance with the Liquidity Rule (the “Program”). The Program is reasonably designed to assess and manage the Fund’s liquidity risk, which is the risk that the Fund could not meet redemption requests without significant dilution of remaining investors’ interests in the Fund. The Board of Trustees of the Fund (the “Board”) has appointed Invesco Advisers, Inc. (“Invesco”), the Fund’s investment adviser, as the Program’s administrator, and Invesco has delegated oversight of the Program to the Liquidity Risk Management Committee (the “Committee”), which is composed of senior representatives from relevant business groups at Invesco.

As required by the Liquidity Rule, the Program includes policies and procedures providing for an assessment, no less frequently than annually, of the Fund’s liquidity risk that takes into account, as relevant to the Fund’s liquidity risk: (1) the Fund’s investment strategy and liquidity of portfolio investments during both normal and reasonably foreseeable stressed conditions; (2) short-term and long-term cash flow projections for the Fund during both normal and reasonably foreseeable stressed conditions; and (3) the Fund’s holdings of cash and cash equivalents and any borrowing arrangements. The Liquidity Rule also requires the classification of the Fund’s investments into categories that reflect the assessment of their relative liquidity under current market conditions. The Fund classifies its investments into one of four categories defined in the Liquidity Rule: “Highly Liquid,” “Moderately Liquid,” “Less Liquid” and “Illiquid.” Funds that are not invested primarily in “Highly Liquid Investments” that are assets (cash or investments that are reasonably expected to be convertible into cash within three business days without significantly changing the market value of the investment) are required to establish a “Highly Liquid Investment Minimum” (“HLIM”), which is the minimum percentage of net assets that must be invested in Highly Liquid Investments. Funds with HLIMs have procedures for addressing HLIM shortfalls, including reporting to the Board and the SEC (on a non-public basis) as required by the Program and the Liquidity Rule. In addition, the Fund may not acquire an investment if, immediately after the acquisition, over 15% of the Fund’s net assets would consist of “Illiquid Investments” that are assets (an investment that cannot reasonably be expected to be sold or disposed of in current market conditions in seven calendar days or less without the sale or disposition significantly changing the market value of the investment). The Liquidity Rule and the Program also require reporting to the Board and the SEC (on a non-public basis) if a Fund’s holdings of Illiquid Investments exceed 15% of the Fund’s assets.

At a meeting held on March 30-April 1, 2020, the Committee presented a report to the Board that addressed the operation of the Program and assessed the Program’s adequacy and effectiveness of implementation (the “Report”). The Report covered the period from December 1, 2018 through December 31, 2019 (the “Program Reporting Period”).

The Report stated, in relevant part, that during the Program Reporting Period:

∎ The Program, as adopted and implemented, remained reasonably designed to assess and manage the Fund’s liquidity risk and was operated effectively to achieve that goal;

∎ The Fund’s investment strategy remained appropriate for an open-end fund;

∎ The Fund was able to meet requests for redemption without significant dilution of remaining investors’ interests in the Fund;

∎ The Fund did not breach the 15% limit on Illiquid Investments; and

∎ The Fund primarily held Highly Liquid Investments and therefore has not adopted an HLIM.

Invesco V.I. Managed Volatility Fund

Schedule of Investments^(a)

June 30, 2020

(Unaudited)

	Shares		Value
Common Stocks & Other Equity Interests-59.06%
Aerospace & Defense-2.96%
General Dynamics Corp.		3,272	$	489,033
Raytheon Technologies Corp.		2,976		183,381
Textron, Inc.		5,912		194,564
				866,978
Apparel Retail-0.65%
TJX Cos., Inc. (The)		3,751		189,651
Apparel, Accessories & Luxury Goods-0.56%
Capri Holdings Ltd.(b)		10,544		164,803
Automobile Manufacturers-1.61%
General Motors Co.(c)		18,714		473,464
Building Products-2.14%
Johnson Controls International PLC		11,377		388,411
Trane Technologies PLC		2,698		240,068
				628,479
Cable & Satellite-1.56%
Charter Communications, Inc., Class A(b)		418		213,197
Comcast Corp., Class A		6,248		243,547
				456,744
Commodity Chemicals-0.62%
Dow, Inc.		4,455		181,586
Communications Equipment-0.25%
Cisco Systems, Inc.		1,599		74,577
Diversified Banks-3.80%
Bank of America Corp.(c)		22,807		541,666
Citigroup, Inc.(c)		11,199		572,269
				1,113,935
Electric Utilities-1.75%
Duke Energy Corp.		1,658		132,458
Exelon Corp.		5,442		197,490
FirstEnergy Corp.		4,731		183,468
				513,416
Electronic Components-0.66%
Corning, Inc.		7,454		193,059
Fertilizers & Agricultural Chemicals-1.59%
Corteva, Inc.		13,378		358,397
Nutrien Ltd. (Canada)		3,362		107,920
				466,317
Food Distributors-1.44%
Sysco Corp.		3,930		214,814
US Foods Holding Corp.(b)		10,506		207,178
				421,992
Health Care Distributors-1.03%
McKesson Corp.		1,968		301,931

	Shares		Value
Health Care Equipment-1.82%
Medtronic PLC		3,456	$	316,915
Zimmer Biomet Holdings, Inc.		1,830		218,429
				535,344
Health Care Services-0.78%
CVS Health Corp.(c)		3,523		228,889
Health Care Supplies-0.50%
Alcon, Inc. (Switzerland)(b)		2,583		147,996
Home Improvement Retail-0.62%
Kingfisher PLC (United Kingdom)		66,981		182,999
Human Resource & Employment Services-0.03%
Adecco Group AG (Switzerland)		158		7,403
Insurance Brokers-0.70%
Willis Towers Watson PLC		1,046		206,010
Integrated Oil & Gas-2.36%
BP PLC (United Kingdom)		48,578		184,617
Chevron Corp.		3,708		330,865
Royal Dutch Shell PLC, Class A (United Kingdom)		11,154		177,485
				692,967
Internet & Direct Marketing Retail-0.76%
Booking Holdings, Inc.(b)		140		222,928
Investment Banking & Brokerage-3.56%
Charles Schwab Corp. (The)		3,727		125,749
Goldman Sachs Group, Inc. (The)		2,359		466,186
Morgan Stanley		9,345		451,363
				1,043,298
IT Consulting & Other Services-1.34%
Cognizant Technology Solutions Corp., Class A		6,894		391,717
Managed Health Care-1.20%
Anthem, Inc.		1,342		352,919
Multi-line Insurance-1.54%
American International Group, Inc.		14,491		451,829
Oil & Gas Exploration & Production-1.54%
Canadian Natural Resources Ltd. (Canada)		5,598		97,108
Devon Energy Corp.		11,192		126,917
Marathon Oil Corp.		20,181		123,508
Parsley Energy, Inc., Class A		9,740		104,023
				451,556
Other Diversified Financial Services-1.38%
Equitable Holdings, Inc.		8,091		156,075
Voya Financial, Inc.		5,336		248,925
				405,000
Packaged Foods & Meats-0.91%
Kellogg Co.		1,763		116,464
Mondelez International, Inc., Class A		2,931		149,862
				266,326

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

Invesco V.I. Managed Volatility Fund

	Shares		Value
Pharmaceuticals-4.95%
Bristol-Myers Squibb Co.		6,936	$	407,837
GlaxoSmithKline PLC (United Kingdom)		6,957		140,962
Johnson & Johnson(c)		3,204		450,578
Pfizer, Inc.		6,007		196,429
Sanofi (France)		2,533		257,705
				1,453,511
Railroads-1.54%
CSX Corp.		6,469		451,148
Regional Banks-3.85%
Citizens Financial Group, Inc.		14,220		358,913
PNC Financial Services Group, Inc. (The)		3,840		404,006
Truist Financial Corp.		9,784		367,389
				1,130,308
Semiconductors-3.09%
Intel Corp.		5,232		313,031
NXP Semiconductors N.V. (Netherlands)		2,082		237,431
QUALCOMM, Inc.		3,914		356,996
				907,458
Specialty Chemicals-0.57%
DuPont de Nemours, Inc.		3,143		166,988
Systems Software-1.29%
Oracle Corp.		6,872		379,815
Technology Hardware, Storage & Peripherals-1.17%
Apple, Inc.(c)		939		342,547
Tobacco-1.80%
Philip Morris International, Inc.		7,556		529,373
Wireless Telecommunication Services-1.14%
Vodafone Group PLC (United Kingdom)		208,918		333,132
Total Common Stocks & Other Equity Interests (Cost $16,058,084)				17,328,393
	Principal Amount
U.S. Dollar Denominated Bonds & Notes-29.34%
Aerospace & Defense-0.28%
Northrop Grumman Corp., 2.08%, 10/15/2020	$	35,000		35,165
Raytheon Co., 3.13%, 10/15/2020		35,000		35,283
Raytheon Technologies Corp., 4.45%, 11/16/2038		9,000		11,021
				81,469
Air Freight & Logistics-0.01%
United Parcel Service, Inc., 3.40%, 11/15/2046		4,000		4,340
Airlines-0.17%
American Airlines Pass Through Trust, Series 2014-1, Class A, 3.70%, 04/01/2028		17,539		14,927
United Airlines Pass Through Trust, Series 2014-2, Class A, 3.75%, 09/03/2026		22,375		20,466
Series 2018-1, Class AA, 3.50%, 03/01/2030		15,861		14,909
				50,302

	Principal     Amount		Value
Alternative Carriers-0.61%
GCI Liberty, Inc., Conv., 1.75%, 10/05/2023(d)(e)	$	85,000	$	119,253
Liberty Latin America Ltd. (Chile), Conv., 2.00%, 07/15/2024(d)		74,000		58,969
				178,222
Application Software-1.23%
Nuance Communications, Inc., Conv., 1.00%, 12/15/2022(e)		127,000		150,304
1.25%, 04/01/2025		49,000		68,564
RealPage, Inc., Conv., 1.50%, 11/15/2022		24,000		38,728
Workday, Inc., Conv., 0.25%, 10/01/2022		75,000		103,461
				361,057
Asset Management & Custody Banks-0.61%
Apollo Management Holdings L.P., 4.00%, 05/30/2024(d)		40,000		43,482
Brookfield Asset Management, Inc. (Canada), 4.00%, 01/15/2025		25,000		27,561
Carlyle Holdings Finance LLC, 3.88%, 02/01/2023(d)		5,000		5,326
KKR Group Finance Co. III LLC, 5.13%, 06/01/2044(d)		85,000		102,489
				178,858
Automobile Manufacturers-0.14%
General Motors Co., 6.60%, 04/01/2036		16,000		17,413
General Motors Financial Co., Inc., 5.25%, 03/01/2026		21,000		22,903
				40,316
Biotechnology-2.07%
AbbVie, Inc., 4.50%, 05/14/2035		38,000		46,917
4.05%, 11/21/2039(d)		34,000		39,487
4.85%, 06/15/2044(d)		150,000		187,711
BioMarin Pharmaceutical, Inc., Conv., 1.50%, 10/15/2020		117,000		154,026
Gilead Sciences, Inc., 2.55%, 09/01/2020		50,000		50,182
4.40%, 12/01/2021		25,000		26,158
Neurocrine Biosciences, Inc., Conv., 2.25%, 05/15/2024		62,000		103,709
				608,190
Brewers-0.57%
Anheuser-Busch Cos. LLC/Anheuser-Busch InBev Worldwide, Inc. (Belgium), 4.70%, 02/01/2036		45,000		53,111
4.90%, 02/01/2046		47,000		57,665
Heineken N.V. (Netherlands), 3.50%, 01/29/2028(d)		35,000		39,488
Molson Coors Beverage Co., 4.20%, 07/15/2046		16,000		15,589
				165,853
Broadcasting-1.24%
Liberty Media Corp., Conv., 2.25%, 10/05/2021(e)		55,000		26,404
1.38%, 10/15/2023		299,000		315,265

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

Invesco V.I. Managed Volatility Fund

	Principal     Amount		Value
Broadcasting-(continued)
Liberty Formula One, Conv., 1.00%, 01/30/2023	$	20,000	$	21,787
				363,456
Cable & Satellite-1.28%
BofA Finance LLC, Conv., 0.13%, 09/01/2022		62,000		64,635
Charter Communications Operating LLC/ Charter Communications Operating Capital Corp., 4.46%, 07/23/2022		60,000		63,994
Comcast Corp., 4.15%, 10/15/2028		30,000		36,116
3.90%, 03/01/2038		10,000		11,886
DISH Network Corp., Conv., 3.38%, 08/15/2026		216,000		198,961
				375,592
Communications Equipment-0.68%
Finisar Corp., Conv., 0.50%, 12/15/2021(e)		39,000		40,259
Viavi Solutions, Inc., Conv., 1.75%, 06/01/2023		71,000		79,449
1.00%, 03/01/2024		68,000		78,432
				198,140
Consumer Finance-0.16%
American Express Co., 3.63%, 12/05/2024		18,000		19,984
Capital One Financial Corp., 3.20%, 01/30/2023		15,000		15,809
Synchrony Financial, 3.95%, 12/01/2027		10,000		10,458
				46,251
Data Processing & Outsourced Services-0.11%
Euronet Worldwide, Inc., Conv., 0.75%, 03/15/2025(e)		17,000		16,522
Fiserv, Inc., 3.80%, 10/01/2023		15,000		16,399
				32,921
Diversified Banks-1.96%
Bank of America Corp., 3.25%, 10/21/2027		10,000		11,035
Citigroup, Inc., 4.00%, 08/05/2024		60,000		65,464
3.67%, (3 mo. USD LIBOR + 1.39%), 07/24/2028(f)		15,000		16,732
4.75%, 05/18/2046		15,000		19,202
JPMorgan Chase & Co., 3.20%, 06/15/2026		15,000		16,662
3.51%, (3 mo. USD LIBOR + 0.95%), 01/23/2029(f)		15,000		16,769
4.26%, (3 mo. USD LIBOR + 1.58%), 02/22/2048(f)		10,000		12,626
3.90%, (3 mo. USD LIBOR + 1.22%), 01/23/2049(f)		15,000		18,155
Series V, 3.62% (3 mo. USD LIBOR + 3.32%)(f)(g)		150,000		132,660
U.S. Bancorp, Series W, 3.10%, 04/27/2026		10,000		11,112

	Principal     Amount		Value
Diversified Banks-(continued)
Wells Fargo & Co., 3.55%, 09/29/2025	$	30,000	$	33,526
4.10%, 06/03/2026		95,000		107,165
4.65%, 11/04/2044		15,000		18,638
Westpac Banking Corp. (Australia), 2.10%, 05/13/2021		95,000		96,414
				576,160
Diversified Capital Markets-0.43%
Credit Suisse AG (Switzerland), Conv., 0.50%, 06/24/2024(d)		131,000		125,393
Drug Retail-0.20%
Walgreens Boots Alliance, Inc., 3.30%, 11/18/2021		32,000		33,012
4.50%, 11/18/2034		24,000		26,892
				59,904
Electric Utilities-0.10%
Georgia Power Co., Series B, 3.70%, 01/30/2050		9,000		10,034
NextEra Energy Capital Holdings, Inc., 3.55%, 05/01/2027		11,000		12,489
Xcel Energy, Inc., 3.50%, 12/01/2049		7,000		7,841
				30,364
Environmental & Facilities Services-0.10%
Waste Management, Inc., 3.90%, 03/01/2035		25,000		29,667
General Merchandise Stores-0.07%
Dollar General Corp., 3.25%, 04/15/2023		20,000		21,363
Health Care Equipment-1.66%
Becton, Dickinson and Co., 4.88%, 05/15/2044		86,000		106,674
DexCom, Inc., Conv., 0.75%, 12/01/2023		86,000		213,554
Integra LifeSciences Holdings Corp., Conv., 0.50%, 08/15/2025(d)		51,000		46,618
Medtronic, Inc., 4.38%, 03/15/2035		15,000		19,614
NuVasive, Inc., Conv., 2.25%, 03/15/2021		80,000		88,056
Tandem Diabetes Care, Inc., Conv., 1.50%, 05/01/2025(d)		10,000		11,699
				486,215
Health Care REITs-0.09%
Healthpeak Properties, Inc., 3.88%, 08/15/2024		25,000		27,509
Health Care Services-0.38%
Cigna Corp., 4.80%, 08/15/2038		9,000		11,422
CVS Health Corp., 3.38%, 08/12/2024		20,000		21,809
4.10%, 03/25/2025		16,000		18,098
Laboratory Corp. of America Holdings, 3.20%, 02/01/2022		33,000		34,239
4.70%, 02/01/2045		22,000		26,832
				112,400
Health Care Technology-0.37%
Teladoc Health, Inc., Conv., 1.25%, 06/01/2027(d)		97,000		107,657

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

Invesco V.I. Managed Volatility Fund

	Principal     Amount		Value
Home Improvement Retail-0.09%
Home Depot, Inc. (The), 2.00%, 04/01/2021	$	27,000	$	27,319
Insurance Brokers-0.02%
Willis North America, Inc., 3.60%, 05/15/2024		5,000		5,414
Integrated Oil & Gas-0.07%
Suncor Energy, Inc. (Canada), 3.60%, 12/01/2024		18,000		19,444
Integrated Telecommunication Services-1.51%
AT&T, Inc.,
3.00%, 06/30/2022		28,000		29,252
3.40%, 05/15/2025		15,000		16,504
4.50%, 05/15/2035		25,000		29,691
Telefonica Emisiones S.A. (Spain), 7.05%, 06/20/2036		150,000		218,489
Verizon Communications, Inc., 4.40%, 11/01/2034		120,000		149,272
				443,208
Interactive Media & Services-0.58%
JOYY, Inc. (China), Conv., 1.38%, 06/15/2024(e)		116,000		128,316
Zillow Group, Inc., Conv., 2.75%, 05/15/2025		37,000		43,205
				171,521
Internet & Direct Marketing Retail-1.03%
Amazon.com, Inc., 4.80%, 12/05/2034		9,000		12,266
Booking Holdings, Inc., Conv.,
0.90%, 09/15/2021		40,000		42,600
0.75%, 05/01/2025(d)		10,000		12,403
Match Group Financeco 3, Inc., Conv., 2.00%, 01/15/2030(d)		94,000		122,060
Trip.com Group Ltd. (China), Conv., 1.25%, 09/15/2022		113,000		112,855
				302,184
Investment Banking & Brokerage-0.91%
Goldman Sachs Group, Inc. (The), 4.25%, 10/21/2025		27,000		30,450
GS Finance Corp., Series 0001, Conv., 0.25%, 07/08/2024		198,000		196,583
Morgan Stanley, 4.00%, 07/23/2025		35,000		39,710
				266,743
Life & Health Insurance-0.46%
Athene Global Funding, 4.00%, 01/25/2022(d)		45,000		46,594
Jackson National Life Global Funding,
2.10%, 10/25/2021(d)		10,000		10,200
3.25%, 01/30/2024(d)		15,000		16,025
Nationwide Financial Services, Inc., 5.30%, 11/18/2044(d)		35,000		41,009
Reliance Standard Life Global Funding II, 3.05%, 01/20/2021(d)		20,000		20,209
				134,037
Managed Health Care-0.06%
UnitedHealth Group, Inc., 3.50%, 08/15/2039		16,000		18,625

	Principal     Amount		Value
Movies & Entertainment-0.21%
Live Nation Entertainment, Inc., Conv., 2.50%, 03/15/2023	$	62,000	$	63,046
Multi-line Insurance-0.23%
American International Group, Inc., 4.38%, 01/15/2055		40,000		46,042
Guardian Life Global Funding, 2.90%, 05/06/2024(d)		20,000		21,340
				67,382
Multi-Utilities-0.07%
NiSource, Inc., 4.38%, 05/15/2047		9,000		10,888
Sempra Energy, 3.80%, 02/01/2038		8,000		8,659
				19,547
Office REITs-0.09%
Office Properties Income Trust, 4.00%, 07/15/2022		25,000		24,922
Oil & Gas Equipment & Services-0.08%
Oil States International, Inc., Conv., 1.50%, 02/15/2023		46,000		23,199
Oil & Gas Exploration & Production-0.11%
Cameron LNG LLC, 3.70%, 01/15/2039(d)		16,000		17,215
ConocoPhillips, 4.15%, 11/15/2034		13,000		14,450
				31,665
Oil & Gas Storage & Transportation-0.50%
Energy Transfer Operating L.P.,
4.20%, 09/15/2023		2,000		2,128
4.90%, 03/15/2035		19,000		19,104
5.00%, 05/15/2050		8,000		7,587
Enterprise Products Operating LLC, 4.25%, 02/15/2048		10,000		10,913
Kinder Morgan, Inc., 5.30%, 12/01/2034		23,000		26,776
MPLX L.P.,
4.50%, 07/15/2023		65,000		69,946
4.50%, 04/15/2038		11,000		11,010
				147,464
Other Diversified Financial Services-2.37%
Convertible Trust - Consumer, Series 2018-1, 0.25%, 01/17/2024		160,000		162,464
Convertible Trust - Energy, Series 2019-1, 0.33%, 09/19/2024		168,000		169,882
Convertible Trust - Healthcare, Series 2018-1, 0.25%, 02/05/2024		168,000		181,171
Convertible Trust - Media, Series 2019, Class 1, 0.25%, 12/04/2024		168,000		180,650
				694,167
Packaged Foods & Meats-0.05%
Kraft Heinz Foods Co. (The), 4.63%, 10/01/2039(d)		10,000		10,070
Mead Johnson Nutrition Co. (United Kingdom), 4.13%, 11/15/2025		3,000		3,475
				13,545
Pharmaceuticals-1.67%
Bayer US Finance LLC (Germany), 3.00%, 10/08/2021(d)		200,000		205,329

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

Invesco V.I. Managed Volatility Fund

	Principal     Amount		Value
Pharmaceuticals-(continued)
Bristol-Myers Squibb Co., 4.13%, 06/15/2039(d)	$	18,000	$	23,051
4.63%, 05/15/2044(d)		100,000		134,259
Jazz Investments I Ltd., Conv., 2.00%, 06/15/2026(d)		37,000		37,477
Mylan N.V., 3.15%, 06/15/2021		17,000		17,357
Pacira BioSciences, Inc., Conv., 2.38%, 04/01/2022		39,000		42,654
Supernus Pharmaceuticals, Inc., Conv., 0.63%, 04/01/2023		33,000		29,207
				489,334
Property & Casualty Insurance-0.10%
Allstate Corp. (The), 3.28%, 12/15/2026		10,000		11,429
Markel Corp., 5.00%, 05/20/2049		15,000		18,677
				30,106
Railroads-0.12%
Norfolk Southern Corp., 3.40%, 11/01/2049		5,000		5,497
Union Pacific Corp., 4.15%, 01/15/2045		25,000		30,135
				35,632
Regional Banks-0.13%
Citizens Financial Group, Inc., 2.38%, 07/28/2021		15,000		15,193
PNC Financial Services Group, Inc. (The), 3.45%, 04/23/2029		20,000		23,085
				38,278
Reinsurance-0.11%
PartnerRe Finance B LLC, 3.70%, 07/02/2029		30,000		32,999
Renewable Electricity-0.55%
Oglethorpe Power Corp., 4.55%, 06/01/2044		150,000		161,494
Restaurants-0.08%
Starbucks Corp., 3.55%, 08/15/2029		20,000		22,820
Retail REITs-0.02%
Regency Centers L.P., 2.95%, 09/15/2029		5,000		5,078
Semiconductors-1.44%
Broadcom Corp./Broadcom Cayman Finance Ltd., 3.63%, 01/15/2024		30,000		32,285
Cree, Inc., Conv., 0.88%, 09/01/2023		59,000		69,522
1.75%, 05/01/2026(d)		40,000		56,500
Microchip Technology, Inc., Conv., 1.63%, 02/15/2027		74,000		109,338
Micron Technology, Inc., 4.66%, 02/15/2030		10,000		11,692
NXP B.V./NXP Funding LLC (Netherlands), 5.35%, 03/01/2026(d)		20,000		23,807
ON Semiconductor Corp., Conv., 1.00%, 12/01/2020		76,000		88,723
Silicon Laboratories, Inc., Conv., 1.38%, 03/01/2022		21,000		25,372

	Principal     Amount		Value
Semiconductors-(continued)
Texas Instruments, Inc., 2.63%, 05/15/2024	$	5,000 $		5,377
				422,616
Specialty Chemicals-0.01%
Sherwin-Williams Co. (The), 4.50%, 06/01/2047		3,000		3,657
Systems Software-0.66%
FireEye, Inc.,
Series B, Conv., 1.63%, 06/01/2022(e)		77,000		72,971
Series A, Conv., 1.00%, 06/01/2025(e)		76,000		75,879
Microsoft Corp., 3.50%, 02/12/2035		37,000		45,325
				194,175
Technology Distributors-0.12%
Avnet, Inc., 4.63%, 04/15/2026		30,000		33,982
Technology Hardware, Storage & Peripherals-0.88%
Apple, Inc., 2.15%, 02/09/2022		39,000		40,137
3.35%, 02/09/2027		10,000		11,350
Dell International LLC/EMC Corp., 5.45%, 06/15/2023(d)		26,000		28,450
SanDisk LLC, Conv., 0.50%, 10/15/2020		140,000		120,501
Western Digital Corp., Conv., 1.50%, 02/01/2024		61,000		57,647
				258,085
Tobacco-0.15%
Altria Group, Inc., 5.80%, 02/14/2039		36,000		44,938
Trading Companies & Distributors-0.15%
Air Lease Corp., 4.25%, 09/15/2024		35,000		35,626
Aircastle Ltd., 4.40%, 09/25/2023		10,000		9,706
				45,332
Trucking-0.13%
Aviation Capital Group LLC, 4.88%, 10/01/2025(d)		40,000		36,682
Wireless Telecommunication Services-0.06%
Rogers Communications, Inc. (Canada), 4.30%, 02/15/2048		15,000		17,857
Total U.S. Dollar Denominated Bonds & Notes (Cost $7,801,882)				8,608,096
U.S. Treasury Securities-4.64%
U.S. Treasury Bonds-0.52%
2.00%, 02/15/2050		133,500		152,852
U.S. Treasury Notes-4.12%
0.13%, 06/30/2022		868,000		867,559
0.25%, 06/30/2025		238,200		237,758
0.50%, 06/30/2027		99,300		99,374
0.63%, 05/15/2030		4,000		3,989
				1,208,680
Total U.S. Treasury Securities (Cost $1,357,811)				1,361,532
	Shares
Preferred Stocks-0.23%
Asset Management & Custody Banks-0.23%
AMG Capital Trust II, 5.15%, Conv. Pfd. (Cost $106,269)		1,700		67,606

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

Invesco V.I. Managed Volatility Fund

	Shares		Value
Money Market Funds-7.09%
Invesco Government & Agency Portfolio, Institutional Class, 0.09%(h)(i)		817,609	$	817,609
Invesco Liquid Assets Portfolio, Institutional Class, 0.39%(h)(i)		330,213		330,444
Invesco Treasury Portfolio, Institutional Class, 0.08%(h)(i)		934,410		934,410
Total Money Market Funds (Cost $2,082,410)				2,082,463
TOTAL INVESTMENTS IN SECURITIES-100.36% (Cost $27,406,456)				29,448,090
OTHER ASSETS LESS LIABILITIES-(0.36)%				(106,837	)
NET ASSETS-100.00%			$	29,341,253

Investment Abbreviations:

Conv.	- Convertible
LIBOR	- London Interbank Offered Rate
Pfd.	- Preferred
REIT	- Real Estate Investment Trust
USD	- U.S. Dollar

Notes to Schedule of Investments:

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

^(b) Non-income producing security.

^(c) All or a portion of the value was pledged as collateral to cover margin requirements for open futures contracts. See Note 1K.

^(d) Security purchased or received in a transaction exempt from registration under the Securities Act of 1933, as amended (the “1933 Act”). The security may be resold pursuant to an exemption from registration under the 1933 Act, typically to qualified institutional buyers. The aggregate value of these securities at June 30, 2020 was $1,750,252, which represented 5.97% of the Fund’s Net Assets.

^(e) Security has an irrevocable call by the issuer or mandatory put by the holder. Maturity date reflects such call or put.

^(f) Interest or dividend rate is redetermined periodically. Rate shown is the rate in effect on June 30, 2020.

^(g) Perpetual bond with no specified maturity date.

^(h) Affiliated issuer. The issuer and/or the Fund is a wholly-owned subsidiary of Invesco Ltd., or is affiliated by having an investment adviser that is under common control of Invesco Ltd. The table below shows the Fund’s transactions in, and earnings from, its investments in affiliates for the six months ended June 30, 2020.

	Value December 31, 2019		Purchases at Cost		Proceeds from Sales			Change in Unrealized Appreciation		Realized Gain (Loss)			Value June 30, 2020		Dividend Income
Investments in Affiliated Money Market Funds:
Invesco Government & Agency Portfolio, Institutional Class		$   619,911	$	4,427,782	$	(4,230,084)			$  -		$     -			$   817,609		$2,250
Invesco Liquid Assets Portfolio, Institutional Class		441,820		3,162,701		(3,273,757	)		53		(373	)		330,444		2,116
Invesco Treasury Portfolio, Institutional Class		708,469		5,060,322		(4,834,381	)		-		-			934,410		2,418
Total		$1,770,200	$	12,650,805	$	(12,338,222	)		$53	$	(373	)		$2,082,463		$6,784

⁽ⁱ⁾  The rate shown is the 7-day SEC standardized yield as of June 30, 2020.

	Open Futures Contracts
Short Futures Contracts	Number of Contracts		Expiration Month	Notional Value		Value		Unrealized Appreciation (Depreciation)
Equity Risk
E-Mini S&P 500 Index		84	September-2020		$(12,978,840)		$(355,855)		$(355,855)

Open Forward Foreign Currency Contracts
Settlement		Contract to				Unrealized Appreciation
Date	Counterparty	Deliver		Receive		(Depreciation)
Currency Risk
07/10/2020	Bank of New York Mellon (The)	GBP	323,583	USD	406,164	$ 5,194
07/10/2020	State Street Bank & Trust Co.	CAD	128,307	USD	94,880	367
07/10/2020	State Street Bank & Trust Co.	EUR	10,050	USD	11,359	66
07/10/2020	State Street Bank & Trust Co.	GBP	377,341	USD	473,788	6,201
07/10/2020	State Street Bank & Trust Co.	USD	17,586	CAD	23,932	43

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

Invesco V.I. Managed Volatility Fund

Open Forward Foreign Currency Contracts–(continued)
						Unrealized
Settlement		Contract to				Appreciation
Date	Counterparty	Deliver		Receive		(Depreciation)
07/10/2020	State Street Bank & Trust Co.	USD	23,909	CHF	22,811		$      172
07/10/2020	State Street Bank & Trust Co.	USD	9,482	EUR	8,454		18
Subtotal-Appreciation							12,061
Currency Risk
07/10/2020	State Street Bank & Trust Co.	CAD	4,493	USD	3,301		(8)
07/10/2020	State Street Bank & Trust Co.	CHF	137,348	USD	143,002		(1,995)
07/10/2020	State Street Bank & Trust Co.	EUR	176,698	USD	197,565		(987)
07/10/2020	State Street Bank & Trust Co.	GBP	14,910	USD	18,458		(18)
07/10/2020	State Street Bank & Trust Co.	USD	6,563	CAD	8,818		(67)
07/10/2020	State Street Bank & Trust Co.	USD	3,879	CHF	3,662		(12)
07/10/2020	State Street Bank & Trust Co.	USD	5,966	EUR	5,302		(9)
07/10/2020	State Street Bank & Trust Co.	USD	112,791	GBP	89,855		(1,447)
Subtotal–Depreciation							(4,543)
Total Forward Foreign Currency Contracts							$   7,518

Abbreviations:

CAD - Canadian Dollar

CHF - Swiss Franc

EUR - Euro

GBP - British Pound Sterling

USD - U.S. Dollar

Portfolio Composition

By sector, based on Net Assets

as of June 30, 2020

Financials	22.54	%
Health Care	16.50
Information Technology	12.92
Communication Services	8.60
Industrials	7.62
Consumer Discretionary	5.20
Consumer Staples	5.12
Energy	4.66
U.S. Treasury Securities	4.64
Materials	2.79
Utilities	2.47
Real Estate	0.20
Money Market Funds Plus Other Assets Less Liabilities	6.74

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

Invesco V.I. Managed Volatility Fund

Statement of Assets and Liabilities

June 30, 2020

(Unaudited)

Assets:
Investments in securities, at value (Cost $25,324,046)	$27,365,627
Investments in affiliated money market funds, at value (Cost $2,082,410)	2,082,463
Other investments:
Unrealized appreciation on forward foreign currency contracts outstanding	12,061
Foreign currencies, at value (Cost $28,773)	28,384
Receivable for:
Fund shares sold	10,434
Dividends	40,391
Interest	47,396
Investment for trustee deferred compensation and retirement plans	65,464
Other assets	3,911
Total assets	29,656,131
Liabilities:
Other investments:
Variation margin payable - futures contracts	178,500
Unrealized depreciation on forward foreign currency contracts outstanding	4,543
Payable for:
Fund shares reacquired	3,231
Accrued fees to affiliates	15,500
Accrued trustees’ and officers’ fees and benefits	1,706
Accrued other operating expenses	41,561
Trustee deferred compensation and retirement plans	69,837
Total liabilities	314,878
Net assets applicable to shares outstanding	$29,341,253
Net assets consist of:
Shares of beneficial interest	$27,524,987
Distributable earnings	1,816,266
	$29,341,253
Net Assets:
Series I	$  28,358,431
Series II	$982,822
Shares outstanding, no par value, with an unlimited number of shares authorized:
Series I	2,615,572
Series II	91,840
Series I:
Net asset value per share	$          10.84
Series II:
Net asset value per share	$          10.70

Statement of Operations

For the six months ended June 30, 2020

(Unaudited)

Investment income:
Dividends (net of foreign withholding taxes of $3,856)	$	281,196
Interest		127,006
Dividends from affiliated money market funds		6,784
Total investment income		414,986
Expenses:
Advisory fees		94,426
Administrative services fees		26,284
Custodian fees		4,488
Distribution fees - Series II		1,400
Transfer agent fees		8,873
Trustees’ and officers’ fees and benefits		7,825
Reports to shareholders		2,837
Professional services fees		20,533
Other		299
Total expenses		166,965
Less: Fees waived		(949	)
Net expenses		166,016
Net investment income		248,970
Realized and unrealized gain (loss) from:
Net realized gain (loss) from:
Investment securities		(513,861	)
Foreign currencies		12,558
Forward foreign currency contracts		659
Futures contracts		(643,967	)
	(1,144,611)
Change in net unrealized appreciation (depreciation) of:
Investment securities		(3,370,106	)
Foreign currencies		(681	)
Forward foreign currency contracts		40,508
Futures contracts		(355,855	)
	(3,686,134)
Net realized and unrealized gain (loss)		(4,830,745	)
Net increase (decrease) in net assets resulting from operations	$	(4,581,775	)

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

Invesco V.I. Managed Volatility Fund

Statement of Changes in Net Assets

For the six months ended June 30, 2020 and the year ended December 31, 2019

(Unaudited)

	June 30, 2020			December 31, 2019
Operations:
Net investment income	$	248,970		$	569,748
Net realized gain (loss)		(1,144,611	)		708,999
Change in net unrealized appreciation (depreciation)		(3,686,134	)		5,011,773
Net increase (decrease) in net assets resulting from operations		(4,581,775	)		6,290,520
Distributions to shareholders from distributable earnings:
Series I		–			(1,896,583	)
Series II		–			(63,708	)
Total distributions from distributable earnings		–			(1,960,291	)
Share transactions–net:
Series I		(2,647,029	)		(3,190,164	)
Series II		(156,238	)		(47,952	)
Net increase (decrease) in net assets resulting from share transactions		(2,803,267	)		(3,238,116	)
Net increase (decrease) in net assets		(7,385,042	)		1,092,113
Net assets:
Beginning of period		36,726,295			35,634,182
End of period	$	29,341,253		$	36,726,295

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

Invesco V.I. Managed Volatility Fund

Financial Highlights

(Unaudited)

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

																																					Ratio of			Ratio of
																																					expenses			expenses
								Net gains																													to average			to average net
								(losses)																													net assets			assets without			Ratio of net
	Net asset							on securities								Dividends				Distributions																	with fee waivers			fee waivers			investment
	value,			Net				(both				Total from				from net				from net								Net asset						Net assets,			and/or			and/or			income
	beginning			investment				realized and				investment				investment				realized				Total				value, end			Total			end of period			expenses			expenses			to average			Portfolio
	of period			income(a)				unrealized)				operations				income				gains				distributions				of period			return (b)			(000’s omitted)			absorbed			absorbed			net assets			turnover (c)
Series I
Six months ended 06/30/20		$	12.41		$	0.09			$	(1.66	)		$	(1.57	)		$	—			$	—			$	—			$	10.84		(12.65	)%		$	28,358		1.04	%(d)		1.05	%(d)		1.60	%(d)		57	%
Year ended 12/31/19			11.04			0.19				1.82				2.01				(0.17	)			(0.47	)			(0.64	)			12.41		18.58				35,409		1.07			1.08			1.55			109
Year ended 12/31/18			13.06			0.16				(1.51	)			(1.35	)			(0.22	)			(0.45	)			(0.67	)			11.04		(11.00	)			34,420		1.23			1.24			1.24			111
Year ended 12/31/17			11.97			0.18	(e)			1.08				1.26				(0.17	)			—				(0.17	)			13.06		10.56				44,104		1.13			1.13			1.42	(e)		91
Year ended 12/31/16			11.38			0.14				1.03				1.17				(0.22	)			(0.36	)			(0.58	)			11.97		10.61				50,183		1.15			1.16			1.26			92
Year ended 12/31/15			19.02			0.18				(0.74	)			(0.56	)			(0.27	)			(6.81	)			(7.08	)			11.38		(2.15	)			52,360		1.08			1.10			1.07			117
Series II
Six months ended 06/30/20			12.26			0.07				(1.63	)			(1.56	)			—				—				—				10.70		(12.72	)			983		1.29	(d)		1.30	(d)		1.35	(d)		57
Year ended 12/31/19			10.91			0.15				1.81				1.96				(0.14	)			(0.47	)			(0.61	)			12.26		18.30				1,317		1.32			1.33			1.30			109
Year ended 12/31/18			12.92			0.12				(1.49	)			(1.37	)			(0.19	)			(0.45	)			(0.64	)			10.91		(11.28	)			1,214		1.48			1.49			0.99			111
Year ended 12/31/17			11.84			0.15	(e)			1.07				1.22				(0.14	)			—				(0.14	)			12.92		10.33				1,446		1.38			1.38			1.17	(e)		91
Year ended 12/31/16			11.26			0.11				1.02				1.13				(0.19	)			(0.36	)			(0.55	)			11.84		10.31				1,462		1.40			1.41			1.01			92
Year ended 12/31/15			18.88			0.13				(0.72	)			(0.59	)			(0.22	)			(6.81	)			(7.03	)			11.26		(2.37	)			1,500		1.33			1.35			0.82			117

^(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 $30,523 and $1,126 for Series I and Series II shares, respectively.

^(e)  Net investment income per share and the ratio of net investment income to average net assets includes significant dividends received during the year ended December 31, 2017. Net investment income per share and the ratio of net investment income to average net assets excluding the significant dividends are $0.14 and 1.11% and $0.11 and 0.86% for Series I and Series II shares, respectively.

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

Invesco V.I. Managed Volatility Fund

Notes to Financial Statements

June 30, 2020

(Unaudited)

NOTE 1–Significant Accounting Policies

Invesco V.I. Managed Volatility 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. Information presented in these financial statements pertains only to the Fund. Matters affecting the Fund or each class will be voted on exclusively by the shareholders of the Fund or each class. 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 both capital appreciation and current income while managing portfolio volatility.

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

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

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

A security listed or traded on an exchange (except convertible securities) is valued at its last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded, or lacking any sales or official closing price on a particular day, the security may be valued at the closing bid price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued by an independent pricing service they may be considered fair valued. Futures contracts are valued at the final settlement price set by an exchange on which they are principally traded. Listed options are valued at the mean between the last bid and asked 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 asked prices. For purposes of determining net asset value (“NAV”) per share, futures and option contracts generally are valued 15 minutes after the close of the customary trading session of the New York Stock Exchange (“NYSE”).

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

Debt obligations (including convertible securities) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. Pricing services generally value debt obligations assuming orderly transactions of institutional round lot size, but a fund may hold or transact in the same securities in smaller, odd lot sizes. Odd lots often trade at lower prices than institutional round lots. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.

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

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

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

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

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

B. Securities Transactions and Investment Income – Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income (net of withholding tax, if any) is recorded on an accrual basis from settlement date. Bond premiums and discounts are amortized and/or accreted over the lives of the respective securities. Pay-in-kind interest income and non-cash dividend income received in the form of securities in-lieu of cash are recorded at the fair value of the securities received. Dividend income (net of withholding tax, if any) is recorded on the ex-dividend date.

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

Invesco V.I. Managed Volatility 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 and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the net realized and unrealized gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and the Statement of Changes in Net Assets, or the net investment income per share and the ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.

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

C. Country Determination – For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues 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 net investment income and net realized capital gain, if any, are generally declared and paid to separate accounts of participating insurance companies annually and recorded on the ex-dividend date.

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

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

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

F. Expenses – Fees provided for under the Rule 12b-1 plan of a particular class of the Fund and which are directly attributable to that class are charged to the operations of such class. All other expenses are allocated among the classes based on relative net assets.

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

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

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

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

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

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

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

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 Counterparties to purchase or sell a specified underlying security, currency or commodity (or delivery of a cash settlement price, in the case of an index future) for a fixed price at a future date. The Fund currently invests only in exchange-traded futures and they are standardized as to maturity date and underlying financial instrument. Initial margin deposits required upon entering into futures contracts are satisfied by the segregation of specific securities or cash as collateral at the futures commission merchant (broker). During the period the futures contracts are open, changes in the value of the contracts are recognized as unrealized gains or losses by recalculating the value of the contracts on a daily basis. Subsequent or variation margin

Invesco V.I. Managed Volatility Fund

payments are received or made depending upon whether unrealized gains or losses are incurred. These amounts are reflected as receivables or payables on the Statement of Assets and Liabilities. When the contracts are closed or expire, the Fund recognizes a realized gain or loss equal to the difference between the proceeds from, or cost of, the closing transaction and the Fund’s basis in the contract. The net realized gain (loss) and the change in unrealized gain (loss) on futures contracts held during the period is included on the Statement of Operations. The primary risks associated with futures contracts are market risk and the absence of a liquid secondary market. If the Fund were unable to liquidate a futures contract and/or enter into an offsetting closing transaction, the Fund would continue to be subject to market risk with respect to the value of the contracts and continue to be required to maintain the margin deposits on the futures contracts. Futures contracts have minimal Counterparty risk since the exchange’s clearinghouse, as Counterparty to all exchange-traded futures, guarantees the futures against default. Risks may exceed amounts recognized in the Statement of Assets and Liabilities.

L. Other Risks - The current low interest rate environment was created in part by the Federal Reserve Board (FRB) and certain foreign central banks keeping the federal funds and equivalent foreign rates near historical lows. Increases in the federal funds and equivalent foreign rates may expose fixed income markets to heightened volatility and reduced liquidity for certain fixed income investments, particularly those with longer maturities. In addition, decreases in fixed income dealer market-making capacity may also potentially lead to heightened volatility and reduced liquidity in the fixed income markets. As a result, the value of the Fund’s investments and share price may decline. Changes in central bank policies could also result in higher than normal shareholder redemptions, which could potentially increase portfolio turnover and the Fund’s transaction costs.

The market values of convertible securities are affected by market interest rates, the risk of actual issuer default on interest or principal payments and the value of the underlying common stock into which the convertible security may be converted. Additionally, a convertible security is subject to the same types of market and issuer risks as apply to the underlying common stock. In addition, certain convertible securities are subject to involuntary conversions and may undergo principal write-downs upon the occurrence of certain triggering events, and, as a result, are subject to an increased risk of loss. Convertible securities may be rated below investment grade.

NOTE 2–Advisory Fees and Other Fees Paid to Affiliates

The Trust has entered into a master investment advisory agreement with Invesco Advisers, Inc. (the “Adviser” or “Invesco”). Under the terms of the investment advisory agreement, the Fund accrues daily and pays monthly an advisory fee to the Adviser at the annual rate of 0.60% of the Fund’s average daily net assets.

For the six months ended June 30, 2020, the effective advisory fee rate incurred by the Fund was 0.60%.

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

The Adviser has contractually agreed, through at least June 30, 2021, 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 2.00% and Series II shares to 2.25% of average daily net assets (the “expense limits”). In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause the total annual fund operating expenses after fee waiver and/or expense reimbursement to exceed the numbers reflected above: (1) interest; (2) taxes; (3) dividend expense on short sales; (4) extraordinary or non-routine items, including litigation expenses; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Unless Invesco continues the fee waiver agreement, it will terminate on June 30, 2021. During its term, the fee waiver agreement cannot be terminated or amended to increase the expense limits or reduce the advisory fee waiver without approval of the Board of Trustees. The Adviser did not waive fees and/or reimburse expenses during the period under these expense limits.

Further, the Adviser has contractually agreed, through at least June 30, 2022, 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, 2020, the Adviser waived advisory fees of $949.

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 fees paid to insurance companies that have agreed to provide certain administrative services to the Fund. These administrative services provided by the insurance companies may include, among other things: maintenance of master accounts with the Fund; tracking, recording and transmitting net purchase and redemption orders for Fund shares; maintaining and preserving records related to the purchase, redemption and other account activity of variable product owners; distributing copies of Fund documents such as prospectuses, proxy materials and periodic reports, to variable product owners, and responding to inquiries from variable product owners about the Fund. Pursuant to such agreement, for the six months ended June 30, 2020, Invesco was paid $2,664 for accounting and fund administrative services and was reimbursed $23,620 for fees paid to insurance companies. Invesco has entered into a sub-administration agreement whereby State Street Bank and Trust Company (“SSB”) serves as fund accountant and provides certain administrative services to the Fund. Pursuant to a custody agreement with the Trust on behalf of the Fund, SSB also serves as the Fund’s custodian.

The Trust has entered into a transfer agency and service agreement with Invesco Investment Services, Inc. (“IIS”) pursuant to which the Fund has agreed to pay IIS a fee for providing transfer agency and shareholder services to the Fund and reimburse IIS for certain expenses incurred by IIS in the course of providing such services. For the six months ended June 30, 2020, 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. The fees are accrued daily and paid monthly. 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, 2020, 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, 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 V.I. Managed Volatility 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, 2020. The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

	Level 1			Level 2			Level 3		Total
Investments in Securities
Common Stocks & Other Equity Interests	$	15,896,094		$	1,432,299			$–	$	17,328,393
U.S. Dollar Denominated Bonds & Notes		–			8,608,096			–		8,608,096
U.S. Treasury Securities		–			1,361,532			–		1,361,532
Preferred Stocks		67,606			–			–		67,606
Money Market Funds		2,082,463			–			–		2,082,463
Total Investments in Securities		18,046,163			11,401,927			–		29,448,090
Other Investments - Assets*
Forward Foreign Currency Contracts		–			12,061			–		12,061
Other Investments - Liabilities*
Futures Contracts		(355,855	)		–			–		(355,855	)
Forward Foreign Currency Contracts		–			(4,543	)		–		(4,543	)
		(355,855	)		(4,543	)		–		(360,398	)
Total Other Investments		(355,855	)		7,518			–		(348,337	)
Total Investments	$	17,690,308		$	11,409,445			$–	$	29,099,753

* Unrealized appreciation (depreciation).

NOTE 4–Derivative Investments

The Fund may enter into an International Swaps and Derivatives Association Master Agreement (“ISDA Master Agreement”) under which a fund may trade OTC derivatives. An OTC transaction entered into under an ISDA Master Agreement typically involves a collateral posting arrangement, payment netting provisions and close-out netting provisions. These netting provisions allow for reduction of credit risk through netting of contractual obligations. The enforceability of the netting provisions of the ISDA Master Agreement depends on the governing law of the ISDA Master Agreement, among other factors.

For financial reporting purposes, the Fund does not offset OTC derivative assets or liabilities that are subject to ISDA Master Agreements in the Statement of Assets and Liabilities.

Value of Derivative Investments at Period-End

The table below summarizes the value of the Fund’s derivative investments, detailed by primary risk exposure, held as of June 30, 2020:

	Value
Derivative Assets	Currency Risk			Equity Risk			Total
Unrealized appreciation on forward foreign currency contracts outstanding	$	12,061		$	-		$	12,061
Derivatives not subject to master netting agreements		-			-			-
Total Derivative Assets subject to master netting agreements	$	12,061		$	-		$	12,061
	Value
Derivative Liabilities	Currency Risk			Equity Risk			Total
Unrealized depreciation on futures contracts – Exchange-Traded(a)	$	-		$	(355,855	)	$	(355,855	)
Unrealized depreciation on forward foreign currency contracts outstanding		(4,543	)		-			(4,543	)
Total Derivative Liabilities		(4,543	)		(355,855	)		(360,398	)
Derivatives not subject to master netting agreements		-			355,855			355,855
Total Derivative Liabilities subject to master netting agreements	$	(4,543	)	$	-		$	(4,543	)

^(a)  The daily variation margin receivable (payable) at period-end is recorded in the Statement of Assets and Liabilities.

Invesco V.I. Managed Volatility Fund

Offsetting Assets and Liabilities

The table below reflects the Fund’s exposure to Counterparties subject to either an ISDA Master Agreement or other agreement for OTC derivative transactions as of June 30, 2020.

	Financial Derivative Assets		Financial Derivative Liabilities				Collateral (Received)/Pledged
Counterparty	Forward Foreign Currency Contracts		Forward Foreign Currency Contracts		Net Value of Derivatives		Non-Cash		Cash		Net Amount
Bank of New York Mellon (The)		$5,194		$    -		$5,194		$-		$-	$	5,194
State Street Bank & Trust Co.		6,867		(4,543)		2,324		-		-		2,324
Total		$12,061		$(4,543)		$7,518		$-		$-	$	7,518

Effect of Derivative Investments for the six months ended June 30, 2020

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

	Location of Gain (Loss) on Statement of Operations
	Currency Risk		Equity Risk		Total
Realized Gain (Loss):
Forward foreign currency contracts		$     659		$             -		$      659
Futures contracts		-		(643,967)		(643,967)
Change in Net Unrealized Appreciation (Depreciation):
Forward foreign currency contracts		40,508		-		40,508
Futures contracts		-		(355,855)		(355,855)
Total		$41,167		$(999,822)		$(958,655)

The table below summarizes the average notional value of derivatives held during the period.

	Forward Foreign Currency Contracts	Futures Contracts
Average notional value	$1,980,140	$11,776,248

NOTE 5–Trustees’ and Officers’ Fees and Benefits

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

NOTE 6–Cash Balances

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

NOTE 7–Tax Information

The amount and character of income and gains to be distributed are determined in accordance with income tax regulations, which may differ from GAAP.

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

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

The Fund did not have a capital loss carryforward as of December 31, 2019.

NOTE 8–Investment Transactions

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, 2020 was $5,503,113 and $7,438,972, respectively. During the same period, purchases and sales of U.S. Treasury

Invesco V.I. Managed Volatility Fund

obligations were $11,398,693 and $13,006,661, respectively. Cost of investments, including any derivatives, on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end.

Unrealized Appreciation (Depreciation) of Investments on a Tax Basis

Aggregate unrealized appreciation of investments	$	3,519,607
Aggregate unrealized (depreciation) of investments		(2,062,334	)
Net unrealized appreciation of investments	$	1,457,273

Cost of investments for tax purposes is $27,642,480.

NOTE 9–Share Information

	Summary of Share Activity
	Six months ended						Year ended
	June 30, 2020(a)						December 31, 2019
	Shares			Amount			Shares			Amount
Sold:
Series I		95,286		$	1,070,218			262,050		$	3,173,461
Series II		6,784			76,119			2,709			32,332
Issued as reinvestment of dividends:
Series I		-			-			161,687			1,896,583
Series II		-			-			5,492			63,708
Reacquired:
Series I		(332,699	)		(3,717,247	)		(688,807	)		(8,260,208	)
Series II		(22,354	)		(232,357	)		(12,075	)		(143,992	)
Net increase (decrease) in share activity		(252,983	)	$	(2,803,267	)		(268,944	)	$	(3,238,116	)

(a) There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 58% 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 Fund 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–Coronavirus (COVID-19) Pandemic

During the first quarter of 2020, the World Health Organization declared COVID-19 to be a public health emergency. COVID-19 has led to increased short-term market volatility and may have adverse long-term effects on U.S. and world economies and markets in general. COVID-19 may adversely impact the Fund’s ability to achieve its investment objective. Because of the uncertainties on valuation, the global economy and business operations, values reflected in these financial statements may materially differ from the value received upon actual sales of those investments.

The extent of the impact on the performance of the Fund and its investments will depend on future developments, including the duration and spread of the COVID-19 outbreak, related restrictions and advisories, and the effects on the financial markets and economy overall, all of which are highly uncertain and cannot be predicted.

Invesco V.I. Managed Volatility 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, 2020 through June 30, 2020.

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.

	Beginning     Account Value       (01/01/20)	ACTUAL		HYPOTHETICAL (5% annual return before expenses)		Annualized       Expense   Ratio
		Ending     Account Value     (06/30/20)1	Expenses       Paid During       Period2	Ending     Account Value       (06/30/20)	Expenses     Paid During       Period2
Series I	$1,000.00	$873.50	$4.84	$1,019.69	$5.22	1.04%
Series II	1,000.00	872.80	6.01	1,018.45	6.47	1.29

¹ The actual ending account value is based on the actual total return of the Fund for the period January 1, 2020 through June 30, 2020, 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 182/366 to reflect the most recent fiscal half year.

Invesco V.I. Managed Volatility Fund

Approval of Investment Advisory and Sub-Advisory Contracts

At meetings held on June 3, 2020, the Board of Trustees (the Board or the Trustees) of AIM Variable Insurance Funds (Invesco Variable Insurance Funds) as a whole, and the independent Trustees, who comprise over 75% of the Board, voting separately, approved the continuance of the Invesco V.I. Managed Volatility Fund’s (the Fund) Master Investment Advisory Agreement with Invesco Advisers, Inc. (Invesco Advisers and the investment advisory agreement) and the Master Intergroup Sub-Advisory Contract for Mutual Funds with Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Canada Ltd. and separate sub-advisory contracts with Invesco Capital Management LLC and Invesco Asset Management (India) Private Limited (collectively, the Affiliated Sub-Advisers and the sub-advisory contracts) for another year, effective July 1, 2020. After evaluating the factors discussed below, among others, the Board approved the renewal of the Fund’s investment advisory agreement and the sub-advisory contracts and determined that the compensation payable thereunder by the Fund to Invesco Advisers and by Invesco Advisers to the Affiliated Sub-Advisers is fair and reasonable.

The Board’s Evaluation Process

The Board’s Investments Committee has established Sub-Committees, which meet throughout the year to review the performance of funds advised by Invesco Advisers (the Invesco Funds). The Sub-Committees meet regularly with portfolio managers for their assigned Invesco Funds and other members of management to review detailed information about investment performance and portfolio attributes of these funds. The Board took into account evaluations and reports that it received from the Investments Committee and Sub-Committees, as well as the information provided to such committees and the Board throughout the year, in considering whether to approve each Invesco Fund’s investment advisory agreement and sub-advisory contracts.

As part of the contract renewal process, the Board reviews and considers information provided in response to detailed requests for information submitted to management by the independent Trustees with assistance from legal counsel to the independent Trustees. The Board receives comparative investment performance and fee data regarding the Invesco Funds prepared by Invesco Advisers and Broadridge Financial Solutions, Inc. (Broadridge), an independent mutual fund data provider, as well as information on the composition of the peer groups provided by Broadridge and its methodology for determining peer groups. The Board also receives an independent written evaluation from the Senior Officer, an officer of the Invesco Funds who reports directly to the independent Trustees. 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. In addition to meetings with Invesco Advisers and fund counsel throughout the year, the independent Trustees also discuss the continuance of the investment advisory agreement and sub-advisory contracts in separate sessions with the Senior Officer and with independent legal counsel.

The discussion below is a summary of 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. The Trustees’ review and conclusions are based on the comprehensive consideration of all information presented to them during the course of the year and in prior years and are not the result of any single determinative factor. Moreover, one Trustee may have weighed a particular piece of information or factor differently than another Trustee. This information is current as of June 3, 2020.

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 nature, extent and quality of the advisory services provided to the Fund by Invesco Advisers under the Fund’s investment advisory agreement, and the credentials and experience of the officers and employees of Invesco Advisers who provide these services, including the Fund’s portfolio manager(s). The Board’s review included consideration of Invesco Advisers’ investment process oversight and structure, credit analysis, investment risk management and research capabilities. The Board also considered non-advisory services that Invesco Advisers and its affiliates provide to the Invesco Funds, such as various back office support functions, third party oversight, internal audit, valuation, portfolio trading and legal and compliance. The Board also received and reviewed information about Invesco Advisers’ role as administrator of the Invesco Funds’ liquidity risk management program. The Board reviewed and considered the benefits to shareholders of investing in a Fund that is part of the Invesco family of funds under the umbrella of Invesco Ltd., Invesco Advisers’ parent company, and noted Invesco Ltd.’s depth and experience in conducting an investment management business, as well as its commitment of financial and other resources to such business. The Board also reviewed and considered information regarding the benefits to the Fund resulting from Invesco Ltd.’s acquisition of OppenheimerFunds, Inc. and its subsidiaries (the Transaction) and the resources that Invesco Advisers has committed to managing the Invesco family of funds following the Transaction. The Board concluded that the nature, extent and quality of the services provided to the Fund by Invesco Advisers are appropriate and satisfactory.

The Board reviewed the services that may be 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 the Affiliated Sub-Advisers’ expertise with respect to certain asset classes and that the Affiliated Sub-Advisers have offices and personnel that are located in financial centers around the world.

As a result, the Board noted that the Affiliated Sub-Advisers can provide research and investment analysis on the markets and economies of various countries in which the Fund may invest, make recommendations regarding securities and assist with security trades. The Board concluded that the sub-advisory contracts may 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 that may be provided by the Affiliated Sub-Advisers are appropriate and satisfactory.

B. Fund Investment Performance

The Board considered Fund investment performance as a relevant factor in considering whether to approve the investment advisory agreement. The Board did not view Fund investment 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 investment performance over multiple time periods ending December 31, 2019 to the performance of funds in the Broadridge performance universe and against the Russell 1000^® Value Index. The Board noted that performance of Series I shares of the Fund was in the fifth quintile of its performance universe for the one, three and five year periods (the first quintile being the best performing funds and the fifth quintile being the worst performing funds). The Board noted that 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 Fund’s cash position, allocation to bonds and volatility overlay during strong equity markets, as well as stock selection in certain sectors, negatively impacted relative performance. The Board noted that, unlike certain of the peer funds and the Index, managing portfolio volatility is a component of the Fund’s investment objective. The Board recognized that the performance data reflects a snapshot in time as of a particular date and that selecting a different performance period could produce different results. The Board also reviewed more recent Fund performance as well as other performance metrics and this review did not change their conclusions.

C. Advisory and Sub-Advisory Fees and Fund Expenses

The Board compared the Fund’s contractual management fee rate to the contractual management fee rates of funds in the Fund’s Broadridge expense group. The Board noted that the contractual management fee rate for Series I shares of the Fund was below the median contractual management fee rate of funds in its expense group. The Board noted that the term “contractual management fee” for funds in the expense group may include both advisory and certain non-portfolio management administrative services fees, but that Broadridge does not provide information on a fund by fund basis as to what is included. The Board also reviewed the methodology used by Broadridge in providing expense group information, which includes using each fund’s contractual management fee schedule (including any applicable breakpoints) as reported in the most recent prospectus or statement of additional information for each fund in the expense group. The

Invesco V.I. Managed Volatility Fund

Board also considered comparative information regarding the Fund’s total expense ratio and its various components. The Board noted that there were only five funds (including the Fund) in the expense group.

The Board noted that Invesco Advisers has contractually agreed to waive fees and/or limit expenses of the Fund for the term disclosed in the Fund’s registration statement 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 fees charged by Invesco Advisers and the Affiliated Sub-Advisers to other similarly managed client accounts. Invesco Advisers reviewed with the Board differences in the scope of services it provides to the Invesco Funds relative to certain other types of client accounts, including, among others: management of cash flows as a result of redemptions and purchases; necessary infrastructure such as officers, office space, technology, legal and distribution; oversight of service providers; costs and business risks associated with launching new funds and sponsoring and maintaining the product line; and compliance with federal and state laws and regulations.

The Board also compared the Fund’s effective advisory fee rate (the advisory fee rate after advisory fee waivers and before other expense limitations/ waivers) to the effective advisory fee rates of other similarly managed third-party mutual funds advised or sub-advised by Invesco Advisers and its affiliates, based on asset balances as of December 31, 2019.

The Board also considered the services that may be provided by the Affiliated Sub-Advisers pursuant to the sub-advisory contracts, as well as the fees payable by Invesco Advisers to the Affiliated Sub-Advisers pursuant to the sub-advisory contracts.

D. Economies of Scale and Breakpoints

The Board considered the extent to which there may be 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 in economies of scale through lower fees charged by third party service providers based on the combined size of the Invesco Funds. The Board noted that the Fund may also benefit from economies of scale through initial fee setting, fee waivers and expense reimbursements. The Board also considered Invesco’s reinvestment in its business, including investments in business infrastructure, technology and cybersecurity.

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 Invesco Funds and the profitability of Invesco Advisers and its affiliates in providing these services in the aggregate and on an individual Fund-by-Fund basis. The Board considered the methodology used for calculating profitability and noted the periodic review and enhancement of such methodology. The Board noted that Invesco Advisers continues to operate at a net profit from services Invesco Advisers and its affiliates provide to the Invesco Funds in the aggregate and to certain Funds on an individual fund level. The Board did not deem the level of profits realized by Invesco Advisers and its affiliates from providing such services to be excessive given the nature, extent and quality of the services provided.

The Board received information from Invesco Advisers demonstrating that Invesco Advisers and the Affiliated Sub-Advisers are financially sound and have the resources necessary to perform their obligations under the investment advisory agreement and sub-advisory contracts.

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 providing administrative, transfer agency and distribution services to the Fund. The Board considered comparative information regarding fees charged for these services, including information provided by Broadridge and other independent sources. 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; and that the services are required for the operation of the Fund.

The Board considered the benefits realized by Invesco Advisers and the Affiliated Sub-Advisers as a result of portfolio brokerage transactions executed through “soft dollar” arrangements. The Board noted that soft dollar arrangements may result in the Fund bearing costs to purchase research that may be used by Invesco Advisers or the Affiliated Sub-Advisers with other clients and may reduce Invesco Advisers’ or the Affiliated Sub-Advisers’ expenses. The Board also considered that it receives periodic reports from Invesco representing that these arrangements are consistent with regulatory requirements. The Board did not deem the soft dollar arrangements to be inappropriate.

The Board considered that the Fund’s uninvested cash and cash collateral from any securities lending arrangements may be invested in registered money market funds or, with regard to securities lending cash collateral, unregistered funds that comply with Rule 2a-7 (collectively referred to as “affiliated money market funds”) advised by Invesco Advisers pursuant to procedures approved by the Board. The Board considered information regarding the returns of the affiliated money market funds relative to comparable overnight investments, as well as the costs to the Fund of such investments. 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 with respect to certain investments in the affiliated money market 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 amount of advisory fees received by Invesco Advisers from the Fund’s investment of cash collateral from any securities lending arrangements in the affiliated money market funds is fair and reasonable.

The Board also considered that an affiliated broker may receive commissions for executing certain trades for the Fund. Invesco Advisers and the Affiliated Sub-Advisers may use the affiliated broker to, among other things, control order routing and minimize information leakage, and the Board was advised that

such trades are executed in compliance with rules under the federal securities laws and consistent with best execution obligations.

Invesco V.I. Managed Volatility Fund

	Semiannual Report to Shareholders	June 30, 2020
	Invesco V.I. Mid Cap Core Equity Fund

Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, the insurance company that offers your variable annuity or variable life insurance contract may no longer send you paper copies of the Fund’s shareholder reports by mail, unless you specifically request paper copies of the reports from the insurance company or your financial intermediary. Instead of delivering paper copies of the report, the insurance company may choose to make the reports available on a website, and will notify you by mail each time a report is posted and provide you with a website link to access the report. Instructions for requesting paper copies will be provided by your insurance company.

    If the insurance company offers electronic delivery, you may elect to receive shareholder reports and other communications about the Fund electronically by following the instructions provided by the insurance company or by contacting your financial intermediary. If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action.

    You may elect to receive all future reports in paper free of charge from the insurance company. You can inform the insurance company or your financial intermediary that you wish to continue receiving paper copies of your shareholder reports by following the instructions provided by the insurance company or by contacting your financial intermediary. Your election to receive reports in paper will apply to all portfolio companies available under your contract with the insurance company.

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) as an exhibit to its reports on Form N-PORT. The Fund’s Form N-PORT filings are available on the SEC website, 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-PORT, 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 most recent 12-month period ended June 30 is available at invesco.com/proxysearch. The information is also available on the SEC website, sec.gov.

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

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.

NOT FDIC INSURED  |  MAY LOSE VALUE  |  NO BANK GUARANTEE

Invesco Distributors, Inc. VIMCCE-SAR-1                             

Fund Performance

Performance summary
Fund vs. Indexes
Cumulative total returns, 12/31/19 to 6/30/20, excluding variable product issuer charges. If variable product issuer charges were included, returns would be lower.
Series I Shares	-11.17	%
Series II Shares	-11.36
S&P 500 Indexq (Broad Market Index)	-3.08
Russell Midcap Indexq (Style-Specific Index)	-9.13
Lipper VUF Mid-Cap Core Funds Index∎ (Peer Group Index)	-12.43
Source(s): qRIMES Technologies Corp.; ∎ Lipper Inc.
The S&P 500® Index is an unmanaged index considered representative of the US 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) described here, and consequently, the performance of the Fund may deviate significantly from the performance of the index(es).
A direct investment cannot be made in an index. Unless otherwise indicated, index results include reinvested dividends, and they do not reflect sales charges. Performance of the peer group, if applicable, reflects fund expenses; performance of a market index does not.

Average Annual Total Returns
As of 6/30/20
Series I Shares
Inception (9/10/01)	6.59	%
10 Years	7.50
5 Years	3.54
1 Year	-3.49
Series II Shares
Inception (9/10/01)	6.33	%
10 Years	7.21
5 Years	3.28
1 Year	-3.80

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 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. Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares. Investment return and principal value will

fluctuate so that you may have a gain or loss when you sell shares.

    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 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.

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

Invesco V.I. Mid Cap Core Equity Fund

Liquidity Risk Management Program

The Securities and Exchange Commission has adopted Rule 22e-4 under the Investment Company Act of 1940 (the “Liquidity Rule”) in order to promote effective liquidity risk management throughout the open-end investment company industry, thereby reducing the risk that funds will be unable to meet their redemption obligations and mitigating dilution of the interests of fund shareholders. The Fund has adopted and implemented a liquidity risk management program in accordance with the Liquidity Rule (the “Program”). The Program is reasonably designed to assess and manage the Fund’s liquidity risk, which is the risk that the Fund could not meet redemption requests without significant dilution of remaining investors’ interests in the Fund. The Board of Trustees of the Fund (the “Board”) has appointed Invesco Advisers, Inc. (“Invesco”), the Fund’s investment adviser, as the Program’s administrator, and Invesco has delegated oversight of the Program to the Liquidity Risk Management Committee (the “Committee”), which is composed of senior representatives from relevant business groups at Invesco.

As required by the Liquidity Rule, the Program includes policies and procedures providing for an assessment, no less frequently than annually, of the Fund’s liquidity risk that takes into account, as relevant to the Fund’s liquidity risk: (1) the Fund’s investment strategy and liquidity of portfolio investments during both normal and reasonably foreseeable stressed conditions; (2) short-term and long-term cash flow projections for the Fund during both normal and reasonably foreseeable stressed conditions; and (3) the Fund’s holdings of cash and cash equivalents and any borrowing arrangements. The Liquidity Rule also requires the classification of the Fund’s investments into categories that reflect the assessment of their relative liquidity under current market conditions. The Fund classifies its investments into one of four categories defined in the Liquidity Rule: “Highly Liquid,” “Moderately Liquid,” “Less Liquid” and “Illiquid.” Funds that are not invested primarily in “Highly Liquid Investments” that are assets (cash or investments that are reasonably expected to be convertible into cash within three business days without significantly changing the market value of the investment) are required to establish a “Highly Liquid Investment Minimum” (“HLIM”), which is the minimum percentage of net assets that must be invested in Highly Liquid Investments. Funds with HLIMs have procedures for addressing HLIM shortfalls, including reporting to the Board and the SEC (on a non-public basis) as required by the Program and the Liquidity Rule. In addition, the Fund may not acquire an investment if, immediately after the acquisition, over 15% of the Fund’s net assets would consist of “Illiquid Investments” that are assets (an investment that cannot reasonably be expected to be sold or disposed of in current market conditions in seven calendar days or less without the sale or disposition significantly changing the market value of the investment). The Liquidity Rule and the Program also require reporting to the Board and the SEC (on a non-public basis) if a Fund’s holdings of Illiquid Investments exceed 15% of the Fund’s assets.

At a meeting held on March 30-April 1, 2020, the Committee presented a report to the Board that addressed the operation of the Program and assessed the Program’s adequacy and effectiveness of implementation (the “Report”). The Report covered the period from December 1, 2018 through December 31, 2019 (the “Program Reporting Period”).

The Report stated, in relevant part, that during the Program Reporting Period:

∎ The Program, as adopted and implemented, remained reasonably designed to assess and manage the Fund’s liquidity risk and was operated effectively to achieve that goal;

∎ The Fund’s investment strategy remained appropriate for an open-end fund;

∎ The Fund was able to meet requests for redemption without significant dilution of remaining investors’ interests in the Fund;

∎ The Fund did not breach the 15% limit on Illiquid Investments; and

∎ The Fund primarily held Highly Liquid Investments and therefore has not adopted an HLIM.

Invesco V.I. Mid Cap Core Equity Fund

Schedule of Investments^(a)

June 30, 2020

(Unaudited)

	Shares		Value
Common Stocks & Other Equity Interests–99.06%
Aerospace & Defense–1.41%
L3Harris Technologies, Inc.		17,611	$    2,988,058
Apparel Retail–1.27%
Ross Stores, Inc.(b)		31,478	2,683,185
Application Software–3.62%
Manhattan Associates, Inc.(b)		13,979	1,316,822
Q2 Holdings, Inc.(b)		11,745	1,007,603
Synopsys, Inc.(b)		27,295	5,322,525
			7,646,950
Asset Management & Custody Banks–1.89%
Northern Trust Corp.		50,426	4,000,799
Auto Parts & Equipment–1.42%
Visteon Corp.(b)		43,818	3,001,533
Automotive Retail–1.42%
Advance Auto Parts, Inc.		21,134	3,010,538
Biotechnology–2.22%
Neurocrine Biosciences, Inc.(b)		14,802	1,805,844
Seattle Genetics, Inc.(b)		16,967	2,883,033
			4,688,877
Building Products–1.59%
Trane Technologies PLC		37,852	3,368,071
Cable & Satellite–1.28%
Liberty Broadband Corp., Class C(b)		21,782	2,700,097
Communications Equipment–1.51%
Motorola Solutions, Inc.		22,751	3,188,098
Construction Machinery & Heavy Trucks–0.91%
Wabtec Corp.		33,293	1,916,678
Construction Materials–1.43%
Vulcan Materials Co.		26,044	3,017,197
Data Processing & Outsourced Services–2.41%
Fiserv, Inc.(b)		52,158	5,091,664
Distillers & Vintners–1.04%
Constellation Brands, Inc., Class A		12,527	2,191,599
Diversified Chemicals–1.72%
Eastman Chemical Co.		52,313	3,643,077
Diversified Support Services–1.26%
Cintas Corp.		10,043	2,675,053
Electric Utilities–0.93%
Eversource Energy		23,746	1,977,329
Electronic Equipment & Instruments–2.23%
Keysight Technologies, Inc.(b)		46,811	4,717,613
Environmental & Facilities Services–2.10%
Republic Services, Inc.		54,050	4,434,803

	Shares		Value
Financial Exchanges & Data–1.77%
Intercontinental Exchange, Inc.		29,955	$    2,743,878
Tradeweb Markets, Inc., Class A		17,099	994,136
			3,738,014
Gas Utilities–1.66%
Atmos Energy Corp.		20,026	1,994,189
Southwest Gas Holdings, Inc.		18,940	1,307,807
UGI Corp.		6,368	202,503
			3,504,499
General Merchandise Stores–1.86%
Target Corp.		32,711	3,923,030
Gold–0.53%
Franco-Nevada Corp. (Canada)		8,058	1,125,219
Health Care Equipment–5.74%
Boston Scientific Corp.(b)		43,721	1,535,044
DexCom, Inc.(b)		5,113	2,072,810
Hill-Rom Holdings, Inc.		24,157	2,651,956
STERIS PLC		9,514	1,459,828
Teleflex, Inc.		7,438	2,707,283
Zimmer Biomet Holdings, Inc.		14,400	1,718,784
			12,145,705
Health Care Facilities–1.04%
HCA Healthcare, Inc.(b)		22,635	2,196,953
Health Care Services–2.52%
Guardant Health, Inc.(b)		16,576	1,344,811
LHC Group, Inc.(b)		22,895	3,991,056
			5,335,867
Health Care Supplies–0.63%
Alcon, Inc. (Switzerland)(b)		23,250	1,332,690
Homebuilding–1.20%
D.R. Horton, Inc.		45,938	2,547,262
Human Resource & Employment Services–1.38%
Korn Ferry		95,280	2,927,954
Hypermarkets & Super Centers–2.03%
BJ’s Wholesale Club Holdings, Inc.(b)		115,234	4,294,771
Industrial Machinery–2.92%
ITT, Inc.		41,946	2,463,908
Stanley Black & Decker, Inc.		26,631	3,711,829
			6,175,737
Industrial REITs–1.80%
Prologis, Inc.		40,736	3,801,891
Insurance Brokers–1.55%
Arthur J. Gallagher & Co.		33,712	3,286,583
Interactive Home Entertainment–1.80%
Zynga, Inc., Class A(b)		399,456	3,810,810

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
IT Consulting & Other Services–4.19%
Amdocs Ltd.		46,608	$	2,837,495
CACI International, Inc., Class A(b)		17,647		3,827,281
KBR, Inc.		97,098		2,189,560
				8,854,336
Leisure Products–0.38%
Peloton Interactive, Inc., Class A(b)		13,808		797,688
Managed Health Care–1.24%
Humana, Inc.		6,744		2,614,986
Multi-Utilities–2.85%
CMS Energy Corp.		35,283		2,061,233
Consolidated Edison, Inc.		29,920		2,152,146
Public Service Enterprise Group, Inc.		36,794		1,808,793
				6,022,172
Office REITs–0.88%
Alexandria Real Estate Equities, Inc.		11,415		1,852,084
Oil & Gas Equipment & Services–1.22%
Schlumberger Ltd.		140,047		2,575,464
Oil & Gas Refining & Marketing–1.00%
Valero Energy Corp.		35,941		2,114,050
Oil & Gas Storage & Transportation–2.65%
Magellan Midstream Partners L.P.		90,100		3,889,617
Shell Midstream Partners L.P.		140,345		1,722,033
				5,611,650
Packaged Foods & Meats–1.28%
Conagra Brands, Inc.		77,053		2,709,954
Pharmaceuticals–2.11%
Catalent, Inc.(b)		28,174		2,065,154
Elanco Animal Health, Inc.(b)		111,774		2,397,553
				4,462,707
Property & Casualty Insurance–0.65%
Fidelity National Financial, Inc.		45,062		1,381,601
Railroads–2.33%
Canadian Pacific Railway Ltd. (Canada)		19,307		4,929,849
Regional Banks–3.90%
PNC Financial Services Group, Inc. (The)		29,774		3,132,523
SVB Financial Group(b)		12,398		2,672,141
TCF Financial Corp.		83,177		2,447,067
				8,251,731

	Shares		Value
Residential REITs–1.08%
American Homes 4 Rent, Class A		84,982	$	2,286,016
Restaurants–1.19%
Wendy’s Co. (The)		115,075		2,506,334
Semiconductor Equipment–2.82%
KLA Corp.		15,709		3,055,087
MKS Instruments, Inc.		25,701		2,910,381
				5,965,468
Semiconductors–2.34%
Analog Devices, Inc.		23,943		2,936,369
Microchip Technology, Inc.		19,164		2,018,161
				4,954,530
Soft Drinks–1.31%
Coca-Cola European Partners PLC (United Kingdom)		73,109		2,760,596
Specialized REITs–2.62%
Equinix, Inc.		2,579		1,811,232
Lamar Advertising Co., Class A		55,795		3,724,874
				5,536,106
Specialty Stores–1.73%
Tractor Supply Co.		27,761		3,658,622
Trading Companies & Distributors–1.20%
Fastenal Co.		58,999		2,527,517
Total Common Stocks & Other Equity Interests (Cost $186,231,970)				209,461,665
Money Market Funds–0.55%
Invesco Government & Agency Portfolio, Institutional Class, 0.09%(c)(d)		365,595		365,595
Invesco Liquid Assets Portfolio, Institutional Class, 0.39%(c)(d)		372,000		372,260
Invesco Treasury Portfolio, Institutional Class, 0.08%(c)(d)		417,823		417,823
Total Money Market Funds     (Cost $1,155,205)				1,155,678
TOTAL INVESTMENTS IN SECURITIES–99.61% (Cost $187,387,175)				210,617,343
OTHER ASSETS LESS LIABILITIES–0.39%				835,087
NET ASSETS–100.00%			$	211,452,430

Investment Abbreviations:

REIT – Real Estate Investment Trust

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

Invesco V.I. Mid Cap Core Equity 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)  Affiliated issuer. The issuer and/or the Fund is a wholly-owned subsidiary of Invesco Ltd., or is affiliated by having an investment adviser that is under common control of Invesco Ltd. The table below shows the Fund’s transactions in, and earnings from, its investments in affiliates for the six months ended June 30, 2020.

	Value December 31, 2019		Purchases at Cost		Proceeds from Sales		Change in Unrealized Appreciation		Realized Gain (Loss)		Value June 30, 2020		Dividend Income
Investments in Affiliated Money Market Funds:
Invesco Government & Agency Portfolio, Institutional Class		$1,051,777		$16,113,861		$(16,800,043)		$    -		$      -		$   365,595		$ 6,589
Invesco Liquid Assets Portfolio, Institutional Class		401,834		11,888,809		(11,918,646)		467		(204)		372,260		5,648
Invesco Treasury Portfolio, Institutional Class		1,202,031		18,415,842		(19,200,050)		-		-		417,823		7,214
Investments Purchased with Cash Collateral from Securities on Loan:
Invesco Government & Agency Portfolio, Institutional Class		674,953		5,029,273		(5,704,226)		-		-		-		2,822
Invesco Liquid Assets Portfolio, Institutional Class		224,984		1,723,466		(1,948,062)		21		(409)		-		1,172
Total		$3,555,579		$53,171,251		$(55,571,027)		$488		$(613)		$1,155,678		$23,445

^(d)  The rate shown is the 7-day SEC standardized yield as of June 30, 2020.

Portfolio Composition

By sector, based on Net Assets

as of June 30, 2020

Information Technology	19.12	%
Health Care	15.50
Industrials	15.11
Consumer Discretionary	10.47
Financials	9.77
Real Estate	6.37
Consumer Staples	5.65
Utilities	5.44
Energy	4.87
Materials	3.68
Communication Services	3.08
Money Market Funds Plus Other Assets Less Liabilities	0.94

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, 2020

(Unaudited)

Assets:
Investments in securities, at value (Cost $ 186,231,970)	$209,461,665
Investments in affiliated money market funds, at value (Cost $ 1,155,205)	1,155,678
Cash	28,069
Receivable for:
Investments sold	1,871,853
Fund shares sold	10,303
Dividends	207,030
Investment for trustee deferred compensation and retirement plans	114,133
Total assets	212,848,731
Liabilities:
Payable for:
Investments purchased	971,023
Fund shares reacquired	162,607
Accrued fees to affiliates	103,665
Accrued trustees’ and officers’ fees and benefits	1,998
Accrued other operating expenses	33,046
Trustee deferred compensation and retirement plans	123,962
Total liabilities	1,396,301
Net assets applicable to shares outstanding	$211,452,430
Net assets consist of:
Shares of beneficial interest	$158,755,064
Distributable earnings	52,697,366
	$211,452,430
Net Assets:
Series I	$133,958,964
Series II	$  77,493,466
Shares outstanding, no par value, with an unlimited number of shares authorized:
Series I	12,385,787
Series II	7,358,580
Series I:
Net asset value per share	$            10.82
Series II:
Net asset value per share	$            10.53

Statement of Operations

For the six months ended June 30, 2020

(Unaudited)

Investment income:
Dividends (net of foreign withholding taxes of $4,043)	$	1,770,243
Dividends from affiliated money market funds (includes securities lending income of $39,661)		59,112
Total investment income		1,829,355
Expenses:
Advisory fees		769,931
Administrative services fees		176,814
Custodian fees		2,193
Distribution fees - Series II		96,154
Transfer agent fees		17,763
Trustees’ and officers’ fees and benefits		8,644
Reports to shareholders		2,529
Professional services fees		16,785
Other		498
Total expenses		1,091,311
Less: Fees waived		(2,507	)
Net expenses		1,088,804
Net investment income		740,551
Realized and unrealized gain (loss) from:
Net realized gain (loss) from:
Investment securities		(17,394,765	)
Foreign currencies		(69	)
		(17,394,834	)
Change in net unrealized appreciation (depreciation) of:
Investment securities		(10,203,584	)
Foreign currencies		(42	)
		(10,203,626	)
Net realized and unrealized gain (loss)		(27,598,460	)
Net increase (decrease) in net assets resulting from operations	$	(26,857,909	)

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, 2020 and the year ended December 31, 2019

(Unaudited)

	June 30,			December 31,
	2020			2019
Operations:
Net investment income	$	740,551		$	1,487,761
Net realized gain (loss)		(17,394,834	)		45,992,201
Change in net unrealized appreciation (depreciation)		(10,203,626	)		5,912,021
Net increase (decrease) in net assets resulting from operations		(26,857,909	)		53,391,983
Distributions to shareholders from distributable earnings:
Series I		–			(17,475,575	)
Series II		–			(9,551,503	)
Total distributions from distributable earnings		–			(27,027,078	)
Share transactions–net:
Series I		(7,037,441	)		(7,906,038	)
Series II		(1,668,622	)		8,650,685
Net increase (decrease) in net assets resulting from share transactions		(8,706,063	)		744,647
Net increase (decrease) in net assets		(35,563,972	)		27,109,552
Net assets:
Beginning of period		247,016,402			219,906,850
End of period	$	211,452,430		$	247,016,402

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

Invesco V.I. Mid Cap Core Equity Fund

Financial Highlights

(Unaudited)

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

	Net asset value, beginning of period		Net investment income (loss)(a)		Net gains (losses) on securities (both realized and unrealized)		Total from investment operations		Dividends from net investment income		Distributions from net realized gains		Total distributions		Net asset value, end of period		Total return(b)		Net assets, end of period (000’s omitted)		Ratio of expenses to average net assets with fee waivers and/or expenses absorbed		Ratio of expenses to average net assets without fee waivers and/or expenses absorbed		Ratio of net investment income (loss) to average net assets		Portfolio turnover(c)
Series I
Six months ended 06/30/20		$12.18		$0.04		$(1.40)		$(1.36)		$      -		$      -		$      -		$10.82		(11.17)%		$133,959		0.94%(d)		0.94%(d)		0.78%(d)		50%
Year ended 12/31/19		10.97		0.09		2.57		2.66		(0.06)		(1.39)		(1.45)		12.18		25.28		157,959		0.93		0.94		0.70		114
Year ended 12/31/18		14.41		0.06		(1.39)		(1.33)		(0.07)		(2.04)		(2.11)		10.97		(11.35)		148,078		0.91		0.94		0.46		27
Year ended 12/31/17		12.87		0.05		1.85		1.90		(0.07)		(0.29)		(0.36)		14.41		14.92		192,277		0.94		0.96		0.37		45
Year ended 12/31/16		12.12		0.07		1.54		1.61		(0.01)		(0.85)		(0.86)		12.87		13.43		195,464		0.98		1.00		0.57		29
Year ended 12/31/15		14.06		0.02		(0.58)		(0.56)		(0.05)		(1.33)		(1.38)		12.12		(4.03)		201,685		1.01		1.03		0.17		44
Series II
Six months ended 06/30/20		11.88		0.03		(1.38)		(1.35)		-		-		-		10.53		(11.36)		77,493		1.19(d)		1.19(d)		0.53(d)		50
Year ended 12/31/19		10.72		0.05		2.53		2.58		(0.03)		(1.39)		(1.42)		11.88		25.04		89,057		1.18		1.19		0.45		114
Year ended 12/31/18		14.11		0.03		(1.36)		(1.33)		(0.02)		(2.04)		(2.06)		10.72		(11.60)		71,829		1.16		1.19		0.21		27
Year ended 12/31/17		12.61		0.02		1.81		1.83		(0.04)		(0.29)		(0.33)		14.11		14.65		141,120		1.19		1.21		0.12		45
Year ended 12/31/16		11.91		0.04		1.51		1.55		-		(0.85)		(0.85)		12.61		13.16		130,118		1.23		1.25		0.32		29
Year ended 12/31/15		13.84		(0.01)		(0.57)		(0.58)		(0.02)		(1.33)		(1.35)		11.91		(4.28)		118,276		1.26		1.28		(0.08)		44

^(a)  Calculated using average shares outstanding.

^(b)  Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Total returns 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 $136,234 and $77,328 for Series I and Series II shares, respectively.

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

Invesco V.I. Mid Cap Core Equity Fund

Notes to Financial Statements

June 30, 2020

(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. Information presented in these financial statements pertains only to the Fund. Matters affecting the Fund or each class will be voted on exclusively by the shareholders of the Fund or each class. 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 Fund is an investment company and accordingly follows the investment company accounting and reporting guidance in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 946, Financial Services – Investment Companies.

The following is a summary of the significant accounting policies followed by the Fund in the preparation of its financial statements. A. Security Valuations – Securities, including restricted securities, are valued according to the following policy.

A security listed or traded on an exchange (except convertible securities) is valued at its last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded, or lacking any sales or official closing price on a particular day, the security may be valued at the closing bid price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued by an independent pricing service they may be considered fair valued. Futures contracts are valued at the final settlement price set by an exchange on which they are principally traded. Listed options are valued at the mean between the last bid and asked 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 asked prices. For purposes of determining net asset value (“NAV”) per share, futures and option contracts generally are valued 15 minutes after the close of the customary trading session of the New York Stock Exchange (“NYSE”).

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

Debt obligations (including convertible securities) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. Pricing services generally value debt obligations assuming orderly transactions of institutional round lot size, but a fund may hold or transact in the same securities in smaller, odd lot sizes. Odd lots often trade at lower prices than institutional round lots. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.

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

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

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

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

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

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

Invesco V.I. Mid Cap Core Equity Fund

share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and the Statement of Changes in Net Assets, or the net investment income per share and the ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.

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

The Fund recharacterizes distributions received from REIT investments based on information provided by the REIT into the following categories: ordinary income, long-term and short-term capital gains, and return of capital. If information is not available on a timely basis from the REIT, the recharacterization will be based on available information which may include the previous year’s allocation. If new or additional information becomes available from the REIT at a later date, a recharacterization will be made in the following year. The Fund records as dividend income the amount recharacterized as ordinary income and as realized gain the amount recharacterized as capital gain in the Statement of Operations, and the amount recharacterized as return of capital as a reduction of the cost of the related investment. These recharacterizations are reflected in the accompanying financial statements.

C. Country Determination – For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues 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 net investment income and net realized capital gain, if any, are generally declared and paid to separate accounts of participating insurance companies annually and recorded on the ex-dividend date.

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

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

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

F. Expenses – Fees provided for under the Rule 12b-1 plan of a particular class of the Fund and which are directly attributable to that class are charged to the operations of such class. All other expenses are allocated among the classes based on relative net assets.

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

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

I. 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. The Fund bears the risk of loss with respect to the investment of collateral. It is the Fund’s policy to obtain additional collateral from or return excess collateral to the borrower by the end of the next business day, following the valuation date of the securities loaned. Therefore, the value of the collateral held may be temporarily less than the value of the securities on loan. When loaning securities, the Fund retains certain benefits of owning the securities, including the economic equivalent of dividends or interest generated by the security. Lending securities entails a risk of loss to the Fund if, and to the extent that, the market value of the securities loaned were to increase and the borrower did not increase the collateral accordingly, and the borrower failed to return the securities. The securities loaned are subject to termination at the option of the borrower or the Fund. Upon termination, the borrower will return to the Fund the securities loaned and the Fund will return the collateral. Upon the failure of the borrower to return the securities, collateral may be liquidated and the securities may be purchased on the open market to replace the loaned securities. The Fund could experience delays and costs in gaining access to the collateral and the securities may lose value during the delay which could result in potential losses to the Fund. Some of these losses may be indemnified by the lending agent. The Fund bears the risk of any deficiency in the amount of the collateral available for return to the borrower due to any loss on the collateral invested. Dividends received on cash collateral investments for securities lending transactions, which are net of compensation to counterparties, are included in Dividends from affiliated money market funds on the Statement of Operations. The aggregate value of securities out on loan, if any, is shown as a footnote on the Statement of Assets and Liabilities.

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

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

Invesco V.I. Mid Cap Core Equity Fund

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

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

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

NOTE 2—Advisory Fees and Other Fees Paid to Affiliates

The Trust has entered into a master investment advisory agreement with Invesco Advisers, Inc. (the “Adviser” or “Invesco”). Under the terms of the investment advisory agreement, the Fund accrues daily and pays monthly an 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		0.700%
Next $500 million		0.675%
Over $1.5 billion		0.650%

For the six months ended June 30, 2020, the effective advisory fee rate incurred by the Fund was 0.725%.

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

The Adviser has contractually agreed, through at least June 30, 2021, 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 2.00% and Series II shares to 2.25% of average daily net assets (the “expense limits”). In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause the total annual fund operating expenses after fee waiver and/or expense reimbursement to exceed the numbers reflected above: (1) interest; (2) taxes; (3) dividend expense on short sales; (4) extraordinary or non-routine items, including litigation expenses; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Unless Invesco continues the fee waiver agreement, it will terminate on June 30, 2021. During its term, the fee waiver agreement cannot be terminated or amended to increase the expense limits or reduce the advisory fee waiver without approval of the Board of Trustees. The Adviser did not waive fees and/or reimburse expenses during the period under these expense limits.

Further, the Adviser has contractually agreed, through at least June 30, 2022, 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, 2020, the Adviser waived advisory fees of $2,507.

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 fees paid to insurance companies that have agreed to provide certain administrative services to the Fund. These administrative services provided by the insurance companies may include, among other things: maintenance of master accounts with the Fund; tracking, recording and transmitting net purchase and redemption orders for Fund shares; maintaining and preserving records related to the purchase, redemption and other account activity of variable product owners; distributing copies of Fund documents such as prospectuses, proxy materials and periodic reports, to variable product owners, and responding to inquiries from variable product owners about the Fund. Pursuant to such agreement, for the six months ended June 30, 2020, Invesco was paid $17,497 for accounting and fund administrative services and was reimbursed $159,317 for fees paid to insurance companies. Invesco has entered into a sub-administration agreement whereby State Street Bank and Trust Company (“SSB”) serves as fund accountant and provides certain administrative services to the Fund. Pursuant to a custody agreement with the Trust on behalf of the Fund, SSB also serves as the Fund’s custodian.

The Trust has entered into a transfer agency and service agreement with Invesco Investment Services, Inc. (“IIS”) pursuant to which the Fund has agreed to pay IIS a fee for providing transfer agency and shareholder services to the Fund and reimburse IIS for certain expenses incurred by IIS in the course of providing such services. IIS may make payments to intermediaries that provide omnibus account services, sub-accounting services and/or networking services. All fees payable by IIS to intermediaries that provide omnibus account services or sub-accounting services are charged back to the Fund, subject to certain limitations approved by the Trust’s Board of Trustees. For the six months ended June 30, 2020, 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. The fees are accrued daily and paid monthly. 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, 2020, expenses incurred under the Plan are detailed in the Statement of Operations as Distribution fees.

For the six months ended June 30, 2020, the Fund incurred $108 in brokerage commissions with Invesco Capital Markets, Inc., an affiliate of the Adviser and IDI, for portfolio transactions executed on behalf of the Fund.

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

NOTE 3—Additional Valuation Information

GAAP defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, under current market conditions. GAAP establishes a hierarchy that prioritizes the inputs to valuation methods, giving the highest priority to readily

Invesco V.I. Mid Cap Core Equity Fund

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.

    As of June 30, 2020, all of the securities in this Fund were valued based on Level 1 inputs (see the Schedule of Investments for security categories). The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

NOTE 4—Security Transactions with Affiliated Funds

The Fund is permitted to purchase 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, 2020, the Fund engaged in securities purchases of $509,773.

NOTE 5—Trustees’ and Officers’ Fees and Benefits

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

NOTE 6—Cash Balances

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

NOTE 7—Tax Information

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

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

    The Fund did not have a capital loss carryforward as of December 31, 2019.

NOTE 8—Investment Transactions

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, 2020 was $106,465,925 and $115,223,777, respectively. Cost of investments, including any derivatives, on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end.

Unrealized Appreciation (Depreciation) of Investments on a Tax Basis

Aggregate unrealized appreciation of investments	$	32,851,292
Aggregate unrealized (depreciation) of investments		(9,767,169	)
Net unrealized appreciation of investments	$	23,084,123

Cost of investments for tax purposes is $187,533,220.

NOTE 9—Share Information

	Summary of Share Activity
	Six months ended				Year ended
	June 30, 2020(a)				December 31, 2019
	Shares		Amount		Shares		Amount
Sold:
Series I		548,969	$	5,190,732		261,011	$	3,199,054
Series II		604,842		6,025,452		1,214,662		14,406,495

Invesco V.I. Mid Cap Core Equity Fund

	Summary of Share Activity
	Six months ended						Year ended
	June 30, 2020(a)						December 31, 2019
	Shares			Amount			Shares			Amount
Issued as reinvestment of dividends:
Series I		-		$	-			1,542,416		$	17,475,575
Series II		-			-			864,389			9,551,503
Reacquired:
Series I		(1,131,294	)		(12,228,173	)		(2,338,334	)		(28,580,667	)
Series II		(745,781	)		(7,694,074	)		(1,281,486	)		(15,307,313	)
Net increase (decrease) in share activity		(723,264	)	$	(8,706,063	)		262,658		$	744,647

^(a)  There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 72% 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 Fund 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—Coronavirus (COVID-19) Pandemic

During the first quarter of 2020, the World Health Organization declared COVID-19 to be a public health emergency. COVID-19 has led to increased short-term market volatility and may have adverse long-term effects on U.S. and world economies and markets in general. COVID-19 may adversely impact the Fund’s ability to achieve its investment objective. Because of the uncertainties on valuation, the global economy and business operations, values reflected in these financial statements may materially differ from the value received upon actual sales of those investments.

The extent of the impact on the performance of the Fund and its investments will depend on future developments, including the duration and spread of the COVID-19 outbreak, related restrictions and advisories, and the effects on the financial markets and economy overall, all of which are highly uncertain and cannot be predicted.

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, 2020 through June 30, 2020.

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.

		ACTUAL		HYPOTHETICAL (5% annual return before expenses)
	Beginning   Account Value   (01/01/20)	Ending   Account Value   (06/30/20)1	Expenses   Paid During   Period2	Ending   Account Value   (06/30/20)	Expenses   Paid During   Period2	Annualized   Expense Ratio
Series I	$1,000.00	$888.30	$4.41	$1,020.19	$4.72	0.94%
Series II	1,000.00	886.40	5.58	1,018.95	5.97	1.19

¹ The actual ending account value is based on the actual total return of the Fund for the period January 1, 2020 through June 30, 2020, 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 182/366 to reflect the most recent fiscal half year.

Invesco V.I. Mid Cap Core Equity Fund

Approval of Investment Advisory and Sub-Advisory Contracts

At meetings held on June 3, 2020, the Board of Trustees (the Board or the Trustees) of AIM Variable Insurance Funds (Invesco Variable Insurance Funds) as a whole, and the independent Trustees, who comprise over 75% of the Board, voting separately, approved the continuance of the Invesco V.I. Mid Cap Core Equity Fund’s (the Fund) Master Investment Advisory Agreement with Invesco Advisers, Inc. (Invesco Advisers and the investment advisory agreement) and the Master Intergroup Sub-Advisory Contract for Mutual Funds with Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Canada Ltd. and separate sub-advisory contracts with Invesco Capital Management LLC and Invesco Asset Management (India) Private Limited (collectively, the Affiliated Sub-Advisers and the sub-advisory contracts) for another year, effective July 1, 2020. After evaluating the factors discussed below, among others, the Board approved the renewal of the Fund’s investment advisory agreement and the sub-advisory contracts and determined that the compensation payable thereunder by the Fund to Invesco Advisers and by Invesco Advisers to the Affiliated Sub-Advisers is fair and reasonable.

The Board’s Evaluation Process

The Board’s Investments Committee has established Sub-Committees, which meet throughout the year to review the performance of funds advised by Invesco Advisers (the Invesco Funds). The Sub-Committees meet regularly with portfolio managers for their assigned Invesco Funds and other members of management to review detailed information about investment performance and portfolio attributes of these funds. The Board took into account evaluations and reports that it received from the Investments Committee and Sub-Committees, as well as the information provided to such committees and the Board throughout the year, in considering whether to approve each Invesco Fund’s investment advisory agreement and sub-advisory contracts.

As part of the contract renewal process, the Board reviews and considers information provided in response to detailed requests for information submitted to management by the independent Trustees with assistance from legal counsel to the independent Trustees. The Board receives comparative investment performance and fee data regarding the Invesco Funds prepared by Invesco Advisers and Broadridge Financial Solutions, Inc. (Broadridge), an independent mutual fund data provider, as well as information on the composition of the peer groups provided by Broadridge and its methodology for determining peer groups. The Board also receives an independent written evaluation from the Senior Officer, an officer of the Invesco Funds who reports directly to the independent Trustees. 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. In addition to meetings with Invesco Advisers and fund counsel throughout the year, the independent Trustees also

discuss the continuance of the investment advisory agreement and sub-advisory contracts in separate sessions with the Senior Officer and with independent legal counsel.

The discussion below is a summary of 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. The Trustees’ review and conclusions are based on the comprehensive consideration of all information presented to them during the course of the year and in prior years and are not the result of any single determinative factor. Moreover, one Trustee may have weighed a particular piece of information or factor differently than another Trustee. This information is current as of June 3, 2020.

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 nature, extent and quality of the advisory services provided to the Fund by Invesco Advisers under the Fund’s investment advisory agreement, and the credentials and experience of the officers and employees of Invesco Advisers who provide these services, including the Fund’s portfolio manager(s). The Board’s review included consideration of Invesco Advisers’ investment process oversight and structure, credit analysis, investment risk management and research capabilities. The Board also considered non-advisory services that Invesco Advisers and its affiliates provide to the Invesco Funds, such as various back office support functions, third party oversight, internal audit, valuation, portfolio trading and legal and compliance. The Board also received and reviewed information about Invesco Advisers’ role as administrator of the Invesco Funds’ liquidity risk management program. The Board reviewed and considered the benefits to shareholders of investing in a Fund that is part of the Invesco family of funds under the umbrella of Invesco Ltd., Invesco Advisers’ parent company, and noted Invesco Ltd.’s depth and experience in conducting an investment management business, as well as its commitment of financial and other resources to such business. The Board also reviewed and considered information regarding the benefits to the Fund resulting from Invesco Ltd.’s acquisition of OppenheimerFunds, Inc. and its subsidiaries (the Transaction) and the resources that Invesco Advisers has committed to managing the Invesco family of funds following the Transaction. The Board concluded that the nature, extent and quality of the services provided to the Fund by Invesco Advisers are appropriate and satisfactory.

The Board reviewed the services that may be 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 the Affiliated Sub-Advisers’ expertise with respect to certain asset classes and that the Affiliated Sub-Advisers have offices and personnel that are located in financial centers around the world.

As a result, the Board noted that the Affiliated Sub-Advisers can provide research and investment analysis on the markets and economies of various countries in which the Fund may invest, make recommendations regarding securities and assist with security trades. The Board concluded that the sub-advisory contracts may 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 that may be provided by the Affiliated Sub-Advisers are appropriate and satisfactory.

B. Fund Investment Performance

The Board considered Fund investment performance as a relevant factor in considering whether to approve the investment advisory agreement. The Board did not view Fund investment 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 investment performance over multiple time periods ending December 31, 2019 to the performance of funds in the Broadridge performance universe and against the Russell Midcap^® Index. The Board noted that performance of Series I shares of the Fund was in the fifth quintile of its performance universe for the one year period and the fourth quintile for the three and five year periods (the first quintile being the best performing funds and the fifth quintile being the worst performing funds). The Board noted that 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 Fund’s cash position was the primary detractor to the Fund’s relative performance. The Board further noted that the Fund underwent a portfolio management team change in June 2019, and that performance results prior to such date were those of the prior portfolio management team. The Board recognized that the performance data reflects a snapshot in time as of a particular date and that selecting a different performance period could produce different results. The Board also reviewed more recent Fund performance as well as other performance metrics and this review did not change their conclusions.

C. Advisory and Sub-Advisory Fees and Fund Expenses

The Board compared the Fund’s contractual management fee rate to the contractual management fee rates of funds in the Fund’s Broadridge expense group. The Board noted that the contractual management fee rate for Series I shares of the Fund was below the median contractual management fee rate of funds in its expense group. The Board noted that the term “contractual management fee” for funds in the expense group may include both advisory and certain non-portfolio management administrative services fees, but that Broadridge does not provide information on a fund by fund basis as to what is included. The Board also reviewed the methodology used by Broadridge in providing expense group information, which includes using each fund’s contractual management fee schedule (including any applicable breakpoints) as reported in the most recent prospectus or statement of additional information for each fund in the expense group. The

Invesco V.I. Mid Cap Core Equity Fund

Board also considered comparative information regarding the Fund’s total expense ratio and its various components.

The Board noted that Invesco Advisers has contractually agreed to waive fees and/or limit expenses of the Fund for the term disclosed in the Fund’s registration statement 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 fees charged by Invesco Advisers and the Affiliated Sub-Advisers to other similarly managed client accounts. Invesco Advisers reviewed with the Board differences in the scope of services it provides to the Invesco Funds relative to certain other types of client accounts, including, among others: management of cash flows as a result of redemptions and purchases; necessary infrastructure such as officers, office space, technology, legal and distribution; oversight of service providers; costs and business risks associated with launching new funds and sponsoring and maintaining the product line; and compliance with federal and state laws and regulations.

The Board also considered the services that may be provided by the Affiliated Sub-Advisers pursuant to the sub-advisory contracts, as well as the fees payable by Invesco Advisers to the Affiliated Sub-Advisers pursuant to the sub-advisory contracts.

D. Economies of Scale and Breakpoints

The Board considered the extent to which there may be economies of scale in the provision of advisory services to the Fund. The Board also considered that the Fund may benefit from economies of scale through contractual breakpoints in the Fund’s advisory fee schedule, which generally operate to reduce the Fund’s expense ratio as it grows in size. The Board 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. The Board noted that the Fund may also benefit from economies of scale through initial fee setting, fee waivers and expense reimbursements. The Board also considered Invesco’s reinvestment in its business, including investments in business infrastructure, technology and cybersecurity.

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 Invesco Funds and the profitability of Invesco Advisers and its affiliates in providing these services in the aggregate and on an individual Fund-by-Fund basis. The Board considered the methodology used for calculating profitability and noted the periodic review and enhancement of such methodology. The Board noted that Invesco Advisers continues to operate at a net profit from services Invesco Advisers and its affiliates provide to the Invesco Funds in the aggregate and to certain Funds on an individual fund level. The Board did not deem the level of profits realized by Invesco Advisers and its affiliates from providing such services to be excessive given the nature, extent and quality of the services provided. The Board received information from Invesco Advisers demonstrating that Invesco Advisers and the Affiliated Sub-Advisers are financially sound and have the resources necessary to perform their obligations under the investment advisory agreement and sub-advisory contracts.

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 providing administrative, transfer agency and distribution services to the Fund. The Board considered comparative information regarding fees charged for these services, including information provided by Broadridge and other independent sources. 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; and that the services are required for the operation of the Fund.

The Board considered the benefits realized by Invesco Advisers and the Affiliated Sub-Advisers as a result of portfolio brokerage transactions executed through “soft dollar” arrangements. The Board noted that soft dollar arrangements may result in the Fund bearing costs to purchase research that may be used by Invesco Advisers or the Affiliated Sub-Advisers with other clients and may reduce Invesco Advisers’ or the Affiliated Sub-Advisers’ expenses. The Board also considered that it receives periodic reports from Invesco representing that these arrangements are consistent with regulatory requirements. The Board did not deem the soft dollar arrangements to be inappropriate.

The Board considered that the Fund’s uninvested cash and cash collateral from any securities lending arrangements may be invested in registered money market funds or, with regard to securities lending cash collateral, unregistered funds that comply with Rule 2a-7 (collectively referred to as “affiliated money market funds”) advised by Invesco Advisers pursuant to procedures approved by the Board. The Board considered information regarding the returns of the affiliated money market funds relative to comparable overnight investments, as well as the costs to the Fund of such investments. 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 with respect to certain investments in the affiliated money market 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 amount of advisory fees received by Invesco Advisers from the Fund’s investment of cash collateral from any securities lending arrangements in the affiliated money market funds is fair and reasonable.

The Board also considered that an affiliated broker may receive commissions for executing certain trades for the Fund. Invesco Advisers and the Affiliated Sub-Advisers may use the affiliated broker to, among other things, control order routing and minimize information leakage, and the Board was advised that such trades are executed in compliance with rules under the federal securities laws and consistent with best execution obligations.

Invesco V.I. Mid Cap Core Equity Fund

	Semiannual Report to Shareholders	June 30, 2020
	Invesco V.I. S&P 500 Index Fund

Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, the insurance company that offers your variable annuity or variable life insurance contract may no longer send you paper copies of the Fund’s shareholder reports by mail, unless you specifically request paper copies of the reports from the insurance company or your financial intermediary. Instead of delivering paper copies of the report, the insurance company may choose to make the reports available on a website, and will notify you by mail each time a report is posted and provide you with a website link to access the report. Instructions for requesting paper copies will be provided by your insurance company.

    If the insurance company offers electronic delivery, you may elect to receive shareholder reports and other communications about the Fund electronically by following the instructions provided by the insurance company or by contacting your financial intermediary. If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action.

    You may elect to receive all future reports in paper free of charge from the insurance company. You can inform the insurance company or your financial intermediary that you wish to continue receiving paper copies of your shareholder reports by following the instructions provided by the insurance company or by contacting your financial intermediary. Your election to receive reports in paper will apply to all portfolio companies available under your contract with the insurance company.

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) as an exhibit to its reports on Form N-PORT. The Fund’s Form N-PORT filings are available on the SEC website, 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-PORT, 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 most recent 12-month period ended June 30 is available at invesco.com/proxysearch. The information is also available on the SEC website, sec.gov.

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

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.

NOT FDIC INSURED  |  MAY LOSE VALUE  |  NO BANK GUARANTEE

Invesco Distributors, Inc. MS-VISPI-SAR-1                                 

Fund Performance

Performance summary
Fund vs. Indexes
Cumulative total returns, 12/31/19 to 6/30/20, excluding variable product issuer charges. If variable product issuer charges were included, returns would be lower.
Series I Shares	–3.21	%
Series II Shares	–3.34
S&P 500 Indexq (Broad Marke/Style-Specific Index)	–3.08
Lipper VUF S&P 500 Funds Index∎ (Peer Group Index)	–3.34
Source(s): qRIMES Technologies Corp.; ∎Lipper Inc.
The S&P 500® Index is an unmanaged index considered representative of the US stock market.
The Lipper VUF S&P 500 Funds Index is an unmanaged index considered representative of S&P 500 variable insurance underlying funds tracked by Lipper.
The Fund is not managed to track the performance of any particular index, including the index(es) described here, and consequently, the performance of the Fund may deviate significantly from the performance of the index(es).
A direct investment cannot be made in an index. Unless otherwise indicated, index results include reinvested dividends, and they do not reflect sales charges. Performance of the peer group, if applicable, reflects fund expenses; performance of a market index does not.

Average Annual Total Returns
As of 6/30/20
Series I Shares
Inception (5/18/98)	6.42	%
10 Years	13.58
5 Years	10.26
1 Year	7.17
Series II Shares
Inception (6/5/00)	5.24	%
10 Years	13.30
5 Years	9.98
1 Year	6.92

Effective June 1, 2010, Class X and Class Y shares of the predecessor fund, Morgan Stanley Variable Investment Series 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, prior to June 1, 2010, for Series I and Series II shares are those of the Class X shares and Class Y shares of the predecessor fund. Share class returns will differ from the predecessor fund because of different expenses.

The performance data quoted represent past performance and cannot guarantee future results; current performance may be lower or higher. Please 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. Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares. Investment return and principal value will fluctuate so that you may have a gain or loss when you sell shares.

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 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.

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

Invesco V.I. S&P 500 Index Fund

Liquidity Risk Management Program

The Securities and Exchange Commission has adopted Rule 22e-4 under the Investment Company Act of 1940 (the “Liquidity Rule”) in order to promote effective liquidity risk management throughout the open-end investment company industry, thereby reducing the risk that funds will be unable to meet their redemption obligations and mitigating dilution of the interests of fund shareholders. The Fund has adopted and implemented a liquidity risk management program in accordance with the Liquidity Rule (the “Program”). The Program is reasonably designed to assess and manage the Fund’s liquidity risk, which is the risk that the Fund could not meet redemption requests without significant dilution of remaining investors’ interests in the Fund. The Board of Trustees of the Fund (the “Board”) has appointed Invesco Advisers, Inc. (“Invesco”), the Fund’s investment adviser, as the Program’s administrator, and Invesco has delegated oversight of the Program to the Liquidity Risk Management Committee (the “Committee”), which is composed of senior representatives from relevant business groups at Invesco.

As required by the Liquidity Rule, the Program includes policies and procedures providing for an assessment, no less frequently than annually, of the Fund’s liquidity risk that takes into account, as relevant to the Fund’s liquidity risk: (1) the Fund’s investment strategy and liquidity of portfolio investments during both normal and reasonably foreseeable stressed conditions; (2) short-term and long-term cash flow projections for the Fund during both normal and reasonably foreseeable stressed conditions; and (3) the Fund’s holdings of cash and cash equivalents and any borrowing arrangements. The Liquidity Rule also requires the classification of the Fund’s investments into categories that reflect the assessment of their relative liquidity under current market conditions. The Fund classifies its investments into one of four categories defined in the Liquidity Rule: “Highly Liquid,” “Moderately Liquid,” “Less Liquid” and “Illiquid.” Funds that are not invested primarily in “Highly Liquid Investments” that are assets (cash or investments that are reasonably expected to be convertible into cash within three business days without significantly changing the market value of the investment) are required to establish a “Highly Liquid Investment Minimum” (“HLIM”), which is the minimum percentage of net assets that must be invested in Highly Liquid Investments. Funds with HLIMs have procedures for addressing HLIM shortfalls, including reporting to the Board and the SEC (on a non-public basis) as required by the Program and the Liquidity Rule. In addition, the Fund may not acquire an investment if, immediately after the acquisition, over 15% of the Fund’s net assets would consist of “Illiquid Investments” that are assets (an investment that cannot reasonably be expected to be sold or disposed of in current market conditions in seven calendar days or less without the sale or disposition significantly changing the market value of the investment). The Liquidity Rule and the Program also require reporting to the Board and the SEC (on a non-public basis) if a Fund’s holdings of Illiquid Investments exceed 15% of the Fund’s assets.

At a meeting held on March 30-April 1, 2020, the Committee presented a report to the Board that addressed the operation of the Program and assessed the Program’s adequacy and effectiveness of implementation (the “Report”). The Report covered the period from December 1, 2018 through December 31, 2019 (the “Program Reporting Period”).

The Report stated, in relevant part, that during the Program Reporting Period:

∎ The Program, as adopted and implemented, remained reasonably designed to assess and manage the Fund’s liquidity risk and was operated effectively to achieve that goal;

∎ The Fund’s investment strategy remained appropriate for an open-end fund;

∎ The Fund was able to meet requests for redemption without significant dilution of remaining investors’ interests in the Fund;

∎ The Fund did not breach the 15% limit on Illiquid Investments; and

∎ The Fund primarily held Highly Liquid Investments and therefore has not adopted an HLIM.

Invesco V.I. S&P 500 Index Fund

Schedule of Investments^(a)

June 30, 2020

(Unaudited)

	Shares		Value
Common Stocks & Other Equity Interests–99.10%
Advertising–0.07%
Interpublic Group of Cos., Inc. (The)		1,247	$       21,398
Omnicom Group, Inc.		676	36,910
			58,308
Aerospace & Defense–1.75%
Boeing Co. (The)(b)		1,678	307,577
General Dynamics Corp.		728	108,807
Howmet Aerospace, Inc.(b)		1,169	18,529
Huntington Ingalls Industries, Inc.		128	22,335
L3Harris Technologies, Inc.		676	114,697
Lockheed Martin Corp.		771	281,353
Northrop Grumman Corp.		486	149,416
Raytheon Technologies Corp.		4,606	283,822
Teledyne Technologies, Inc.(b)		114	35,448
Textron, Inc.		719	23,662
TransDigm Group, Inc.		157	69,402
			1,415,048
Agricultural & Farm Machinery–0.19%
Deere & Co.		979	153,850
Agricultural Products–0.09%
Archer-Daniels-Midland Co.		1,731	69,067
Air Freight & Logistics–0.52%
C.H. Robinson Worldwide, Inc.		425	33,601
Expeditors International of Washington, Inc.		521	39,617
FedEx Corp.		752	105,445
United Parcel Service, Inc., Class B		2,205	245,152
			423,815
Airlines–0.20%
Alaska Air Group, Inc.(b)		395	14,323
American Airlines Group, Inc.		1,177	15,383
Delta Air Lines, Inc.		1,777	49,845
Southwest Airlines Co.(b)		1,679	57,388
United Airlines Holdings, Inc.(b)		774	26,788
			163,727
Alternative Carriers–0.04%
CenturyLink, Inc.		3,091	31,003
Apparel Retail–0.38%
Gap, Inc. (The)(b)		661	8,342
L Brands, Inc.(b)		733	10,973
Ross Stores, Inc.(b)		1,112	94,787
TJX Cos., Inc. (The)		3,752	189,701
			303,803
Apparel, Accessories & Luxury Goods–0.15%
Hanesbrands, Inc.		1,127	12,724
PVH Corp.(b)		222	10,667
Ralph Lauren Corp.(b)		149	10,805
Tapestry, Inc.(b)		887	11,779
Under Armour, Inc., Class A(b)		617	6,010

	Shares		Value
Apparel, Accessories & Luxury Goods–(continued)
Under Armour, Inc., Class C(b)		570	$5,039
VF Corp.		998	60,818
			117,842
Application Software–2.45%
Adobe, Inc.(b)		1,508	656,448
ANSYS, Inc.(b)		269	78,475
Autodesk, Inc.(b)		683	163,367
Cadence Design Systems, Inc.(b)		872	83,677
Citrix Systems, Inc.		362	53,544
Intuit, Inc.		816	241,691
Paycom Software, Inc.(b)		151	46,769
salesforce.com, inc.(b)		2,822	528,645
Synopsys, Inc.(b)		472	92,040
Tyler Technologies, Inc.(b)		124	43,013
			1,987,669
Asset Management & Custody Banks–0.81%
Ameriprise Financial, Inc.		383	57,465
Bank of New York Mellon Corp. (The)		2,511	97,050
BlackRock, Inc.		483	262,796
Franklin Resources, Inc.		867	18,181
Invesco Ltd.(c)		1,218	13,106
Northern Trust Corp.		651	51,650
State Street Corp.		1,102	70,032
T. Rowe Price Group, Inc.		712	87,932
			658,212
Auto Parts & Equipment–0.11%
Aptiv PLC		804	62,648
BorgWarner, Inc.		663	23,404
			86,052
Automobile Manufacturers–0.22%
Ford Motor Co.(b)		12,236	74,395
General Motors Co.		3,944	99,783
			174,178
Automotive Retail–0.32%
Advance Auto Parts, Inc.		217	30,912
AutoZone, Inc.(b)		73	82,353
CarMax, Inc.(b)		510	45,670
O’Reilly Automotive, Inc.(b)		232	97,827
			256,762
Biotechnology–2.45%
AbbVie, Inc.		5,520	541,954
Alexion Pharmaceuticals, Inc.(b)		687	77,109
Amgen, Inc.		1,842	434,454
Biogen, Inc.(b)		510	136,450
Gilead Sciences, Inc.		3,935	302,759
Incyte Corp.(b)		563	58,535
Regeneron Pharmaceuticals, Inc.(b)		315	196,450
Vertex Pharmaceuticals, Inc.(b)		811	235,441
			1,983,152

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
Brewers–0.03%
Molson Coors Beverage Co., Class B(b)		591	$       20,307
Broadcasting–0.14%
Discovery, Inc., Class A(b)		508	10,719
Discovery, Inc., Class C(b)		957	18,432
Fox Corp., Class A		1,073	28,778
Fox Corp., Class B		521	13,983
ViacomCBS, Inc., Class B		1,681	39,201
			111,113
Building Products–0.40%
A.O. Smith Corp.		440	20,733
Allegion PLC		292	29,848
Carrier Global Corp.		2,559	56,861
Fortune Brands Home & Security, Inc.		438	28,002
Johnson Controls International PLC		2,329	79,512
Masco Corp.		825	41,423
Trane Technologies PLC		744	66,201
			322,580
Cable & Satellite–1.02%
Charter Communications, Inc., Class A(b)		471	240,229
Comcast Corp., Class A		14,268	556,167
DISH Network Corp., Class A(b)		795	27,435
			823,831
Casinos & Gaming–0.12%
Las Vegas Sands Corp.(b)		1,065	48,500
MGM Resorts International		1,565	26,292
Wynn Resorts Ltd.		299	22,273
			97,065
Commodity Chemicals–0.18%
Dow, Inc.		2,306	93,993
LyondellBasell Industries N.V., Class A		809	53,167
			147,160
Communications Equipment–0.96%
Arista Networks, Inc.(b)		170	35,705
Cisco Systems, Inc.		13,300	620,312
F5 Networks, Inc.(b)		190	26,501
Juniper Networks, Inc.		1,055	24,118
Motorola Solutions, Inc.		532	74,549
			781,185
Computer & Electronics Retail–0.08%
Best Buy Co., Inc.		717	62,573
Construction & Engineering–0.06%
Jacobs Engineering Group, Inc.		407	34,514
Quanta Services, Inc.		448	17,575
			52,089
Construction Machinery & Heavy Trucks–0.50%
Caterpillar, Inc.		1,694	214,291
Cummins, Inc.		461	79,873
PACCAR, Inc.		1,075	80,464
Wabtec Corp.		573	32,987
			407,615
Construction Materials–0.11%
Martin Marietta Materials, Inc.		193	39,868

	Shares		Value
Construction Materials–(continued)
Vulcan Materials Co.		416	$       48,194
			88,062
Consumer Electronics–0.05%
Garmin Ltd.		455	44,362
Consumer Finance–0.46%
American Express Co.		2,067	196,778
Capital One Financial Corp.		1,425	89,191
Discover Financial Services		974	48,788
Synchrony Financial		1,680	37,229
			371,986
Copper–0.07%
Freeport-McMoRan, Inc.(b)		4,560	52,759
Data Processing & Outsourced Services–4.36%
Automatic Data Processing, Inc.		1,345	200,257
Broadridge Financial Solutions, Inc.		355	44,797
Fidelity National Information Services, Inc.		1,934	259,330
Fiserv, Inc.(b)		1,761	171,909
FleetCor Technologies, Inc.(b)		262	65,901
Global Payments, Inc.		934	158,425
Jack Henry & Associates, Inc.		241	44,351
Mastercard, Inc., Class A		2,768	818,498
Paychex, Inc.		990	74,992
PayPal Holdings, Inc.(b)		3,677	640,644
Visa, Inc., Class A		5,285	1,020,903
Western Union Co. (The)		1,322	28,582
			3,528,589
Department Stores–0.01%
Kohl’s Corp.(b)		513	10,655
Distillers & Vintners–0.16%
Brown-Forman Corp., Class B		574	36,541
Constellation Brands, Inc., Class A		525	91,849
			128,390
Distributors–0.08%
Genuine Parts Co.		457	39,741
LKQ Corp.(b)		966	25,309
			65,050
Diversified Banks–2.80%
Bank of America Corp.		24,460	580,925
Citigroup, Inc.		6,521	333,223
JPMorgan Chase & Co.		9,545	897,803
U.S. Bancorp		4,293	158,068
Wells Fargo & Co.		11,687	299,187
			2,269,206
Diversified Chemicals–0.04%
Eastman Chemical Co.		428	29,806
Diversified Support Services–0.15%
Cintas Corp.		263	70,053
Copart, Inc.(b)		644	53,626
			123,679
Drug Retail–0.12%
Walgreens Boots Alliance, Inc.		2,307	97,794

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
Electric Utilities–1.89%
Alliant Energy Corp.		781	$       37,363
American Electric Power Co., Inc.		1,551	123,522
Duke Energy Corp.		2,301	183,827
Edison International		1,183	64,249
Entergy Corp.		627	58,819
Evergy, Inc.		718	42,570
Eversource Energy		1,053	87,683
Exelon Corp.		3,052	110,757
FirstEnergy Corp.		1,680	65,150
NextEra Energy, Inc.		1,532	367,941
NRG Energy, Inc.		764	24,876
Pinnacle West Capital Corp.		353	25,871
PPL Corp.		2,388	61,706
Southern Co. (The)		3,307	171,468
Xcel Energy, Inc.		1,644	102,750
			1,528,552
Electrical Components & Equipment–0.45%
AMETEK, Inc.		720	64,346
Eaton Corp. PLC		1,252	109,525
Emerson Electric Co.		1,871	116,058
Rockwell Automation, Inc.		363	77,319
			367,248
Electronic Components–0.19%
Amphenol Corp., Class A		921	88,241
Corning, Inc.		2,392	61,953
			150,194
Electronic Equipment & Instruments–0.15%
FLIR Systems, Inc.		416	16,877
Keysight Technologies, Inc.(b)		591	59,561
Zebra Technologies Corp., Class A(b)		169	43,256
			119,694
Electronic Manufacturing Services–0.13%
IPG Photonics Corp.(b)		113	18,124
TE Connectivity Ltd.		1,040	84,812
			102,936
Environmental & Facilities Services–0.25%
Republic Services, Inc.		663	54,399
Rollins, Inc.		443	18,779
Waste Management, Inc.		1,213	128,469
			201,647
Fertilizers & Agricultural Chemicals–0.17%
CF Industries Holdings, Inc.		685	19,276
Corteva, Inc.		2,335	62,555
FMC Corp.		408	40,645
Mosaic Co. (The)		1,046	13,085
			135,561
Financial Exchanges & Data–1.17%
Cboe Global Markets, Inc.		348	32,461
CME Group, Inc., Class A		1,122	182,370
Intercontinental Exchange, Inc.		1,713	156,911
MarketAxess Holdings, Inc.		118	59,108
Moody’s Corp.		504	138,464
MSCI, Inc.		266	88,796
Nasdaq, Inc.		361	43,129

	Shares		Value
Financial Exchanges & Data–(continued)
S&P Global, Inc.		754	$     248,428
			949,667
Food Distributors–0.11%
Sysco Corp.		1,587	86,745
Food Retail–0.10%
Kroger Co. (The)		2,462	83,339
Footwear–0.47%
NIKE, Inc., Class B		3,876	380,042
Gas Utilities–0.05%
Atmos Energy Corp.		375	37,342
General Merchandise Stores–0.50%
Dollar General Corp.		791	150,693
Dollar Tree, Inc.(b)		745	69,047
Target Corp.		1,565	187,690
			407,430
Gold–0.19%
Newmont Corp.		2,513	155,153
Health Care Distributors–0.25%
AmerisourceBergen Corp.		473	47,664
Cardinal Health, Inc.		922	48,119
Henry Schein, Inc.(b)		447	26,100
McKesson Corp.		501	76,864
			198,747
Health Care Equipment–3.53%
Abbott Laboratories		5,541	506,614
ABIOMED, Inc.(b)		141	34,060
Baxter International, Inc.		1,588	136,727
Becton, Dickinson and Co.		923	220,846
Boston Scientific Corp.(b)		4,475	157,117
Danaher Corp.		1,970	348,355
DexCom, Inc.(b)		289	117,161
Edwards Lifesciences Corp.(b)		1,946	134,488
Hologic, Inc.(b)		808	46,056
IDEXX Laboratories, Inc.(b)		265	87,492
Intuitive Surgical, Inc.(b)		365	207,988
Medtronic PLC		4,200	385,140
ResMed, Inc.		452	86,784
STERIS PLC		266	40,815
Stryker Corp.		1,009	181,812
Teleflex, Inc.		145	52,777
Varian Medical Systems, Inc.(b)		285	34,918
Zimmer Biomet Holdings, Inc.		647	77,226
			2,856,376
Health Care Facilities–0.13%
HCA Healthcare, Inc.(b)		822	79,784
Universal Health Services, Inc., Class B(b)		243	22,572
			102,356
Health Care REITs–0.19%
Healthpeak Properties, Inc.		1,685	46,439
Ventas, Inc.		1,159	42,442
Welltower, Inc.		1,307	67,637
			156,518

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
Health Care Services–0.74%
Cigna Corp.		1,155	$     216,736
CVS Health Corp.		4,094	265,987
DaVita, Inc.(b)		267	21,130
Laboratory Corp. of America Holdings(b)		301	49,999
Quest Diagnostics, Inc.		424	48,319
			602,171
Health Care Supplies–0.23%
Align Technology, Inc.(b)		222	60,926
Cooper Cos., Inc. (The)		155	43,964
DENTSPLY SIRONA, Inc.		701	30,886
West Pharmaceutical Services, Inc.		233	52,931
			188,707
Health Care Technology–0.08%
Cerner Corp.		953	65,328
Home Furnishings–0.04%
Leggett & Platt, Inc.		431	15,149
Mohawk Industries, Inc.(b)		184	18,724
			33,873
Home Improvement Retail–1.44%
Home Depot, Inc. (The)		3,369	843,968
Lowe’s Cos., Inc.		2,364	319,424
			1,163,392
Homebuilding–0.21%
D.R. Horton, Inc.		1,035	57,391
Lennar Corp., Class A		870	53,609
NVR, Inc.(b)		11	35,846
PulteGroup, Inc.		791	26,918
			173,764
Hotel & Resort REITs–0.03%
Host Hotels & Resorts, Inc.		2,213	23,878
Hotels, Resorts & Cruise Lines–0.25%
Carnival Corp.		1,469	24,121
Hilton Worldwide Holdings, Inc.(b)		877	64,416
Marriott International, Inc., Class A(b)		843	72,270
Norwegian Cruise Line Holdings Ltd.(b)		797	13,095
Royal Caribbean Cruises Ltd.(b)		534	26,860
			200,762
Household Appliances–0.03%
Whirlpool Corp.		195	25,258
Household Products–1.75%
Church & Dwight Co., Inc.		773	59,753
Clorox Co. (The)		389	85,335
Colgate-Palmolive Co.		2,683	196,556
Kimberly-Clark Corp.		1,066	150,679
Procter & Gamble Co. (The)		7,759	927,744
			1,420,067
Housewares & Specialties–0.02%
Newell Brands, Inc.		1,210	19,215
Human Resource & Employment Services–0.02%
Robert Half International, Inc.		358	18,913

	Shares		Value
Hypermarkets & Super Centers–1.17%
Costco Wholesale Corp.		1,382	$     419,036
Walmart, Inc.		4,435	531,224
			950,260
Independent Power Producers & Energy Traders–0.04%
AES Corp. (The)		2,038	29,531
Industrial Conglomerates–1.13%
3M Co.		1,801	280,938
General Electric Co.(d)		27,402	187,156
Honeywell International, Inc.		2,197	317,664
Roper Technologies, Inc.		326	126,573
			912,331
Industrial Gases–0.64%
Air Products and Chemicals, Inc.		691	166,849
Linde PLC (United Kingdom)		1,644	348,709
			515,558
Industrial Machinery–0.79%
Dover Corp.		451	43,549
Flowserve Corp.		429	12,235
Fortive Corp.		931	62,991
IDEX Corp.		239	37,772
Illinois Tool Works, Inc.		900	157,365
Ingersoll Rand, Inc.(b)		1,076	30,257
Otis Worldwide Corp.		1,261	71,700
Parker-Hannifin Corp.		404	74,041
Pentair PLC		522	19,831
Snap-on, Inc.		169	23,408
Stanley Black & Decker, Inc.		478	66,624
Xylem, Inc.		567	36,832
			636,605
Industrial REITs–0.32%
Duke Realty Corp.		1,159	41,017
Prologis, Inc.		2,312	215,779
			256,796
Insurance Brokers–0.55%
Aon PLC, Class A		727	140,020
Arthur J. Gallagher & Co.		587	57,227
Marsh & McLennan Cos., Inc.		1,597	171,470
Willis Towers Watson PLC		404	79,568
			448,285
Integrated Oil & Gas–1.44%
Chevron Corp.		5,848	521,817
Exxon Mobil Corp.		13,246	592,361
Occidental Petroleum Corp.		2,819	51,588
			1,165,766
Integrated Telecommunication Services–1.72%
AT&T, Inc.(d)		22,320	674,734
Verizon Communications, Inc.		12,973	715,201
			1,389,935
Interactive Home Entertainment–0.44%
Activision Blizzard, Inc.		2,412	183,071
Electronic Arts, Inc.(b)		907	119,769
Take-Two Interactive Software, Inc.(b)		356	49,687
			352,527

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
Interactive Media & Services–5.44%
Alphabet, Inc., Class A(b)		939	$  1,331,549
Alphabet, Inc., Class C(b)		915	1,293,453
Facebook, Inc., Class A(b)		7,532	1,710,291
Twitter, Inc.(b)		2,457	73,194
			4,408,487
Internet & Direct Marketing Retail–4.90%
Amazon.com, Inc.(b)		1,312	3,619,572
Booking Holdings, Inc.(b)		128	203,819
eBay, Inc.		2,068	108,467
Expedia Group, Inc.(b)		424	34,853
			3,966,711
Internet Services & Infrastructure–0.15%
Akamai Technologies, Inc.(b)		509	54,509
VeriSign, Inc.(b)		318	65,772
			120,281
Investment Banking & Brokerage–0.68%
Charles Schwab Corp. (The)		3,589	121,093
E*TRADE Financial Corp.		692	34,413
Goldman Sachs Group, Inc. (The)		969	191,494
Morgan Stanley		3,751	181,173
Raymond James Financial, Inc.		388	26,706
			554,879
IT Consulting & Other Services–1.17%
Accenture PLC, Class A		1,994	428,152
Cognizant Technology Solutions Corp., Class A		1,703	96,764
DXC Technology Co.(b)		839	13,843
Gartner, Inc.(b)		281	34,094
International Business Machines Corp.		2,781	335,861
Leidos Holdings, Inc.		419	39,248
			947,962
Leisure Products–0.04%
Hasbro, Inc.		395	29,605
Life & Health Insurance–0.41%
Aflac, Inc.		2,246	80,923
Globe Life, Inc.		313	23,234
Lincoln National Corp.		616	22,663
MetLife, Inc.		2,432	88,817
Principal Financial Group, Inc.		814	33,813
Prudential Financial, Inc.		1,236	75,272
Unum Group		676	11,215
			335,937
Life Sciences Tools & Services–1.16%
Agilent Technologies, Inc.		962	85,012
Bio-Rad Laboratories, Inc., Class A(b)		66	29,798
Illumina, Inc.(b)		460	170,361
IQVIA Holdings, Inc.(b)		560	79,453
Mettler-Toledo International, Inc.(b)		75	60,416
PerkinElmer, Inc.		349	34,234
Thermo Fisher Scientific, Inc.		1,236	447,852
Waters Corp.(b)		193	34,817
			941,943
Managed Health Care–1.68%
Anthem, Inc.		788	207,228

	Shares		Value
Managed Health Care–(continued)
Centene Corp.(b)		1,816	$     115,407
Humana, Inc.		414	160,529
UnitedHealth Group, Inc.		2,970	876,001
			1,359,165
Metal & Glass Containers–0.09%
Ball Corp.		1,017	70,671
Movies & Entertainment–1.58%
Live Nation Entertainment, Inc.(b)		437	19,372
Netflix, Inc.(b)		1,377	626,590
Walt Disney Co. (The)(b)		5,658	630,924
			1,276,886
Multi-line Insurance–0.18%
American International Group, Inc.		2,706	84,373
Assurant, Inc.		187	19,315
Hartford Financial Services Group, Inc. (The)		1,136	43,793
			147,481
Multi-Sector Holdings–1.34%
Berkshire Hathaway, Inc., Class B(b)		6,086	1,086,412
Multi-Utilities–0.97%
Ameren Corp.		775	54,529
CenterPoint Energy, Inc.		1,705	31,832
CMS Energy Corp.		894	52,227
Consolidated Edison, Inc.		1,046	75,239
Dominion Energy, Inc.		2,628	213,341
DTE Energy Co.		605	65,037
NiSource, Inc.		1,178	26,788
Public Service Enterprise Group, Inc.		1,573	77,329
Sempra Energy		916	107,383
WEC Energy Group, Inc.		980	85,897
			789,602
Office REITs–0.17%
Alexandria Real Estate Equities, Inc.		395	64,089
Boston Properties, Inc.		452	40,852
SL Green Realty Corp.		239	11,780
Vornado Realty Trust		492	18,799
			135,520
Oil & Gas Equipment & Services–0.21%
Baker Hughes Co., Class A		2,031	31,257
Halliburton Co.		2,724	35,358
National Oilwell Varco, Inc.(b)		1,233	15,104
Schlumberger Ltd.		4,342	79,849
TechnipFMC PLC (United Kingdom)		1,277	8,735
			170,303
Oil & Gas Exploration & Production–0.56%
Apache Corp.		1,132	15,282
Cabot Oil & Gas Corp.		1,286	22,094
Concho Resources, Inc.		624	32,136
ConocoPhillips		3,359	141,145
Devon Energy Corp.		1,168	13,245
Diamondback Energy, Inc.		500	20,910
EOG Resources, Inc.		1,809	91,644
Hess Corp.		805	41,707
Marathon Oil Corp.		2,514	15,386

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 Exploration & Production–(continued)
Noble Energy, Inc.		1,468	$       13,153
Pioneer Natural Resources Co.		514	50,218
			456,920
Oil & Gas Refining & Marketing–0.32%
HollyFrontier Corp.		461	13,461
Marathon Petroleum Corp.		2,020	75,508
Phillips 66		1,367	98,287
Valero Energy Corp.		1,277	75,113
			262,369
Oil & Gas Storage & Transportation–0.25%
Kinder Morgan, Inc.		6,045	91,703
ONEOK, Inc.		1,284	42,655
Williams Cos., Inc. (The)		3,770	71,705
			206,063
Packaged Foods & Meats–1.03%
Campbell Soup Co.		532	26,403
Conagra Brands, Inc.		1,535	53,986
General Mills, Inc.		1,898	117,012
Hershey Co. (The)		467	60,533
Hormel Foods Corp.		876	42,285
JM Smucker Co. (The)		359	37,986
Kellogg Co.		784	51,791
Kraft Heinz Co. (The)		1,964	62,632
Lamb Weston Holdings, Inc.		460	29,408
McCormick & Co., Inc.		389	69,790
Mondelez International, Inc., Class A		4,479	229,011
Tyson Foods, Inc., Class A		930	55,530
			836,367
Paper Packaging–0.24%
Amcor PLC(b)		4,910	50,131
Avery Dennison Corp.		262	29,892
International Paper Co.		1,236	43,519
Packaging Corp. of America		297	29,641
Sealed Air Corp.		479	15,735
Westrock Co.		813	22,975
			191,893
Personal Products–0.17%
Coty, Inc., Class A(b)		976	4,363
Estee Lauder Cos., Inc. (The), Class A(b)		703	132,642
			137,005
Pharmaceuticals–4.25%
Bristol-Myers Squibb Co.		7,087	416,716
Eli Lilly and Co.		2,638	433,107
Johnson & Johnson		8,253	1,160,619
Merck & Co., Inc.		7,906	611,371
Mylan N.V.(b)		1,570	25,246
Perrigo Co. PLC		428	23,655
Pfizer, Inc.		17,401	569,013
Zoetis, Inc.		1,487	203,778
			3,443,505
Property & Casualty Insurance–0.73%
Allstate Corp. (The)		983	95,341
Chubb Ltd.		1,409	178,408
Cincinnati Financial Corp.		471	30,158

	Shares		Value
Property & Casualty Insurance–(continued)
Loews Corp.		757	$       25,958
Progressive Corp. (The)		1,832	146,761
Travelers Cos., Inc. (The)		791	90,214
W.R. Berkley Corp.		442	25,322
			592,162
Publishing–0.02%
News Corp., Class A		1,198	14,208
News Corp., Class B		341	4,075
			18,283
Railroads–0.88%
CSX Corp.		2,397	167,167
Kansas City Southern		297	44,339
Norfolk Southern Corp.		802	140,807
Union Pacific Corp.		2,124	359,105
			711,418
Real Estate Services–0.06%
CBRE Group, Inc., Class A(b)		1,055	47,707
Regional Banks–0.81%
Citizens Financial Group, Inc.		1,352	34,124
Comerica, Inc.		447	17,031
Fifth Third Bancorp		2,203	42,474
First Republic Bank		530	56,175
Huntington Bancshares, Inc.		3,176	28,695
KeyCorp		3,030	36,905
M&T Bank Corp.		409	42,524
People’s United Financial, Inc.		1,301	15,052
PNC Financial Services Group, Inc. (The)		1,328	139,719
Regions Financial Corp.		2,964	32,960
SVB Financial Group(b)		161	34,700
Truist Financial Corp.		4,220	158,461
Zions Bancorporation N.A.		529	17,986
			656,806
Reinsurance–0.03%
Everest Re Group Ltd.		125	25,775
Research & Consulting Services–0.32%
Equifax, Inc.		380	65,314
IHS Markit Ltd.		1,247	94,149
Nielsen Holdings PLC		1,149	17,074
Verisk Analytics, Inc.		509	86,632
			263,169
Residential REITs–0.33%
Apartment Investment & Management Co., Class A		462	17,390
AvalonBay Communities, Inc.		439	67,887
Equity Residential		1,085	63,820
Essex Property Trust, Inc.		204	46,750
Mid-America Apartment Communities, Inc.		354	40,593
UDR, Inc.		923	34,502
			270,942
Restaurants–1.16%
Chipotle Mexican Grill, Inc.(b)		80	84,189
Darden Restaurants, Inc.(b)		404	30,611
Domino’s Pizza, Inc.		122	45,072
McDonald’s Corp.		2,328	429,446

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
Restaurants–(continued)
Starbucks Corp.		3,659	$     269,266
Yum! Brands, Inc.		940	81,695
			940,279
Retail REITs–0.23%
Federal Realty Investment Trust		217	18,491
Kimco Realty Corp.(b)		1,358	17,437
Realty Income Corp.		1,080	64,260
Regency Centers Corp.		527	24,184
Simon Property Group, Inc.		954	65,234
			189,606
Semiconductor Equipment–0.51%
Applied Materials, Inc.		2,874	173,733
KLA Corp.		485	94,323
Lam Research Corp.		454	146,851
			414,907
Semiconductors–4.24%
Advanced Micro Devices, Inc.(b)		3,668	192,973
Analog Devices, Inc.		1,153	141,404
Broadcom, Inc.		1,251	394,828
Intel Corp.		13,264	793,585
Maxim Integrated Products, Inc.		834	50,549
Microchip Technology, Inc.		768	80,878
Micron Technology, Inc.(b)		3,483	179,444
NVIDIA Corp.		1,926	731,707
Qorvo, Inc.(b)		365	40,343
QUALCOMM, Inc.		3,523	321,333
Skyworks Solutions, Inc.		522	66,743
Texas Instruments, Inc.		2,875	365,039
Xilinx, Inc.		761	74,875
			3,433,701
Soft Drinks–1.48%
Coca-Cola Co. (The)		12,108	540,986
Monster Beverage Corp.(b)		1,170	81,104
PepsiCo, Inc.		4,346	574,802
			1,196,892
Specialized Consumer Services–0.01%
H&R Block, Inc.		563	8,040
Specialized REITs–1.48%
American Tower Corp.		1,388	358,854
Crown Castle International Corp.		1,305	218,392
Digital Realty Trust, Inc.		840	119,372
Equinix, Inc.		277	194,537
Extra Space Storage, Inc.		407	37,595
Iron Mountain, Inc.		905	23,620
Public Storage		470	90,188
SBA Communications Corp., Class A		349	103,974
Weyerhaeuser Co.		2,322	52,152
			1,198,684
Specialty Chemicals–0.74%
Albemarle Corp.		329	25,402
Celanese Corp.		370	31,946
DuPont de Nemours, Inc.		2,304	122,411
Ecolab, Inc.		774	153,987
International Flavors & Fragrances, Inc.		336	41,147

	Shares		Value
Specialty Chemicals–(continued)
PPG Industries, Inc.		735	$       77,954
Sherwin-Williams Co. (The)		254	146,774
			599,621
Specialty Stores–0.15%
Tiffany & Co.		339	41,338
Tractor Supply Co.		362	47,708
Ulta Beauty, Inc.(b)		179	36,412
			125,458
Steel–0.05%
Nucor Corp.		942	39,008
Systems Software–6.82%
Fortinet, Inc.(b)		420	57,653
Microsoft Corp.		23,757	4,834,787
NortonLifeLock, Inc.		1,697	33,652
Oracle Corp.		6,519	360,305
ServiceNow, Inc.(b)		597	241,821
			5,528,218
Technology Distributors–0.06%
CDW Corp.		452	52,513
Technology Hardware, Storage & Peripherals–6.04%
Apple, Inc.		12,762	4,655,578
Hewlett Packard Enterprise Co.		4,044	39,348
HP, Inc.		4,479	78,069
NetApp, Inc.		692	30,704
Seagate Technology PLC		707	34,226
Western Digital Corp.(b)		937	41,368
Xerox Holdings Corp.		609	9,312
			4,888,605
Tobacco–0.70%
Altria Group, Inc.		5,821	228,474
Philip Morris International, Inc.		4,877	341,683
			570,157
Trading Companies & Distributors–0.19%
Fastenal Co.		1,784	76,426
United Rentals, Inc.(b)		225	33,534
W.W. Grainger, Inc.		136	42,726
			152,686
Trucking–0.10%
J.B. Hunt Transport Services, Inc.		268	32,251
Old Dominion Freight Line, Inc.		295	50,029
			82,280
Water Utilities–0.09%
American Water Works Co., Inc.		569	73,208
Wireless Telecommunication Services–0.23%
T-Mobile US, Inc.(b)		1,784	185,804
T-Mobile US, Inc., Rts. expiring 07/28/2020(b)		1,199	201
			186,005
Total Common Stocks & Other Equity Interests (Cost $22,760,887)			80,272,910
Money Market Funds–1.06%
Invesco Government & Agency Portfolio, Institutional Class, 0.09%(c)(e)		294,123	294,123

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

Invesco V.I. S&P 500 Index Fund

	Shares		Value
Money Market Funds–(continued)
Invesco Liquid Assets Portfolio, Institutional Class, 0.39%(c)(e)		227,984	$     228,143
Invesco Treasury Portfolio, Institutional Class, 0.08%(c)(e)		336,140	336,140
Total Money Market Funds (Cost $858,398)			858,406
TOTAL INVESTMENTS IN SECURITIES–100.16% (Cost $23,619,285)			81,131,316
OTHER ASSETS LESS LIABILITIES–(0.16)%			(130,721)
NET ASSETS–100.00%			$81,000,595

Investment Abbreviations:

REIT – Real Estate Investment Trust

Rts. – Rights

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 issuer. The issuer and/or the Fund is a wholly-owned subsidiary of Invesco Ltd., or is affiliated by having an investment adviser that is under common control of Invesco Ltd. The table below shows the Fund’s transactions in, and earnings from, its investments in affiliates for the six months ended June 30, 2020.

	Value December 31, 2019			Purchases at Cost			Proceeds from Sales				Change in Unrealized Appreciation (Depreciation)				Realized Gain (Loss)				Value June 30, 2020			Dividend Income
Invesco Ltd.		$	21,918		$	1,109		$	(1,166	)		$	(7,321	)		$	(1,434	)		$	13,106		$	567
Investments in Affiliated Money Market Funds:
Invesco Government & Agency Portfolio, Institutional Class			281,283			2,453,591			(2,440,751	)			-				-				294,123			1,015
Invesco Liquid Assets Portfolio, Institutional Class			221,995			1,782,060			(1,776,190	)			30				248				228,143			1,081
Invesco Treasury Portfolio, Institutional Class			321,467			2,804,103			(2,789,430	)			-				-				336,140			1,092
Total		$	846,663		$	7,040,863		$	(7,007,537	)		$	(7,291	)		$	(1,186	)		$	871,512		$	3,755

^(d)  All or a portion of the value was pledged as collateral to cover margin requirements for open futures contracts. See Note 1J.

^(e)  The rate shown is the 7-day SEC standardized yield as of June 30, 2020.

Portfolio Composition

By sector, based on Net Assets

as of June 30, 2020

Information Technology	27.23	%
Health Care	14.50
Consumer Discretionary	10.73
Communication Services	10.69
Financials	10.00
Industrials	7.91
Consumer Staples	6.91
Utilities	3.03
Real Estate	2.81
Energy	2.79
Materials	2.50
Money Market Funds Plus Other Assets Less Liabilities	0.90

Open Futures Contracts

Long Futures Contracts	Number of Contracts		Expiration Month		Notional Value			Value			Unrealized Appreciation
Equity Risk
E-Mini S&P 500 Index		5		September-2020		$	772,550		$	22,740		$	22,740

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, 2020

(Unaudited)

Assets:
Investments in securities, at value (Cost $ 22,733,862)	$	80,259,804
Investments in affiliates, at value (Cost $ 885,423)		871,512
Other investments:
Variation margin receivable — futures contracts		11,272
Cash		550
Receivable for:
Investments sold		122
Fund shares sold		16,058
Dividends		63,245
Investment for trustee deferred compensation and retirement plans		37,607
Total assets		81,260,170
Liabilities:
Payable for:
Fund shares reacquired		145,384
Accrued fees to affiliates		41,101
Accrued trustees’ and officers’ fees and benefits		1,675
Accrued other operating expenses		27,588
Trustee deferred compensation and retirement plans		43,827
Total liabilities		259,575
Net assets applicable to shares outstanding	$	81,000,595
Net assets consist of:
Shares of beneficial interest	$	13,180,426
Distributable earnings		67,820,169
	$	81,000,595
Net Assets:
Series I	$	33,601,164
Series II	$	47,399,431
Shares outstanding, no par value, with an unlimited number of shares authorized:
Series I		1,855,356
Series II		2,638,145
Series I:
Net asset value per share	$	18.11
Series II:
Net asset value per share	$	17.97

Statement of Operations

For the six months ended June 30, 2020

(Unaudited)

Investment income:
Dividends	$	771,125
Dividends from affiliates		3,755
Total investment income		774,880
Expenses:
Advisory fees		47,903
Administrative services fees		66,463
Custodian fees		4,123
Distribution fees - Series II		58,433
Transfer agent fees		2,083
Trustees’ and officers’ fees and benefits		8,003
Licensing fees		8,572
Reports to shareholders		4,853
Professional services fees		15,728
Other		(14,870	)
Total expenses		201,291
Less: Fees waived		(495	)
Net expenses		200,796
Net investment income		574,084
Realized and unrealized gain (loss) from:
Net realized gain (loss) from:
Investment securities		5,125,332
Futures contracts		(42,993	)
		5,082,339
Change in net unrealized appreciation (depreciation) of:
Investment securities		(8,664,508	)
Futures contracts		960
		(8,663,548	)
Net realized and unrealized gain (loss)		(3,581,209	)
Net increase (decrease) in net assets resulting from operations	$	(3,007,125	)

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, 2020 and the year ended December 31, 2019

(Unaudited)

	June 30,			December 31,
	2020			2019
Operations:
Net investment income	$	574,084		$	1,270,313
Net realized gain		5,082,339			5,915,111
Change in net unrealized appreciation (depreciation)		(8,663,548	)		15,853,714
Net increase (decrease) in net assets resulting from operations		(3,007,125	)		23,039,138
Distributions to shareholders from distributable earnings:
Series I		–			(4,162,074	)
Series II		–			(5,597,313	)
Total distributions from distributable earnings		–			(9,759,387	)
Share transactions–net:
Series I		(1,994,405	)		(2,676,121	)
Series II		(3,560,743	)		98,753
Net increase (decrease) in net assets resulting from share transactions		(5,555,148	)		(2,577,368	)
Net increase (decrease) in net assets		(8,562,273	)		10,702,383
Net assets:
Beginning of period		89,562,868			78,860,485
End of period	$	81,000,595		$	89,562,868

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

Invesco V.I. S&P 500 Index Fund

Financial Highlights

(Unaudited)

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

	Net asset value, beginning of period			Net investment income (a)			Net gains (losses) on securities (both realized and unrealized)				Total from investment operations				Dividends from net investment income				Distributions from net realized gains				Total distributions				Net asset value, end of period			Total return (b)			Net assets, end of period (000’s omitted)			Ratio of expenses to average net assets with fee waivers and/or expenses absorbed			Ratio of expenses to average net assets without fee waivers and/or expenses absorbed			Ratio of net investment income to average net assets			Portfolio turnover (c)
Series I
Six months ended 06/30/20		$	18.71		$	0.14		$	(0.74	)		$	(0.60	)		$	–			$	–			$	–			$	18.11		(3.21	)%		$	33,601		0.36	%(d)		0.36	%(d)		1.58	%(d)		1	%
Year ended 12/31/19			16.12			0.29			4.51				4.80				(0.28	)			(1.93	)			(2.21	)			18.71		30.98				36,806		0.41			0.41			1.61			3
Year ended 12/31/18			18.53			0.26			(0.91	)			(0.65	)			(0.30	)			(1.46	)			(1.76	)			16.12		(4.86	)			33,758		0.51			0.51			1.41			3
Year ended 12/31/17			16.78			0.26			3.18				3.44				(0.31	)			(1.38	)			(1.69	)			18.53		21.26				38,450		0.48			0.48			1.46			3
Year ended 12/31/16			16.58			0.30			1.55				1.85				(0.31	)			(1.34	)			(1.65	)			16.78		11.45				34,812		0.41			0.41			1.81			4
Year ended 12/31/15			18.52			0.30			(0.24	)			0.06				(0.33	)			(1.67	)			(2.00	)			16.58		1.03				35,586		0.41			0.41			1.66			7
Series II
Six months ended 06/30/20			18.59			0.11			(0.73	)			(0.62	)			–				–				–				17.97		(3.34	)			47,399		0.61	(d)		0.61	(d)		1.33	(d)		1
Year ended 12/31/19			16.03			0.25			4.47				4.72				(0.23	)			(1.93	)			(2.16	)			18.59		30.62				52,757		0.66			0.66			1.36			3
Year ended 12/31/18			18.43			0.22			(0.91	)			(0.69	)			(0.25	)			(1.46	)			(1.71	)			16.03		(5.07	)			45,102		0.76			0.76			1.16			3
Year ended 12/31/17			16.69			0.22			3.17				3.39				(0.27	)			(1.38	)			(1.65	)			18.43		21.00				55,090		0.73			0.73			1.21			3
Year ended 12/31/16			16.49			0.26			1.54				1.80				(0.26	)			(1.34	)			(1.60	)			16.69		11.20				52,212		0.66			0.66			1.56			4
Year ended 12/31/15			18.43			0.25			(0.24	)			0.01				(0.28	)			(1.67	)			(1.95	)			16.49		0.72				58,268		0.66			0.66			1.41			7

^(a)  Calculated using average shares outstanding.

^(b)  Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. 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 $33,273 and $47,004 for Series I and Series II shares, respectively.

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

Invesco V.I. S&P 500 Index Fund

Notes to Financial Statements

June 30, 2020

(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. Information presented in these financial statements pertains only to the Fund. Matters affecting the Fund or each class will be voted on exclusively by the shareholders of the Fund or each class. 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 Fund is an investment company and accordingly follows the investment company accounting and reporting guidance in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 946, Financial Services – Investment Companies.

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

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

A security listed or traded on an exchange (except convertible securities) is valued at its last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded, or lacking any sales or official closing price on a particular day, the security may be valued at the closing bid price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued by an independent pricing service they may be considered fair valued. Futures contracts are valued at the final settlement price set by an exchange on which they are principally traded. Listed options are valued at the mean between the last bid and asked 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 asked prices. For purposes of determining net asset value (“NAV”) per share, futures and option contracts generally are valued 15 minutes after the close of the customary trading session of the New York Stock Exchange (“NYSE”).

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

Debt obligations (including convertible securities) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. Pricing services generally value debt obligations assuming orderly transactions of institutional round lot size, but a fund may hold or transact in the same securities in smaller, odd lot sizes. Odd lots often trade at lower prices than institutional round lots. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.

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

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

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

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

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

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

Invesco V.I. S&P 500 Index Fund

securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the net realized and unrealized gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and the Statement of Changes in Net Assets, or the net investment income per share and the ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.

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

C. Country Determination – For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues 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 net investment income and net realized capital gain, if any, are generally declared and paid to separate accounts of participating insurance companies annually and recorded on the ex-dividend date.

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

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

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

F. Expenses – Fees provided for under the Rule 12b-1 plan of a particular class of the Fund and which are directly attributable to that class are charged to the operations of such class. All other expenses are allocated among the classes based on relative net assets.

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

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

I. 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. The Fund bears the risk of loss with respect to the investment of collateral. It is the Fund’s policy to obtain additional collateral from or return excess collateral to the borrower by the end of the next business day, following the valuation date of the securities loaned. Therefore, the value of the collateral held may be temporarily less than the value of the securities on loan. When loaning securities, the Fund retains certain benefits of owning the securities, including the economic equivalent of dividends or interest generated by the security. Lending securities entails a risk of loss to the Fund if, and to the extent that, the market value of the securities loaned were to increase and the borrower did not increase the collateral accordingly, and the borrower failed to return the securities. The securities loaned are subject to termination at the option of the borrower or the Fund. Upon termination, the borrower will return to the Fund the securities loaned and the Fund will return the collateral. Upon the failure of the borrower to return the securities, collateral may be liquidated and the securities may be purchased on the open market to replace the loaned securities. The Fund could experience delays and costs in gaining access to the collateral and the securities may lose value during the delay which could result in potential losses to the Fund. Some of these losses may be indemnified by the lending agent. The Fund bears the risk of any deficiency in the amount of the collateral available for return to the borrower due to any loss on the collateral invested. Dividends received on cash collateral investments for securities lending transactions, which are net of compensation to counterparties, are included in Dividends from affiliated money market funds on the Statement of Operations. The aggregate value of securities out on loan, if any, is shown as a footnote on the Statement of Assets and Liabilities.

J. Futures Contracts – The Fund may enter into futures contracts to manage exposure to interest rate, equity and market price movements and/or currency risks. A futures contract is an agreement between two parties (“Counterparties”) to purchase or sell a specified underlying security, currency or commodity (or delivery of a cash settlement price, in the case of an index future) for a fixed price at a future date. The Fund currently invests only in exchange-traded futures and they are standardized as to maturity date and underlying financial instrument. Initial margin deposits required upon entering into futures contracts are satisfied by the segregation of specific securities or cash as collateral at the futures commission merchant (broker). During the period the futures contracts are open, changes in the value of the contracts are recognized as unrealized gains or losses by recalculating the value of the contracts on a daily basis. Subsequent or variation margin payments are received or made depending upon whether unrealized gains or losses are incurred. These amounts are reflected as receivables or payables on the Statement of Assets and Liabilities. When the contracts are closed or expire, the Fund recognizes a realized gain or loss equal to the difference between the proceeds from, or cost of, the closing transaction and the Fund’s basis in the contract. The net realized gain (loss) and the change in unrealized gain (loss) on futures contracts held during the period is included on the Statement of Operations. The primary risks associated with futures contracts are market risk and the absence of a liquid secondary market. If the Fund were unable to liquidate a futures contract and/or enter into an offsetting closing transaction, the Fund would continue to be subject to market risk with respect to the value of the contracts and continue to be required to maintain the margin deposits on the futures contracts. Futures contracts have minimal Counterparty risk since the exchange’s clearinghouse, as Counterparty to all exchange-traded futures, guarantees the futures against default. Risks may exceed amounts recognized in the Statement of Assets and Liabilities.

K. Collateral –To the extent the Fund has designated or segregated a security as collateral and that security is subsequently sold, it is the Fund’s practice to replace such collateral no later than the next business day. This practice does not apply to securities pledged as collateral for securities lending transactions.

Invesco V.I. S&P 500 Index 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 accrues daily and pays monthly an advisory fee to the Adviser based on the annual rate of the Fund’s average daily net assets as follows:

Average Daily Net Assets	Rate
First $2 billion		0.120%
Over $ 2 billion		0.100%

For the six months ended June 30, 2020, the effective advisory fee rate incurred by the Fund was 0.12%.

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

The Adviser has contractually agreed, through at least June 30, 2021, 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 2.00% and Series II shares to 2.25% of average daily net assets (the “expense limits”). In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause the total annual fund operating expenses after fee waiver and/or expense reimbursement to exceed the numbers reflected above: (1) interest; (2) taxes; (3) dividend expense on short sales; (4) extraordinary or non-routine items, including litigation expenses; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Unless Invesco continues the fee waiver agreement, it will terminate on June 30, 2021. During its term, the fee waiver agreement cannot be terminated or amended to increase the expense limits or reduce the advisory fee waiver without approval of the Board of Trustees. The Adviser did not waive fees and/or reimburse expenses during the period under these expense limits.

Further, the Adviser has contractually agreed, through at least June 30, 2022, 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, 2020, the Adviser waived advisory fees of $495.

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 fees paid to insurance companies that have agreed to provide certain administrative services to the Fund. These administrative services provided by the insurance companies may include, among other things: maintenance of master accounts with the Fund; tracking, recording and transmitting net purchase and redemption orders for Fund shares; maintaining and preserving records related to the purchase, redemption and other account activity of variable product owners; distributing copies of Fund documents such as prospectuses, proxy materials and periodic reports, to variable product owners, and responding to inquiries from variable product owners about the Fund. Pursuant to such agreement, for the six months ended June 30, 2020, Invesco was paid $6,601 for accounting and fund administrative services and was reimbursed $59,862 for fees paid to insurance companies. Invesco has entered into a sub-administration agreement whereby State Street Bank and Trust Company (“SSB”) serves as fund accountant and provides certain administrative services to the Fund. Pursuant to a custody agreement with the Trust on behalf of the Fund, SSB also serves as the Fund’s custodian.

The Trust has entered into a transfer agency and service agreement with Invesco Investment Services, Inc. (“IIS”) pursuant to which the Fund has agreed to pay IIS a fee for providing transfer agency and shareholder services to the Fund and reimburse IIS for certain expenses incurred by IIS in the course of providing such services. For the six months ended June 30, 2020, 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. The fees are accrued daily and paid monthly. 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, 2020, 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, 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, 2020. The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

	Level 1		Level 2	Level 3	Total
Investments in Securities
Common Stocks & Other Equity Interests	$	80,272,910	$–	$–	$	80,272,910
Money Market Funds		858,406	–	–		858,406
Total Investments in Securities		81,131,316	–	–		81,131,316

Invesco V.I. S&P 500 Index Fund

	Level 1		Level 2	Level 3	Total
Other Investments - Assets*
Futures Contracts	$	22,740	$–	$–	$	22,740
Total Investments	$	81,154,056	$–	$–	$	81,154,056

* Unrealized appreciation.

NOTE 4–Derivative Investments

The Fund may enter into an International Swaps and Derivatives Association Master Agreement (“ISDA Master Agreement”) under which a fund may trade OTC derivatives. An OTC transaction entered into under an ISDA Master Agreement typically involves a collateral posting arrangement, payment netting provisions and close-out netting provisions. These netting provisions allow for reduction of credit risk through netting of contractual obligations. The enforceability of the netting provisions of the ISDA Master Agreement depends on the governing law of the ISDA Master Agreement, among other factors.

For financial reporting purposes, the Fund does not offset OTC derivative assets or liabilities that are subject to ISDA Master Agreements in the Statement of Assets and Liabilities.

Value of Derivative Investments at Period-End

The table below summarizes the value of the Fund’s derivative investments, detailed by primary risk exposure, held as of June 30, 2020:

	Value
	Equity
Derivative Assets	Risk
Unrealized appreciation on futures contracts – Exchange-Traded(a)	$	22,740
Derivatives not subject to master netting agreements		(22,740	)
Total Derivative Assets subject to master netting agreements	$	–

^(a) The daily variation margin receivable (payable) at period-end is recorded in the Statement of Assets and Liabilities.

Effect of Derivative Investments for the six months ended June 30, 2020

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

	Location of Gain (Loss) on
	Statement of Operations
	Equity
	Risk
Realized Gain (Loss):
Futures contracts		$	(42,993	)
Change in Net Unrealized Appreciation:
Futures contracts			960
Total		$	(42,033	)

The table below summarizes the average notional value of derivatives held during the period.

	Futures
	Contracts
Average notional value	$	926,733

NOTE 5–Trustees’ and Officers’ Fees and Benefits

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

NOTE 6–Cash Balances

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

NOTE 7–Tax Information

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

Invesco V.I. S&P 500 Index 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 carryforwards in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.

The Fund did not have a capital loss carryforward as of December 31, 2019.

NOTE 8–Investment Transactions

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, 2020 was $1,028,000 and $8,053,092, respectively. Cost of investments, including any derivatives, on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end.

Unrealized Appreciation (Depreciation) of Investments on a Tax Basis

Aggregate unrealized appreciation of investments	$	57,083,523
Aggregate unrealized (depreciation) of investments		(1,464,730	)
Net unrealized appreciation of investments	$	55,618,793

Cost of investments for tax purposes is $25,535,263.

NOTE 9–Share Information

	Summary of Share Activity
	Six months ended						Year ended
	June 30, 2020(a)						December 31, 2019
	Shares			Amount			Shares			Amount
Sold:
Series I		45,901		$	782,455			101,728		$	1,853,921
Series II		70,470			1,155,128			79,690			1,455,975
Issued as reinvestment of dividends:
Series I		–			–			242,328			4,160,777
Series II		–			–			327,904			5,597,313
Reacquired:
Series I		(157,240	)		(2,776,860	)		(470,895	)		(8,690,819	)
Series II		(270,310	)		(4,715,871	)		(383,854	)		(6,954,535	)
Net increase (decrease) in share activity		(311,179	)	$	(5,555,148	)		(103,099	)	$	(2,577,368	)

^(a)  There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 89% 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 Fund 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–Coronavirus (COVID-19) Pandemic

During the first quarter of 2020, the World Health Organization declared COVID-19 to be a public health emergency. COVID-19 has led to increased short-term market volatility and may have adverse long-term effects on U.S. and world economies and markets in general. COVID-19 may adversely impact the Fund’s ability to achieve its investment objective. Because of the uncertainties on valuation, the global economy and business operations, values reflected in these financial statements may materially differ from the value received upon actual sales of those investments.

The extent of the impact on the performance of the Fund and its investments will depend on future developments, including the duration and spread of the COVID-19 outbreak, related restrictions and advisories, and the effects on the financial markets and economy overall, all of which are highly uncertain and cannot be predicted.

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, 2020 through June 30, 2020.

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.

		ACTUAL		HYPOTHETICAL (5% annual return before expenses)
	Beginning     Account Value     (01/01/20)	Ending     Account Value     (06/30/20)1	Expenses     Paid During     Period2	Ending     Account Value     (06/30/20)	Expenses     Paid During     Period2	Annualized     Expense     Ratio
Series I	$1,000.00	$967.90	$1.76	$1,023.07	$1.81	0.36%
Series II	1,000.00	966.60	2.98	1,021.83	3.07	0.61

¹  The actual ending account value is based on the actual total return of the Fund for the period January 1, 2020 through June 30, 2020, 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 182/366 to reflect the most recent fiscal half year.

Invesco V.I. S&P 500 Index Fund

Approval of Investment Advisory and Sub-Advisory Contracts

At meetings held on June 3, 2020, the Board of Trustees (the Board or the Trustees) of AIM Variable Insurance Funds (Invesco Variable Insurance Funds) as a whole, and the independent Trustees, who comprise over 75% of the Board, voting separately, approved the continuance of the Invesco V.I. S&P 500 Index Fund’s (the Fund) Master Investment Advisory Agreement with Invesco Advisers, Inc. (Invesco Advisers and the investment advisory agreement) and the Master Intergroup Sub-Advisory Contract for Mutual Funds with Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Canada Ltd. and separate sub-advisory contracts with Invesco Capital Management LLC and Invesco Asset Management (India) Private Limited (collectively, the Affiliated Sub-Advisers and the sub-advisory contracts) for another year, effective July 1, 2020. After evaluating the factors discussed below, among others, the Board approved the renewal of the Fund’s investment advisory agreement and the sub-advisory contracts and determined that the compensation payable thereunder by the Fund to Invesco Advisers and by Invesco Advisers to the Affiliated Sub-Advisers is fair and reasonable.

The Board’s Evaluation Process

The Board’s Investments Committee has established Sub-Committees, which meet throughout the year to review the performance of funds advised by Invesco Advisers (the Invesco Funds). The Sub-Committees meet regularly with portfolio managers for their assigned Invesco Funds and other members of management to review detailed information about investment performance and portfolio attributes of these funds. The Board took into account evaluations and reports that it received from the Investments Committee and Sub-Committees, as well as the information provided to such committees and the Board throughout the year, in considering whether to approve each Invesco Fund’s investment advisory agreement and sub-advisory contracts.

    As part of the contract renewal process, the Board reviews and considers information provided in response to detailed requests for information submitted to management by the independent Trustees with assistance from legal counsel to the independent Trustees. The Board receives comparative investment performance and fee data regarding the Invesco Funds prepared by Invesco Advisers and Broadridge Financial Solutions, Inc. (Broadridge), an independent mutual fund data provider, as well as information on the composition of the peer groups provided by Broadridge and its methodology for determining peer groups. The Board also receives an independent written evaluation from the Senior Officer, an officer of the Invesco Funds who reports directly to the independent Trustees. 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. In addition to meetings with Invesco Advisers and fund counsel throughout the year, the independent Trustees also

discuss the continuance of the investment advisory agreement and sub-advisory contracts in separate sessions with the Senior Officer and with independent legal counsel.

    The discussion below is a summary of 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. The Trustees’ review and conclusions are based on the comprehensive consideration of all information presented to them during the course of the year and in prior years and are not the result of any single determinative factor. Moreover, one Trustee may have weighed a particular piece of information or factor differently than another Trustee. This information is current as of June 3, 2020.

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 nature, extent and quality of the advisory services provided to the Fund by Invesco Advisers under the Fund’s investment advisory agreement, and the credentials and experience of the officers and employees of Invesco Advisers who provide these services, including the Fund’s portfolio manager(s). The Board’s review included consideration of Invesco Advisers’ investment process oversight and structure, credit analysis, investment risk management and research capabilities. The Board also considered non-advisory services that Invesco Advisers and its affiliates provide to the Invesco Funds, such as various back office support functions, third party oversight, internal audit, valuation, portfolio trading and legal and compliance. The Board also received and reviewed information about Invesco Advisers’ role as administrator of the Invesco Funds’ liquidity risk management program. The Board reviewed and considered the benefits to shareholders of investing in a Fund that is part of the Invesco family of funds under the umbrella of Invesco Ltd., Invesco Advisers’ parent company, and noted Invesco Ltd.’s depth and experience in conducting an investment management business, as well as its commitment of financial and other resources to such business. The Board also reviewed and considered information regarding the benefits to the Fund resulting from Invesco Ltd.’s acquisition of OppenheimerFunds, Inc. and its subsidiaries (the Transaction) and the resources that Invesco Advisers has committed to managing the Invesco family of funds following the Transaction. The Board concluded that the nature, extent and quality of the services provided to the Fund by Invesco Advisers are appropriate and satisfactory.

    The Board reviewed the services that may be 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 the Affiliated Sub-Advisers’ expertise with respect to certain asset classes and that the Affiliated Sub-Advisers have offices and personnel that are located in financial centers around the world.

As a result, the Board noted that the Affiliated Sub-Advisers can provide research and investment analysis on the markets and economies of various countries in which the Fund may invest, make recommendations regarding securities and assist with security trades. The Board concluded that the sub-advisory contracts may 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 that may be provided by the Affiliated Sub-Advisers are appropriate and satisfactory.

B. Fund Investment Performance

The Board considered Fund investment performance as a relevant factor in considering whether to approve the investment advisory agreement. The Board did not view Fund investment 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 investment performance over multiple time periods ending December 31, 2019 to the performance of funds in the Broadridge performance universe and against the S&P 500^® Index. The Board noted that performance of Series I shares of the Fund was in the fourth quintile of its performance universe for the one, three and five year periods (the first quintile being the best performing funds and the fifth quintile being the worst performing funds). The Board noted that performance of Series I shares of the Fund was reasonably comparable to the performance of the Index for the one, three and five year periods. The Board noted that the Fund is passively managed and discussed reasons for differences in the Fund’s performance versus its peers and the Index. The Board recognized that the performance data reflects a snapshot in time as of a particular date and that selecting a different performance period could produce different results. The Board also reviewed more recent Fund performance as well as other performance metrics and this review did not change their conclusions.

C. Advisory and Sub-Advisory Fees and Fund Expenses

The Board compared the Fund’s contractual management fee rate to the contractual management fee rates of funds in the Fund’s Broadridge expense group. The Board noted that the contractual management fee rate for Series I shares of the Fund was below the median contractual management fee rate of funds in its expense group. The Board noted that the term “contractual management fee” for funds in the expense group may include both advisory and certain non-portfolio management administrative services fees, but that Broadridge does not provide information on a fund by fund basis as to what is included. The Board also reviewed the methodology used by Broadridge in providing expense group information, which includes using each fund’s contractual management fee schedule (including any applicable breakpoints) as reported in the most recent prospectus or statement of additional information for each fund in the expense group. The Board also considered comparative information regarding the Fund’s total expense ratio and its various components.

Invesco V.I. S&P 500 Index Fund

    The Board noted that Invesco Advisers has contractually agreed to waive fees and/or limit expenses of the Fund for the term disclosed in the Fund’s registration statement 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 fees charged by Invesco Advisers and the Affiliated Sub-Advisers to other similarly managed client accounts. Invesco Advisers reviewed with the Board differences in the scope of services it provides to the Invesco Funds relative to certain other types of client accounts, including, among others: management of cash flows as a result of redemptions and purchases; necessary infrastructure such as officers, office space, technology, legal and distribution; oversight of service providers; costs and business risks associated with launching new funds and sponsoring and maintaining the product line; and compliance with federal and state laws and regulations.

    The Board also considered the services that may be provided by the Affiliated Sub-Advisers pursuant to the sub-advisory contracts, as well as the fees payable by Invesco Advisers to the Affiliated Sub-Advisers pursuant to the sub-advisory contracts.

D. Economies of Scale and Breakpoints

The Board considered the extent to which there may be economies of scale in the provision of advisory services to the Fund. The Board also considered that the Fund may benefit from economies of scale through contractual breakpoints in the Fund’s advisory fee schedule, which generally operate to reduce the Fund’s expense ratio as it grows in size. The Board 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. The Board noted that the Fund may also benefit from economies of scale through initial fee setting, fee waivers and expense reimbursements. The Board also considered Invesco’s reinvestment in its business, including investments in business infrastructure, technology and cybersecurity.

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 Invesco Funds and the profitability of Invesco Advisers and its affiliates in providing these services in the aggregate and on an individual Fund-by-Fund basis. The Board considered the methodology used for calculating profitability and noted the periodic review and enhancement of such methodology. The Board noted that Invesco Advisers continues to operate at a net profit from services Invesco Advisers and its affiliates provide to the Invesco Funds in the aggregate and to certain Funds on an individual fund level. The Board did not deem the level of profits realized by Invesco Advisers and its affiliates from providing such services to be excessive given the nature, extent and quality of the services provided. The Board received information from Invesco Advisers demonstrating that Invesco Advisers and the Affiliated Sub-Advisers are financially sound and have the resources necessary to perform their obligations under the investment advisory agreement and sub-advisory contracts.

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 providing administrative, transfer agency and distribution services to the Fund. The Board considered comparative information regarding fees charged for these services, including information provided by Broadridge and other independent sources. 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; and that the services are required for the operation of the Fund.

    The Board considered the benefits realized by Invesco Advisers and the Affiliated Sub-Advisers as a result of portfolio brokerage transactions executed through “soft dollar” arrangements. The Board noted that soft dollar arrangements may result in the Fund bearing costs to purchase research that may be used by Invesco Advisers or the Affiliated Sub-Advisers with other clients and may reduce Invesco Advisers’ or the Affiliated Sub-Advisers’ expenses. The Board also considered that it receives periodic reports from Invesco representing that these arrangements are consistent with regulatory requirements. The Board did not deem the soft dollar arrangements to be inappropriate.

    The Board considered that the Fund’s uninvested cash and cash collateral from any securities lending arrangements may be invested in registered money market funds or, with regard to securities lending cash collateral, unregistered funds that comply with Rule 2a-7 (collectively referred to as “affiliated money market funds”) advised by Invesco Advisers pursuant to procedures approved by the Board. The Board considered information regarding the returns of the affiliated money market funds relative to comparable overnight investments, as well as the costs to the Fund of such investments. 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 with respect to certain investments in the affiliated money market 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 amount of advisory fees received by Invesco Advisers from the Fund’s investment of cash collateral from any securities lending arrangements in the affiliated money market funds is fair and reasonable.

    The Board also considered that an affiliated broker may receive commissions for executing certain trades for the Fund. Invesco Advisers and the Affiliated Sub-Advisers may use the affiliated broker to, among other things, control order routing and minimize information leakage, and the Board was advised that such trades are executed in compliance with rules under the federal securities laws and consistent with best execution obligations.

Invesco V.I. S&P 500 Index Fund

	Semiannual Report to Shareholders	June 30, 2020
	Invesco V.I. Small Cap Equity Fund

Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, the insurance company that offers your variable annuity or variable life insurance contract may no longer send you paper copies of the Fund’s shareholder reports by mail, unless you specifically request paper copies of the reports from the insurance company or your financial intermediary. Instead of delivering paper copies of the report, the insurance company may choose to make the reports available on a website, and will notify you by mail each time a report is posted and provide you with a website link to access the report. Instructions for requesting paper copies will be provided by your insurance company.

If the insurance company offers electronic delivery, you may elect to receive shareholder reports and other communications about the Fund electronically by following the instructions provided by the insurance company or by contacting your financial intermediary. If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action.

You may elect to receive all future reports in paper free of charge from the insurance company. You can inform the insurance company or your financial intermediary that you wish to continue receiving paper copies of your shareholder reports by following the instructions provided by the insurance company or by contacting your financial intermediary. Your election to receive reports in paper will apply to all portfolio companies available under your contract with the insurance company.

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) as an exhibit to its reports on Form N-PORT. The Fund’s Form N-PORT filings are available on the SEC website, 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-PORT, 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 most recent 12-month period ended June 30 is available at invesco.com/proxysearch. The information is also available on the SEC website, sec.gov.

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

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.

NOT FDIC INSURED  |  MAY LOSE VALUE  |  NO BANK GUARANTEE

Invesco Distributors, Inc. VISCE-SAR-1                                 

Fund Performance

Performance summary
Fund vs. Indexes
Cumulative total returns, 12/31/19 to 6/30/20, excluding variable product issuer charges. If variable product issuer charges were included, returns would be lower.
Series I Shares	-8.06%
Series II Shares	-8.25
S&P 500 Indexq (Broad Market Index)	-3.08
Russell 2000 Indexq (Style-Specific Index)	-12.98
Lipper VUF Small-Cap Core Funds Index∎ (Peer Group Index)	-16.77
Source(s): qRIMES Technologies Corp.; ∎Lipper Inc.
The S&P 500® Index is an unmanaged index considered representative of the US 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) described here, and consequently, the performance of the Fund may deviate significantly from the performance of the index(es). A direct investment cannot be made in an index. Unless otherwise indicated, index results include reinvested dividends, and they do not reflect sales charges. Performance of the peer group, if applicable, reflects fund expenses; performance of a market index does not.

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 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. Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares. Investment return and principal value will

fluctuate so that you may have a gain or loss when you sell shares.

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.

Average Annual Total Returns  As of 6/30/20
Series I Shares
Inception (8/29/03)	7.51	%
10 Years	9.42
5 Years	2.46
1 Year	-2.47
Series II Shares
Inception (8/29/03)	7.25	%
10 Years	9.15
5 Years	2.19
1 Year	-2.70

The most recent month-end performance 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.

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

Invesco V.I. Small Cap Equity Fund

Liquidity Risk Management Program

The Securities and Exchange Commission has adopted Rule 22e-4 under the Investment Company Act of 1940 (the “Liquidity Rule”) in order to promote effective liquidity risk management throughout the open-end investment company industry, thereby reducing the risk that funds will be unable to meet their redemption obligations and mitigating dilution of the interests of fund shareholders. The Fund has adopted and implemented a liquidity risk management program in accordance with the Liquidity Rule (the “Program”). The Program is reasonably designed to assess and manage the Fund’s liquidity risk, which is the risk that the Fund could not meet redemption requests without significant dilution of remaining investors’ interests in the Fund. The Board of Trustees of the Fund (the “Board”) has appointed Invesco Advisers, Inc. (“Invesco”), the Fund’s investment adviser, as the Program’s administrator, and Invesco has delegated oversight of the Program to the Liquidity Risk Management Committee (the “Committee”), which is composed of senior representatives from relevant business groups at Invesco.

As required by the Liquidity Rule, the Program includes policies and procedures providing for an assessment, no less frequently than annually, of the Fund’s liquidity risk that takes into account, as relevant to the Fund’s liquidity risk: (1) the Fund’s investment strategy and liquidity of portfolio investments during both normal and reasonably foreseeable stressed conditions; (2) short-term and long-term cash flow projections for the Fund during both normal and reasonably foreseeable stressed conditions; and (3) the Fund’s holdings of cash and cash equivalents and any borrowing arrangements. The Liquidity Rule also requires the classification of the Fund’s investments into categories that reflect the assessment of their relative liquidity under current market conditions. The Fund classifies its investments into one of four categories defined in the Liquidity Rule: “Highly Liquid,” “Moderately Liquid,” “Less Liquid” and “Illiquid.” Funds that are not invested primarily in “Highly Liquid Investments” that are assets (cash or investments that are reasonably expected to be convertible into cash within three business days without significantly changing the market value of the investment) are required to establish a “Highly Liquid Investment Minimum” (“HLIM”), which is the minimum percentage of net assets that must be invested in Highly Liquid Investments. Funds with HLIMs have procedures for addressing HLIM shortfalls, including reporting to the Board and the SEC (on a non-public basis) as required by the Program and the Liquidity Rule. In addition, the Fund may not acquire an investment if, immediately after the acquisition, over 15% of the Fund’s net assets would consist of “Illiquid Investments” that are assets (an investment that cannot reasonably be expected to be sold or disposed of in current market conditions in seven calendar days or less without the sale or disposition significantly changing the market value of the investment). The Liquidity Rule and the Program also require reporting to the Board and the SEC (on a non-public basis) if a Fund’s holdings of Illiquid Investments exceed 15% of the Fund’s assets.

At a meeting held on March 30-April 1, 2020, the Committee presented a report to the Board that addressed the operation of the Program and assessed the Program’s adequacy and effectiveness of implementation (the “Report”). The Report covered the period from December 1, 2018 through December 31, 2019 (the “Program Reporting Period”).

The Report stated, in relevant part, that during the Program Reporting Period:

∎ The Program, as adopted and implemented, remained reasonably designed to assess and manage the Fund’s liquidity risk and was operated effectively to achieve that goal;

∎ The Fund’s investment strategy remained appropriate for an open-end fund;

∎ The Fund was able to meet requests for redemption without significant dilution of remaining investors’ interests in the Fund;

∎ The Fund did not breach the 15% limit on Illiquid Investments; and

∎ The Fund primarily held Highly Liquid Investments and therefore has not adopted an HLIM.

Invesco V.I. Small Cap Equity Fund

Schedule of Investments^(a)

June 30, 2020

(Unaudited)

	Shares		Value
Common Stocks & Other Equity Interests–98.66%
Aerospace & Defense–1.73%
Cubic Corp.		39,766	$	1,909,961
Curtiss-Wright Corp.		16,097		1,437,140
				3,347,101
Alternative Carriers–1.61%
Iridium Communications, Inc.(b)		122,354		3,112,686
Apparel Retail–1.59%
American Eagle Outfitters, Inc.		109,340		1,191,806
Boot Barn Holdings, Inc.(b)		53,500		1,153,460
Children’s Place, Inc. (The)(c)		19,059		713,188
				3,058,454
Application Software–7.48%
Avalara, Inc.(b)		28,436		3,784,547
LivePerson, Inc.(b)		23,981		993,533
Manhattan Associates, Inc.(b)		28,820		2,714,844
Nuance Communications, Inc.(b)		95,268		2,410,757
Paylocity Holding Corp.(b)		16,628		2,425,859
Q2 Holdings, Inc.(b)		24,516		2,103,227
				14,432,767
Asset Management & Custody Banks–0.35%
Blucora, Inc.(b)		58,955		673,266
Auto Parts & Equipment–0.91%
Visteon Corp.(b)		25,526		1,748,531
Biotechnology–1.14%
Neurocrine Biosciences, Inc.(b)		18,096		2,207,712
Building Products–2.91%
Masonite International Corp.(b)		25,112		1,953,211
Owens Corning		39,124		2,181,554
Trex Co., Inc.(b)		11,336		1,474,474
				5,609,239
Casinos & Gaming–1.23%
Penn National Gaming, Inc.(b)		77,568		2,368,927
Communications Equipment–2.58%
Ciena Corp.(b)		45,130		2,444,241
Lumentum Holdings, Inc.(b)		31,113		2,533,531
				4,977,772
Construction & Engineering–2.13%
Dycom Industries, Inc.(b)		54,695		2,236,479
NV5 Global, Inc.(b)		36,750		1,868,002
				4,104,481
Construction Materials–1.98%
Eagle Materials, Inc.		25,779		1,810,201
Summit Materials, Inc., Class A(b)		124,899		2,008,376
				3,818,577
Consumer Finance–1.07%
OneMain Holdings, Inc.		83,886		2,058,562

	Shares		Value
Diversified Support Services–0.99%
Mobile Mini, Inc.		64,702	$	1,908,709
Education Services–0.92%
Strategic Education, Inc.		11,597		1,781,879
Electric Utilities–0.72%
IDACORP, Inc.		15,839		1,383,853
Electrical Components & Equipment–1.14%
EnerSys		34,011		2,189,628
Electronic Equipment & Instruments–1.99%
Badger Meter, Inc.		33,229		2,090,769
Coherent, Inc.(b)		13,370		1,751,202
				3,841,971
Environmental & Facilities Services–1.43%
BrightView Holdings, Inc.(b)		78,998		884,777
Casella Waste Systems, Inc., Class A(b)		35,914		1,871,838
				2,756,615
Fertilizers & Agricultural Chemicals–0.85%
Scotts Miracle-Gro Co. (The)		12,212		1,642,148
Financial Exchanges & Data–1.41%
TMX Group Ltd. (Canada)		27,593		2,728,203
Food Retail–1.10%
Sprouts Farmers Market, Inc.(b)		82,945		2,122,563
Footwear–2.96%
Crocs, Inc.(b)		93,397		3,438,877
Wolverine World Wide, Inc.		95,622		2,276,760
				5,715,637
Health Care Equipment–3.35%
CONMED Corp.		24,521		1,765,267
Hill-Rom Holdings, Inc.		22,117		2,428,004
STERIS PLC		14,734		2,260,785
				6,454,056
Health Care Facilities–1.87%
Acadia Healthcare Co., Inc.(b)		60,047		1,508,380
Encompass Health Corp.		33,888		2,098,684
				3,607,064
Health Care REITs–0.97%
Healthcare Trust of America, Inc., Class A		70,315		1,864,754
Health Care Supplies–0.89%
ICU Medical, Inc.(b)		9,281		1,710,581
Homebuilding–1.40%
Taylor Morrison Home Corp., Class A(b)		140,468		2,709,628
Hotel & Resort REITs–1.09%
Ryman Hospitality Properties, Inc.		61,031		2,111,673
Hotels, Resorts & Cruise Lines–0.96%
Wyndham Destinations, Inc.		66,059		1,861,543

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

Invesco V.I. Small Cap Equity Fund

	Shares		Value
Industrial Machinery–3.10%
Altra Industrial Motion Corp.		79,009	$	2,517,227
Gates Industrial Corp. PLC(b)		171,718		1,765,261
SPX Corp.(b)		41,165		1,693,940
				5,976,428
Industrial REITs–2.13%
EastGroup Properties, Inc.		16,849		1,998,460
STAG Industrial, Inc.		71,849		2,106,613
				4,105,073
Investment Banking & Brokerage–2.25%
LPL Financial Holdings, Inc.		31,100		2,438,240
Piper Sandler Cos.		32,040		1,895,486
				4,333,726
Life & Health Insurance–1.06%
Primerica, Inc.		17,616		2,054,026
Life Sciences Tools & Services–2.36%
Medpace Holdings, Inc.(b)		19,954		1,856,121
NeoGenomics, Inc.(b)		87,339		2,705,762
				4,561,883
Multi-line Insurance–0.90%
Assurant, Inc.		16,892		1,744,775
Oil & Gas Exploration & Production–1.64%
Diamondback Energy, Inc.		36,424		1,523,252
Parsley Energy, Inc., Class A		152,771		1,631,594
				3,154,846
Packaged Foods & Meats–0.79%
Calavo Growers, Inc.		24,299		1,528,650
Paper Packaging–0.84%
Graphic Packaging Holding Co.		115,682		1,618,391
Pharmaceuticals–1.64%
Horizon Therapeutics PLC(b)		56,820		3,158,056
Property & Casualty Insurance–1.47%
Hanover Insurance Group, Inc. (The)		14,308		1,449,830
Selective Insurance Group, Inc.		26,158		1,379,573
				2,829,403
Real Estate Services–1.34%
FirstService Corp. (Canada)		25,657		2,584,410
Regional Banks–6.58%
Columbia Banking System, Inc.		63,182		1,790,894
Community Bank System, Inc.		31,940		1,821,219
Glacier Bancorp, Inc.		49,305		1,739,973
Pacific Premier Bancorp, Inc.		65,540		1,420,907
Pinnacle Financial Partners, Inc.		35,023		1,470,616
South State Corp.		25,285		1,205,083
Webster Financial Corp.		50,652		1,449,154
Western Alliance Bancorporation		47,494		1,798,598
				12,696,444
Research & Consulting Services–1.04%
Huron Consulting Group, Inc.(b)		45,125		1,996,781
Restaurants–1.67%
Papa John’s International, Inc.		19,614		1,557,548

	Shares		Value
Restaurants–(continued)
Wendy’s Co. (The)		76,180	$	1,659,200
				3,216,748
Semiconductor Equipment–2.45%
Brooks Automation, Inc.		47,987		2,122,945
Entegris, Inc.		44,066		2,602,097
				4,725,042
Semiconductors–5.02%
Lattice Semiconductor Corp.(b)		109,856		3,118,812
MACOM Technology Solutions Holdings, Inc.(b)		57,892		1,988,590
Power Integrations, Inc.		18,662		2,204,542
Semtech Corp.(b)		45,580		2,380,188
				9,692,132
Specialized Consumer Services–0.94%
ServiceMaster Global Holdings, Inc.(b)		50,551		1,804,165
Specialized REITs–1.12%
Gaming and Leisure Properties, Inc.		62,708		2,169,697
Specialty Chemicals–1.03%
Ashland Global Holdings, Inc.		28,794		1,989,665
Systems Software–0.97%
Rapid7, Inc.(b)		36,584		1,866,516
Thrifts & Mortgage Finance–1.50%
Essent Group Ltd.		44,457		1,612,455
Radian Group, Inc.		82,963		1,286,756
				2,899,211
Tires & Rubber–0.90%
Cooper Tire & Rubber Co.		62,838		1,734,957
Trading Companies & Distributors–2.18%
Applied Industrial Technologies, Inc.		33,247		2,074,281
Univar Solutions, Inc.(b)		126,798		2,137,814
				4,212,095
Trucking–2.40%
Knight-Swift Transportation Holdings, Inc.		57,928		2,416,177
Old Dominion Freight Line, Inc.		13,077		2,217,728
				4,633,905
Water Utilities–0.59%
California Water Service Group		23,971		1,143,417
Total Common Stocks & Other Equity Interests (Cost $169,688,822)				190,339,022
Money Market Funds–1.17%
Invesco Government & Agency Portfolio, Institutional Class, 0.09%(d)(e)		854,586		854,586
Invesco Liquid Assets Portfolio, Institutional Class, 0.39%(d)(e)		429,294		429,594
Invesco Treasury Portfolio, Institutional Class, 0.08%(d)(e)		976,669		976,669
Total Money Market Funds (Cost $2,260,849)				2,260,849
TOTAL INVESTMENTS IN SECURITIES (excluding investments purchased with cash collateral from securities on loan)-99.83% (Cost $171,949,671)				192,599,871

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

Invesco V.I. Small Cap Equity Fund

	Shares		Value
Investments Purchased with Cash Collateral from Securities on Loan
Money Market Funds-0.25%
Invesco Private Government Fund, 0.05%(d)(e)(f)		367,667	$	367,667
Invesco Private Prime Fund, 0.11%(d)(e)(f)		122,531		122,555
Total Investments Purchased with Cash Collateral from Securities on Loan (Cost $490,211)				490,222
TOTAL INVESTMENTS IN SECURITIES-100.08% (Cost $172,439,882)				193,090,093
OTHER ASSETS LESS LIABILITIES-(0.08)%				(160,646	)
NET ASSETS-100.00%			$	192,929,447

Investment Abbreviations:

REIT – Real Estate Investment Trust

Notes to Schedule of Investments:

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

^(b) Non-income producing security.

^(c) All or a portion of this security was out on loan at June 30, 2020.

^(d) Affiliated issuer. The issuer and/or the Fund is a wholly-owned subsidiary of Invesco Ltd., or is affiliated by having an investment adviser that is under common control of Invesco Ltd. The table below shows the Fund’s transactions in, and earnings from, its investments in affiliates for the six months ended June 30, 2020.

								Change in
								Unrealized
	Value		Purchases		Proceeds			Appreciation			Realized		Value		Dividend
	December 31, 2019		at Cost		from Sales			(Depreciation)			Gain		June 30, 2020		Income
Investments in Affiliated Money Market Funds:
Invesco Government & Agency Portfolio, Institutional Class		$1,445,484		$10,123,731		$(10,714,629)			$      -			$        -		$    854,586		$2,805
Invesco Liquid Assets Portfolio, Institutional Class		1,043,617		7,231,236		(7,846,745	)		(108	)		1,594		429,594		3,073
Invesco Treasury Portfolio, Institutional Class		1,651,983		11,569,978		(12,245,292	)		-			-		976,669		2,858
Investments Purchased with Cash Collateral from Securities on Loan:
Invesco Government & Agency Portfolio, Institutional Class		795,743		39,346,745		(40,142,488	)		-			-		-		37
Invesco Liquid Assets Portfolio, Institutional Class		265,247		12,650,634		(12,915,881	)		-			-		-		19
Invesco Private Government Fund		-		15,300,736		(14,933,069	)		-			-		367,667		51
Invesco Private Prime Fund		-		755,465		(632,910	)		-			-		122,555		10
Total		$5,202,074		$96,978,525		$(99,431,014	)		$(108	)		$1,594		$2,751,071		$8,853

^(e) The rate shown is the 7-day SEC standardized yield as of June 30, 2020.

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

Portfolio Composition

By sector, based on Net Assets

as of June 30, 2020

Information Technology	20.50%
Industrials	19.04
Financials	16.60
Consumer Discretionary	13.48
Health Care	11.25
Real Estate	6.65
Materials	4.70
Other Sectors, Each Less than 2% of Net Assets	6.44
Money Market Funds Plus Other Assets Less Liabilities	1.34

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, 2020

(Unaudited)

Assets:
Investments in securities, at value (Cost $169,688,822)*	$	190,339,022
Investments in affiliated money market funds, at value (Cost $2,751,060)		2,751,071
Foreign currencies, at value (Cost $11,518)		11,559
Receivable for:
Investments sold		333,138
Fund shares sold		308,804
Dividends		76,742
Investment for trustee deferred compensation and retirement plans		75,992
Total assets		193,896,328
Liabilities:
Payable for:
Fund shares reacquired		270,203
Collateral upon return of securities loaned		490,211
Accrued fees to affiliates		92,299
Accrued trustees’ and officers’ fees and benefits		2,806
Accrued other operating expenses		27,151
Trustee deferred compensation and retirement plans		84,211
Total liabilities		966,881
Net assets applicable to shares outstanding	$	192,929,447
Net assets consist of:
Shares of beneficial interest	$	159,111,959
Distributable earnings		33,817,488
	$	192,929,447
Net Assets:
Series I	$	104,296,646
Series II	$	88,632,801
Shares outstanding, no par value, with an unlimited number of shares authorized:
Series I		6,399,750
Series II		5,819,068
Series I:
Net asset value per share	$	16.30
Series II:
Net asset value per share	$	15.23
*   At June 30, 2020, securities with an aggregate value of $478,715 were on loan to brokers.

Statement of Operations

For the six months ended June 30, 2020

(Unaudited)

Investment income:
Dividends (net of foreign withholding taxes of $5,280)	$	913,158
Dividends from affiliated money market funds (includes securities lending income of $117)		8,853
Total investment income		922,011
Expenses:
Advisory fees		682,338
Administrative services fees		152,520
Custodian fees		641
Distribution fees - Series II		103,156
Transfer agent fees		14,067
Trustees’ and officers’ fees and benefits		8,511
Reports to shareholders		1,047
Professional services fees		13,272
Other		90
Total expenses		975,642
Less: Fees waived		(1,940	)
Net expenses		973,702
Net investment income (loss)		(51,691	)
Realized and unrealized gain (loss) from:
Net realized gain (loss) from:
Investment securities (includes net gains from securities sold to affiliates of $72,814)		(5,117,769	)
Foreign currencies		273
		(5,117,496	)
Change in net unrealized appreciation (depreciation) of:
Investment securities		(11,666,330	)
Foreign currencies		(136	)
		(11,666,466	)
Net realized and unrealized gain (loss)		(16,783,962	)
Net increase (decrease) in net assets resulting from operations	$	(16,835,653	)

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, 2020 and the year ended December 31, 2019

(Unaudited)

	June 30, 2020			December 31, 2019
Operations:
Net investment income (loss)	$	(51,691	)	$	529,966
Net realized gain (loss)		(5,117,496	)		29,137,765
Change in net unrealized appreciation (depreciation)		(11,666,466	)		25,301,514
Net increase (decrease) in net assets resulting from operations		(16,835,653	)		54,969,245
Distributions to shareholders from distributable earnings:
Series I		–			(13,821,130	)
Series II		–			(18,517,603	)
Total distributions from distributable earnings		–			(32,338,733	)
Share transactions–net:
Series I		(5,124,155	)		(1,229,864	)
Series II		(1,361,271	)		(30,878,941	)
Net increase (decrease) in net assets resulting from share transactions		(6,485,426	)		(32,108,805	)
Net increase (decrease) in net assets		(23,321,079	)		(9,478,293	)
Net assets:
Beginning of period		216,250,526			225,728,819
End of period	$	192,929,447		$	216,250,526

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

Invesco V.I. Small Cap Equity Fund

Financial Highlights

(Unaudited)

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
						(losses)																net assets			assets without			investment
	Net asset		Net			on securities						Distributions										with fee waivers			fee waivers			income
	value,		investment			(both			Total from			from net			Net asset					Net assets,		and/or			and/or			(loss)
	beginning		income			realized and			investment			realized			value, end		Total			end of period		expenses			expenses			to average			Portfolio
	of period		(loss)(a)			unrealized)			operations			gains			of period		return (b)			(000’s omitted)		absorbed			absorbed			net assets			turnover (c)
Series I
Six months ended 06/30/20		$17.73		$ 0.00			$(1.43)			$(1.43)		$	–			$16.30		(8.06	)%		$104,297		0.95	%(d)		0.95	%(d)		0.06	%(d)		25	%
Year ended 12/31/19		15.93		0.06			4.03			4.09			(2.29	)		17.73		26.60			118,208		0.96			0.96			0.34			44
Year ended 12/31/18		20.02		0.02			(2.74	)		(2.72	)		(1.37	)		15.93		(15.08	)		106,064		0.96			0.96			0.10			22
Year ended 12/31/17		18.38		(0.01	)		2.53			2.52			(0.88	)		20.02		14.06			149,405		0.97			0.97			(0.02	)		20
Year ended 12/31/16		17.64		0.01			2.06			2.07			(1.33	)		18.38		12.06			161,727		1.01			1.01			0.04			37
Year ended 12/31/15		23.64		0.00			(1.27	)		(1.27	)		(4.73	)		17.64		(5.52	)		166,407		1.04			1.04			0.02			31
Series II
Six months ended 06/30/20		16.60		(0.01	)		(1.36	)		(1.37	)		–			15.23		(8.25	)		88,633		1.20	(d)		1.20	(d)		(0.19	)(d)		25
Year ended 12/31/19		15.07		0.02			3.80			3.82			(2.29	)		16.60		26.32			98,043		1.21			1.21			0.09			44
Year ended 12/31/18		19.05		(0.03	)		(2.58	)		(2.61	)		(1.37	)		15.07		(15.27	)		119,664		1.21			1.21			(0.15	)		22
Year ended 12/31/17		17.58		(0.05	)		2.40			2.35			(0.88	)		19.05		13.73			157,349		1.22			1.22			(0.27	)		20
Year ended 12/31/16		16.96		(0.03	)		1.98			1.95			(1.33	)		17.58		11.84			148,883		1.26			1.26			(0.21	)		37
Year ended 12/31/15		22.97		(0.05	)		(1.23	)		(1.28	)		(4.73	)		16.96		(5.74	)		128,614		1.29			1.29			(0.23	)		31

^(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 $101,227 and $82,957 for Series I and Series II shares, respectively.

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

Invesco V.I. Small Cap Equity Fund

Notes to Financial Statements

June 30, 2020

(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. Information presented in these financial statements pertains only to the Fund. Matters affecting the Fund or each class will be voted on exclusively by the shareholders of the Fund or each class. 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 Fund is an investment company and accordingly follows the investment company accounting and reporting guidance in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 946, Financial Services – Investment Companies.

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

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

A security listed or traded on an exchange (except convertible securities) is valued at its last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded, or lacking any sales or official closing price on a particular day, the security may be valued at the closing bid price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued by an independent pricing service they may be considered fair valued. Futures contracts are valued at the final settlement price set by an exchange on which they are principally traded. Listed options are valued at the mean between the last bid and asked 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 asked prices. For purposes of determining net asset value (“NAV”) per share, futures and option contracts generally are valued 15 minutes after the close of the customary trading session of the New York Stock Exchange (“NYSE”).

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

Debt obligations (including convertible securities) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. Pricing services generally value debt obligations assuming orderly transactions of institutional round lot size, but a fund may hold or transact in the same securities in smaller, odd lot sizes. Odd lots often trade at lower prices than institutional round lots. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.

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

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

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

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

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

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

Invesco V.I. Small Cap Equity Fund

share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and the Statement of Changes in Net Assets, or the net investment income per share and the ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.

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

C. Country Determination – For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues 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 net investment income and net realized capital gain, if any, are generally declared and paid to separate accounts of participating insurance companies annually and recorded on the ex-dividend date.

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

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

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

F. Expenses – Fees provided for under the Rule 12b-1 plan of a particular class of the Fund and which are directly attributable to that class are charged to the operations of such class. All other expenses are allocated among the classes based on relative net assets.

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

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

I. 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. The Fund bears the risk of loss with respect to the investment of collateral. It is the Fund’s policy to obtain additional collateral from or return excess collateral to the borrower by the end of the next business day, following the valuation date of the securities loaned. Therefore, the value of the collateral held may be temporarily less than the value of the securities on loan. When loaning securities, the Fund retains certain benefits of owning the securities, including the economic equivalent of dividends or interest generated by the security. Lending securities entails a risk of loss to the Fund if, and to the extent that, the market value of the securities loaned were to increase and the borrower did not increase the collateral accordingly, and the borrower failed to return the securities. The securities loaned are subject to termination at the option of the borrower or the Fund. Upon termination, the borrower will return to the Fund the securities loaned and the Fund will return the collateral. Upon the failure of the borrower to return the securities, collateral may be liquidated and the securities may be purchased on the open market to replace the loaned securities. The Fund could experience delays and costs in gaining access to the collateral and the securities may lose value during the delay which could result in potential losses to the Fund. Some of these losses may be indemnified by the lending agent. The Fund bears the risk of any deficiency in the amount of the collateral available for return to the borrower due to any loss on the collateral invested. Dividends received on cash collateral investments for securities lending transactions, which are net of compensation to counterparties, are included in Dividends from affiliated money market funds on the Statement of Operations. The aggregate value of securities out on loan, if any, is shown as a footnote on the Statement of Assets and Liabilities.

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

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

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

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

Invesco V.I. Small Cap Equity Fund

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

NOTE 2–Advisory Fees and Other Fees Paid to Affiliates

The Trust has entered into a master investment advisory agreement with Invesco Advisers, Inc. (the “Adviser” or “Invesco”). Under the terms of the investment advisory agreement, the Fund accrues daily and pays monthly an 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	%

For the six months ended June 30, 2020, the effective advisory fee rate incurred by the Fund was 0.74%.

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

The Adviser has contractually agreed, through at least June 30, 2021, 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 2.00% and Series II shares to 2.25% of average daily net assets (the “expense limits”). In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause the total annual fund operating expenses after fee waiver and/or expense reimbursement to exceed the numbers reflected above: (1) interest; (2) taxes; (3) dividend expense on short sales; (4) extraordinary or non-routine items, including litigation expenses; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Unless Invesco continues the fee waiver agreement, it will terminate on June 30, 2021. During its term, the fee waiver agreement cannot be terminated or amended to increase the expense limits or reduce the advisory fee waiver without approval of the Board of Trustees. The Adviser did not waive fees and/or reimburse expenses during the period under these expense limits.

Further, the Adviser has contractually agreed, through at least June 30, 2022, 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, 2020, the Adviser waived advisory fees of $1,940.

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 fees paid to insurance companies that have agreed to provide certain administrative services to the Fund. These administrative services provided by the insurance companies may include, among other things: maintenance of master accounts with the Fund; tracking, recording and transmitting net purchase and redemption orders for Fund shares; maintaining and preserving records related to the purchase, redemption and other account activity of variable product owners; distributing copies of Fund documents such as prospectuses, proxy materials and periodic reports, to variable product owners, and responding to inquiries from variable product owners about the Fund. Pursuant to such agreement, for the six months ended June 30, 2020, Invesco was paid $15,297 for accounting and fund administrative services and was reimbursed $137,223 for fees paid to insurance companies. Invesco has entered into a sub-administration agreement whereby State Street Bank and Trust Company (“SSB”) serves as fund accountant and provides certain administrative services to the Fund. Pursuant to a custody agreement with the Trust on behalf of the Fund, SSB also serves as the Fund’s custodian.

The Trust has entered into a transfer agency and service agreement with Invesco Investment Services, Inc. (“IIS”) pursuant to which the Fund has agreed to pay IIS a fee for providing transfer agency and shareholder services to the Fund and reimburse IIS for certain expenses incurred by IIS in the course of providing such services. IIS may make payments to intermediaries that provide omnibus account services, sub-accounting services and/or networking services. All fees payable by IIS to intermediaries that provide omnibus account services or sub-accounting services are charged back to the Fund, subject to certain limitations approved by the Trust’s Board of Trustees. For the six months ended June 30, 2020, 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. The fees are accrued daily and paid monthly. 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, 2020, 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, 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. Small Cap Equity Fund

Level 2 - Prices are determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk, yield curves, loss severities, default rates, discount rates, volatilities and others.

Level 3 - Prices are determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Fund’s own assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information.

The following is a summary of the tiered valuation input levels, as of June 30, 2020. 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 consolidated financial statements may materially differ from the value received upon actual sale of those investments.

	Level 1		Level 2		Level 3		Total
Investments in Securities
Common Stocks & Other Equity Interests	$	190,339,022	$	–		$–	$	190,339,022
Money Market Funds		2,260,849		490,222		–		2,751,071
Total Investments	$	192,599,871	$	490,222		$–	$	193,090,093

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, 2020, the Fund engaged in securities sales of $529,957, which resulted in net realized gains of $72,814.

NOTE 5–Trustees’ and Officers’ Fees and Benefits

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

NOTE 6–Cash Balances

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

NOTE 7–Tax Information

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

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

The Fund did not have a capital loss carryforward as of December 31, 2019.

NOTE 8–Investment Transactions

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, 2020 was $46,210,571 and $51,466,870, respectively. Cost of investments, including any derivatives, on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end.

Unrealized Appreciation (Depreciation) of Investments on a Tax Basis
Aggregate unrealized appreciation of investments	$	40,845,431
Aggregate unrealized (depreciation) of investments		(20,308,402	)
Net unrealized appreciation of investments	$	20,537,029

Cost of investments for tax purposes is $172,553,064.

Invesco V.I. Small Cap Equity Fund

NOTE 9–Share Information

	Summary of Share Activity
	Six months ended						Year ended
	June 30, 2020(a)						December 31, 2019
	Shares			Amount			Shares			Amount
Sold:
Series I		710,962		$	9,691,958			501,715		$	8,900,799
Series II		762,789			10,300,074			1,589,687			27,357,249
Issued as reinvestment of dividends:
Series I		-			-			828,605			13,821,130
Series II		-			-			1,185,506			18,517,603
Reacquired:
Series I		(976,679	)		(14,816,113	)		(1,321,243	)		(23,951,793	)
Series II		(851,647	)		(11,661,345	)		(4,807,788	)		(76,753,793	)
Net increase (decrease) in share activity		(354,575	)	$	(6,485,426	)		(2,023,518	)	$	(32,108,805	)

^(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 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 Fund 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–Coronavirus (COVID-19) Pandemic

During the first quarter of 2020, the World Health Organization declared COVID-19 to be a public health emergency. COVID-19 has led to increased short-term market volatility and may have adverse long-term effects on U.S. and world economies and markets in general. COVID-19 may adversely impact the Fund’s ability to achieve its investment objective. Because of the uncertainties on valuation, the global economy and business operations, values reflected in these financial statements may materially differ from the value received upon actual sales of those investments.

The extent of the impact on the performance of the Fund and its investments will depend on future developments, including the duration and spread of the COVID-19 outbreak, related restrictions and advisories, and the effects on the financial markets and economy overall, all of which are highly uncertain and cannot be predicted.

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, 2020 through June 30, 2020.

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.

ACTUAL

HYPOTHETICAL (5% annual return before expenses)

Beginning

Ending

Expenses

Ending

Expenses

Annualized

Account Value

Account Value

Paid During

Account Value

Paid During

Expense

(01/01/20)

(06/30/20)1

Period2

(06/30/20)

Period2

Ratio

Series I

$1,000.00

$919.40

$4.53

$1,020.14

$4.77

0.95

%

Series II

1,000.00

917.50

5.72

1,018.90

6.02

1.20

¹ The actual ending account value is based on the actual total return of the Fund for the period January 1, 2020 through June 30, 2020, 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 182/366 to reflect the most recent fiscal half year.

Invesco V.I. Small Cap Equity Fund

Approval of Investment Advisory and Sub-Advisory Contracts

At meetings held on June 3, 2020, the Board of Trustees (the Board or the Trustees) of AIM Variable Insurance Funds (Invesco Variable Insurance Funds) as a whole, and the independent Trustees, who comprise over 75% of the Board, voting separately, approved the continuance of the Invesco V.I. Small Cap Equity Fund’s (the Fund) Master Investment Advisory Agreement with Invesco Advisers, Inc. (Invesco Advisers and the investment advisory agreement) and the Master Intergroup Sub-Advisory Contract for Mutual Funds with Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Canada Ltd. and separate sub-advisory contracts with Invesco Capital Management LLC and Invesco Asset Management (India) Private Limited (collectively, the Affiliated Sub-Advisers and the sub-advisory contracts) for another year, effective July 1, 2020. After evaluating the factors discussed below, among others, the Board approved the renewal of the Fund’s investment advisory agreement and the sub-advisory contracts and determined that the compensation payable thereunder by the Fund to Invesco Advisers and by Invesco Advisers to the Affiliated Sub-Advisers is fair and reasonable.

The Board’s Evaluation Process

The Board’s Investments Committee has established Sub-Committees, which meet throughout the year to review the performance of funds advised by Invesco Advisers (the Invesco Funds). The Sub-Committees meet regularly with portfolio managers for their assigned Invesco Funds and other members of management to review detailed information about investment performance and portfolio attributes of these funds. The Board took into account evaluations and reports that it received from the Investments Committee and Sub-Committees, as well as the information provided to such committees and the Board throughout the year, in considering whether to approve each Invesco Fund’s investment advisory agreement and sub-advisory contracts.

As part of the contract renewal process, the Board reviews and considers information provided in response to detailed requests for information submitted to management by the independent Trustees with assistance from legal counsel to the independent Trustees. The Board receives comparative investment performance and fee data regarding the Invesco Funds prepared by Invesco Advisers and Broadridge Financial Solutions, Inc. (Broadridge), an independent mutual fund data provider, as well as information on the composition of the peer groups provided by Broadridge and its methodology for determining peer groups. The Board also receives an independent written evaluation from the Senior Officer, an officer of the Invesco Funds who reports directly to the independent Trustees. 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. In addition to meetings with Invesco Advisers and fund counsel throughout the year, the independent Trustees also

discuss the continuance of the investment advisory agreement and sub-advisory contracts in separate sessions with the Senior Officer and with independent legal counsel.

The discussion below is a summary of 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. The Trustees’ review and conclusions are based on the comprehensive consideration of all information presented to them during the course of the year and in prior years and are not the result of any single determinative factor. Moreover, one Trustee may have weighed a particular piece of information or factor differently than another Trustee. This information is current as of June 3, 2020.

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 nature, extent and quality of the advisory services provided to the Fund by Invesco Advisers under the Fund’s investment advisory agreement, and the credentials and experience of the officers and employees of Invesco Advisers who provide these services, including the Fund’s portfolio manager(s). The Board’s review included consideration of Invesco Advisers’ investment process oversight and structure, credit analysis, investment risk management and research capabilities. The Board also considered non-advisory services that Invesco Advisers and its affiliates provide to the Invesco Funds, such as various back office support functions, third party oversight, internal audit, valuation, portfolio trading and legal and compliance. The Board also received and reviewed information about Invesco Advisers’ role as administrator of the Invesco Funds’ liquidity risk management program. The Board reviewed and considered the benefits to shareholders of investing in a Fund that is part of the Invesco family of funds under the umbrella of Invesco Ltd., Invesco Advisers’ parent company, and noted Invesco Ltd.’s depth and experience in conducting an investment management business, as well as its commitment of financial and other resources to such business. The Board also reviewed and considered information regarding the benefits to the Fund resulting from Invesco Ltd.’s acquisition of OppenheimerFunds, Inc. and its subsidiaries (the Transaction) and the resources that Invesco Advisers has committed to managing the Invesco family of funds following the Transaction. The Board concluded that the nature, extent and quality of the services provided to the Fund by Invesco Advisers are appropriate and satisfactory.

The Board reviewed the services that may be 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 the Affiliated Sub-Advisers’ expertise with respect to certain asset classes and that the Affiliated Sub-Advisers have offices and personnel that are located in financial centers around the world.

As a result, the Board noted that the Affiliated Sub-Advisers can provide research and investment analysis on the markets and economies of various countries in which the Fund may invest, make recommendations regarding securities and assist with security trades. The Board concluded that the sub-advisory contracts may 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 that may be provided by the Affiliated Sub-Advisers are appropriate and satisfactory.

B. Fund Investment Performance

The Board considered Fund investment performance as a relevant factor in considering whether to approve the investment advisory agreement. The Board did not view Fund investment 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 investment performance over multiple time periods ending December 31, 2019 to the performance of funds in the Broadridge performance universe and against the Russell 2000® Index. The Board noted that performance of Series I shares of the Fund was in the first quintile of its performance universe for the one year period, the third quintile for the three year period and the fifth quintile for 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 reasonably comparable to the performance of the Index for the one year period and below the performance of the Index for the three and five year periods. The Board noted that the Fund’s high quality bias and security selection in certain sectors and capitalization sizes detracted from Fund performance. The Board recognized that the performance data reflects a snapshot in time as of a particular date and that selecting a different performance period could produce different results. The Board also reviewed more recent Fund performance as well as other performance metrics and this review did not change their conclusions.

C. Advisory and Sub-Advisory Fees and Fund Expenses

The Board compared the Fund’s contractual management fee rate to the contractual management fee rates of funds in the Fund’s Broadridge expense group. The Board noted that the contractual management fee rate for Series I shares of the Fund was reasonably comparable to the median contractual management fee rate of funds in its expense group. The Board noted that the term “contractual management fee” for funds in the expense group may include both advisory and certain non-portfolio management administrative services fees, but that Broadridge does not provide information on a fund by fund basis as to what is included. The Board also reviewed the methodology used by Broadridge in providing expense group information, which includes using each fund’s contractual management fee schedule (including any applicable breakpoints) as reported in the most recent prospectus or statement of additional information for each fund in the expense group. The

Invesco V.I. Small Cap Equity Fund

Board also considered comparative information regarding the Fund’s total expense ratio and its various components.

The Board noted that Invesco Advisers has contractually agreed to waive fees and/or limit expenses of the Fund for the term disclosed in the Fund’s registration statement 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 fees charged by Invesco Advisers and the Affiliated Sub-Advisers to other similarly managed client accounts. Invesco Advisers reviewed with the Board differences in the scope of services it provides to the Invesco Funds relative to certain other types of client accounts, including, among others: management of cash flows as a result of redemptions and purchases; necessary infrastructure such as officers, office space, technology, legal and distribution; oversight of service providers; costs and business risks associated with launching new funds and sponsoring and maintaining the product line; and compliance with federal and state laws and regulations.

The Board also compared the Fund’s effective advisory fee rate (the advisory fee rate after advisory fee waivers and before other expense limitations/ waivers) to the effective advisory fee rates of other similarly managed third-party mutual funds advised or sub-advised by Invesco Advisers and its affiliates, based on asset balances as of December 31, 2019.

The Board also considered the services that may be provided by the Affiliated Sub-Advisers pursuant to the sub-advisory contracts, as well as the fees payable by Invesco Advisers to the Affiliated Sub-Advisers pursuant to the sub-advisory contracts.

D. Economies of Scale and Breakpoints

The Board considered the extent to which there may be economies of scale in the provision of advisory services to the Fund. The Board also considered that the Fund may benefit from economies of scale through contractual breakpoints in the Fund’s advisory fee schedule, which generally operate to reduce the Fund’s expense ratio as it grows in size. The Board 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. The Board noted that the Fund may also benefit from economies of scale through initial fee setting, fee waivers and expense reimbursements. The Board also considered Invesco’s reinvestment in its business, including investments in business infrastructure, technology and cybersecurity.

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 Invesco Funds and the profitability of Invesco Advisers and its affiliates in providing these services in the aggregate and on an individual Fund-by-Fund basis. The Board considered the methodology used for calculating profitability and noted the periodic review and enhancement of such methodology. The Board noted that Invesco Advisers continues to operate at a net profit from services Invesco Advisers and its affiliates provide to the Invesco Funds in the aggregate and to certain Funds on an individual fund level. The Board did not deem the level of profits realized by Invesco Advisers and its affiliates from providing such services to be excessive given the nature, extent and quality of the

services provided. The Board received information from Invesco Advisers demonstrating that Invesco Advisers and the Affiliated Sub-Advisers are financially sound and have the resources necessary to perform their obligations under the investment advisory agreement and sub-advisory contracts.

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 providing administrative, transfer agency and distribution services to the Fund. The Board considered comparative information regarding fees charged for these services, including information provided by Broadridge and other independent sources. 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; and that the services are required for the operation of the Fund.

The Board considered the benefits realized by Invesco Advisers and the Affiliated Sub-Advisers as a result of portfolio brokerage transactions executed through “soft dollar” arrangements. The Board noted that soft dollar arrangements may result in the Fund bearing costs to purchase research that may be used by Invesco Advisers or the Affiliated Sub-Advisers with other clients and may reduce Invesco Advisers’ or the Affiliated Sub-Advisers’ expenses. The Board also considered that it receives periodic reports from Invesco representing that these arrangements are consistent with regulatory requirements. The Board did not deem the soft dollar arrangements to be inappropriate.

The Board considered that the Fund’s uninvested cash and cash collateral from any securities lending arrangements may be invested in registered money market funds or, with regard to securities lending cash collateral, unregistered funds that comply with Rule 2a-7 (collectively referred to as “affiliated money market funds”) advised by Invesco Advisers pursuant to procedures approved by the Board. The Board considered information regarding the returns of the affiliated money market funds relative to comparable overnight investments, as well as the costs to the Fund of such investments. 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 with respect to certain investments in the affiliated money market 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 amount of advisory fees received by Invesco Advisers from the Fund’s investment of cash collateral from any securities lending arrangements in the affiliated money market funds is fair and reasonable.

The Board also considered that an affiliated broker may receive commissions for executing certain trades for the Fund. Invesco Advisers and the Affiliated Sub-Advisers may use the affiliated broker to, among other things, control order routing and minimize

information leakage, and the Board was advised that such trades are executed in compliance with rules under the federal securities laws and consistent with best execution obligations.

Invesco V.I. Small Cap Equity Fund

	Semiannual Report to Shareholders	June 30, 2020
	Invesco V.I. Technology Fund

Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, the insurance company that offers your variable annuity or variable life insurance contract may no longer send you paper copies of the Fund’s shareholder reports by mail, unless you specifically request paper copies of the reports from the insurance company or your financial intermediary. Instead of delivering paper copies of the report, the insurance company may choose to make the reports available on a website, and will notify you by mail each time a report is posted and provide you with a website link to access the report. Instructions for requesting paper copies will be provided by your insurance company.

    If the insurance company offers electronic delivery, you may elect to receive shareholder reports and other communications about the Fund electronically by following the instructions provided by the insurance company or by contacting your financial intermediary. If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action.

    You may elect to receive all future reports in paper free of charge from the insurance company. You can inform the insurance company or your financial intermediary that you wish to continue receiving paper copies of your shareholder reports by following the instructions provided by the insurance company or by contacting your financial intermediary. Your election to receive reports in paper will apply to all portfolio companies available under your contract with the insurance company.

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) as an exhibit to its reports on Form N-PORT. The Fund’s Form N-PORT filings are available on the SEC website, 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-PORT, 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/proxy guidelines. The information is also available on the SEC website, sec.gov.

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

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

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.

NOT FDIC INSURED  |  MAY LOSE VALUE  |  NO BANK GUARANTEE

Invesco Distributors, Inc. I-VITEC-SAR-1                                 

Fund Performance

Performance summary
Fund vs. Indexes
Cumulative total returns, 12/31/19 to 6/30/20, excluding variable product issuer charges. If variable product issuer charges were included, returns would be lower.
Series I Shares	16.05	%
Series II Shares	15.92
NASDAQ Composite Indexq (Broad Market/Style-Specific Index)	12.67
Lipper VUF Science & Technology Funds Classification Average∎ (Peer Group)	13.50
Source(s): qBloomberg L.P.; ∎Lipper Inc.
The NASDAQ Composite Index is a broad-based, market index of the common stocks and similar securities listed on the Nasdaq stock market.
The Lipper VUF Science & Technology Funds Classification Average represents an average of all variable insurance underlying funds in the Lipper Science & Technology
Funds classification.
The Fund is not managed to track the performance of any particular index, including the index(es) described here, and consequently, the performance of the Fund may deviate significantly from the performance of the index(es).
A direct investment cannot be made in an index. Unless otherwise indicated, index results include reinvested dividends, and they do not reflect sales charges. Performance of the peer group, if applicable, reflects fund expenses; performance of a market index does not.

Average Annual Total Returns
As of 6/30/20
Series I Shares
Inception (5/20/97)	7.51	%
10 Years	15.88
5 Years	16.74
1 Year	27.59
Series II Shares
Inception (4/30/04)	9.85	%
10 Years	15.60
5 Years	16.46
1 Year	27.27

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 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. Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares. Investment return and principal value will

fluctuate so that you may have a gain or loss when you sell shares.

    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 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.

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

Invesco V.I. Technology Fund

Liquidity Risk Management Program

The Securities and Exchange Commission has adopted Rule 22e-4 under the Investment Company Act of 1940 (the “Liquidity Rule”) in order to promote effective liquidity risk management throughout the open-end investment company industry, thereby reducing the risk that funds will be unable to meet their redemption obligations and mitigating dilution of the interests of fund shareholders. The Fund has adopted and implemented a liquidity risk management program in accordance with the Liquidity Rule (the “Program”). The Program is reasonably designed to assess and manage the Fund’s liquidity risk, which is the risk that the Fund could not meet redemption requests without significant dilution of remaining investors’ interests in the Fund. The Board of Trustees of the Fund (the “Board”) has appointed Invesco Advisers, Inc. (“Invesco”), the Fund’s investment adviser, as the Program’s administrator, and Invesco has delegated oversight of the Program to the Liquidity Risk Management Committee (the “Committee”), which is composed of senior representatives from relevant business groups at Invesco.

As required by the Liquidity Rule, the Program includes policies and procedures providing for an assessment, no less frequently than annually, of the Fund’s liquidity risk that takes into account, as relevant to the Fund’s liquidity risk: (1) the Fund’s investment strategy and liquidity of portfolio investments during both normal and reasonably foreseeable stressed conditions; (2) short-term and long-term cash flow projections for the Fund during both normal and reasonably foreseeable stressed conditions; and (3) the Fund’s holdings of cash and cash equivalents and any borrowing arrangements. The Liquidity Rule also requires the classification of the Fund’s investments into categories that reflect the assessment of their relative liquidity under current market conditions. The Fund classifies its investments into one of four categories defined in the Liquidity Rule: “Highly Liquid,” “Moderately Liquid,” “Less Liquid” and “Illiquid.” Funds that are not invested primarily in “Highly Liquid Investments” that are assets (cash or investments that are reasonably expected to be convertible into cash within three business days without significantly changing the market value of the investment) are required to establish a “Highly Liquid Investment Minimum” (“HLIM”), which is the minimum percentage of net assets that must be invested in Highly Liquid Investments. Funds with HLIMs have procedures for addressing HLIM shortfalls, including reporting to the Board and the SEC (on a non-public basis) as required by the Program and the Liquidity Rule. In addition, the Fund may not acquire an investment if, immediately after the acquisition, over 15% of the Fund’s net assets would consist of “Illiquid Investments” that are assets (an investment that cannot reasonably be expected to be sold or disposed of in current market conditions in seven calendar days or less without the sale or disposition significantly changing the market value of the investment). The Liquidity Rule and the Program also require reporting to the Board and the SEC (on a non-public basis) if a Fund’s holdings of Illiquid Investments exceed 15% of the Fund’s assets.

At a meeting held on March 30-April 1, 2020, the Committee presented a report to the Board that addressed the operation of the Program and assessed the Program’s adequacy and effectiveness of implementation (the “Report”). The Report covered the period from December 1, 2018 through December 31, 2019 (the “Program Reporting Period”).

The Report stated, in relevant part, that during the Program Reporting Period:

∎ The Program, as adopted and implemented, remained reasonably designed to assess and manage the Fund’s liquidity risk and was operated effectively to achieve that goal;

∎ The Fund’s investment strategy remained appropriate for an open-end fund;

∎ The Fund was able to meet requests for redemption without significant dilution of remaining investors’ interests in the Fund;

∎ The Fund did not breach the 15% limit on Illiquid Investments; and

∎ The Fund primarily held Highly Liquid Investments and therefore has not adopted an HLIM.

Invesco V.I. Technology Fund

Schedule of Investments^(a)

June 30, 2020

(Unaudited)

	Shares		Value
Common Stocks & Other Equity Interests–98.55%
Application Software–8.93%
Adobe, Inc.(b)		4,866	$  2,118,219
RingCentral, Inc., Class A(b)		8,543	2,434,840
salesforce.com, inc.(b)		12,817	2,401,009
Splunk, Inc.(b)		20,323	4,038,180
Synopsys, Inc.(b)		15,492	3,020,940
			14,013,188
Biotechnology–0.57%
Moderna, Inc.(b)		13,958	896,243
Consumer Electronics–1.74%
Sony Corp. (Japan)		39,800	2,725,557
Data Processing & Outsourced Services–9.47%
Fiserv, Inc.(b)		26,006	2,538,706
PayPal Holdings, Inc.(b)		29,194	5,086,470
Visa, Inc., Class A		29,016	5,605,021
WEX, Inc.(b)		9,883	1,630,794
			14,860,991
Health Care Equipment–5.35%
Abbott Laboratories		12,602	1,152,201
DexCom, Inc.(b)		6,782	2,749,422
Intuitive Surgical, Inc.(b)		2,907	1,656,496
Teleflex, Inc.		7,806	2,841,228
			8,399,347
Health Care Technology–0.17%
Teladoc Health, Inc.(b)		1,376	262,596
Interactive Home Entertainment–7.22%
Activision Blizzard, Inc.		35,246	2,675,171
Electronic Arts, Inc.(b)		15,532	2,051,001
Nintendo Co. Ltd. (Japan)		2,600	1,156,909
Sea Ltd., ADR (Taiwan)(b)		29,862	3,202,401
Take-Two Interactive Software, Inc.(b)		16,109	2,248,333
			11,333,815
Interactive Media & Services–9.87%
Alphabet, Inc., Class A(b)		5,011	7,105,848
Facebook, Inc., Class A(b)		33,940	7,706,756
ZoomInfo Technologies, Inc., Class A(b)		13,194	673,290
			15,485,894
Internet & Direct Marketing Retail–17.82%
Alibaba Group Holding Ltd., ADR
(China)(b)		50,239	10,836,552
Amazon.com, Inc.(b)		5,173	14,271,376
Booking Holdings, Inc.(b)		1,791	2,851,881
			27,959,809

	Shares		Value
Life Sciences Tools & Services–4.95%
10X Genomics, Inc., Class A(b)		18,487	$  1,651,074
Illumina, Inc.(b)		5,552	2,056,183
IQVIA Holdings, Inc.(b)		16,832	2,388,124
Thermo Fisher Scientific, Inc.		4,616	1,672,562
			7,767,943
Managed Health Care–0.64%
UnitedHealth Group, Inc.		3,421	1,009,024
Movies & Entertainment–1.50%
Netflix, Inc.(b)		5,176	2,355,287
Semiconductor Equipment–5.07%
Applied Materials, Inc.		103,391	6,249,986
ASML Holding N.V., New York Shares
(Netherlands)		4,641	1,708,027
			7,958,013
Semiconductors–9.34%
NVIDIA Corp.		13,532	5,140,942
QUALCOMM, Inc.		27,094	2,471,244
Semtech Corp.(b)		73,488	3,837,543
Silicon Motion Technology Corp., ADR (Taiwan)		65,870	3,212,480
			14,662,209
Systems Software–10.13%
Microsoft Corp.		52,710	10,727,012
Palo Alto Networks, Inc.(b)		6,986	1,604,475
ServiceNow, Inc.(b)		8,784	3,558,047
			15,889,534
Technology Hardware, Storage & Peripherals–4.95%
Apple, Inc.		21,285	7,764,768
Trucking–0.83%
Uber Technologies, Inc.(b)		41,666	1,294,979
Total Common Stocks & Other Equity Interests (Cost $72,743,288)			154,639,197
Money Market Funds–1.19%
Invesco Government & Agency Portfolio, Institutional Class, 0.09%(c)(d)		635,089	635,089
Invesco Liquid Assets Portfolio, Institutional Class, 0.39%(c)(d)		497,822	498,171
Invesco Treasury Portfolio, Institutional Class, 0.08%(c)(d)		725,816	725,816
Total Money Market Funds     (Cost $1,859,013)			1,859,076
TOTAL INVESTMENTS IN SECURITIES–99.74% (Cost $74,602,301)			156,498,273
OTHER ASSETS LESS LIABILITIES–0.26%			413,103
NET ASSETS–100.00%			$156,911,376

Investment Abbreviations:

ADR – American Depositary Receipt

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

Invesco V.I. Technology 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)  Affiliated issuer. The issuer and/or the Fund is a wholly-owned subsidiary of Invesco Ltd., or is affiliated by having an investment adviser that is under common control of Invesco Ltd. The table below shows the Fund’s transactions in, and earnings from, its investments in affiliates for the six months ended June 30, 2020.

	Value December 31, 2019			Purchases at Cost			Proceeds from Sales				Change in Unrealized Appreciation			Realized Gain			Value June 30, 2020			Dividend Income
Investments in Affiliated Money Market Funds:
Invesco Government & Agency Portfolio, Institutional Class		$	344,022		$	7,750,843			$ (7,459,776)			$	-		$	-		$	635,089		$	1,762
Invesco Liquid Assets Portfolio, Institutional Class			254,021			5,619,006			(5,374,965	)			73			36			498,171			2,084
Invesco Treasury Portfolio, Institutional Class			393,168			8,858,106			(8,525,458	)			-			-			725,816			1,821
Investments Purchased with Cash Collateral from Securities on Loan:
Invesco Government & Agency Portfolio, Institutional Class			550,517			2,408,004			(2,958,521	)			-			-			-			1,323
Invesco Liquid Assets Portfolio, Institutional Class			183,505			652,303			(836,008	)			-			200			-			544
Total		$	1,725,233		$	25,288,262		$	(25,154,728	)		$	73		$	236		$	1,859,076		$	7,534

^(d)  The rate shown is the 7-day SEC standardized yield as of June 30, 2020.

Portfolio Composition    

By sector, based on Net Assets    

as of June 30, 2020    

Information Technology	47.89	%
Consumer Discretionary	19.56
Communication Services	18.59
Health Care	11.68
Other Sectors, Each Less than 2% of Net Assets	0.81
Money Market Funds Plus Other Assets Less Liabilities	1.47

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, 2020    

(Unaudited)    

Assets:
Investments in securities, at value (Cost $72,743,288)	$154,639,197
Investments in affiliated money market funds, at value (Cost $1,859,013)	1,859,076
Foreign currencies, at value (Cost $32,209)	32,112
Receivable for:
Investments sold	9,629,257
Fund shares sold	15,405
Dividends	1,198
Investment for trustee deferred compensation and retirement plans	64,355
Total assets	166,240,600
Liabilities:
Payable for:
Investments purchased	8,889,435
Fund shares reacquired	263,359
Amount due custodian	1,140
Accrued fees to affiliates	60,233
Accrued trustees’ and officers’ fees and benefits	1,767
Accrued other operating expenses	42,235
Trustee deferred compensation and retirement plans	71,055
Total liabilities	9,329,224
Net assets applicable to shares outstanding	$156,911,376
Net assets consist of:
Shares of beneficial interest	$52,443,923
Distributable earnings	104,467,453
	$156,911,376
Net Assets:
Series I	$145,922,641
Series II	$10,988,735
Shares outstanding, no par value, with an unlimited number of shares authorized:
Series I	4,617,993
Series II	369,909
Series I:
Net asset value per share	$31.60
Series II:
Net asset value per share	$29.71

Statement of Operations    

For the six months ended June 30, 2020    

(Unaudited)    

Investment income:
Dividends (net of foreign withholding taxes of $4,558)	$	352,387
Dividends from affiliated money market funds (includes securities lending income of $7,043)		12,710
Total investment income		365,097
Expenses:
Advisory fees		507,138
Administrative services fees		110,051
Custodian fees		7,877
Distribution fees - Series II		12,393
Transfer agent fees		14,316
Trustees’ and officers’ fees and benefits		8,254
Reports to shareholders		6,839
Professional services fees		16,847
Other		1,964
Total expenses		685,679
Less: Fees waived		(1,019	)
Net expenses		684,660
Net investment income (loss)		(319,563	)
Realized and unrealized gain (loss) from:
Net realized gain (loss) from:
Investment securities		9,209,105
Foreign currencies		(2,679	)
		9,206,426
Change in net unrealized appreciation of: Investment securities		12,413,665
Foreign currencies		28
		12,413,693
Net realized and unrealized gain		21,620,119
Net increase in net assets resulting from operations	$	21,300,556

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, 2020 and the year ended December 31, 2019

(Unaudited)

	June 30,			December 31,
	2020			2019
Operations:
Net investment income (loss)	$	(319,563	)	$	(506,840	)
Net realized gain		9,206,426			15,223,819
Change in net unrealized appreciation		12,413,693			25,304,082
Net increase in net assets resulting from operations		21,300,556			40,021,061
Distributions to shareholders from distributable earnings:
Series I		-			(10,151,000	)
Series II		-			(904,027	)
Total distributions from distributable earnings		-			(11,055,027	)
Share transactions–net:
Series I		(1,154,122	)		(9,079,975	)
Series II		(727,147	)		(1,576,636	)
Net increase (decrease) in net assets resulting from share transactions		(1,881,269	)		(10,656,611	)
Net increase in net assets		19,419,287			18,309,423
Net assets:
Beginning of period		137,492,089			119,182,666
End of period	$	156,911,376		$	137,492,089

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

Invesco V.I. Technology Fund

Financial Highlights

(Unaudited)

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

	Net asset value, beginning of period			Net investment income (loss)(a)				Net gains (losses) on securities (both realized and unrealized)				Total from investment operations				Distributions from net realized gains				Net asset value, end of period			Total return (b)			Net assets, end of period (000’s omitted)			Ratio of expenses to average net assets with fee waivers and/or expenses absorbed			Ratio of expenses to average net assets without fee waivers and/or expenses absorbed			Ratio of net investment income (loss) to average net assets			Portfolio turnover (c)
Series I
Six months ended 06/30/20		$	27.23		$	(0.06	)		$	4.43			$	4.37			$	—			$	31.60		16.05	%		$	145,923		1.00	%(d)		1.00	%(d)		(0.46	)%(d)		30	%
Year ended 12/31/19			21.92			(0.09	)			7.71				7.62				(2.31	)			27.23		35.88				127,308		0.99			0.99			(0.36	)		46
Year ended 12/31/18			22.97			(0.12	)			0.22				0.10				(1.15	)			21.92		(0.45	)			109,596		1.03			1.03			(0.47	)		48
Year ended 12/31/17			17.89			(0.09	)			6.34				6.25				(1.17	)			22.97		35.13				113,352		1.06			1.06			(0.41	)		43
Year ended 12/31/16			18.83			(0.06	)			(0.06	)			(0.12	)			(0.82	)			17.89		(0.76	)			87,632		1.10			1.10			(0.33	)		52
Year ended 12/31/15			19.75			(0.11	)			1.29				1.18				(2.10	)			18.83		6.82				107,257		1.15			1.15			(0.53	)		61
Series II
Six months ended 06/30/20			25.63			(0.09	)			4.17				4.08				—				29.71		15.92				10,989		1.25	(d)		1.25	(d)		(0.71	)(d)		30
Year ended 12/31/19			20.79			(0.15	)			7.30				7.15				(2.31	)			25.63		35.56				10,184		1.24			1.24			(0.61	)		46
Year ended 12/31/18			21.89			(0.17	)			0.22				0.05				(1.15	)			20.79		(0.71	)			9,587		1.28			1.28			(0.72	)		48
Year ended 12/31/17			17.14			(0.14	)			6.06				5.92				(1.17	)			21.89		34.74				9,439		1.31			1.31			(0.66	)		43
Year ended 12/31/16			18.12			(0.10	)			(0.06	)			(0.16	)			(0.82	)			17.14		(1.01	)			6,799		1.35			1.35			(0.58	)		52
Year ended 12/31/15			19.13			(0.15	)			1.24				1.09				(2.10	)			18.12		6.56				8,043		1.40			1.40			(0.78	)		61

^(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 $126,003 and $9,977 for Series I and Series II shares, respectively.

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

Invesco V.I. Technology Fund

Notes to Financial Statements

June 30, 2020

(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. Information presented in these financial statements pertains only to the Fund. Matters affecting the Fund or each class will be voted on exclusively by the shareholders of the Fund or each class. 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 Fund is an investment company and accordingly follows the investment company accounting and reporting guidance in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 946, Financial Services – Investment Companies.

The following is a summary of the significant accounting policies followed by the Fund in the preparation of its financial statements. A. Security Valuations - Securities, including restricted securities, are valued according to the following policy.

A security listed or traded on an exchange (except convertible securities) is valued at its last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded, or lacking any sales or official closing price on a particular day, the security may be valued at the closing bid price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued by an independent pricing service they may be considered fair valued. Futures contracts are valued at the final settlement price set by an exchange on which they are principally traded. Listed options are valued at the mean between the last bid and asked 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 asked prices. For purposes of determining net asset value (“NAV”) per share, futures and option contracts generally are valued 15 minutes after the close of the customary trading session of the New York Stock Exchange (“NYSE”).

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

Debt obligations (including convertible securities) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. Pricing services generally value debt obligations assuming orderly transactions of institutional round lot size, but a fund may hold or transact in the same securities in smaller, odd lot sizes. Odd lots often trade at lower prices than institutional round lots. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.

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

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

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

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

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

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

Invesco V.I. Technology Fund

returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and the Statement of Changes in Net Assets, or the net investment income per share and the ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.

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

C. Country Determination - For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues 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 net investment income and net realized capital gain, if any, are generally declared and paid to separate accounts of participating insurance companies annually and recorded on the ex-dividend date.

E. Federal Income Taxes - The Fund intends to comply with the requirements of Subchapter M of the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”), necessary to qualify as a regulated investment company and to distribute substantially all of the Fund’s taxable earnings to shareholders. As such, the Fund will not be subject to federal income taxes on otherwise taxable income (including net realized capital gain) that is distributed to shareholders.

Therefore, no provision for federal income taxes is recorded in the financial statements.

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

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

F. Expenses - Fees provided for under the Rule 12b-1 plan of a particular class of the Fund and which are directly attributable to that class are charged to the operations of such class. All other expenses are allocated among the classes based on relative net assets.

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

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

I. 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. The Fund bears the risk of loss with respect to the investment of collateral. It is the Fund’s policy to obtain additional collateral from or return excess collateral to the borrower by the end of the next business day, following the valuation date of the securities loaned. Therefore, the value of the collateral held may be temporarily less than the value of the securities on loan. When loaning securities, the Fund retains certain benefits of owning the securities, including the economic equivalent of dividends or interest generated by the security. Lending securities entails a risk of loss to the Fund if, and to the extent that, the market value of the securities loaned were to increase and the borrower did not increase the collateral accordingly, and the borrower failed to return the securities. The securities loaned are subject to termination at the option of the borrower or the Fund. Upon termination, the borrower will return to the Fund the securities loaned and the Fund will return the collateral. Upon the failure of the borrower to return the securities, collateral may be liquidated and the securities may be purchased on the open market to replace the loaned securities. The Fund could experience delays and costs in gaining access to the collateral and the securities may lose value during the delay which could result in potential losses to the Fund. Some of these losses may be indemnified by the lending agent. The Fund bears the risk of any deficiency in the amount of the collateral available for return to the borrower due to any loss on the collateral invested. Dividends received on cash collateral investments for securities lending transactions, which are net of compensation to counterparties, are included in Dividends from affiliated money market funds on the Statement of Operations. The aggregate value of securities out on loan, if any, is shown as a footnote on the Statement of Assets and Liabilities.

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

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

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

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

Invesco V.I. Technology Fund

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

L. Other Risks - The Fund’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.

NOTE 2–Advisory Fees and Other Fees Paid to Affiliates

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

Average Daily Net Assets	Rate
First $ 250 million		0.750%
Next $250 million		0.740%
Next $500 million		0.730%
Next $1.5 billion		0.720%
Next $2.5 billion		0.710%
Next $2.5 billion		0.700%
Next $2.5 billion		0.690%
Over $10 billion		0.680%

For the six months ended June 30, 2020, the effective advisory fee rate incurred by the Fund was 0.75%.

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

The Adviser has contractually agreed, through at least June 30, 2021, 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 2.00% and Series II shares to 2.25% of average daily net assets (the “expense limits”). In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause the total annual fund operating expenses after fee waiver and/or expense reimbursement to exceed the numbers reflected above: (1) interest; (2) taxes; (3) dividend expense on short sales; (4) extraordinary or non-routine items, including litigation expenses; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Unless Invesco continues the fee waiver agreement, it will terminate on June 30, 2021. During its term, the fee waiver agreement cannot be terminated or amended to increase the expense limits or reduce the advisory fee waiver without approval of the Board of Trustees. The Adviser did not waive fees and/or reimburse expenses during the period under these expense limits.

Further, the Adviser has contractually agreed, through at least June 30, 2022, 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, 2020, the Adviser waived advisory fees of $1,019.

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 fees paid to insurance companies that have agreed to provide certain administrative services to the Fund. These administrative services provided by the insurance companies may include, among other things: maintenance of master accounts with the Fund; tracking, recording and transmitting net purchase and redemption orders for Fund shares; maintaining and preserving records related to the purchase, redemption and other account activity of variable product owners; distributing copies of Fund documents such as prospectuses, proxy materials and periodic reports, to variable product owners, and responding to inquiries from variable product owners about the Fund. Pursuant to such agreement, for the six months ended June 30, 2020, Invesco was paid $10,130 for accounting and fund administrative services and was reimbursed $99,921 for fees paid to insurance companies. Invesco has entered into a sub-administration agreement whereby State Street Bank and Trust Company (“SSB”) serves as fund accountant and provides certain administrative services to the Fund. Pursuant to a custody agreement with the Trust on behalf of the Fund, SSB also serves as the Fund’s custodian.

The Trust has entered into a transfer agency and service agreement with Invesco Investment Services, Inc. (“IIS”) pursuant to which the Fund has agreed to pay IIS a fee for providing transfer agency and shareholder services to the Fund and reimburse IIS for certain expenses incurred by IIS in the course of providing such services. For the six months ended June 30, 2020, 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. The fees are accrued daily and paid monthly. 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, 2020, expenses incurred under the Plan are detailed in the Statement of Operations as Distribution fees.

For the six months ended June 30, 2020, the Fund incurred $268 in brokerage commissions with Invesco Capital Markets, Inc., an affiliate of the Adviser and IDI, for portfolio transactions executed on behalf of the Fund.

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

NOTE 3–Additional Valuation Information

GAAP defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, under current market conditions. GAAP establishes a hierarchy that prioritizes the inputs to valuation methods, giving the highest priority to readily available unadjusted quoted prices in an active market for identical assets (Level 1) and the lowest priority to significant unobservable inputs (Level 3), generally when

Invesco V.I. Technology Fund

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, 2020. The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

	Level 1		Level 2		Level 3		Total
Investments in Securities
Common Stocks & Other Equity Interests	$	150,756,731	$	3,882,466		$–	$	154,639,197
Money Market Funds		1,859,076		–		–		1,859,076
Total Investments	$	152,615,807	$	3,882,466		$–	$	156,498,273

NOTE 4–Trustees’ and Officers’ Fees and Benefits

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

NOTE 5–Cash Balances

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

NOTE 6–Tax Information

The amount and character of income and gains to be distributed are determined in accordance with income tax regulations, which may differ from GAAP.

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

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

The Fund did not have a capital loss carryforward as of December 31, 2019.

NOTE 7–Investment Transactions

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, 2020 was $39,796,071 and $44,056,511, respectively. Cost of investments, including any derivatives, on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end.

Unrealized Appreciation (Depreciation) of Investments on a Tax Basis

Aggregate unrealized appreciation of investments	$	81,128,781
Aggregate unrealized (depreciation) of investments		(79,361	)
Net unrealized appreciation of investments	$	81,049,420

Cost of investments for tax purposes is $75,448,853.

NOTE 8–Share Information

	Summary of Share Activity
	Six months ended				Year ended
	June 30, 2020(a)				December 31, 2019
	Shares		Amount		Shares		Amount
Sold:
Series I		625,100	$	17,078,092		672,084	$	16,955,731
Series II		53,233		1,299,181		39,526		966,364

Invesco V.I. Technology Fund

	Summary of Share Activity
	Six months ended						Year ended
	June 30, 2020(a)						December 31, 2019
	Shares			Amount			Shares			Amount
Issued as reinvestment of dividends:
Series I		-		$	-			412,475		$	10,151,000
Series II		-			-			39,000			904,027
Reacquired:
Series I		(682,681	)		(18,232,214	)		(1,409,534	)		(36,186,706	)
Series II		(80,664	)		(2,026,328	)		(142,286	)		(3,447,027	)
Net increase (decrease) in share activity		(85,012	)	$	(1,881,269	)		(388,735	)	$	(10,656,611	)

^(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 Fund has no knowledge as to whether all or any portion of the shares owned of record by these entities are also owned beneficially.

NOTE 9–Coronavirus (COVID-19) Pandemic

During the first quarter of 2020, the World Health Organization declared COVID-19 to be a public health emergency. COVID-19 has led to increased short-term market volatility and may have adverse long-term effects on U.S. and world economies and markets in general. COVID-19 may adversely impact the Fund’s ability to achieve its investment objective. Because of the uncertainties on valuation, the global economy and business operations, values reflected in these financial statements may materially differ from the value received upon actual sales of those investments.

The extent of the impact on the performance of the Fund and its investments will depend on future developments, including the duration and spread of the COVID-19 outbreak, related restrictions and advisories, and the effects on the financial markets and economy overall, all of which are highly uncertain and cannot be predicted.

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, 2020 through June 30, 2020.

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.

		ACTUAL		HYPOTHETICAL (5% annual return before expenses)		Annualized   Expense Ratio
	Beginning   Account Value   (01/01/20)	Ending   Account Value   (06/30/20)1	Expenses   Paid During   Period2	Ending   Account Value   (06/30/20)	Expenses   Paid During   Period2
Series I	$1,000.00	$1.160.50	$5.37	$1,019.89	$5.02	0.67%
Series II	1,000.00	1.159.20	6.71	1,018.65	6.27	1.25

¹ The actual ending account value is based on the actual total return of the Fund for the period January 1, 2020 through June 30, 2020, 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 182/366 to reflect the most recent fiscal half year.

Invesco V.I. Technology Fund

Approval of Investment Advisory and Sub-Advisory Contracts

At meetings held on June 3, 2020, the Board of Trustees (the Board or the Trustees) of AIM Variable Insurance Funds (Invesco Variable Insurance Funds) as a whole, and the independent Trustees, who comprise over 75% of the Board, voting separately, approved the continuance of the Invesco V.I. Technology Fund’s (the Fund) Master Investment Advisory Agreement with Invesco Advisers, Inc. (Invesco Advisers and the investment advisory agreement) and the Master Intergroup Sub-Advisory Contract for Mutual Funds with Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Canada Ltd. and separate sub-advisory contracts with Invesco Capital Management LLC and Invesco Asset Management (India) Private Limited (collectively, the Affiliated Sub-Advisers and the sub-advisory contracts) for another year, effective July 1, 2020. After evaluating the factors discussed below, among others, the Board approved the renewal of the Fund’s investment advisory agreement and the sub-advisory contracts and determined that the compensation payable thereunder by the Fund to Invesco Advisers and by Invesco Advisers to the Affiliated Sub-Advisers is fair and reasonable.

The Board’s Evaluation Process

The Board’s Investments Committee has established Sub-Committees, which meet throughout the year to review the performance of funds advised by Invesco Advisers (the Invesco Funds). The Sub-Committees meet regularly with portfolio managers for their assigned Invesco Funds and other members of management to review detailed information about investment performance and portfolio attributes of these funds. The Board took into account evaluations and reports that it received from the Investments Committee and Sub-Committees, as well as the information provided to such committees and the Board throughout the year, in considering whether to approve each Invesco Fund’s investment advisory agreement and sub-advisory contracts.

As part of the contract renewal process, the Board reviews and considers information provided in response to detailed requests for information submitted to management by the independent Trustees with assistance from legal counsel to the independent Trustees. The Board receives comparative investment performance and fee data regarding the Invesco Funds prepared by Invesco Advisers and Broadridge Financial Solutions, Inc. (Broadridge), an independent mutual fund data provider, as well as information on the composition of the peer groups provided by Broadridge and its methodology for determining peer groups. The Board also receives an independent written evaluation from the Senior Officer, an officer of the Invesco Funds who reports directly to the independent Trustees. 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. In addition to meetings with Invesco Advisers and fund counsel throughout the year, the independent Trustees also

discuss the continuance of the investment advisory agreement and sub-advisory contracts in separate sessions with the Senior Officer and with independent legal counsel.

The discussion below is a summary of 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. The Trustees’ review and conclusions are based on the comprehensive consideration of all information presented to them during the course of the year and in prior years and are not the result of any single determinative factor. Moreover, one Trustee may have weighed a particular piece of information or factor differently than another Trustee. This information is current as of June 3, 2020.

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 nature, extent and quality of the advisory services provided to the Fund by Invesco Advisers under the Fund’s investment advisory agreement, and the credentials and experience of the officers and employees of Invesco Advisers who provide these services, including the Fund’s portfolio manager(s). The Board’s review included consideration of Invesco Advisers’ investment process oversight and structure, credit analysis, investment risk management and research capabilities. The Board also considered non-advisory services that Invesco Advisers and its affiliates provide to the Invesco Funds, such as various back office support functions, third party oversight, internal audit, valuation, portfolio trading and legal and compliance. The Board also received and reviewed information about Invesco Advisers’ role as administrator of the Invesco Funds’ liquidity risk management program. The Board reviewed and considered the benefits to shareholders of investing in a Fund that is part of the Invesco family of funds under the umbrella of Invesco Ltd., Invesco Advisers’ parent company, and noted Invesco Ltd.’s depth and experience in conducting an investment management business, as well as its commitment of financial and other resources to such business. The Board also reviewed and considered information regarding the benefits to the Fund resulting from Invesco Ltd.’s acquisition of OppenheimerFunds, Inc. and its subsidiaries (the Transaction) and the resources that Invesco Advisers has committed to managing the Invesco family of funds following the Transaction. The Board concluded that the nature, extent and quality of the services provided to the Fund by Invesco Advisers are appropriate and satisfactory.

The Board reviewed the services that may be 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 the Affiliated Sub-Advisers’ expertise with respect to certain asset classes and that the Affiliated Sub-Advisers have offices and personnel that are located in financial centers around the world.

As a result, the Board noted that the Affiliated Sub-Advisers can provide research and investment analysis on the markets and economies of various countries in which the Fund may invest, make recommendations regarding securities and assist with security trades. The Board concluded that the sub-advisory contracts may 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 that may be provided by the Affiliated Sub-Advisers are appropriate and satisfactory.

B. Fund Investment Performance

The Board considered Fund investment performance as a relevant factor in considering whether to approve the investment advisory agreement. The Board did not view Fund investment 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 investment performance over multiple time periods ending December 31, 2019 to the performance of funds in the Broadridge performance universe and against the NASDAQ Composite Index. The Board noted that performance of Series I shares of the Fund was in the fourth quintile of its performance universe for the one, three and five year periods (the first quintile being the best performing funds and the fifth quintile being the worst performing funds). The Board noted that performance of Series I shares of the Fund was reasonably comparable to the performance of the Index for the one year period, above the performance of the Index for the three year period and below the performance of the Index for the five year period. The Board acknowledged limitations regarding the Broadridge data, in particular that differences may exist between a Fund’s investment objective, principal investment strategies and/or investment restrictions and those of its performance peer funds and specifically that certain peer funds focus on certain technology sub-industries. The Board noted that overweight and underweight exposures to and security selection in certain technology sub-sectors and industries negatively impacted Fund performance. The Board recognized that the performance data reflects a snapshot in time as of a particular date and that selecting a different performance period could produce different results. The Board also reviewed more recent Fund performance as well as other performance metrics and this review did not change their conclusions.

C. Advisory and Sub-Advisory Fees and Fund Expenses

The Board compared the Fund’s contractual management fee rate to the contractual management fee rates of funds in the Fund’s Broadridge expense group. The Board noted that the contractual management fee rate for Series I shares of the Fund was below the median contractual management fee rate of funds in its expense group. The Board noted that the term “contractual management fee” for funds in the expense group may include both advisory and certain non-portfolio management administrative services fees, but that Broadridge does not provide information on a fund by fund basis as to what is included. The Board also reviewed the methodology

Invesco V.I. Technology Fund

used by Broadridge in providing expense group information, which includes using each fund’s contractual management fee schedule (including any applicable breakpoints) as reported in the most recent prospectus or statement of additional information for each fund in the expense group. The Board also considered comparative information regarding the Fund’s total expense ratio and its various components.

The Board noted that Invesco Advisers has contractually agreed to waive fees and/or limit expenses of the Fund for the term disclosed in the Fund’s registration statement 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 Invesco Advisers and the Affiliated Sub-Advisers do not manage other similarly managed mutual funds or client accounts.

The Board also considered the services that may be provided by the Affiliated Sub-Advisers pursuant to the sub-advisory contracts, as well as the fees payable by Invesco Advisers to the Affiliated Sub-Advisers pursuant to the sub-advisory contracts.

D. Economies of Scale and Breakpoints

The Board considered the extent to which there may be economies of scale in the provision of advisory services to the Fund. The Board also considered that the Fund may benefit from economies of scale through contractual breakpoints in the Fund’s advisory fee schedule, which generally operate to reduce the Fund’s expense ratio as it grows in size. The Board 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. The Board noted that the Fund may also benefit from economies of scale through initial fee setting, fee waivers and expense reimbursements. The Board also considered Invesco’s reinvestment in its business, including investments in business infrastructure, technology and cybersecurity.

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 Invesco Funds and the profitability of Invesco Advisers and its affiliates in providing these services in the aggregate and on an individual Fund-by-Fund basis. The Board considered the methodology used for calculating profitability and noted the periodic review and enhancement of such methodology. The Board noted that Invesco Advisers continues to operate at a net profit from services Invesco Advisers and its affiliates provide to the Invesco Funds in the aggregate and to certain Funds on an individual fund level. The Board did not deem the level of profits realized by Invesco Advisers and its affiliates from providing such services to be excessive given the nature, extent and quality of the services provided. The Board received information from Invesco Advisers demonstrating that Invesco Advisers and the Affiliated Sub-Advisers are financially sound and have the resources necessary to perform their obligations under the investment advisory agreement and sub-advisory contracts.

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 providing administrative, transfer

agency and distribution services to the Fund. The Board considered comparative information regarding fees charged for these services, including information provided by Broadridge and other independent sources. 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; and that the services are required for the operation of the Fund.

The Board considered the benefits realized by Invesco Advisers and the Affiliated Sub-Advisers as a result of portfolio brokerage transactions executed through “soft dollar” arrangements. The Board noted that soft dollar arrangements may result in the Fund bearing costs to purchase research that may be used by Invesco Advisers or the Affiliated Sub-Advisers with other clients and may reduce Invesco Advisers’ or the Affiliated Sub-Advisers’ expenses. The Board also considered that it receives periodic reports from Invesco representing that these arrangements are consistent with regulatory requirements. The Board did not deem the soft dollar arrangements to be inappropriate.

The Board considered that the Fund’s uninvested cash and cash collateral from any securities lending arrangements may be invested in registered money market funds or, with regard to securities lending cash collateral, unregistered funds that comply with Rule 2a-7 (collectively referred to as “affiliated money market funds”) advised by Invesco Advisers pursuant to procedures approved by the Board. The Board considered information regarding the returns of the affiliated money market funds relative to comparable overnight investments, as well as the costs to the Fund of such investments. 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 with respect to certain investments in the affiliated money market 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 amount of advisory fees received by Invesco Advisers from the Fund’s investment of cash collateral from any securities lending arrangements in the affiliated money market funds is fair and reasonable.

The Board also considered that an affiliated broker may receive commissions for executing certain trades for the Fund. Invesco Advisers and the Affiliated Sub-Advisers may use the affiliated broker to, among other things, control order routing and minimize information leakage, and the Board was advised that such trades are executed in compliance with rules under the federal securities laws and consistent with best execution obligations.

Invesco V.I. Technology Fund

	Semiannual Report to Shareholders	June 30, 2020
	Invesco V.I. Value Opportunities Fund

Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, the insurance company that offers your variable annuity or variable life insurance contract may no longer send you paper copies of the Fund’s shareholder reports by mail, unless you specifically request paper copies of the reports from the insurance company or your financial intermediary. Instead of delivering paper copies of the report, the insurance company may choose to make the reports available on a website, and will notify you by mail each time a report is posted and provide you with a website link to access the report. Instructions for requesting paper copies will be provided by your insurance company.

If the insurance company offers electronic delivery, you may elect to receive shareholder reports and other communications about the Fund electronically by following the instructions provided by the insurance company or by contacting your financial intermediary. If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action.

You may elect to receive all future reports in paper free of charge from the insurance company. You can inform the insurance company or your financial intermediary that you wish to continue receiving paper copies of your shareholder reports by following the instructions provided by the insurance company or by contacting your financial intermediary. Your election to receive reports in paper will apply to all portfolio companies available under your contract with the insurance company.

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) as an exhibit to its reports on Form N-PORT. The Fund’s Form N-PORT filings are available on the SEC website, 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-PORT, 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 most recent 12-month period ended June 30 is available at invesco.com/proxysearch. The information is also available on the SEC website, sec.gov.

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

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.

NOT FDIC INSURED  |  MAY LOSE VALUE  |  NO BANK GUARANTEE

Invesco Distributors, Inc. VK-VIVOPP-SAR-1                                 

Fund Performance

Performance summary
Fund vs. Indexes
Cumulative total returns, 12/31/19 to 6/30/20, excluding variable product issuer charges. If variable product issuer charges were included, returns would be lower.
Series I Shares	-22.68%
Series II Shares	-22.76
S&P 500 Indexq (Broad Market Index)	-3.08
S&P 1500 Value Indexq (Style-Specific Index)	-16.11
Lipper VUF Multi-Cap Value Funds Index∎ (Peer Group Index)	-16.97
Source(s): qRIMES Technologies Corp.; ∎Lipper Inc.
The S&P 500® Index is an unmanaged index considered representative of the US stock market.
The S&P 1500 Value Index tracks the performance of US large-, mid- and small-cap value stocks.
The Lipper VUF Multi-Cap Value Funds Index is an unmanaged index considered representative of multicap 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) described here, and consequently, the performance of the Fund may deviate significantly from the performance of the index(es).
A direct investment cannot be made in an index. Unless otherwise indicated, index results include reinvested dividends, and they do not reflect sales charges. Performance of the peer group, if applicable, reflects fund expenses; performance of a market index does not.

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 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. Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares. Investment return and principal value will

fluctuate so that you may have a gain or loss when you sell shares.

Invesco V.I. Value Opportunities 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.

Average Annual Total Returns As of 6/30/20
Series I Shares
Inception (9/10/01)	3.26	%
10 Years	7.13
5 Years	0.10
1 Year	-16.97
Series II Shares
Inception (9/10/01)	2.99	%
10 Years	6.85
5 Years	-0.16
1 Year	-17.28
Performance includes litigation proceeds. Had these proceeds not been received, total returns would have been lower.

 The most recent month-end performance 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.

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

Invesco V.I. Value Opportunities Fund

Liquidity Risk Management Program

The Securities and Exchange Commission has adopted Rule 22e-4 under the Investment Company Act of 1940 (the “Liquidity Rule”) in order to promote effective liquidity risk management throughout the open-end investment company industry, thereby reducing the risk that funds will be unable to meet their redemption obligations and mitigating dilution of the interests of fund shareholders. The Fund has adopted and implemented a liquidity risk management program in accordance with the Liquidity Rule (the “Program”). The Program is reasonably designed to assess and manage the Fund’s liquidity risk, which is the risk that the Fund could not meet redemption requests without significant dilution of remaining investors’ interests in the Fund. The Board of Trustees of the Fund (the “Board”) has appointed Invesco Advisers, Inc. (“Invesco”), the Fund’s investment adviser, as the Program’s administrator, and Invesco has delegated oversight of the Program to the Liquidity Risk Management Committee (the “Committee”), which is composed of senior representatives from relevant business groups at Invesco.

As required by the Liquidity Rule, the Program includes policies and procedures providing for an assessment, no less frequently than annually, of the Fund’s liquidity risk that takes into account, as relevant to the Fund’s liquidity risk: (1) the Fund’s investment strategy and liquidity of portfolio investments during both normal and reasonably foreseeable stressed conditions; (2) short-term and long-term cash flow projections for the Fund during both normal and reasonably foreseeable stressed conditions; and (3) the Fund’s holdings of cash and cash equivalents and any borrowing arrangements. The Liquidity Rule also requires the classification of the Fund’s investments into categories that reflect the assessment of their relative liquidity under current market conditions. The Fund classifies its investments into one of four categories defined in the Liquidity Rule: “Highly Liquid,” “Moderately Liquid,” “Less Liquid” and “Illiquid.” Funds that are not invested primarily in “Highly Liquid Investments” that are assets (cash or investments that are reasonably expected to be convertible into cash within three business days without significantly changing the market value of the investment) are required to establish a “Highly Liquid Investment Minimum” (“HLIM”), which is the minimum percentage of net assets that must be invested in Highly Liquid Investments. Funds with HLIMs have procedures for addressing HLIM shortfalls, including reporting to the Board and the SEC (on a non-public basis) as required by the Program and the Liquidity Rule. In addition, the Fund may not acquire an investment if, immediately after the acquisition, over 15% of the Fund’s net assets would consist of “Illiquid Investments” that are assets (an investment that cannot reasonably be expected to be sold or disposed of in current market conditions in seven calendar days or less without the sale or disposition significantly changing the market value of the investment). The Liquidity Rule and the Program also require reporting to the Board and the SEC (on a non-public basis) if a Fund’s holdings of Illiquid Investments exceed 15% of the Fund’s assets.

At a meeting held on March 30-April 1, 2020, the Committee presented a report to the Board that addressed the operation of the Program and assessed the Program’s adequacy and effectiveness of implementation (the “Report”). The Report covered the period from December 1, 2018 through December 31, 2019 (the “Program Reporting Period”).

The Report stated, in relevant part, that during the Program Reporting Period:

∎ The Program, as adopted and implemented, remained reasonably designed to assess and manage the Fund’s liquidity risk and was operated effectively to achieve that goal;

∎ The Fund’s investment strategy remained appropriate for an open-end fund;

∎ The Fund was able to meet requests for redemption without significant dilution of remaining investors’ interests in the Fund;

∎ The Fund did not breach the 15% limit on Illiquid Investments; and

∎ The Fund primarily held Highly Liquid Investments and therefore has not adopted an HLIM.

Invesco V.I. Value Opportunities Fund

Schedule of Investments^(a)

June 30, 2020

(Unaudited)

	Shares		Value
Common Stocks & Other Equity Interests–96.37%
Agricultural & Farm Machinery–1.62%
AGCO Corp.		20,127	$	1,116,243
Auto Parts & Equipment–6.55%
Aptiv PLC		9,887		770,395
BorgWarner, Inc.		58,565		2,067,345
Dana, Inc.		138,227		1,684,987
				4,522,727
Building Products–3.62%
Owens Corning		44,799		2,497,992
Construction & Engineering–4.30%
AECOM(b)		79,045		2,970,511
Consumer Finance–0.05%
SLM Corp.		4,800		33,744
Distributors–3.71%
LKQ Corp.(b)		97,800		2,562,360
Diversified Banks–8.33%
Bank of America Corp.		61,174		1,452,883
Citigroup, Inc.		49,772		2,543,349
Wells Fargo & Co.		68,400		1,751,040
				5,747,272
Diversified Chemicals–4.57%
Chemours Co. (The)		65,137		999,853
Eastman Chemical Co.		2,500		174,100
Huntsman Corp.		110,200		1,980,294
				3,154,247
Electrical Components & Equipment–2.09%
nVent Electric PLC		76,900		1,440,337
Electronic Manufacturing Services–3.72%
Flex Ltd.(b)		217,065		2,224,916
Jabil, Inc.		10,600		340,048
				2,564,964
Health Care Services–2.09%
Cigna Corp.		7,700		1,444,905
Hotels, Resorts & Cruise Lines–0.14%
Norwegian Cruise Line Holdings Ltd.(b)		5,700		93,651
Household Products–4.44%
Energizer Holdings, Inc.		4,100		194,709
Spectrum Brands Holdings, Inc.		62,609		2,873,753
				3,068,462
Human Resource & Employment Services–1.15%
ManpowerGroup, Inc.		11,600		797,500
Independent Power Producers & Energy Traders–0.50%
Vistra Corp.		18,600		346,332
Industrial Conglomerates–1.99%
Carlisle Cos., Inc.		11,500		1,376,205

	Shares		Value
Industrial Machinery–3.53%
Crane Co.		21,300	$	1,266,498
Timken Co. (The)		25,700		1,169,093
				2,435,591
Internet & Direct Marketing Retail–4.00%
Booking Holdings, Inc.(b)		1,735		2,762,710
Investment Banking & Brokerage–3.81%
Goldman Sachs Group, Inc. (The)		13,300		2,628,346
Life & Health Insurance–3.04%
Athene Holding Ltd., Class A(b)		66,000		2,058,540
MetLife, Inc.		1,017		37,141
				2,095,681
Managed Health Care–3.28%
Anthem, Inc.		8,600		2,261,628
Oil & Gas Exploration & Production–3.79%
Diamondback Energy, Inc.		18,500		773,670
Noble Energy, Inc.		85,300		764,288
Parsley Energy, Inc., Class A		101,300		1,081,884
				2,619,842
Oil & Gas Refining & Marketing–3.64%
Marathon Petroleum Corp.		51,000		1,906,380
Phillips 66		8,400		603,960
				2,510,340
Other Diversified Financial Services–2.49%
Equitable Holdings, Inc.		89,200		1,720,668
Paper Packaging–2.47%
Sealed Air Corp.		51,900		1,704,915
Regional Banks–5.39%
First Horizon National Corp.		100,600		1,001,976
TCF Financial Corp.		67,600		1,988,792
Western Alliance Bancorporation		19,200		727,104
				3,717,872
Specialty Chemicals–2.58%
Axalta Coating Systems Ltd.(b)		49,400		1,113,970
Celanese Corp.		7,700		664,818
				1,778,788
Systems Software–3.89%
Oracle Corp.		48,595		2,685,846
Thrifts & Mortgage Finance–3.25%
MGIC Investment Corp.		220,142		1,802,963
Radian Group, Inc.		28,461		441,430
				2,244,393
Trading Companies & Distributors–2.34%
AerCap Holdings N.V. (Ireland)(b)		7,500		231,000

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

Invesco V.I. Value Opportunities Fund

	Shares		Value
Trading Companies & Distributors–(continued)
Univar Solutions, Inc.(b)		82,000	$	1,382,520
				1,613,520
Total Common Stocks & Other Equity Interests (Cost $68,583,424)				66,517,592
Money Market Funds–4.06%
Invesco Government & Agency Portfolio, Institutional Class, 0.09%(c)(d)		958,603		958,603
Invesco Liquid Assets Portfolio, Institutional Class, 0.39%(c)(d)		751,947		752,473

	Shares		Value
Money Market Funds–(continued)
Invesco Treasury Portfolio, Institutional Class, 0.08%(c)(d)		1,095,547	$	1,095,547
Total Money Market Funds (Cost $2,806,080)				2,806,623
TOTAL INVESTMENTS IN SECURITIES–100.43% (Cost $71,389,504)				69,324,215
OTHER ASSETS LESS LIABILITIES–(0.43)%				(299,732	)
NET ASSETS–100.00%			$	69,024,483

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 issuer. The issuer and/or the Fund is a wholly-owned subsidiary of Invesco Ltd., or is affiliated by having an investment adviser that is under common control of Invesco Ltd. The table below shows the Fund’s transactions in, and earnings from, its investments in affiliates for the six months ended June 30, 2020.

	Value December 31, 2019		Purchases at Cost			Proceeds from Sales				Change in Unrealized Appreciation		Realized Gain (Loss)		Value June 30, 2020			Dividend Income
Investments in Affiliated Money Market Funds:
Invesco Government & Agency Portfolio, Institutional Class		$   563,912		$	4,448,021		$	(4,053,330	)		$     -		$       -		$	958,603	$2,702
Invesco Liquid Assets Portfolio, Institutional Class		412,357			3,236,512			(2,896,612	)		454		(238)			752,473	3,048
Invesco Treasury Portfolio, Institutional Class		644,471			5,083,452			(4,632,376	)		-		-			1,095,547	2,858
Investments Purchased with Cash Collateral from Securities on Loan:
Invesco Government & Agency Portfolio, Institutional Class		-			1,356,600			(1,356,600	)		-		-			-	250
Invesco Liquid Assets Portfolio, Institutional Class		-			452,402			(452,196	)		-		(206)			-	105
Total		$1,620,740		$	14,576,987		$	(13,391,114	)		$454		$(444)		$	2,806,623	$8,963

^(d)  The rate shown is the 7-day SEC standardized yield as of June 30, 2020.

Portfolio Composition

By sector, based on Net Assets

as of June 30, 2020

Financials	26.35	%
Industrials	20.64
Consumer Discretionary	14.40
Materials	9.62
Information Technology	7.61
Energy	7.43
Health Care	5.37
Consumer Staples	4.44
Utilities	0.50
Money Market Funds Plus Other Assets Less Liabilities	3.64

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

Invesco V.I. Value Opportunities Fund

Statement of Assets and Liabilities

June 30, 2020

(Unaudited)

Assets:
Investments in securities, at value (Cost $68,583,424)	$	66,517,592
Investments in affiliated money market funds, at value (Cost $2,806,080)		2,806,623
Foreign currencies, at value (Cost $3,103)		3,397
Receivable for:
Fund shares sold		1,026
Dividends		47,013
Investment for trustee deferred compensation and retirement plans		106,831
Total assets		69,482,482
Liabilities:
Payable for:
Fund shares reacquired		267,404
Accrued fees to affiliates		38,267
Accrued trustees’ and officers’ fees and benefits		1,774
Accrued other operating expenses		35,414
Trustee deferred compensation and retirement plans		115,140
Total liabilities		457,999
Net assets applicable to shares outstanding	$	69,024,483
Net assets consist of:
Shares of beneficial interest	$	75,641,733
Distributable earnings (loss)		(6,617,250	)
	$	69,024,483
Net Assets:
Series I	$	51,034,325
Series II	$	17,990,158
Shares outstanding, no par value, with an unlimited number of shares authorized:
Series I		11,797,514
Series II		4,173,033
Series I:
Net asset value per share	$	4.33
Series II:
Net asset value per share	$	4.31

Statement of Operations

For the six months ended June 30, 2020

(Unaudited)

Investment income:
Dividends (net of foreign withholding taxes of $4,182)	$	692,399
Dividends from affiliates (includes securities lending income of $9,005)		17,613
Total investment income		710,012
Expenses:
Advisory fees		248,448
Administrative services fees		60,248
Custodian fees		605
Distribution fees - Series II		23,294
Transfer agent fees		12,497
Trustees’ and officers’ fees and benefits		8,058
Reports to shareholders		1,889
Professional services fees		16,444
Other		(67	)
Total expenses		371,416
Less: Fees waived		(1,408	)
Net expenses		370,008
Net investment income		340,004
Realized and unrealized gain (loss) from:
Net realized gain (loss) from:
Investment securities		(7,898,013	)
Foreign currencies		(371	)
		(7,898,384	)
Change in net unrealized appreciation (depreciation) of:
Investment securities		(12,322,997	)
Foreign currencies		435
		(12,322,562	)
Net realized and unrealized gain (loss)		(20,220,946	)
Net increase (decrease) in net assets resulting from operations	$	(19,880,942	)

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

Invesco V.I. Value Opportunities Fund

Statement of Changes in Net Assets

For the six months ended June 30, 2020 and the year ended December 31, 2019

(Unaudited)

	June 30, 2020			December 31, 2019
Operations:
Net investment income	$	340,004		$	233,340
Net realized gain (loss)		(7,898,384	)		4,534,845
Change in net unrealized appreciation (depreciation)		(12,322,562	)		18,922,226
Net increase (decrease) in net assets resulting from operations		(19,880,942	)		23,690,411
Distributions to shareholders from distributable earnings:
Series I		–			(13,915,883	)
Series II		–			(4,877,021	)
Total distributions from distributable earnings		–			(18,792,904	)
Share transactions–net:
Series I		(1,851,481	)		4,066,968
Series II		(597,172	)		1,082,646
Net increase (decrease) in net assets resulting from share transactions		(2,448,653	)		5,149,614
Net increase (decrease) in net assets		(22,329,595	)		10,047,121
Net assets:
Beginning of period		91,354,078			81,306,957
End of period	$	69,024,483		$	91,354,078

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

Invesco V.I. Value Opportunities Fund

Financial Highlights

(Unaudited)

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
								(losses)																													net assets			assets without			investment
	Net asset			Net				on securities								Dividends				Distributions																	with fee waivers			fee waivers			income
	value,			investment				(both				Total from				from net				from net								Net asset						Net assets,			and/or			and/or			(loss)
	beginning			income				realized and				investment				investment				realized				Total				value, end			Total			end of period			expenses			expenses			to average			Portfolio
	of period			(loss)(a)				unrealized)				operations				income				gains				distributions				of period			return (b)			(000’s omitted)			absorbed			absorbed			net assets			turnover (c)
Series I
Six months ended 06/30/20		$	5.60		$	0.02			$	(1.29	)		$	(1.27	)		$	–			$	–			$	–			$	4.33		(22.68	)%		$	51,034		0.97	%(d)		0.97	%(d)		1.02	%(d)		36	%
Year ended 12/31/19			5.50			0.02				1.51	(e)			1.53				(0.02	)			(1.41	)			(1.43	)			5.60		30.61	(e)			67,691		0.97			0.97			0.32			34
Year ended 12/31/18			7.58			0.01				(1.30	)			(1.29	)			(0.02	)			(0.77	)			(0.79	)			5.50		(19.18	)			59,998		1.01			1.01			0.22			45
Year ended 12/31/17			6.48			0.02				1.11	(f)			1.13				(0.03	)			–				(0.03	)			7.58		17.44	(f)			87,232		0.98			0.98			0.30			28
Year ended 12/31/16			7.82			0.03				1.10				1.13				(0.03	)			(2.44	)			(2.47	)			6.48		18.34				85,722		1.01			1.02			0.43			36
Year ended 12/31/15			9.84			0.05				(1.09	)			(1.04	)			(0.26	)			(0.72	)			(0.98	)			7.82		(10.40	)			83,889		1.04			1.04			0.51			82
Series II
Six months ended 06/30/20			5.58			0.02				(1.29	)			(1.27	)			–				–				–				4.31		(22.76	)			17,990		1.22	(d)		1.22	(d)		0.77	(d)		36
Year ended 12/31/19			5.49			0.00				1.50	(e)			1.50				–				(1.41	)			(1.41	)			5.58		30.12	(e)			23,663		1.22			1.22			0.07			34
Year ended 12/31/18			7.56			(0.00	)			(1.30	)			(1.30	)			–				(0.77	)			(0.77	)			5.49		(19.35	)			21,309		1.26			1.26			(0.03	)		45
Year ended 12/31/17			6.45			0.00				1.11	(f)			1.11				0.00				–				0.00				7.56		17.23	(f)			35,328		1.23			1.23			0.05			28
Year ended 12/31/16			7.79			0.01				1.10				1.11				(0.01	)			(2.44	)			(2.45	)			6.45		17.92				54,438		1.26			1.27			0.18			36
Year ended 12/31/15			9.79			0.02				(1.08	)			(1.06	)			(0.22	)			(0.72	)			(0.94	)			7.79		(10.65	)			54,887		1.29			1.29			0.26			82

^(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 $53,187 and $18,702 for Series I and Series II shares, respectively.

^(e)  Includes litigation proceeds received during the period. Had these litigation proceeds not been received, Net gains (losses) on securities (both realized and unrealized) per share would have been $1.44 and $1.43 for Series I and Series II shares, respectively. Total returns would have been lower.

^(f)  Includes litigation proceeds received during the period. Had these litigation proceeds not been received, Net gains (losses) on securities (both realized and unrealized) per share would have been $1.09 and $1.09 for Series I and Series II shares, respectively. Total returns would have been lower.

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

Invesco V.I. Value Opportunities Fund

Notes to Financial Statements

June 30, 2020

(Unaudited)

NOTE 1–Significant Accounting Policies

Invesco V.I. Value Opportunities 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. Information presented in these financial statements pertains only to the Fund. Matters affecting the Fund or each class will be voted on exclusively by the shareholders of the Fund or each class. 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 Fund is an investment company and accordingly follows the investment company accounting and reporting guidance in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 946, Financial Services – Investment Companies.

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

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

A security listed or traded on an exchange (except convertible securities) is valued at its last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded, or lacking any sales or official closing price on a particular day, the security may be valued at the closing bid price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued by an independent pricing service they may be considered fair valued. Futures contracts are valued at the final settlement price set by an exchange on which they are principally traded. Listed options are valued at the mean between the last bid and asked 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 asked prices. For purposes of determining net asset value (“NAV”) per share, futures and option contracts generally are valued 15 minutes after the close of the customary trading session of the New York Stock Exchange (“NYSE”).

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

Debt obligations (including convertible securities) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. Pricing services generally value debt obligations assuming orderly transactions of institutional round lot size, but a fund may hold or transact in the same securities in smaller, odd lot sizes. Odd lots often trade at lower prices than institutional round lots. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.

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

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

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

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

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

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

Invesco V.I. Value Opportunities Fund

share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and the Statement of Changes in Net Assets, or the net investment income per share and the ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.

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

C. Country Determination – For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues 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 net investment income and net realized capital gain, if any, are generally declared and paid to separate accounts of participating insurance companies annually and recorded on the ex-dividend date.

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

The Fund recognizes the tax benefits of uncertain tax positions only when the position is more likely than not to be sustained. Management has analyzed the Fund’s uncertain tax positions and concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions. Management is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the next 12 months.

The Fund files tax returns in the U.S. Federal jurisdiction and certain other jurisdictions. Generally, the Fund is subject to examinations by such taxing authorities for up to three years after the filing of the return for the tax period.

F. Expenses – Fees provided for under the Rule 12b-1 plan of a particular class of the Fund and which are directly attributable to that class are charged to the operations of such class. All other expenses are allocated among the classes based on relative net assets.

G. Accounting Estimates – The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print.

H. Indemnifications – Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of the performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements, that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote.

I. 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. The Fund bears the risk of loss with respect to the investment of collateral. It is the Fund’s policy to obtain additional collateral from or return excess collateral to the borrower by the end of the next business day, following the valuation date of the securities loaned. Therefore, the value of the collateral held may be temporarily less than the value of the securities on loan. When loaning securities, the Fund retains certain benefits of owning the securities, including the economic equivalent of dividends or interest generated by the security. Lending securities entails a risk of loss to the Fund if, and to the extent that, the market value of the securities loaned were to increase and the borrower did not increase the collateral accordingly, and the borrower failed to return the securities. The securities loaned are subject to termination at the option of the borrower or the Fund. Upon termination, the borrower will return to the Fund the securities loaned and the Fund will return the collateral. Upon the failure of the borrower to return the securities, collateral may be liquidated and the securities may be purchased on the open market to replace the loaned securities. The Fund could experience delays and costs in gaining access to the collateral and the securities may lose value during the delay which could result in potential losses to the Fund. Some of these losses may be indemnified by the lending agent. The Fund bears the risk of any deficiency in the amount of the collateral available for return to the borrower due to any loss on the collateral invested. Dividends received on cash collateral investments for securities lending transactions, which are net of compensation to counterparties, are included in Dividends from affiliates on the Statement of Operations. The aggregate value of securities out on loan, if any, is shown as a footnote on the Statement of Assets and Liabilities.

J. Foreign Currency Translations – Foreign currency is valued at the close of the NYSE based on quotations posted by banks and major currency dealers. Portfolio securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at the date of valuation. Purchases and sales of portfolio securities (net of foreign taxes withheld on disposition) and income items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. The Fund does not separately account for the portion of the results of operations resulting from changes in foreign exchange rates on investments and the fluctuations arising from changes in market prices of securities held. The combined results of changes in foreign exchange rates and the fluctuation of market prices on investments (net of estimated foreign tax withholding) are included with the net realized and unrealized gain or loss from investments in the Statement of Operations. Reported net realized foreign currency gains or losses arise from (1) sales of foreign currencies, (2) currency gains or losses realized between the trade and settlement dates on securities transactions, and (3) the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign currency gains and losses arise from changes in the fair values of assets and liabilities, other than investments in securities at fiscal period end, resulting from changes in exchange rates.

The Fund may invest in foreign securities, which may be subject to foreign taxes on income, gains on investments or currency repatriation, a portion of which may be recoverable. Foreign taxes, if any, are recorded based on the tax regulations and rates that exist in the foreign markets in which the Fund invests and are shown in the Statement of Operations.

K. Forward Foreign Currency Contracts – The Fund may engage in foreign currency transactions either on a spot (i.e. for prompt delivery and settlement) basis, or through forward foreign currency contracts, to manage or minimize currency or exchange rate risk.

The Fund may also enter into forward foreign currency contracts for the purchase or sale of a security denominated in a foreign currency in order to “lock in” the U.S. dollar price of that security, or the Fund may also enter into forward foreign currency contracts that do not provide for physical settlement of the two currencies, but instead are settled by a single cash payment calculated as the difference between the agreed upon exchange rate and the spot rate at settlement based upon an agreed upon notional amount (non-deliverable forwards). The Fund will set aside liquid assets in an amount equal to the daily mark-to-market obligation for forward foreign currency contracts.

Invesco V.I. Value Opportunities Fund

A forward foreign currency contract is an obligation between two parties (“Counterparties”) to purchase or sell a specific currency for an agreed-upon price at a future date. The use of forward foreign currency contracts does not eliminate fluctuations in the price of the underlying securities the Fund owns or intends to acquire but establishes a rate of exchange in advance. Fluctuations in the value of these contracts are measured by the difference in the contract date and reporting date exchange rates and are recorded as unrealized appreciation (depreciation) until the contracts are closed. When the contracts are closed, realized gains (losses) are recorded. Realized and unrealized gains (losses) on the contracts are included in the Statement of Operations. The primary risks associated with forward foreign currency contracts include failure of the Counterparty to meet the terms of the contract and the value of the foreign currency changing unfavorably. These risks may be in excess of the amounts reflected in the Statement of Assets and Liabilities.

NOTE 2–Advisory Fees and Other Fees Paid to Affiliates

The Trust has entered into a master investment advisory agreement with Invesco Advisers, Inc. (the “Adviser” or “Invesco”). Under the terms of the investment advisory agreement, the Fund accrues daily and pays monthly an 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%
First $250 million	0.670%
First $500 million	0.645%
Next $1.5 billion	0.620%
Next $2.5 billion	0.595%
Next $2.5 billion	0.570%
Next $2.5 billion	0.545%
Over $10 billion	0.520%

For the six months ended June 30, 2020, the effective advisory fee rate incurred by the Fund was 0.69%.

Under the terms of a master sub-advisory agreement between the Adviser and each of Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Canada Ltd. and separate sub-advisory agreements with Invesco Capital Management LLC and Invesco Asset Management (India) Private Limited (collectively, the “Affiliated Sub-Advisers”) the Adviser, not the Fund, will pay 40% of the fees paid to the Adviser to any such Affiliated Sub-Adviser(s) that provide(s) discretionary investment management services to the Fund based on the percentage of assets allocated to such Affiliated Sub-Adviser(s).

The Adviser has contractually agreed, through at least June 30, 2021, 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 2.00% and Series II shares to 2.25% of average daily net assets (the “expense limits”). In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause the total annual fund operating expenses after fee waiver and/or expense reimbursement to exceed the numbers reflected above: (1) interest; (2) taxes; (3) dividend expense on short sales; (4) extraordinary or non-routine items, including litigation expenses; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Unless Invesco continues the fee waiver agreement, it will terminate on June 30, 2021. During its term, the fee waiver agreement cannot be terminated or amended to increase the expense limits or reduce the advisory fee waiver without approval of the Board of Trustees. The Adviser did not waive fees and/or reimburse expenses during the period under these expense limits.

Further, the Adviser has contractually agreed, through at least June 30, 2022, 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, 2020, the Adviser waived advisory fees of $1,408.

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 fees paid to insurance companies that have agreed to provide certain administrative services to the Fund. These administrative services provided by the insurance companies may include, among other things: maintenance of master accounts with the Fund; tracking, recording and transmitting net purchase and redemption orders for Fund shares; maintaining and preserving records related to the purchase, redemption and other account activity of variable product owners; distributing copies of Fund documents such as prospectuses, proxy materials and periodic reports, to variable product owners, and responding to inquiries from variable product owners about the Fund. Pursuant to such agreement, for the six months ended June 30, 2020, Invesco was paid $6,527 for accounting and fund administrative services and was reimbursed $53,721 for fees paid to insurance companies. Invesco has entered into a sub-administration agreement whereby State Street Bank and Trust Company (“SSB”) serves as fund accountant and provides certain administrative services to the Fund. Pursuant to a custody agreement with the Trust on behalf of the Fund, SSB also serves as the Fund’s custodian.

The Trust has entered into a transfer agency and service agreement with Invesco Investment Services, Inc. (“IIS”) pursuant to which the Fund has agreed to pay IIS a fee for providing transfer agency and shareholder services to the Fund and reimburse IIS for certain expenses incurred by IIS in the course of providing such services. For the six months ended June 30, 2020, 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. The fees are accrued daily and paid monthly. 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, 2020, expenses incurred under the Plan are detailed in the Statement of Operations as Distribution fees.

For the six months ended June 30, 2020, the Fund incurred $462 in brokerage commissions with Invesco Capital Markets, Inc., an affiliate of the Adviser and IDI, for portfolio transactions executed on behalf of the Fund.

Certain officers and trustees of the Trust are officers and directors of the Adviser, IIS and/or IDI.

NOTE 3–Additional Valuation Information

GAAP defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, under current market conditions. GAAP establishes a hierarchy that prioritizes the inputs to valuation methods, giving the highest priority to readily available unadjusted quoted prices in an active market for identical assets (Level 1) and the lowest priority to significant unobservable inputs (Level 3), generally when market prices are not readily available or are unreliable. Based on the valuation inputs, the securities or other investments are tiered into one of three levels. Changes in valuation methods may result in transfers in or out of an investment’s assigned level:

Level 1 - Prices are determined using quoted prices in an active market for identical assets.

Invesco V.I. Value Opportunities 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.

As of June 30, 2020, all of the securities in this Fund were valued based on Level 1 inputs (see the Schedule of Investments for security categories). The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

NOTE 4–Trustees’ and Officers’ Fees and Benefits

Trustees’ and Officers’ Fees and Benefits include amounts accrued by the Fund to pay remuneration to certain Trustees and Officers of the Fund. Trustees have the option to defer compensation payable by the Fund, and Trustees’ and Officers’ Fees and Benefits also include amounts accrued by the Fund to fund such deferred compensation amounts. Those Trustees who defer compensation have the option to select various Invesco Funds in which their deferral accounts shall be deemed to be invested. Finally, certain current Trustees were eligible to participate in a retirement plan that provided for benefits to be paid upon retirement to Trustees over a period of time based on the number of years of service. The Fund may have certain former Trustees who also participate in a retirement plan and receive benefits under such plan. Trustees’ and Officers’ Fees and Benefits include amounts accrued by the Fund to fund such retirement benefits. Obligations under the deferred compensation and retirement plans represent unsecured claims against the general assets of the Fund.

NOTE 5–Cash Balances

The Fund is permitted to temporarily carry a negative or overdrawn balance in its account with SSB, the custodian bank. Such balances, if any at period-end, are shown in the Statement of Assets and Liabilities under the payable caption Amount due custodian. To compensate the custodian bank for such overdrafts, the overdrawn Fund may either (1) leave funds as a compensating balance in the account so the custodian bank can be compensated by earning the additional interest; or (2) compensate by paying the custodian bank at a rate agreed upon by the custodian bank and Invesco, not to exceed the contractually agreed upon rate. The Fund may not purchase additional securities when any borrowings from banks or broker-dealers exceed 5% of the Fund’s total assets, or when any borrowings from an Invesco Fund are outstanding.

NOTE 6–Tax Information

The amount and character of income and gains to be distributed are determined in accordance with income tax regulations, which may differ from GAAP. Reclassifications are made to the Fund’s capital accounts to reflect income and gains available for distribution (or available capital loss carryforward) under income tax regulations. The tax character of distributions paid during the year and the tax components of net assets will be reported at the Fund’s fiscal year-end.

Capital loss carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Fund to utilize. The ability to utilize capital loss carryforwards in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.

The Fund did not have a capital loss carryforward as of December 31, 2019.

NOTE 7–Investment Transactions

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, 2020 was $25,615,269 and $28,227,871, respectively. Cost of investments, including any derivatives, on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end.

Unrealized Appreciation (Depreciation) of Investments on a Tax Basis
Aggregate unrealized appreciation of investments	$	6,749,862
Aggregate unrealized (depreciation) of investments		(9,260,544	)
Net unrealized appreciation (depreciation) of investments	$	(2,510,682	)

Cost of investments for tax purposes is $71,834,897.

NOTE 8–Share Information

	Summary of Share Activity
	Six months ended June 30, 2020(a)				Year ended December 31, 2019
	Shares		Amount		Shares		Amount
Sold:
Series I		598,383	$	2,267,116		585,705	$	3,555,762
Series II		328,722		1,230,305		183,035		1,127,174
Issued as reinvestment of dividends:
Series I		-		-		2,766,577		13,915,883
Series II		-		-		971,518		4,877,021

Invesco V.I. Value Opportunities Fund

	Summary of Share Activity
	Six months ended June 30, 2020(a)						Year ended December 31, 2019
	Shares			Amount			Shares			Amount
Reacquired:
Series I		(896,424	)	$	(4,118,597	)		(2,173,905	)	$	(13,404,677	)
Series II		(393,476	)		(1,827,477	)		(801,319	)		(4,921,549	)
Net increase (decrease) in share activity		(362,795	)	$	(2,448,653	)		1,531,611		$	5,149,614

^(a)  There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 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 Fund has no knowledge as to whether all or any portion of the shares owned of record by these entities are also owned beneficially.

NOTE 9–Coronavirus (COVID-19) Pandemic

During the first quarter of 2020, the World Health Organization declared COVID-19 to be a public health emergency. COVID-19 has led to increased short-term market volatility and may have adverse long-term effects on U.S. and world economies and markets in general. COVID-19 may adversely impact the Fund’s ability to achieve its investment objective. Because of the uncertainties on valuation, the global economy and business operations, values reflected in these financial statements may materially differ from the value received upon actual sales of those investments.

The extent of the impact on the performance of the Fund and its investments will depend on future developments, including the duration and spread of the COVID-19 outbreak, related restrictions and advisories, and the effects on the financial markets and economy overall, all of which are highly uncertain and cannot be predicted.

Invesco V.I. Value Opportunities 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, 2020 through June 30, 2020.

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.

				ACTUAL						HYPOTHETICAL (5% annual return before expenses)
	Beginning			Ending			Expenses			Ending			Expenses			Annualized
	Account Value			Account Value			Paid During			Account Value			Paid During			Expense
	(01/01/20)			(06/30/20)1			Period2			(06/30/20)			Period2			Ratio
Series I		$	1,000.00		$	773.20		$	4.28		$	1,020.04		$	4.87		0.97	%
Series II			1,000.00			772.40			5.38			1,018.80			6.12		1.22

¹  The actual ending account value is based on the actual total return of the Fund for the period January 1, 2020 through June 30, 2020, 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 182/366 to reflect the most recent fiscal half year.

Invesco V.I. Value Opportunities Fund

Approval of Investment Advisory and Sub-Advisory Contracts

At meetings held on June 3, 2020, the Board of Trustees (the Board or the Trustees) of AIM Variable Insurance Funds (Invesco Variable Insurance Funds) as a whole, and the independent Trustees, who comprise over 75% of the Board, voting separately, approved the continuance of the Invesco V.I. Value Opportunities Fund’s (the Fund) Master Investment Advisory Agreement with Invesco Advisers, Inc. (Invesco Advisers and the investment advisory agreement) and the Master Intergroup Sub-Advisory Contract for Mutual Funds with Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Canada Ltd. and separate sub-advisory contracts with Invesco Capital Management LLC and Invesco Asset Management (India) Private Limited (collectively, the Affiliated Sub-Advisers and the sub-advisory contracts) for another year, effective July 1, 2020. After evaluating the factors discussed below, among others, the Board approved the renewal of the Fund’s investment advisory agreement and the sub-advisory contracts and determined that the compensation payable thereunder by the Fund to Invesco Advisers and by Invesco Advisers to the Affiliated Sub-Advisers is fair and reasonable.

The Board’s Evaluation Process

The Board’s Investments Committee has established Sub-Committees, which meet throughout the year to review the performance of funds advised by Invesco Advisers (the Invesco Funds). The Sub-Committees meet regularly with portfolio managers for their assigned Invesco Funds and other members of management to review detailed information about investment performance and portfolio attributes of these funds. The Board took into account evaluations and reports that it received from the Investments Committee and Sub-Committees, as well as the information provided to such committees and the Board throughout the year, in considering whether to approve each Invesco Fund’s investment advisory agreement and sub-advisory contracts.

As part of the contract renewal process, the Board reviews and considers information provided in response to detailed requests for information submitted to management by the independent Trustees with assistance from legal counsel to the independent Trustees. The Board receives comparative investment performance and fee data regarding the Invesco Funds prepared by Invesco Advisers and Broadridge Financial Solutions, Inc. (Broadridge), an independent mutual fund data provider, as well as information on the composition of the peer groups provided by Broadridge and its methodology for determining peer groups. The Board also receives an independent written evaluation from the Senior Officer, an officer of the Invesco Funds who reports directly to the independent Trustees. 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. In addition to meetings with Invesco Advisers and fund counsel throughout the year, the independent Trustees also

discuss the continuance of the investment advisory agreement and sub-advisory contracts in separate sessions with the Senior Officer and with independent legal counsel.

The discussion below is a summary of 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. The Trustees’ review and conclusions are based on the comprehensive consideration of all information presented to them during the course of the year and in prior years and are not the result of any single determinative factor. Moreover, one Trustee may have weighed a particular piece of information or factor differently than another Trustee. This information is current as of June 3, 2020.

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 nature, extent and quality of the advisory services provided to the Fund by Invesco Advisers under the Fund’s investment advisory agreement, and the credentials and experience of the officers and employees of Invesco Advisers who provide these services, including the Fund’s portfolio manager(s). The Board’s review included consideration of Invesco Advisers’ investment process oversight and structure, credit analysis, investment risk management and research capabilities. The Board also considered non-advisory services that Invesco Advisers and its affiliates provide to the Invesco Funds, such as various back office support functions, third party oversight, internal audit, valuation, portfolio trading and legal and compliance. The Board also received and reviewed information about Invesco Advisers’ role as administrator of the Invesco Funds’ liquidity risk management program. The Board reviewed and considered the benefits to shareholders of investing in a Fund that is part of the Invesco family of funds under the umbrella of Invesco Ltd., Invesco Advisers’ parent company, and noted Invesco Ltd.’s depth and experience in conducting an investment management business, as well as its commitment of financial and other resources to such business. The Board also reviewed and considered information regarding the benefits to the Fund resulting from Invesco Ltd.’s acquisition of OppenheimerFunds, Inc. and its subsidiaries (the Transaction) and the resources that Invesco Advisers has committed to managing the Invesco family of funds following the Transaction. The Board concluded that the nature, extent and quality of the services provided to the Fund by Invesco Advisers are appropriate and satisfactory.

The Board reviewed the services that may be 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 the Affiliated Sub-Advisers’ expertise with respect to certain asset classes and that the Affiliated Sub-Advisers have offices and personnel that are located in financial centers around the world.

As a result, the Board noted that the Affiliated Sub-Advisers can provide research and investment analysis on the markets and economies of various countries in which the Fund may invest, make recommendations regarding securities and assist with security trades. The Board concluded that the sub-advisory contracts may 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 that may be provided by the Affiliated Sub-Advisers are appropriate and satisfactory.

B. Fund Investment Performance

The Board considered Fund investment performance as a relevant factor in considering whether to approve the investment advisory agreement. The Board did not view Fund investment 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 investment performance over multiple time periods ending December 31, 2019 to the performance of funds in the Broadridge performance universe and against the S&P 1500^® Value Index. The Board noted that performance of Series I shares of the Fund was in the first quintile of its performance universe for the one year period and the fifth quintile for the three and five year periods (the first quintile being the best performing funds and the fifth quintile being the worst performing funds). The Board noted that performance of Series I shares of the Fund was reasonably comparable to the performance of the Index for the one year period and below the performance of the Index for the three and five year periods. The Board noted that the Fund’s overweight and underweight exposures to certain sectors detracted from Fund performance and also discussed how the market environment for the Fund’s value investing style impacted performance. The Board recognized that the performance data reflects a snapshot in time as of a particular date and that selecting a different performance period could produce different results. The Board also reviewed more recent Fund performance as well as other performance metrics and this review did not change their conclusions.

C. Advisory and Sub-Advisory Fees and Fund Expenses

The Board compared the Fund’s contractual management fee rate to the contractual management fee rates of funds in the Fund’s Broadridge expense group. The Board noted that the contractual management fee rate for Series I shares of the Fund was the same as the median contractual management fee rate of funds in its expense group. The Board noted that the term “contractual management fee” for funds in the expense group may include both advisory and certain non-portfolio management administrative services fees, but that Broadridge does not provide information on a fund by fund basis as to what is included. The Board also reviewed the methodology used by Broadridge in providing expense group information, which includes using each fund’s contractual management fee schedule (including any applicable breakpoints) as reported in the most recent prospectus or statement of

Invesco V.I. Value Opportunities Fund

additional information for each fund in the expense group. The Board also considered comparative information regarding the Fund’s total expense ratio and its various components. The Board noted that the Fund’s actual management fees were in the fifth quintile of its expense group and discussed with management reasons for such relative actual management fees.

The Board noted that Invesco Advisers has contractually agreed to waive fees and/or limit expenses of the Fund for the term disclosed in the Fund’s registration statement 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 Invesco Advisers and the Affiliated Sub-Advisers do not manage other similarly managed mutual funds or client accounts.

The Board also considered the services that may be provided by the Affiliated Sub-Advisers pursuant to the sub-advisory contracts, as well as the fees payable by Invesco Advisers to the Affiliated Sub-Advisers pursuant to the sub-advisory contracts.

D. Economies of Scale and Breakpoints

The Board considered the extent to which there may be economies of scale in the provision of advisory services to the Fund. The Board also considered that the Fund may benefit from economies of scale through contractual breakpoints in the Fund’s advisory fee schedule, which generally operate to reduce the Fund’s expense ratio as it grows in size. The Board 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. The Board noted that the Fund may also benefit from economies of scale through initial fee setting, fee waivers and expense reimbursements. The Board also considered Invesco’s reinvestment in its business, including investments in business infrastructure, technology and cybersecurity.

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 Invesco Funds and the profitability of Invesco Advisers and its affiliates in providing these services in the aggregate and on an individual Fund-by-Fund basis. The Board considered the methodology used for calculating profitability and noted the periodic review and enhancement of such methodology. The Board noted that Invesco Advisers continues to operate at a net profit from services Invesco Advisers and its affiliates provide to the Invesco Funds in the aggregate and to certain Funds on an individual fund level. The Board did not deem the level of profits realized by Invesco Advisers and its affiliates from providing such services to be excessive given the nature, extent and quality of the services provided. The Board received information from Invesco Advisers demonstrating that Invesco Advisers and the Affiliated Sub-Advisers are financially sound and have the resources necessary to perform their obligations under the investment advisory agreement and sub-advisory contracts.

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 providing administrative, transfer agency and distribution services to the Fund. The

Board considered comparative information regarding fees charged for these services, including information provided by Broadridge and other independent sources. 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; and that the services are required for the operation of the Fund.

The Board considered the benefits realized by Invesco Advisers and the Affiliated Sub-Advisers as a result of portfolio brokerage transactions executed through “soft dollar” arrangements. The Board noted that soft dollar arrangements may result in the Fund bearing costs to purchase research that may be used by Invesco Advisers or the Affiliated Sub-Advisers with other clients and may reduce Invesco Advisers’ or the Affiliated Sub-Advisers’ expenses. The Board also considered that it receives periodic reports from Invesco representing that these arrangements are consistent with regulatory requirements. The Board did not deem the soft dollar arrangements to be inappropriate.

The Board considered that the Fund’s uninvested cash and cash collateral from any securities lending arrangements may be invested in registered money market funds or, with regard to securities lending cash collateral, unregistered funds that comply with Rule 2a-7 (collectively referred to as “affiliated money market funds”) advised by Invesco Advisers pursuant to procedures approved by the Board. The Board considered information regarding the returns of the affiliated money market funds relative to comparable overnight investments, as well as the costs to the Fund of such investments. 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 with respect to certain investments in the affiliated money market receives funds. The waiver is in an amount equal to 100% of the net advisory fee Invesco Advisers 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 amount of advisory fees received by Invesco Advisers from the Fund’s investment of cash collateral from any securities lending arrangements in the affiliated money market funds is fair and reasonable.

The Board also considered that an affiliated broker may receive commissions for executing certain trades for the Fund. Invesco Advisers and the Affiliated Sub-Advisers may use the affiliated broker to, among other things, control order routing and minimize information leakage, and the Board was advised that such trades are executed in compliance with rules under the federal securities laws and consistent with best execution obligations.

Invesco V.I. Value Opportunities Fund

	Semiannual Report to Shareholders	June 30, 2020
	Invesco Oppenheimer V.I. Capital Appreciation Fund

Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, the insurance company that offers your variable annuity or variable life insurance contract may no longer send you paper copies of the Fund’s shareholder reports by mail, unless you specifically request paper copies of the reports from the insurance company or your financial intermediary. Instead of delivering paper copies of the report, the insurance company may choose to make the reports available on a website, and will notify you by mail each time a report is posted and provide you with a website link to access the report. Instructions for requesting paper copies will be provided by your insurance company.

    If the insurance company offers electronic delivery, you may elect to receive shareholder reports and other communications about the Fund electronically by following the instructions provided by the insurance company or by contacting your financial intermediary. If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action.

    You may elect to receive all future reports in paper free of charge from the insurance company. You can inform the insurance company or your financial intermediary that you wish to continue receiving paper copies of your shareholder reports by following the instructions provided by the insurance company or by contacting your financial intermediary. Your election to receive reports in paper will apply to all portfolio companies available under your contract with the insurance company.

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) as an exhibit to its reports on Form N-PORT. The Fund’s Form N-PORT filings are available on the SEC website, 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-PORT, 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 most recent 12-month period ended June 30 is available at invesco.com/proxysearch. The information is also available on the SEC website, sec.gov.

    Invesco Advisers, Inc. is an investment adviser; it provides investment advisory services to individual and institutional clients and does not sell securities. Invesco Distributors, Inc. is the US distributor for Invesco Ltd.’s retail mutual funds, exchange-traded funds and institutional money market funds. Both are wholly owned, indirect subsidiaries of Invesco Ltd.

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.

NOT FDIC INSURED  |  MAY LOSE VALUE  |  NO BANK GUARANTEE

Invesco Distributors, Inc. O-VICAPA-SAR-1                                 

Fund Performance

Performance summary
Fund vs. Indexes
Cumulative total returns, 12/31/19 to 6/30/20, excluding variable product issuer charges. If variable product issuer charges were included, returns would be lower.
Series I Shares	9.15	%
Series II Shares	9.01
S&P 500 Indexq	-3.08
Russell 1000 Growth Indexq	9.81
Source(s): qRIMES Technologies Corp.
The S&P 500® Index is an unmanaged index considered representative of the US stock market.
The Russell 1000® Growth Index is an unmanaged index considered representative of large-cap growth stocks. The Russell 1000 Growth Index is a trademark/service mark of the Frank Russell Co. Russell® is a trademark of the Frank Russell Co.
The Fund is not managed to track the performance of any particular index, including the index(es) described here, and consequently, the performance of the Fund may deviate significantly from the performance of the index(es).
A direct investment cannot be made in an index. Unless otherwise indicated, index results include reinvested dividends, and they do not reflect sales charges. Performance of the peer group, if applicable, reflects fund expenses; performance of a market index does not.

Average Annual Total Returns
As of 6/30/20
Series I Shares
Inception (4/3/85)	10.44	%
10 Years	14.18
5 Years	11.56
1 Year	21.60
Series II Shares
Inception (9/18/01)	7.41	%
10 Years	13.90
5 Years	11.28
1 Year	21.30

Effective May 24, 2019, Non-Service and Service shares of the Oppenheimer Capital Appreciation Fund/VA, (the predecessor fund) were reorganized into Series I and Series II shares, respectively, of Invesco Oppenheimer V.I. Capital Appreciation Fund. Returns shown above, prior to May 24, 2019, for Series I and Series II shares are those of the Non-Service shares and Service shares of the predecessor fund. Share class returns will differ from the predecessor fund because of different expenses.

    The performance data quoted represent past performance and cannot guarantee future results; current performance may be lower or higher. Please 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. Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares. Investment return and principal value will fluctuate so that you may have a gain or loss when you sell shares.

    Invesco Oppenheimer 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 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.

    Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information.

Invesco Oppenheimer V.I. Capital Appreciation Fund

Liquidity Risk Management Program

The Securities and Exchange Commission has adopted Rule 22e-4 under the Investment Company Act of 1940 (the “Liquidity Rule”) in order to promote effective liquidity risk management throughout the open-end investment company industry, thereby reducing the risk that funds will be unable to meet their redemption obligations and mitigating dilution of the interests of fund shareholders. The Fund has adopted and implemented a liquidity risk management program in accordance with the Liquidity Rule (the “Program”). The Program is reasonably designed to assess and manage the Fund’s liquidity risk, which is the risk that the Fund could not meet redemption requests without significant dilution of remaining investors’ interests in the Fund. The Board of Trustees of the Fund (the “Board”) has appointed Invesco Advisers, Inc. (“Invesco”), the Fund’s investment adviser, as the Program’s administrator, and Invesco has delegated oversight of the Program to the Liquidity Risk Management Committee (the “Committee”), which is composed of senior representatives from relevant business groups at Invesco.

As required by the Liquidity Rule, the Program includes policies and procedures providing for an assessment, no less frequently than annually, of the Fund’s liquidity risk that takes into account, as relevant to the Fund’s liquidity risk: (1) the Fund’s investment strategy and liquidity of portfolio investments during both normal and reasonably foreseeable stressed conditions; (2) short-term and long-term cash flow projections for the Fund during both normal and reasonably foreseeable stressed conditions; and (3) the Fund’s holdings of cash and cash equivalents and any borrowing arrangements. The Liquidity Rule also requires the classification of the Fund’s investments into categories that reflect the assessment of their relative liquidity under current market conditions. The Fund classifies its investments into one of four categories defined in the Liquidity Rule: “Highly Liquid,” “Moderately Liquid,” “Less Liquid” and “Illiquid.” Funds that are not invested primarily in “Highly Liquid Investments” that are assets (cash or investments that are reasonably expected to be convertible into cash within three business days without significantly changing the market value of the investment) are required to establish a “Highly Liquid Investment Minimum” (“HLIM”), which is the minimum percentage of net assets that must be invested in Highly Liquid Investments. Funds with HLIMs have procedures for addressing HLIM shortfalls, including reporting to the Board and the SEC (on a non-public basis) as required by the Program and the Liquidity Rule. In addition, the Fund may not acquire an investment if, immediately after the acquisition, over 15% of the Fund’s net assets would consist of “Illiquid Investments” that are assets (an investment that cannot reasonably be expected to be sold or disposed of in current market conditions in seven calendar days or less without the sale or disposition significantly changing the market value of the investment). The Liquidity Rule and the Program also require reporting to the Board and the SEC (on a non-public basis) if a Fund’s holdings of Illiquid Investments exceed 15% of the Fund’s assets.

At a meeting held on March 30-April 1, 2020, the Committee presented a report to the Board that addressed the operation of the Program and assessed the Program’s adequacy and effectiveness of implementation (the “Report”). The Report covered the period from December 1, 2018 through December 31, 2019 (the “Program Reporting Period”).

The Report stated, in relevant part, that during the Program Reporting Period:

∎ The Program, as adopted and implemented, remained reasonably designed to assess and manage the Fund’s liquidity risk and was operated effectively to achieve that goal;

∎ The Fund’s investment strategy remained appropriate for an open-end fund;

∎ The Fund was able to meet requests for redemption without significant dilution of remaining investors’ interests in the Fund;

∎ The Fund did not breach the 15% limit on Illiquid Investments; and

∎ The Fund primarily held Highly Liquid Investments and therefore has not adopted an HLIM.

Invesco Oppenheimer V.I. Capital Appreciation Fund

Schedule of Investments^(a)

June 30, 2020

(Unaudited)

	Shares		Value
Common Stocks & Other Equity Interests-101.34%
Aerospace & Defense-0.88%
L3Harris Technologies, Inc.		6,269	$	1,063,661
Lockheed Martin Corp.		3,079		1,123,589
Teledyne Technologies, Inc.(b)		13,686		4,255,662
				6,442,912
Application Software-7.17%
Adobe, Inc.(b)		14,262		6,208,391
Citrix Systems, Inc.		16,922		2,502,933
RealPage, Inc.(b)		135,917		8,835,964
salesforce.com, inc.(b)		79,886		14,965,045
Splunk, Inc.(b)		54,436		10,816,433
Trade Desk, Inc. (The), Class A(b)		22,766		9,254,379
				52,583,145
Asset Management & Custody Banks-3.92%
Apollo Global Management, Inc.		226,180		11,290,905
Ares Management Corp., Class A		239,764		9,518,631
KKR & Co., Inc., Class A		258,370		7,978,466
				28,788,002
Automotive Retail-0.22%
CarMax, Inc.(b)		18,036		1,615,124
Biotechnology-2.53%
Alnylam Pharmaceuticals, Inc.(b)		29,633		4,388,944
Argenx SE, ADR (Netherlands)(b)		13,423		3,023,262
BeiGene Ltd., ADR (China)(b)		22,410		4,222,044
Moderna, Inc.(b)		107,831		6,923,828
				18,558,078
Cable & Satellite-0.76%
Altice USA, Inc., Class A(b)		195,105		4,397,667
DISH Network Corp., Class A(b)		34,665		1,196,289
				5,593,956
Communications Equipment-0.40%
Motorola Solutions, Inc.		21,152		2,964,030
Consumer Electronics-1.38%
Sony Corp. (Japan)		148,100		10,142,084
Data Processing & Outsourced Services-8.16%
Fidelity National Information Services, Inc.		45,651		6,121,343
Mastercard, Inc., Class A		78,278		23,146,805
PayPal Holdings, Inc.(b)		85,254		14,853,804
Visa, Inc., Class A		59,917		11,574,167
WEX, Inc.(b)		24,952		4,117,329
				59,813,448
Diversified Support Services–0.57%
Cintas Corp.		15,772		4,201,030
Environmental & Facilities Services-0.97%
Clean Harbors, Inc.(b)		69,120		4,145,818
GFL Environmental, Inc. (Canada)(b)		156,443		2,936,435
				7,082,253

	Shares		Value
Financial Exchanges & Data-0.02%
CME Group, Inc., Class A		902	$	146,611
Food Distributors-0.90%
Sysco Corp.		120,619		6,593,035
Health Care Equipment-4.61%
Baxter International, Inc.		867		74,649
Boston Scientific Corp.(b)		105,376		3,699,751
Danaher Corp.		16,945		2,996,384
DexCom, Inc.(b)		21,335		8,649,209
Intuitive Surgical, Inc.(b)		10,290		5,863,551
Teleflex, Inc.		20,703		7,535,478
Zimmer Biomet Holdings, Inc.		42,135		5,029,234
				33,848,256
Health Care Services-0.85%
Laboratory Corp. of America Holdings(b)		10,817		1,796,812
LHC Group, Inc.(b)		25,527		4,449,866
				6,246,678
Health Care Technology-0.11%
Teladoc Health, Inc.(b)		4,127		787,597
Home Improvement Retail-3.61%
Lowe’s Cos., Inc.		195,799		26,456,361
Hotels, Resorts & Cruise Lines-0.60%
Marriott Vacations Worldwide Corp.(b)		21,435		1,762,171
Wyndham Destinations, Inc.		92,601		2,609,496
				4,371,667
Industrial Conglomerates-0.46%
Roper Technologies, Inc.		8,708		3,380,968
Industrial Gases-0.18%
Linde PLC (United Kingdom)		6,094		1,292,598
Interactive Home Entertainment-7.17%
Activision Blizzard, Inc.		246,901		18,739,786
Electronic Arts, Inc.(b)		83,646		11,045,454
Nintendo Co. Ltd. (Japan)		31,600		14,060,894
Take-Two Interactive Software, Inc.(b)		62,580		8,734,291
				52,580,425
Interactive Media & Services-10.83%
Alphabet, Inc., Class C(b)		27,195		38,443,124
Facebook, Inc., Class A(b)		165,866		37,663,193
ZoomInfo Technologies, Inc., Class A(b)		65,220		3,328,176
				79,434,493
Internet & Direct Marketing Retail-15.22%
Alibaba Group Holding Ltd., ADR (China)(b)		110,666		23,870,656
Amazon.com, Inc.(b)		29,565		81,564,513
Booking Holdings, Inc.(b)		3,882		6,181,464
				111,616,633
Leisure Facilities–0.17%
Cedar Fair L.P.(b)		46,130		1,268,575

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco Oppenheimer V.I. Capital Appreciation Fund

	Shares		Value
Life & Health Insurance-1.10%
Athene Holding Ltd., Class A(b)		259,172	$	8,083,575
Life Sciences Tools & Services-1.33%
Avantor, Inc.(b)		277,081		4,710,377
Illumina, Inc.(b)		13,620		5,044,167
				9,754,544
Managed Health Care-1.54%
Humana, Inc.		13,857		5,373,052
UnitedHealth Group, Inc.		20,109		5,931,149
				11,304,201
Movies & Entertainment-1.02%
IMAX Corp.(b)		109,701		1,229,748
Netflix, Inc.(b)		12,163		5,534,652
Vivendi S.A. (France)		28,725		736,255
				7,500,655
Oil & Gas Exploration & Production-0.82%
Apache Corp.		289,914		3,913,839
Viper Energy Partners L.P.		201,443		2,086,949
				6,000,788
Oil & Gas Refining & Marketing-0.92%
Marathon Petroleum Corp.		114,765		4,289,916
PBF Energy, Inc., Class A(b)		242,975		2,488,064
				6,777,980
Packaged Foods & Meats-1.83%
Conagra Brands, Inc.		87,387		3,073,401
Nomad Foods Ltd. (United Kingdom)(b)		130,698		2,803,472
Tyson Foods, Inc., Class A		126,052		7,526,565
				13,403,438
Pharmaceuticals-0.17%
MyoKardia, Inc.(b)		8,961		865,812
Zoetis, Inc.		2,514		344,518
				1,210,330
Railroads-0.85%
Kansas City Southern		28,314		4,226,997
Union Pacific Corp.		11,718		1,981,162
				6,208,159
Regional Banks-0.39%
SVB Financial Group(b)		13,179		2,840,470
Research & Consulting Services-0.50%
CoStar Group, Inc.(b)		5,188		3,686,956

	Shares		Value
Restaurants-1.47%
Restaurant Brands International, Inc. (Canada)		197,583	$	10,793,959
Semiconductor Equipment-1.96%
Applied Materials, Inc.		166,352		10,055,979
ASML Holding N.V., New York Shares (Netherlands)		11,675		4,296,750
				14,352,729
Semiconductors-3.93%
NVIDIA Corp.		21,736		8,257,724
QUALCOMM, Inc.		41,679		3,801,542
Semtech Corp.(b)		157,470		8,223,083
Silicon Motion Technology Corp., ADR (Taiwan)		175,581		8,563,085
				28,845,434
Specialty Chemicals-0.15%
Sherwin-Williams Co. (The)		1,955		1,129,697
Systems Software-7.08%
Microsoft Corp.		184,679		37,584,023
Palo Alto Networks, Inc.(b)		24,800		5,695,816
ServiceNow, Inc.(b)		21,398		8,667,474
				51,947,313
Technology Hardware, Storage & Peripherals-2.52%
Apple, Inc.		50,650		18,477,120
Trading Companies & Distributors-0.78%
Fastenal Co.		60,754		2,602,702
United Rentals, Inc.(b)		20,782		3,097,349
				5,700,051
Trucking-1.27%
J.B. Hunt Transport Services, Inc.		12,031		1,447,810
Knight-Swift Transportation Holdings, Inc.		37,773		1,575,512
Lyft, Inc., Class A(b)		103,600		3,419,836
Uber Technologies, Inc.(b)		91,926		2,857,060
				9,300,218
Wireless Telecommunication Services-0.02%
T-Mobile US, Inc.(b)		1,379		143,623
TOTAL INVESTMENTS IN SECURITIES-101.34% (Cost $470,532,100)				743,269,199
OTHER ASSETS LESS LIABILITIES-(1.34)%				(9,813,670	)
NET ASSETS-100.00%			$	733,455,529

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.

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco Oppenheimer V.I. Capital Appreciation Fund

Portfolio Composition    

By sector, based on Net Assets    

as of June 30, 2020    

Information Technology	31.22	%
Consumer Discretionary	22.67
Communication Services	19.80
Health Care	11.14
Industrials	6.27
Financials	5.44
Consumer Staples	2.73
Other Sectors, Each Less than 2% of Net Assets	2.07
Other Assets Less Liabilities	(1.34	)

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco Oppenheimer V.I. Capital Appreciation Fund

Statement of Assets and Liabilities

June 30, 2020

(Unaudited)

Assets:
Investments in securities, at value (Cost $470,532,100)	$	743,269,199
Receivable for:
Investments sold		2,265,458
Fund shares sold		18,784
Dividends		313,755
Investment for trustee deferred compensation and retirement plans		94,037
Total assets		745,961,233
Liabilities:
Payable for:
Investments purchased		2,097,351
Fund shares reacquired		9,682,102
Amount due custodian		128,385
Accrued fees to affiliates		360,311
Accrued trustees’ and officers’ fees and benefits		3,413
Accrued other operating expenses		140,105
Trustee deferred compensation and retirement plans		94,037
Total liabilities		12,505,704
Net assets applicable to shares outstanding	$	733,455,529
Net assets consist of:
Shares of beneficial interest	$	348,439,930
Distributable earnings		385,015,599
	$	733,455,529
Net Assets:
Series I	$	542,691,621
Series II	$	190,763,908
Shares outstanding, no par value, with an unlimited number of shares authorized:
Series I		8,318,147
Series II		2,982,457
Series I:
Net asset value per share	$	65.24
Series II:
Net asset value per share	$	63.96

Statement of Operations

For the six months ended June 30, 2020

(Unaudited)

Investment income:
Dividends (net of foreign withholding taxes of $76,015)	$	2,774,526
Expenses:
Advisory fees		2,385,713
Administrative services fees		556,692
Custodian fees		3,805
Distribution fees - Series II		219,121
Transfer agent fees		32,976
Trustees’ and officers’ fees and benefits		10,618
Reports to shareholders		34,169
Professional services fees		23,590
Other		7,968
Total expenses		3,274,652
Less: Fees waived		(322,043	)
Net expenses		2,952,609
Net investment income (loss)		(178,083	)
Realized and unrealized gain (loss) from:
Net realized gain (loss) from:
Investment securities		7,199,469
Foreign currencies		1,998
Forward foreign currency contracts		(3,325	)
		7,198,142
Change in net unrealized appreciation of:
Investment securities		46,919,540
Foreign currencies		5,341
		46,924,881
Net realized and unrealized gain		54,123,023
Net increase in net assets resulting from operations	$	53,944,940

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco Oppenheimer V.I. Capital Appreciation Fund

Statement of Changes in Net Assets

For the six months ended June 30, 2020 and the year ended December 31, 2019

(Unaudited)

	June 30,			December 31,
	2020			2019
Operations:
Net investment income (loss)	$	(178,083	)	$	234,983
Net realized gain		7,198,142			107,254,371
Change in net unrealized appreciation		46,924,881			103,531,279
Net increase in net assets resulting from operations		53,944,940			211,020,633
Distributions to shareholders from distributable earnings:
Series I		-			(49,378,533	)
Series II		-			(18,651,335	)
Total distributions from distributable earnings		-			(68,029,868	)
Share transactions–net:
Series I		(40,470,602	)		(29,869,839	)
Series II		(19,006,695	)		23,369,205
Net increase (decrease) in net assets resulting from share transactions		(59,477,297	)		(6,500,634	)
Net increase (decrease) in net assets		(5,532,357	)		136,490,131
Net assets:
Beginning of period		738,987,886			602,497,755
End of period	$	733,455,529		$	738,987,886

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco Oppenheimer V.I. Capital Appreciation Fund

Financial Highlights

(Unaudited)

The following schedule presents financial highlights for a share of the Fund outstanding throughout the periods indicated.

	Net asset value, beginning of period			Net investment income (loss)(a)				Net gains (losses) on securities (both realized and unrealized)				Total from investment operations				Dividends from net investment income				Distributions from net realized gains				Total distributions				Net asset value, end of period			Total return (b)			Net assets, end of period (000’s omitted)			Ratio of expenses to average net assets with fee waivers and/or expenses absorbed			Ratio of expenses to average net assets without fee waivers and/or expenses absorbed(c)			Ratio of net investment income (loss) to average net assets			Portfolio turnover (d)
Series I
Six months ended 06/30/20		$	59.77		$	0.00			$	5.47			$	5.47			$	-			$	-			$	-			$	65.24		9.15	%		$	542,692		0.80	%(e)		0.89	%(e)		0.01	%(e)		23	%
Year ended 12/31/19			48.50			0.06				16.80				16.86				(0.04	)			(5.55	)			(5.59	)			59.77		36.20				538,247		0.80			0.88			0.10			73
Year ended 12/31/18			55.70			0.09				(2.71	)			(2.62	)			(0.19	)			(4.39	)			(4.58	)			48.50		(5.73	)			460,708		0.80			0.85			0.16			27
Year ended 12/31/17			48.36			0.15				12.33				12.48				(0.13	)			(5.01	)			(5.14	)			55.70		26.83				556,227		0.80			0.82			0.29			26
Year ended 12/31/16			55.49			0.12				(1.57	)			(1.45	)			(0.22	)			(5.46	)			(5.68	)			48.36		(2.20	)			501,756		0.80			0.83			0.25			114
Year ended 12/31/15			64.87			0.22				2.25				2.47				(0.06	)			(11.79	)			(11.85	)			55.49		3.54				564,514		0.80			0.81			0.36			60
Series II
Six months ended 06/30/20			58.67			(0.07	)			5.36				5.29				-				-				-				63.96		9.01				190,764		1.05	(e)		1.14	(e)		(0.24	)(e)		23
Year ended 12/31/19			47.78			(0.08	)			16.52				16.44				-				(5.55	)			(5.55	)			58.67		35.84				200,741		1.05			1.13			(0.15	)		73
Year ended 12/31/18			54.89			(0.05	)			(2.67	)			(2.72	)			-				(4.39	)			(4.39	)			47.78		(5.96	)			141,790		1.05			1.10			(0.09	)		27
Year ended 12/31/17			47.73			0.02				12.16				12.18				(0.01	)			(5.01	)			(5.02	)			54.89		26.50				316,864		1.05			1.07			0.04			26
Year ended 12/31/16			54.80			0.00				(1.55	)			(1.55	)			(0.06	)			(5.46	)			(5.52	)			47.73		(2.43	)			295,226		1.05			1.08			0.00			114
Year ended 12/31/15			64.30			0.07				2.22				2.29				-				(11.79	)			(11.79	)			54.80		3.27				317,737		1.05			1.06			0.12			60

^(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)  Does not include indirect expenses from affiliated fund fees and expenses of 0.00% for the years ended December 31, 2019, 2018, 2017, 2016 and 2015, respectively. (d) Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable.

^(e)  Ratios are annualized and based on average daily net assets (000’s omitted) of $510,977 and $176,260 for Series I and Series II shares, respectively.

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco Oppenheimer V.I. Capital Appreciation Fund

Notes to Financial Statements

June 30, 2020

(Unaudited)

NOTE 1–Significant Accounting Policies

Invesco Oppenheimer 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. Information presented in these financial statements pertains only to the Fund. Matters affecting the Fund or each class will be voted on exclusively by the shareholders of the Fund or each class. 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 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 Fund is an investment company and accordingly follows the investment company accounting and reporting guidance in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 946, Financial Services – Investment Companies.

The following is a summary of the significant accounting policies followed by the Fund in the preparation of its financial statements.

A. Security Valuations - Securities, including restricted securities, are valued according to the following policy.

A security listed or traded on an exchange (except convertible securities) is valued at its last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded, or lacking any sales or official closing price on a particular day, the security may be valued at the closing bid price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued by an independent pricing service they may be considered fair valued. Futures contracts are valued at the final settlement price set by an exchange on which they are principally traded. Listed options are valued at the mean between the last bid and asked 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 asked prices. For purposes of determining net asset value (“NAV”) per share, futures and option contracts generally are valued 15 minutes after the close of the customary trading session of the New York Stock Exchange (“NYSE”).

Investments in open-end and closed-end registered investment companies that do not trade on an exchange are valued at the end-of-day net asset value per share. Investments in open-end and closed-end registered investment companies that trade on an exchange are valued at the last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded.

Debt obligations (including convertible securities) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. Pricing services generally value debt obligations assuming orderly transactions of institutional round lot size, but a fund may hold or transact in the same securities in smaller, odd lot sizes. Odd lots often trade at lower prices than institutional round lots. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.

Foreign securities’ (including foreign exchange contracts) prices are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the NYSE. If market quotations are available and reliable for foreign exchange-traded equity securities, the securities will be valued at the market quotations. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become unreliable. If between the time trading ends on a particular security and the close of the customary trading session on the NYSE, events occur that the investment adviser determines are significant and make the closing price unreliable, the Fund may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith using procedures approved by the Board of Trustees. Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities’ prices meeting the approved degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economic upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.

Securities for which market prices are not provided by any of the above methods may be valued based upon quotes furnished by independent sources. The last bid price may be used to value equity securities. The mean between the last bid and asked prices is used to value debt obligations, including corporate loans.

Securities for which market quotations are not readily available or became unreliable are valued at fair value as determined in good faith by or under the supervision of the Trust’s officers following procedures approved by the Board of Trustees. Issuer specific events, market trends, bid/asked quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security’s fair value.

The Fund may invest in securities that are subject to interest rate risk, meaning the risk that the prices will generally fall as interest rates rise and, conversely, the prices will generally rise as interest rates fall. Specific securities differ in their sensitivity to changes in interest rates depending on their individual characteristics. Changes in interest rates may result in increased market volatility, which may affect the value and/or liquidity of certain Fund investments.

Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the issuer’s assets, general market conditions which are not specifically related to the particular issuer, such as real or perceived adverse economic conditions, changes in the general outlook for revenues or corporate earnings, changes in interest or currency rates, regional or global instability, natural or environmental disasters, widespread disease or other public health issues, war, acts of terrorism or adverse investor sentiment generally and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

B. Securities Transactions and Investment Income - Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income (net of withholding tax, if any) is recorded on an accrual basis from settlement date. 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

Invesco Oppenheimer V.I. Capital Appreciation Fund

share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and the Statement of Changes in Net Assets, or the net investment income per share and the ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.

The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class.

C. Country Determination - For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues 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 net investment income and net realized capital gain, if any, are generally declared and paid to separate accounts of participating insurance companies annually and recorded on the ex-dividend date.

E. Master Limited Partnerships - The Fund invests in Master Limited Partnerships (“MLPs”). MLPs are publicly traded partnerships and limited liability companies taxed as partnerships under the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”). The Fund invests in MLPs engaged in, among other things, the transportation, storage, processing, refining, marketing, exploration, production and mining of minerals and natural resources. The Fund is a partner in each MLP; accordingly, the Fund is required to take into account the Fund’s allocable share of income, gains, losses, deductions, expenses, and tax credits recognized by each MLP.

MLP’s may be less liquid and subject to more abrupt or erratic price movements than conventional publicly traded securities.

F. Return of Capital - Distributions received from the Fund’s investments in MLPs generally are comprised of income and return of capital. The Fund records investment income and return of capital based on estimates made at the time such distributions are received. The return of capital portion of the distribution is a reduction to investment income that results in an equivalent reduction in the cost basis of the associated investments and increases net realized gains (losses) and change in unrealized appreciation (depreciation). Such estimates are based on historical information available from each MLP and other industry sources. These estimates will subsequently be revised and may materially differ primarily based on information received from the MLPs after their tax reporting periods are concluded.

G. 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.

H. Accounting Estimates - The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print.

I. Indemnifications - Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of the performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements, that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote.

J. Foreign Currency Translations - Foreign currency is valued at the close of the NYSE based on quotations posted by banks and major currency dealers. Portfolio securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at the date of valuation. Purchases and sales of portfolio securities (net of foreign taxes withheld on disposition) and income items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. The Fund does not separately account for the portion of the results of operations resulting from changes in foreign exchange rates on investments and the fluctuations arising from changes in market prices of securities held. The combined results of changes in foreign exchange rates and the fluctuation of market prices on investments (net of estimated foreign tax withholding) are included with the net realized and unrealized gain or loss from investments in the Statement of Operations. Reported net realized foreign currency gains or losses arise from (1) sales of foreign currencies, (2) currency gains or losses realized between the trade and settlement dates on securities transactions, and (3) the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign currency gains and losses arise from changes in the fair values of assets and liabilities, other than investments in securities at fiscal period end, resulting from changes in exchange rates.

The Fund may invest in foreign securities, which may be subject to foreign taxes on income, gains on investments or currency repatriation, a portion of which may be recoverable. Foreign taxes, if any, are recorded based on the tax regulations and rates that exist in the foreign markets in which the Fund invests and are shown in the Statement of Operations.

K. Forward Foreign Currency Contracts - The Fund may engage in foreign currency transactions either on a spot (i.e. for prompt delivery and settlement) basis, or through forward foreign currency contracts, to manage or minimize currency or exchange rate risk.

The Fund may also enter into forward foreign currency contracts for the purchase or sale of a security denominated in a foreign currency in order to “lock in” the U.S. dollar price of that security, or the Fund may also enter into forward foreign currency contracts that do not provide for physical settlement of the two currencies, but instead are settled by a single cash payment calculated as the difference between the agreed upon exchange rate and the spot rate at settlement based upon an agreed upon notional amount (non-deliverable forwards). The Fund will set aside liquid assets in an amount equal to the daily mark-to-market obligation for forward foreign currency contracts.

A forward foreign currency contract is an obligation between two parties (“Counterparties”) to purchase or sell a specific currency for an agreed-upon price at a future date. The use of forward foreign currency contracts does not eliminate fluctuations in the price of the underlying securities the Fund owns or intends to acquire but establishes a rate of exchange in advance. Fluctuations in the value of these contracts are measured by the difference in the contract date and reporting date exchange rates and are recorded as unrealized appreciation (depreciation) until the contracts are closed. When the contracts are closed, realized gains (losses) are recorded. Realized and unrealized gains (losses) on the contracts are included in the Statement of Operations. The primary risks associated with forward foreign currency contracts include failure of the Counterparty to meet the terms of the contract and the value of the foreign currency changing unfavorably. These risks may be in excess of the amounts reflected in the Statement of Assets and Liabilities.

Invesco Oppenheimer V.I. Capital Appreciation 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 accrues daily and pays monthly an advisory fee to the Adviser based on the annual rate of the Fund’s average daily net assets as follows:

Average Daily Net Assets*	Rate
Upto $200 million		0.750%
Next $ 200 million		0.720%
Next $ 200 million		0.690%
Next $ 200 million		0.660%
Next $ 200 million		0.600%
Over $1 billion		0.580%

* The advisory fee payable by the Fund shall be reduced by any amounts paid by the Fund under the administrative services agreement with Invesco.

For the six months ended June 30, 2020, the effective advisory fee rate incurred by the Fund was 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 Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Canada Ltd. and separate sub-advisory agreements with Invesco Capital Management LLC and Invesco Asset Management (India) Private Limited (collectively, the “Affiliated Sub-Advisers”) the Adviser, not the Fund, will pay 40% of the fees paid to the Adviser to any such Affiliated Sub-Adviser(s) that provide(s) discretionary investment management services to the Fund based on the percentage of assets allocated to such Affiliated Sub-Adviser(s).

The Adviser has contractually agreed, through at least May 31, 2021, 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 (the “expense limits”). In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause the total annual fund operating expenses after fee waiver and/or expense reimbursement to exceed the numbers reflected above: (1) interest; (2) taxes; (3) dividend expense on short sales; (4) extraordinary or non-routine items, including litigation expenses; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Unless Invesco continues the fee waiver agreement, it will terminate on May 31, 2021. During its term, the fee waiver agreement cannot be terminated or amended to increase the expense limits or reduce the advisory fee waiver without approval of the Board of Trustees. To the extent that the annualized expense ratio does not exceed the expense limits, the Adviser will retain its ability to be reimbursed for such fee waivers or reimbursements prior to the end of each fiscal year. The Adviser did not waive fees and/or reimburse expenses during the period under these expense limits.

The Adviser has contractually agreed, through at least June 30, 2022, 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, 2020, the Adviser waived advisory fees of $322,043.

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 fees paid to insurance companies that have agreed to provide certain administrative services to the Fund. These administrative services provided by the insurance companies may include, among other things: maintenance of master accounts with the Fund; tracking, recording and transmitting net purchase and redemption orders for Fund shares; maintaining and preserving records related to the purchase, redemption and other account activity of variable product owners; distributing copies of Fund documents such as prospectuses, proxy materials and periodic reports, to variable product owners, and responding to inquiries from variable product owners about the Fund. Pursuant to such agreement, for the six months ended June 30, 2020, Invesco was paid $48,794 for accounting and fund administrative services and was reimbursed $507,898 for fees paid to insurance companies. Invesco has entered into a sub-administration agreement whereby State Street Bank and Trust Company (“SSB”) serves as fund accountant and provides certain administrative services to the Fund. Pursuant to a custody agreement with the Trust on behalf of the Fund, SSB also serves as the Fund’s custodian.

The Trust has entered into a transfer agency and service agreement with Invesco Investment Services, Inc. (“IIS”) pursuant to which the Fund has agreed to pay IIS a fee for providing transfer agency and shareholder services to the Fund and reimburse IIS for certain expenses incurred by IIS in the course of providing such services. For the six months ended June 30, 2020, 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. The fees are accrued daily and paid monthly. 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, 2020, expenses incurred under the Plan are detailed in the Statement of Operations as Distribution fees.

For the six months ended June 30, 2020, the Fund incurred $2,054 in brokerage commissions with Invesco Capital Markets, Inc., an affiliate of the Adviser and IDI, for portfolio transactions executed on behalf of the Fund.

Certain officers and trustees of the Trust are officers and directors of the Adviser, IIS and/or IDI.

NOTE 3–AAdditional 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 Oppenheimer V.I. Capital Appreciation Fund

The following is a summary of the tiered valuation input levels, as of June 30, 2020. The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

	Level 1		Level 2		Level 3		Total
Investments in Securities
Common Stocks & Other Equity Interests		$718,329,966		$24,939,233		$-		$743,269,199

NOTE 4–Derivative Investments

The Fund may enter into an International Swaps and Derivatives Association Master Agreement (“ISDA Master Agreement”) under which a fund may trade OTC derivatives. An OTC transaction entered into under an ISDA Master Agreement typically involves a collateral posting arrangement, payment netting provisions and close-out netting provisions. These netting provisions allow for reduction of credit risk through netting of contractual obligations. The enforceability of the netting provisions of the ISDA Master Agreement depends on the governing law of the ISDA Master Agreement, among other factors.

For financial reporting purposes, the Fund does not offset OTC derivative assets or liabilities that are subject to ISDA Master Agreements in the Statement of Assets and Liabilities.

Effect of Derivative Investments for the six months ended June 30, 2020

The table below summarizes the gains (losses) on derivative investments, detailed by primary risk exposure, recognized in earnings during the period:

	Location of Gain (Loss) on   Statement of Operations
	Currency Risk
Realized Gain (Loss):
Forward foreign currency contracts		$(3,325)

The table below summarizes the average notional value of derivatives held during the period.

	Forward Foreign Currency Contracts
Average notional value	$289,807

NOTE 5–Trustees’ and Officers’ Fees and Benefits

Trustees’ and Officers’ Fees and Benefits include amounts accrued by the Fund to pay remuneration to certain Trustees and Officers of the Fund. Trustees have the option to defer compensation payable by the Fund, and Trustees’ and Officers’ Fees and Benefits also include amounts accrued by the Fund to fund such deferred compensation amounts. Those Trustees who defer compensation have the option to select various Invesco Funds in which their deferral accounts shall be deemed to be invested. Finally, certain current Trustees were eligible to participate in a retirement plan that provided for benefits to be paid upon retirement to Trustees over a period of time based on the number of years of service. The Fund may have certain former Trustees who also participate in a retirement plan and receive benefits under such plan. Trustees’ and Officers’ Fees and Benefits include amounts accrued by the Fund to fund such retirement benefits. Obligations under the deferred compensation and retirement plans represent unsecured claims against the general assets of the Fund.

NOTE 6–Cash Balances

The Fund is permitted to temporarily carry a negative or overdrawn balance in its account with SSB, the custodian bank. Such balances, if any at period-end, are shown in the Statement of Assets and Liabilities under the payable caption Amount due custodian. To compensate the custodian bank for such overdrafts, the overdrawn Fund may either (1) leave funds as a compensating balance in the account so the custodian bank can be compensated by earning the additional interest; or (2) compensate by paying the custodian bank at a rate agreed upon by the custodian bank and Invesco, not to exceed the contractually agreed upon rate. The Fund may not purchase additional securities when any borrowings from banks or broker-dealers exceed 5% of the Fund’s total assets, or when any borrowings from an Invesco Fund are outstanding.

NOTE 7–Tax Information

The amount and character of income and gains to be distributed are determined in accordance with income tax regulations, which may differ from GAAP. Reclassifications are made to the Fund’s capital accounts to reflect income and gains available for distribution (or available capital loss carryforward) under income tax regulations. The tax character of distributions paid during the year and the tax components of net assets will be reported at the Fund’s fiscal year-end.

Capital loss carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Fund to utilize. The ability to utilize capital loss carryforwards in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.

The Fund did not have a capital loss carryforward as of December 31, 2019.

NOTE 8–Investment Transactions

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, 2020 was $155,998,779 and $209,778,833, respectively. Cost of investments, including any derivatives, on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end.

Unrealized Appreciation (Depreciation) of Investments on a Tax Basis

Aggregate unrealized appreciation of investments	$	279,154,356
Aggregate unrealized (depreciation) of investments		(9,957,610	)
Net unrealized appreciation of investments	$	269,196,746

Invesco Oppenheimer V.I. Capital Appreciation Fund

Cost of investments for tax purposes is $474,072,453.

NOTE 9–Share Information

	Summary of Share Activity
	Six months ended						Year ended
	June 30, 2020(a)						December 31, 2019
	Shares			Amount			Shares			Amount
Sold:
Series I		117,288		$	6,708,252			222,808		$	12,378,336
Series II		580,695			33,145,805			809,631			43,673,830
Issued as reinvestment of dividends:
Series I		-			-			930,266			49,378,533
Series II		-			-			357,511			18,651,335
Issued in connection with acquisitions:
Reacquired:
Series I		(804,374	)		(47,178,854	)		(1,646,179	)		(91,626,708	)
Series II		(1,019,682	)		(52,152,500	)		(713,247	)		(38,955,960	)
Net increase (decrease) in share activity		(1,126,073	)	$	(59,477,297	)		(39,210	)	$	(6,500,634	)

^(a)  There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 31% of the outstanding shares of the Fund. 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 Fund 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–Coronavirus (COVID-19) Pandemic

During the first quarter of 2020, the World Health Organization declared COVID-19 to be a public health emergency. COVID-19 has led to increased short-term market volatility and may have adverse long-term effects on U.S. and world economies and markets in general. COVID-19 may adversely impact the Fund’s ability to achieve its investment objective. Because of the uncertainties on valuation, the global economy and business operations, values reflected in these financial statements may materially differ from the value received upon actual sales of those investments.

The extent of the impact on the performance of the Fund and its investments will depend on future developments, including the duration and spread of the COVID-19 outbreak, related restrictions and advisories, and the effects on the financial markets and economy overall, all of which are highly uncertain and cannot be predicted.

NOTE 11–Significant Event

Effective on or about April 30, 2021, the name of the Fund and all references thereto will change from Invesco Oppenheimer V.I. Capital Appreciation Fund to Invesco V.I. Capital Appreciation Fund.

Invesco Oppenheimer 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, 2020 through June 30, 2020.

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.

		ACTUAL		HYPOTHETICAL (5% annual return before expenses)		Annualized       Expense     Ratio
	Beginning       Account Value       (01/01/20)	Ending       Account Value       (06/30/20)1	Expenses       Paid During       Period2	Ending       Account Value       (06/30/20)	Expenses       Paid During       Period2
Series I	$1,000.00	$1,091.50	$4.16	$1,020.89	$4.02	0.80%
Series II	1,000.00	1,090.10	5.46	1,019.64	5.27	1.05

¹  The actual ending account value is based on the actual total return of the Fund for the period January 1, 2020 through June 30, 2020, 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 182/366 to reflect the most recent fiscal half year.

Invesco Oppenheimer V.I. Capital Appreciation Fund

Approval of Investment Advisory and Sub-Advisory Contracts

At meetings held on June 3, 2020, the Board of Trustees (the Board or the Trustees) of AIM Variable Insurance Funds (Invesco Variable Insurance Funds) as a whole, and the independent Trustees, who comprise over 75% of the Board, voting separately, approved the continuance of the Invesco Oppenheimer V.I. Capital Appreciation Fund’s (the Fund) Master Investment Advisory Agreement with Invesco Advisers, Inc. (Invesco Advisers and the investment advisory agreement) and the Master Intergroup Sub-Advisory Contract for Mutual Funds with Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Canada Ltd. and separate sub-advisory contracts with Invesco Capital Management LLC and Invesco Asset Management (India) Private Limited and OppenheimerFunds, Inc. (collectively, the Affiliated Sub-Advisers and the sub-advisory contracts) for another year, effective July 1, 2020. After evaluating the factors discussed below, among others, the Board approved the renewal of the Fund’s investment advisory agreement and the sub-advisory contracts and determined that the compensation payable thereunder by the Fund to Invesco Advisers and by Invesco Advisers to the Affiliated Sub-Advisers is fair and reasonable.

The Board’s Evaluation Process

The Board’s Investments Committee has established Sub-Committees, which meet throughout the year to review the performance of funds advised by Invesco Advisers (the Invesco Funds). The Sub-Committees meet regularly with portfolio managers for their assigned Invesco Funds and other members of management to review detailed information about investment performance and portfolio attributes of these funds. The Board took into account evaluations and reports that it received from the Investments Committee and Sub-Committees, as well as the information provided to such committees and the Board throughout the year, in considering whether to approve each Invesco Fund’s investment advisory agreement and sub-advisory contracts.

As part of the contract renewal process, the Board reviews and considers information provided in response to detailed requests for information submitted to management by the independent Trustees with assistance from legal counsel to the independent Trustees. The Board receives comparative investment performance and fee data regarding the Invesco Funds prepared by Invesco Advisers and Broadridge Financial Solutions, Inc. (Broadridge), an independent mutual fund data provider, as well as information on the composition of the peer groups provided by Broadridge and its methodology for determining peer groups. The Board also receives an independent written evaluation from the Senior Officer, an officer of the Invesco Funds who reports directly to the independent Trustees. 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. In addition to meetings with Invesco Advisers and fund counsel

throughout the year, the independent Trustees also discuss the continuance of the investment advisory agreement and sub-advisory contracts in separate sessions with the Senior Officer and with independent legal counsel.

The discussion below is a summary of 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. The Trustees’ review and conclusions are based on the comprehensive consideration of all information presented to them during the course of the year and in prior years and are not the result of any single determinative factor. Moreover, one Trustee may have weighed a particular piece of information or factor differently than another Trustee. This information is current as of June 3, 2020.

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 nature, extent and quality of the advisory services provided to the Fund by Invesco Advisers under the Fund’s investment advisory agreement, and the credentials and experience of the officers and employees of Invesco Advisers who provide these services, including the Fund’s portfolio manager(s). The Board’s review included consideration of Invesco Advisers’ investment process oversight and structure, credit analysis, investment risk management and research capabilities. The Board also considered non-advisory services that Invesco Advisers and its affiliates provide to the Invesco Funds, such as various back office support functions, third party oversight, internal audit, valuation, portfolio trading and legal and compliance. The Board also received and reviewed information about Invesco Advisers’ role as administrator of the Invesco Funds’ liquidity risk management program. The Board reviewed and considered the benefits to shareholders of investing in a Fund that is part of the Invesco family of funds under the umbrella of Invesco Ltd., Invesco Advisers’ parent company, and noted Invesco Ltd.’s depth and experience in conducting an investment management business, as well as its commitment of financial and other resources to such business. The Board also reviewed and considered information regarding the benefits to the Fund resulting from Invesco Ltd.’s acquisition of OppenheimerFunds, Inc. and its subsidiaries (the Transaction) and the resources that Invesco Advisers has committed to managing the Invesco family of funds following the Transaction. The Board concluded that the nature, extent and quality of the services provided to the Fund by Invesco Advisers are appropriate and satisfactory.

The Board reviewed the services that may be 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 the Affiliated Sub-Advisers’ expertise with respect to certain asset classes and that the Affiliated Sub-Advisers have offices and personnel

that are located in financial centers around the world. As a result, the Board noted that the Affiliated Sub-Advisers can provide research and investment analysis on the markets and economies of various countries in which the Fund may invest, make recommendations regarding securities and assist with security trades. The Board concluded that the sub-advisory contracts may 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 that may be provided by the Affiliated Sub-Advisers are appropriate and satisfactory.

B. Fund Investment Performance

The Board considered Fund investment performance as a relevant factor in considering whether to approve the investment advisory agreement. The Board did not view Fund investment 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 investment performance over multiple time periods ending December 31, 2019 to the performance of funds in the Broadridge performance universe and against the Russell 1000^® Growth Index. The Board noted that performance of Series I shares of the Fund was in the first quintile of its performance universe for the one year period and the fifth quintile for the three and five year periods (the first quintile being the best performing funds and the fifth quintile being the worst performing funds). The Board noted that performance of Series I shares of the Fund was reasonably comparable to the performance of the Index for the one year period and below the performance of the Index for the three and five year periods. The Board considered that the Fund was created in connection with the Transaction and that the Fund’s performance prior to the closing of the Transaction after the close of business on May 24, 2019 is that of its predecessor fund. The Board noted that overweight and underweight exposures to, and stock selection in, certain sectors detracted from Fund performance. The Board further noted that the Fund underwent a portfolio management team change in June 2019, and that performance results prior to such date were those of the prior portfolio management team. The Board recognized that the performance data reflects a snapshot in time as of a particular date and that selecting a different performance period could produce different results. The Board also reviewed more recent Fund performance as well as other performance metrics and this review did not change their conclusions.

C. Advisory and Sub-Advisory Fees and Fund Expenses

The Board compared the Fund’s contractual management fee rate to the contractual management fee rates of funds in the Fund’s Broadridge expense group. The Board noted that the contractual management fee rate for Series I shares of the Fund was the same as the median contractual management fee rate of funds in its expense group. The Board noted that the term “contractual management fee” for funds in the expense group may include both advisory and certain non-portfolio management administrative services fees, but that Broadridge

Invesco Oppenheimer V.I. Capital Appreciation Fund

does not provide information on a fund by fund basis as to what is included. The Board also reviewed the methodology used by Broadridge in providing expense group information, which includes using each fund’s contractual management fee schedule (including any applicable breakpoints) as reported in the most recent prospectus or statement of additional information for each fund in the expense group. The Board also considered comparative information regarding the Fund’s total expense ratio and its various components.

The Board noted that Invesco Advisers has contractually agreed to waive fees and/or limit expenses of the Fund for the term disclosed in the Fund’s registration statement 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 Invesco Advisers and the Affiliated Sub-Advisers do not manage other similarly managed mutual funds or client accounts.

The Board also considered the services that may be provided by the Affiliated Sub-Advisers pursuant to the sub-advisory contracts, as well as the fees payable by Invesco Advisers to the Affiliated Sub-Advisers pursuant to the sub-advisory contracts.

D. Economies of Scale and Breakpoints

The Board considered the extent to which there may be economies of scale in the provision of advisory services to the Fund. The Board also considered that the Fund benefits from economies of scale through contractual breakpoints in the Fund’s advisory fee schedule, which generally operate to reduce the Fund’s expense ratio as it grows in size. The Board 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. The Board noted that the Fund may also benefit from economies of scale through initial fee setting, fee waivers and expense reimbursements. The Board also considered Invesco’s reinvestment in its business, including investments in business infrastructure, technology and cybersecurity.

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 Invesco Funds and the profitability of Invesco Advisers and its affiliates in providing these services in the aggregate and on an individual Fund-by-Fund basis. The Board considered the methodology used for calculating profitability and noted the periodic review and enhancement of such methodology. The Board noted that Invesco Advisers continues to operate at a net profit from services Invesco Advisers and its affiliates provide to the Invesco Funds in the aggregate and to certain Funds on an individual fund level. The Board did not deem the level of profits realized by Invesco Advisers and its affiliates from providing such services to be excessive given the nature, extent and quality of the services provided. The Board received information from Invesco Advisers demonstrating that Invesco Advisers and the Affiliated Sub-Advisers are financially sound and have the resources necessary to perform their obligations under the investment advisory agreement and sub-advisory contracts.

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 providing administrative, transfer agency and distribution services to the Fund. The Board considered comparative information regarding fees charged for these services, including information provided by Broadridge and other independent sources. 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; and that the services are required for the operation of the Fund.

The Board considered the benefits realized by Invesco Advisers and the Affiliated Sub-Advisers as a result of portfolio brokerage transactions executed through “soft dollar” arrangements. The Board noted that soft dollar arrangements may result in the Fund bearing costs to purchase research that may be used by Invesco Advisers or the Affiliated Sub-Advisers with other clients and may reduce Invesco Advisers’ or the Affiliated Sub-Advisers’ expenses. The Board also considered that it receives periodic reports from Invesco representing that these arrangements are consistent with regulatory requirements. The Board did not deem the soft dollar arrangements to be inappropriate.

The Board considered that the Fund’s uninvested cash and cash collateral from any securities lending arrangements may be invested in registered money market funds or, with regard to securities lending cash collateral, unregistered funds that comply with Rule 2a-7 (collectively referred to as “affiliated money market funds”) advised by Invesco Advisers pursuant to procedures approved by the Board. The Board considered information regarding the returns of the affiliated money market funds relative to comparable overnight investments, as well as the costs to the Fund of such investments. 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 with respect to certain investments in the affiliated money market 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 amount of advisory fees received by Invesco Advisers from the Fund’s investment of cash collateral from any securities lending arrangements in the affiliated money market funds is fair and reasonable.

The Board also considered that an affiliated broker may receive commissions for executing certain trades for the Fund. Invesco Advisers and the Affiliated Sub-Advisers may use the affiliated broker to, among other things, control order routing and minimize information leakage, and the Board was advised that such trades are executed in compliance with rules under the federal securities laws and consistent with best execution obligations.

Invesco Oppenheimer V.I. Capital Appreciation Fund

	Semiannual Report to Shareholders	June 30, 2020
	Invesco Oppenheimer V.I. Conservative Balanced Fund

Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, the insurance company that offers your variable annuity or variable life insurance contract may no longer send you paper copies of the Fund’s shareholder reports by mail, unless you specifically request paper copies of the reports from the insurance company or your financial intermediary. Instead of delivering paper copies of the report, the insurance company may choose to make the reports available on a website, and will notify you by mail each time a report is posted and provide you with a website link to access the report. Instructions for requesting paper copies will be provided by your insurance company.

    If the insurance company offers electronic delivery, you may elect to receive shareholder reports and other communications about the Fund electronically by following the instructions provided by the insurance company or by contacting your financial intermediary. If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action.

    You may elect to receive all future reports in paper free of charge from the insurance company. You can inform the insurance company or your financial intermediary that you wish to continue receiving paper copies of your shareholder reports by following the instructions provided by the insurance company or by contacting your financial intermediary. Your election to receive reports in paper will apply to all portfolio companies available under your contract with the insurance company.

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) as an exhibit to its reports on Form N-PORT. The Fund’s Form N-PORT filings are available on the SEC website, 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-PORT, 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 most recent 12-month period ended June 30 is available at invesco.com/proxysearch. The information is also available on the SEC website, sec.gov.

    Invesco Advisers, Inc. is an investment adviser; it provides investment advisory services to individual and institutional clients and does not sell securities. Invesco Distributors, Inc. is the US distributor for Invesco Ltd.’s retail mutual funds, exchange-traded funds and institutional money market funds. Both are wholly owned, indirect subsidiaries of Invesco Ltd.

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.

NOT FDIC INSURED  |  MAY LOSE VALUE  |  NO BANK GUARANTEE

Invesco Distributors, Inc. O-VICBAL-SAR-1                             

Fund Performance

Performance summary

Fund vs. Indexes

Cumulative total returns, 12/31/19 to 6/30/20, excluding variable product issuer charges. If variable product issuer charges were included, returns would be lower.

Series I Shares	4.17	%
Series II Shares	4.04
Russell 3000 Indexq	–3.48
Bloomberg Barclays U.S. Aggregate Bond Indexq	6.14
Custom Invesco Oppenheimer VI Conservative Balanced Index Linked∎	4.03
Source(s): qRIMES Technologies Corp.; ∎Invesco, RIMES Technologies Corp..

The Russell 3000^® Index is an unmanaged index considered representative of the US stock market. The Russell 3000 Index is a trademark/service mark of the Frank Russell Co. Russell^® is a trademark of the Frank Russell Co.

    The Bloomberg Barclays U.S. Aggregate Bond Index is an unmanaged index considered representative of the US investment-grade, fixed-rate bond market.

    The Custom Invesco Oppenheimer VI Conservative Balanced Index Linked is composed of 60% S&P 500 Index/40% Bloomberg Barclays U.S. Aggregate Bond Index from fund inception through March 31, 2013, and 65% Bloomberg Barclays U.S. Aggregate Bond Index/35% Russell 3000 Index thereafter. The S&P 500^® Index is considered representative of the US stock market.

    The Fund is not managed to track the performance of any particular index, including the index(es) described here, and consequently, the performance of the Fund may deviate significantly from the performance of the index(es).

    A direct investment cannot be made in an index. Unless otherwise indicated, index results include reinvested dividends, and they do not reflect sales charges. Performance of the peer group, if applicable, reflects fund expenses; performance of a market index does not.

Average Annual Total Returns
As of 6/30/20
Series I Shares
Inception (2/9/87)	7.00	%
10 Years	8.01
5 Years	5.81
1 Year	9.33
Series II Shares
Inception (5/1/02)	4.09	%
10 Years	7.75
5 Years	5.55
1 Year	9.06

Effective May 24, 2019, Non-Service and Service shares of the Oppenheimer Conservative Balanced Fund/VA, (the predecessor fund) were reorganized into Series I and Series II shares, respectively, of Invesco Oppenheimer V.I. Conservative Balanced Fund. Returns shown above, prior to May 24, 2019, for Series I and Series II shares are those of the Non-Service shares and Service shares of the predecessor fund. Share class returns will differ from the predecessor fund because of different expenses.

    The performance data quoted represent past performance and cannot guarantee future results; current performance may be lower or higher. Please 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. Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares. Investment return and principal value will fluctuate so that you may have a gain or loss when you sell shares.

    Invesco Oppenheimer V.I. Conservative Balanced Fund, a series portfolio of AIM Variable Insurance Funds (Invesco Variable Insurance Funds), is currently offered through insurance companies issuing variable products. You cannot purchase shares of the Fund directly. Performance figures given represent the Fund and are not intended to reflect actual variable product values. They do not reflect sales charges,

expenses and fees assessed in connection with a variable product. Sales charges, expenses and fees, which are determined by the variable product issuers, will vary and will lower the total return.

    The most recent month-end performance 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.

    Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information.

Invesco Oppenheimer V.I. Conservative Balanced Fund

Liquidity Risk Management Program

The Securities and Exchange Commission has adopted Rule 22e-4 under the Investment Company Act of 1940 (the “Liquidity Rule”) in order to promote effective liquidity risk management throughout the open-end investment company industry, thereby reducing the risk that funds will be unable to meet their redemption obligations and mitigating dilution of the interests of fund shareholders. The Fund has adopted and implemented a liquidity risk management program in accordance with the Liquidity Rule (the “Program”). The Program is reasonably designed to assess and manage the Fund’s liquidity risk, which is the risk that the Fund could not meet redemption requests without significant dilution of remaining investors’ interests in the Fund. The Board of Trustees of the Fund (the “Board”) has appointed Invesco Advisers, Inc. (“Invesco”), the Fund’s investment adviser, as the Program’s administrator, and Invesco has delegated oversight of the Program to the Liquidity Risk Management Committee (the “Committee”), which is composed of senior representatives from relevant business groups at Invesco.

As required by the Liquidity Rule, the Program includes policies and procedures providing for an assessment, no less frequently than annually, of the Fund’s liquidity risk that takes into account, as relevant to the Fund’s liquidity risk: (1) the Fund’s investment strategy and liquidity of portfolio investments during both normal and reasonably foreseeable stressed conditions; (2) short-term and long-term cash flow projections for the Fund during both normal and reasonably foreseeable stressed conditions; and (3) the Fund’s holdings of cash and cash equivalents and any borrowing arrangements. The Liquidity Rule also requires the classification of the Fund’s investments into categories that reflect the assessment of their relative liquidity under current market conditions. The Fund classifies its investments into one of four categories defined in the Liquidity Rule: “Highly Liquid,” “Moderately Liquid,” “Less Liquid” and “Illiquid.” Funds that are not invested primarily in “Highly Liquid Investments” that are assets (cash or investments that are reasonably expected to be convertible into cash within three business days without significantly changing the market value of the investment) are required to establish a “Highly Liquid Investment Minimum” (“HLIM”), which is the minimum percentage of net assets that must be invested in Highly Liquid Investments. Funds with HLIMs have procedures for addressing HLIM shortfalls, including reporting to the Board and the SEC (on a non-public basis) as required by the Program and the Liquidity Rule. In addition, the Fund may not acquire an investment if, immediately after the acquisition, over 15% of the Fund’s net assets would consist of “Illiquid Investments” that are assets (an investment that cannot reasonably be expected to be sold or disposed of in current market conditions in seven calendar days or less without the sale or disposition significantly changing the market value of the investment). The Liquidity Rule and the Program also require reporting to the Board and the SEC (on a non-public basis) if a Fund’s holdings of Illiquid Investments exceed 15% of the Fund’s assets.

At a meeting held on March 30-April 1, 2020, the Committee presented a report to the Board that addressed the operation of the Program and assessed the Program’s adequacy and effectiveness of implementation (the “Report”). The Report covered the period from December 1, 2018 through December 31, 2019 (the “Program Reporting Period”).

The Report stated, in relevant part, that during the Program Reporting Period:

∎ The Program, as adopted and implemented, remained reasonably designed to assess and manage the Fund’s liquidity risk and was operated effectively to achieve that goal;

∎ The Fund’s investment strategy remained appropriate for an open-end fund;

∎ The Fund was able to meet requests for redemption without significant dilution of remaining investors’ interests in the Fund;

∎ The Fund did not breach the 15% limit on Illiquid Investments; and

∎ The Fund primarily held Highly Liquid Investments and therefore has not adopted an HLIM.

Invesco Oppenheimer V.I. Conservative Balanced Fund

Schedule of Investments^(a)

June 30, 2020

(Unaudited)

	Shares		Value
Common Stocks & Other Equity Interests–38.75%
Aerospace & Defense–0.56%
Lockheed Martin Corp.		2,882	$	1,051,699
Air Freight & Logistics–0.30%
United Parcel Service, Inc., Class B		5,097		566,684
Alternative Carriers–0.00%
ORBCOMM, Inc.(b)		375		1,444
Application Software–0.23%
Q2 Holdings, Inc.(b)		4,970		426,376
Automotive Retail–0.43%
CarMax, Inc.(b)		9,070		812,218
Biotechnology–0.86%
Gilead Sciences, Inc.		6,912		531,809
Seattle Genetics, Inc.(b)		1,675		284,616
Vertex Pharmaceuticals, Inc.(b)		2,790		809,965
				1,626,390
Cable & Satellite–0.30%
Charter Communications, Inc., Class A(b)		1,093		557,474
Commodity Chemicals–0.18%
Valvoline, Inc.		17,323		334,854
Communications Equipment–0.38%
Motorola Solutions, Inc.		5,124		718,026
Construction Machinery & Heavy Trucks–0.17%
Wabtec Corp.		5,710		328,725
Consumer Finance–0.18%
Capital One Financial Corp.		5,566		348,376
Data Processing & Outsourced Services–1.18%
Fiserv, Inc.(b)		6,281		613,151
Mastercard, Inc., Class A		5,440		1,608,608
				2,221,759
Distillers & Vintners–0.28%
Constellation Brands, Inc., Class A		3,010		526,599
Diversified Banks–1.07%
JPMorgan Chase & Co.		21,510		2,023,231
Diversified Metals & Mining–0.24%
Compass Minerals International, Inc.		9,440		460,200
Diversified Support Services–0.15%
IAA, Inc.(b)		7,380		284,647
Electric Utilities–0.53%
Avangrid, Inc.		16,320		685,114
Portland General Electric Co.		7,373		308,265
				993,379

	Shares		Value
Environmental & Facilities Services–0.26%
Republic Services, Inc.		5,920	$	485,736
Financial Exchanges & Data–0.86%
CME Group, Inc., Class A		2,745		446,172
Intercontinental Exchange, Inc.		12,900		1,181,640
				1,627,812
Footwear–0.25%
NIKE, Inc., Class B		4,795		470,150
Gas Utilities–0.34%
National Fuel Gas Co.		7,788		326,551
Suburban Propane Partners L.P.		22,085		315,815
				642,366
Health Care Equipment–1.35%
Becton, Dickinson and Co.		3,918		937,460
Boston Scientific Corp.(b)		15,750		552,982
CryoPort, Inc.(b)		16,840		509,410
Zimmer Biomet Holdings, Inc.		4,627		552,279
				2,552,131
Health Care Facilities–0.20%
HCA Healthcare, Inc.(b)		3,859		374,554
Health Care Technology–0.54%
Teladoc Health, Inc.(b)		5,340		1,019,086
Home Improvement Retail–0.77%
Home Depot, Inc. (The)		5,770		1,445,443
Homebuilding–0.31%
D.R. Horton, Inc.		10,580		586,661
Household Products–0.68%
Procter & Gamble Co. (The)		10,656		1,274,138
Human Resource & Employment Services–0.21%
Korn Ferry		12,820		393,959
Hypermarkets & Super Centers–0.69%
Walmart, Inc.		10,791		1,292,546
Industrial Conglomerates–0.47%
Honeywell International, Inc.		6,178		893,277
Industrial Machinery–0.30%
Stanley Black & Decker, Inc.		4,005		558,217
Industrial REITs–0.76%
Prologis, Inc.		15,367		1,434,202
Insurance Brokers–0.22%
Arthur J. Gallagher & Co.		4,190		408,483
Integrated Oil & Gas–0.81%
Exxon Mobil Corp.		25,321		1,132,355
TOTAL S.A., ADR (France)		10,445		401,715
				1,534,070

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco Oppenheimer V.I. Conservative Balanced Fund

	Shares		Value
Integrated Telecommunication Services–0.90%
Verizon Communications, Inc.		30,775	$	1,696,626
Interactive Home Entertainment–0.82%
Zynga, Inc., Class A(b)		162,061		1,546,062
Interactive Media & Services–3.30%
Alphabet, Inc., Class A(b)		2,216		3,142,399
Facebook, Inc., Class A(b)		10,090		2,291,136
Snap, Inc., Class A(b)		33,890		796,076
				6,229,611
Internet & Direct Marketing Retail–1.89%
Amazon.com, Inc.(b)		1,290		3,558,878
IT Consulting & Other Services–0.74%
Accenture PLC, Class A		3,830		822,377
Perspecta, Inc.		24,907		578,590
				1,400,967
Leisure Facilities–0.08%
Cedar Fair L.P.(b)		5,485		150,837
Managed Health Care–0.77%
UnitedHealth Group, Inc.		4,953		1,460,887
Metal & Glass Containers–0.18%
Silgan Holdings, Inc.		10,567		342,265
Multi-line Insurance–0.20%
American International Group, Inc.		12,200		380,396
Multi-Utilities–0.16%
Consolidated Edison, Inc.		4,263		306,638
Office REITs–0.20%
Alexandria Real Estate Equities, Inc.		2,308		374,473
Office Services & Supplies–0.18%
ACCO Brands Corp.		48,950		347,545
Oil & Gas Storage & Transportation–0.19%
Shell Midstream Partners L.P.		29,695		364,358
Paper Products–0.21%
Schweitzer-Mauduit International, Inc., Class A		11,635		388,725
Pharmaceuticals–1.67%
AstraZeneca PLC, ADR (United Kingdom)		16,117		852,428
Johnson & Johnson		10,160		1,428,801
Merck & Co., Inc.		11,234		868,725
				3,149,954
Property & Casualty Insurance–0.53%
Progressive Corp. (The)		12,480		999,773
Railroads–0.42%
Canadian Pacific Railway Ltd. (Canada)		3,140		801,768
Regional Banks–0.78%
East West Bancorp, Inc.		9,704		351,673
IBERIABANK Corp.		7,010		319,235
Signature Bank		3,464		370,371
SVB Financial Group(b)		2,034		438,388
				1,479,667

	Shares		Value
Restaurants–0.49%
Starbucks Corp.		12,475	$	918,035
Semiconductor Equipment–0.61%
Applied Materials, Inc.		18,890		1,141,900
Semiconductors–2.38%
NVIDIA Corp.		6,974		2,649,492
QUALCOMM, Inc.		8,550		779,846
Texas Instruments, Inc.		8,397		1,066,167
				4,495,505
Soft Drinks–0.51%
Coca-Cola Co. (The)		21,420		957,046
Specialized REITs–0.16%
EPR Properties(b)		8,940		296,182
Specialty Stores–0.39%
Tractor Supply Co.		5,577		734,993
Systems Software–2.97%
Microsoft Corp.		27,521		5,600,799
Technology Hardware, Storage & Peripherals–1.15%
Apple, Inc.		5,950		2,170,560
Trading Companies & Distributors–0.36%
Fastenal Co.		16,040		687,154
Wireless Telecommunication Services–0.45%
T-Mobile US, Inc.(b)		8,070		840,490
T-Mobile US, Inc., Rts. expiring 07/28/2020(b)		8,070		1,356
				841,846
Total Common Stocks & Other Equity Interests (Cost $56,764,180)				73,098,362
	Principal Amount
U.S. Dollar Denominated Bonds & Notes–27.94%
Advertising–0.40%
Interpublic Group of Cos., Inc. (The), 3.75%, 10/01/2021	$	265,000		274,869
4.20%, 04/15/2024		222,000		242,653
WPP Finance 2010 (United Kingdom), 3.75%, 09/19/2024		218,000		235,436
				752,958
Aerospace & Defense–0.40%
BAE Systems Holdings, Inc. (United Kingdom), 3.85%, 12/15/2025(c)		166,000		183,984
L3Harris Technologies, Inc., 3.85%, 06/15/2023		226,000		245,887
Northrop Grumman Corp., 4.75%, 06/01/2043		128,000		167,020
Raytheon Technologies Corp., 3.95%, 08/16/2025		139,000		158,815
				755,706
Agricultural & Farm Machinery–0.03%
Deere & Co., 3.10%, 04/15/2030		50,000		56,744
Agricultural Products–0.17%
Bunge Ltd. Finance Corp., 3.50%, 11/24/2020		311,000		313,968

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco Oppenheimer V.I. Conservative Balanced Fund

	Principal Amount		Value
Airlines–0.22%
Delta Air Lines Pass Through Trust, Series 2020-1, Class AA, 2.00%, 06/10/2028	$	256,000	$	245,041
Southwest Airlines Co., 4.75%, 05/04/2023		70,000		72,327
United Airlines Pass Through Trust, Series 2019-2, Class AA, 2.70%, 05/01/2032		98,000		88,973
				406,341
Apparel Retail–0.44%
Ross Stores, Inc., 3.38%, 09/15/2024		233,000		250,270
4.60%, 04/15/2025		271,000		311,587
4.70%, 04/15/2027		223,000		259,167
				821,024
Application Software–0.04%
Autodesk, Inc., 4.38%, 06/15/2025		70,000		79,912
Asset Management & Custody Banks–0.71%
Ameriprise Financial, Inc., 3.00%, 04/02/2025		203,000		220,723
Apollo Management Holdings L.P., 2.65%, 06/05/2030(c)		277,000		275,815
4.95%, 01/14/2050(c)		145,000		130,477
Bank of New York Mellon Corp. (The), Series G, 4.70%(d)		234,000		243,945
Blackstone Holdings Finance Co. LLC, 3.15%, 10/02/2027(c)		79,000		85,863
Brookfield Asset Management, Inc. (Canada), 4.00%, 01/15/2025		168,000		185,208
Carlyle Finance Subsidiary LLC, 3.50%, 09/19/2029(c)		103,000		106,918
Northern Trust Corp., 3.38% (3 mo. USD LIBOR + 1.13%), 05/08/2032(e)		77,000		82,570
				1,331,519
Auto Parts & Equipment–0.08%
Magna International, Inc. (Canada), 2.45%, 06/15/2030		141,000		144,493
Automobile Manufacturers–1.15%
Daimler Finance North America LLC (Germany), 2.55%, 08/15/2022(c)		149,000		152,957
General Motors Co., 6.25%, 10/02/2043		56,000		59,566
General Motors Financial Co., Inc., 4.20%, 11/06/2021		259,000		265,662
4.15%, 06/19/2023		209,000		218,543
Harley-Davidson Financial Services, Inc., 2.55%, 06/09/2022(c)		214,000		214,868
Hyundai Capital America, 5.75%, 04/06/2023(c)		273,000		298,290
4.13%, 06/08/2023(c)		227,000		239,715
Nissan Motor Acceptance Corp., 3.65%, 09/21/2021(c)		326,000		326,926
Toyota Motor Credit Corp., 2.15%, 02/13/2030		74,000		77,914
Volkswagen Group of America Finance LLC (Germany), 4.00%, 11/12/2021(c)		311,000		323,912
				2,178,353

	Principal Amount		Value
Automotive Retail–0.15%
Advance Auto Parts, Inc., 3.90%, 04/15/2030(c)	$	263,000	$	281,858
Biotechnology–0.47%
AbbVie, Inc., 3.85%, 06/15/2024(c)		297,000		326,415
2.95%, 11/21/2026(c)		70,000		76,661
3.20%, 11/21/2029(c)		236,000		263,506
4.05%, 11/21/2039(c)		80,000		92,911
Amgen, Inc., 3.15%, 02/21/2040		125,000		133,351
				892,844
Brewers–0.39%
Anheuser-Busch InBev Worldwide, Inc. (Belgium), 8.20%, 01/15/2039		133,000		211,472
4.35%, 06/01/2040		133,000		151,970
4.50%, 06/01/2050		147,000		176,047
Bacardi Ltd. (Bermuda), 4.70%, 05/15/2028(c)		171,000		193,627
				733,116
Broadcasting–0.14%
Fox Corp., 3.05%, 04/07/2025		70,000		75,831
ViacomCBS, Inc., 4.20%, 06/01/2029		107,000		120,092
4.38%, 03/15/2043		71,000		74,327
				270,250
Building Products–0.21%
Carrier Global Corp., 2.24%, 02/15/2025(c)		275,000		282,256
2.49%, 02/15/2027(c)		112,000		114,244
				396,500
Cable & Satellite–0.25%
Charter Communications Operating LLC/Charter Communications Operating Capital Corp., 5.13%, 07/01/2049		57,000		65,909
Comcast Corp., 2.65%, 02/01/2030		54,000		58,777
4.00%, 03/01/2048		58,000		71,338
2.80%, 01/15/2051		198,000		203,393
Time Warner Cable LLC, 4.50%, 09/15/2042		75,000		80,662
				480,079
Communications Equipment–0.10%
Motorola Solutions, Inc., 4.60%, 02/23/2028		173,000		196,846
Construction Machinery & Heavy Trucks–0.02%
Wabtec Corp., 3.20%, 06/15/2025		46,000		47,013
Consumer Finance–0.43%
American Express Co., 3.13%, 05/20/2026		127,000		141,106
Series C, 3.60% (3 mo. USD LIBOR + 3.29%)(d)(e)		246,000		209,956
Capital One Financial Corp., 3.80%, 01/31/2028		62,000		69,071
Discover Bank, 4.65%, 09/13/2028		122,000		140,278

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco Oppenheimer V.I. Conservative Balanced Fund

	Principal Amount		Value
Consumer Finance–(continued)
Discover Financial Services, 3.75%, 03/04/2025	$	73,000	$	78,672
Synchrony Financial, 4.25%, 08/15/2024		167,000		175,466
				814,549
Data Processing & Outsourced Services–0.06%
Global Payments, Inc., 3.20%, 08/15/2029		100,000		107,308
Distillers & Vintners–0.08%
Pernod Ricard S.A. (France), 4.25%, 07/15/2022(c)		134,000		143,071
Diversified Banks–4.62%
Bank of America Corp., 3.37%, (3 mo. USD LIBOR + 0.81%), 01/23/2026(e)		193,000		210,928
3.82%, (3 mo. USD LIBOR + 1.58%), 01/20/2028(e)		129,000		146,798
4.27%, (3 mo. USD LIBOR + 1.31%), 07/23/2029(e)		104,000		122,492
2.59%, 04/29/2031		172,000		182,329
7.75%, 05/14/2038		115,000		188,330
2.68%, 06/19/2041		323,000		332,970
Bank of Ireland Group PLC (Ireland), 4.50%, 11/25/2023(c)		263,000		282,678
Bank of Montreal (Canada), Series E, 3.30%, 02/05/2024		166,000		180,233
BBVA USA, 2.50%, 08/27/2024		252,000		256,127
BPCE S.A. (France), 4.50%, 03/15/2025(c)		184,000		201,152
Citigroup, Inc., 3.11%, 04/08/2026		233,000		250,257
4.08%, (3 mo. USD LIBOR + 1.19%), 04/23/2029(e)		181,000		206,598
4.41%, 03/31/2031		193,000		228,536
2.57%, 06/03/2031		346,000		358,053
Series U, 5.00%(d)		240,000		226,346
Series V, 4.70%(d)		160,000		142,148
Credit Agricole S.A. (France), 4.38%, 03/17/2025(c)		304,000		336,684
Danske Bank A/S (Denmark), 3.24% (3 mo. USD LIBOR + 1.59%), 12/20/2025(c)(e)		200,000		208,185
HSBC Holdings PLC (United Kingdom), 3.95%, (3 mo. USD LIBOR + 0.99%), 05/18/2024(e)		109,000		117,191
4.04%, (3 mo. USD LIBOR + 1.55%), 03/13/2028(e)		135,000		149,270
4.58%, 06/19/2029		183,000		211,567
JPMorgan Chase & Co., 3.80%, (3 mo. USD LIBOR + 0.89%), 07/23/2024(e)		226,000		245,154
2.08%, 04/22/2026		304,000		315,771
3.78%, 02/01/2028		224,000		253,948
3.54%, 05/01/2028		170,000		189,934
2.96%, 05/13/2031		192,000		204,607
3.11%, 04/22/2041		190,000		205,297
Lloyds Banking Group PLC (United Kingdom), 6.66%(c)(d)		300,000		339,163
Mitsubishi UFJ Financial Group, Inc. (Japan), 3.74%, 03/07/2029		131,000		149,357

	Principal Amount		Value
Diversified Banks–(continued)
National Australia Bank Ltd. (Australia), 3.93%, 08/02/2034(c)	$	154,000	$	168,124
Royal Bank of Canada (Canada), 3.70%, 10/05/2023		195,000		213,184
Sumitomo Mitsui Financial Group, Inc. (Japan), 1.47%, 07/08/2025		200,000		200,204
2.13%, 07/08/2030		377,000		378,646
Truist Bank, 4.05%, 11/03/2025		95,000		109,541
2.64%, (5 yr. U.S. Treasury Yield Curve Rate + 1.15%), 09/17/2029(e)		376,000		377,464
U.S. Bancorp, Series W, 3.10%, 04/27/2026		134,000		148,902
Wells Fargo & Co., 2.19%, 04/30/2026		90,000		93,164
3.58%, (3 mo. USD LIBOR + 1.31%), 05/22/2028(e)		167,000		185,455
3.07%, 04/30/2041		128,000		133,685
4.75%, 12/07/2046		106,000		135,722
Westpac Banking Corp. (Australia), 2.89%, 02/04/2030		122,000		124,157
				8,710,351
Diversified Capital Markets–0.65%
Credit Suisse AG (Switzerland), 3.63%, 09/09/2024		197,000		217,708
Credit Suisse Group AG (Switzerland), 4.19%, 04/01/2031(c)		250,000		285,876
5.10%(c)(d)		201,000		190,699
Credit Suisse Group Funding Guernsey Ltd. (Switzerland), 4.55%, 04/17/2026		154,000		177,216
UBS Group AG (Switzerland), 4.13%, 04/15/2026(c)		160,000		182,365
4.25%, 03/23/2028(c)		147,000		166,892
				1,220,756
Diversified Chemicals–0.15%
Dow Chemical Co. (The), 3.63%, 05/15/2026		139,000		153,281
Eastman Chemical Co., 3.50%, 12/01/2021		130,000		134,232
				287,513
Diversified Metals & Mining–0.31%
Anglo American Capital PLC (South Africa), 3.63%, 09/11/2024(c)		86,000		90,344
5.38%, 04/01/2025(c)		203,000		229,516
5.63%, 04/01/2030(c)		216,000		261,350
				581,210
Diversified REITs–0.10%
Brixmor Operating Partnership L.P., 4.13%, 05/15/2029		107,000		111,277
4.05%, 07/01/2030		71,000		72,667
				183,944
Drug Retail–0.23%
Walgreen Co., 3.10%, 09/15/2022		199,000		208,633

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco Oppenheimer V.I. Conservative Balanced Fund

	Principal Amount		Value
Drug Retail–(continued)
Walgreens Boots Alliance, Inc., 4.10%, 04/15/2050	$	215,000	$	218,027
				426,660
Education Services–0.08%
Northeastern University, 2.89%, 10/01/2050		80,000		81,281
Northwestern University, 2.64%, 12/01/2050		70,000		73,875
				155,156
Electric Utilities–0.78%
AEP Texas, Inc., 3.95%, 06/01/2028(c)		172,000		195,851
Consolidated Edison Co. of New York, Inc., Series 20A, 3.35%, 04/01/2030		29,000		33,070
EDP Finance B.V. (Portugal), 3.63%, 07/15/2024(c)		231,000		249,195
Emera US Finance L.P. (Canada), 2.70%, 06/15/2021		179,000		182,304
Enel Finance International N.V. (Italy), 2.88%, 05/25/2022(c)		313,000		323,912
FirstEnergy Corp., Series A, 1.60%, 01/15/2026		32,000		32,324
Series B, 3.90%, 07/15/2027		125,000		141,598
2.25%, 09/01/2030		85,000		85,360
Fortis, Inc. (Canada), 3.06%, 10/04/2026		83,000		89,679
Mid-Atlantic Interstate Transmission LLC, 4.10%, 05/15/2028(c)		115,000		131,245
				1,464,538
Electronic Components–0.03%
Corning, Inc., 5.45%, 11/15/2079		54,000		64,585
Electronic Equipment & Instruments–0.17%
FLIR Systems, Inc., 3.13%, 06/15/2021		307,000		312,436
Fertilizers & Agricultural Chemicals–0.05%
Nutrien Ltd. (Canada), 1.90%, 05/13/2023		93,000		96,039
Financial Exchanges & Data–0.04%
Moody’s Corp., 3.25%, 05/20/2050		70,000		75,401
Forest Products–0.23%
Georgia-Pacific LLC, 1.75%, 09/30/2025(c)		174,000		179,637
2.10%, 04/30/2027(c)		250,000		259,817
				439,454
Gas Utilities–0.03%
East Ohio Gas Co. (The), 1.30%, 06/15/2025(c)		65,000		65,433
Gold–0.06%
Newmont Corp., 2.25%, 10/01/2030		112,000		113,732
Health Care Equipment–0.18%
Becton, Dickinson and Co., 3.70%, 06/06/2027		118,000		132,097
3.79%, 05/20/2050		118,000		131,693

	Principal Amount		Value
Health Care Equipment–(continued)
Children’s Hospital Corp. (The), 2.59%, 02/01/2050	$	76,000	$	77,099
				340,889
Health Care REITs–0.29%
Healthcare Trust of America Holdings L.P., 3.50%, 08/01/2026		142,000		153,618
Healthpeak Properties, Inc., 3.00%, 01/15/2030		183,000		191,591
2.88%, 01/15/2031		112,000		115,235
Welltower, Inc., 2.70%, 02/15/2027		87,000		90,478
				550,922
Health Care Services–0.21%
Cigna Corp., 4.13%, 11/15/2025		168,000		193,212
Fresenius Medical Care US Finance II, Inc. (Germany), 5.88%, 01/31/2022(c)		196,000		208,131
				401,343
Home Improvement Retail–0.10%
Lowe’s Cos., Inc., 4.50%, 04/15/2030		155,000		190,489
Homebuilding–0.16%
D.R. Horton, Inc., 4.75%, 02/15/2023		195,000		210,728
NVR, Inc., 3.00%, 05/15/2030		85,000		88,930
				299,658
Industrial Conglomerates–0.11%
GE Capital International Funding Co. Unlimited Co., 3.37%, 11/15/2025		160,000		168,007
Roper Technologies, Inc., 2.00%, 06/30/2030		41,000		41,075
				209,082
Insurance Brokers–0.05%
Marsh & McLennan Cos., Inc., 4.35%, 01/30/2047		76,000		95,504
Integrated Oil & Gas–0.39%
BP Capital Markets PLC (United Kingdom), 4.38% (5 yr. U.S. Treasury Yield Curve Rate + 4.04%)(d)(e)		55,000		55,963
Occidental Petroleum Corp., Series 1, 4.10%, 02/01/2021		278,000		280,502
4.85%, 03/15/2021		180,000		179,437
2.90%, 08/15/2024		228,000		195,394
4.50%, 07/15/2044		48,000		33,330
				744,626
Integrated Telecommunication Services–0.51%
AT&T, Inc., 4.30%, 02/15/2030		223,000		260,738
4.35%, 06/15/2045		33,000		37,180
4.50%, 03/09/2048		96,000		112,838
British Telecommunications PLC (United Kingdom), 4.50%, 12/04/2023		202,000		223,762
Deutsche Telekom International Finance B.V. (Germany), 4.38%, 06/21/2028(c)		146,000		173,260

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco Oppenheimer V.I. Conservative Balanced Fund

	Principal Amount		Value
Integrated Telecommunication Services–(continued)
Verizon Communications, Inc., 4.52%, 09/15/2048	$	117,000	$	154,884
				962,662
Internet & Direct Marketing Retail–0.12%
Amazon.com, Inc., 0.80%, 06/03/2025		230,000		231,589
Internet Services & Infrastructure–0.17%
VeriSign, Inc., 5.25%, 04/01/2025		105,000		116,561
4.75%, 07/15/2027		189,000		198,980
				315,541
Investment Banking & Brokerage–0.98%
Charles Schwab Corp. (The), Series G, 5.38%(d)		336,000		359,796
Goldman Sachs Group, Inc. (The), 3.50%, 04/01/2025		207,000		227,223
3.75%, 02/25/2026		110,000		122,774
3.50%, 11/16/2026		112,000		123,264
Morgan Stanley, 5.00%, 11/24/2025		174,000		203,478
2.19%, 04/28/2026		155,000		161,386
4.43%, (3 mo. USD LIBOR + 1.63%), 01/23/2030(e)		159,000		189,535
3.62%, 04/01/2031		197,000		225,468
Raymond James Financial, Inc., 3.63%, 09/15/2026		103,000		114,540
4.65%, 04/01/2030		98,000		117,389
				1,844,853
IT Consulting & Other Services–0.10%
DXC Technology Co., 4.75%, 04/15/2027		166,000		182,134
Life & Health Insurance–0.66%
Athene Global Funding, 2.95%, 11/12/2026(c)		273,000		274,332
Athene Holding Ltd., 6.15%, 04/03/2030		216,000		249,213
Lincoln National Corp., 3.80%, 03/01/2028		126,000		139,888
Manulife Financial Corp. (Canada), 4.06% (5 yr. USD ICE Swap Rate + 1.65%), 02/24/2032(e)		129,000		136,906
Prudential Financial, Inc., 5.20%, 03/15/2044		246,000		251,300
Reliance Standard Life Global Funding II, 2.75%, 01/21/2027(c)		188,000		184,376
				1,236,015
Managed Health Care–0.11%
Anthem, Inc., 3.13%, 05/15/2022		203,000		212,714
Multi-line Insurance–0.06%
Massachusetts Mutual Life Insurance Co., 3.38%, 04/15/2050(c)		104,000		107,294
Multi-Utilities–0.62%
Ameren Corp., 2.50%, 09/15/2024		137,000		145,349
3.50%, 01/15/2031		99,000		110,909

	Principal Amount		Value
Multi-Utilities–(continued)
CenterPoint Energy, Inc., 4.25%, 11/01/2028	$	100,000	$	116,331
Dominion Energy, Inc., 2.72%, 08/15/2021(f)		197,000		201,423
Series C, 3.38%, 04/01/2030		165,000		182,903
Sempra Energy, 3.40%, 02/01/2028		117,000		128,714
4.88%, (5 yr. U.S. Treasury Yield Curve Rate + 4.55%)(d)(e)		284,000		284,710
				1,170,339
Oil & Gas Equipment & Services–0.08%
Schlumberger Holdings Corp., 4.00%, 12/21/2025(c)		132,000		145,264
Oil & Gas Exploration & Production–0.39%
Canadian Natural Resources Ltd. (Canada), 2.05%, 07/15/2025		390,000		391,237
2.95%, 07/15/2030		182,000		180,972
EQT Corp., 3.00%, 10/01/2022		174,000		162,364
				734,573
Oil & Gas Storage & Transportation–1.07%
Energy Transfer Operating L.P., 4.25%, 03/15/2023		176,000		186,001
5.30%, 04/15/2047		68,000		65,857
Enterprise Products Operating LLC, 4.20%, 01/31/2050		76,000		84,456
Kinder Morgan Energy Partners L.P., 5.80%, 03/01/2021		132,000		136,327
Kinder Morgan, Inc., 5.20%, 03/01/2048		85,000		102,544
MPLX L.P., 1.41%, (3 mo. USD LIBOR + 1.10%), 09/09/2022(e)		144,000		141,669
4.25%, 12/01/2027		129,000		140,050
ONEOK, Inc., 5.85%, 01/15/2026		78,000		89,174
4.35%, 03/15/2029		105,000		110,517
6.35%, 01/15/2031		295,000		345,921
Plains All American Pipeline L.P./PAA Finance Corp., 3.80%, 09/15/2030		101,000		99,667
Sabine Pass Liquefaction LLC, 4.20%, 03/15/2028		122,000		130,923
Sunoco Logistics Partners Operations L.P., 4.00%, 10/01/2027		139,000		142,489
Williams Cos., Inc. (The), 3.70%, 01/15/2023		225,000		237,979
				2,013,574
Other Diversified Financial Services–0.24%
Equitable Holdings, Inc., 4.35%, 04/20/2028		110,000		123,264
Experian Finance PLC (United Kingdom), 2.75%, 03/08/2030(c)		311,000		331,929
				455,193
Packaged Foods & Meats–0.62%
Conagra Brands, Inc., 3.80%, 10/22/2021		252,000		262,005
4.60%, 11/01/2025		214,000		246,953

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco Oppenheimer V.I. Conservative Balanced Fund

	Principal Amount		Value
Packaged Foods & Meats–(continued)
Mondelez International Holdings Netherlands B.V., 2.00%, 10/28/2021(c)	$	339,000	$	345,079
Smithfield Foods, Inc., 3.35%, 02/01/2022(c)		124,000		123,117
Tyson Foods, Inc., 3.90%, 09/28/2023		183,000		200,261
				1,177,415
Paper Packaging–0.21%
Bemis Co., Inc., 2.63%, 06/19/2030		49,000		50,291
Packaging Corp. of America, 3.65%, 09/15/2024		185,000		202,035
WRKCo, Inc., 3.90%, 06/01/2028		127,000		140,681
				393,007
Pharmaceuticals–1.20%
Bayer US Finance II LLC (Germany), 3.88%, 12/15/2023(c)		335,000		367,747
Elanco Animal Health, Inc., 5.65%, 08/28/2028		145,000		161,410
Merck & Co., Inc., 0.75%, 02/24/2026		150,000		150,000
1.45%, 06/24/2030		80,000		80,269
2.35%, 06/24/2040		146,000		148,893
2.45%, 06/24/2050		95,000		95,643
Mylan, Inc., 3.13%, 01/15/2023(c)		206,000		216,688
Takeda Pharmaceutical Co. Ltd. (Japan), 5.00%, 11/26/2028		160,000		197,503
2.05%, 03/31/2030		205,000		203,352
3.18%, 07/09/2050		200,000		201,738
3.38%, 07/09/2060		206,000		207,139
Upjohn, Inc., 2.70%, 06/22/2030(c)		222,000		228,573
				2,258,955
Property & Casualty Insurance–0.38%
Arch Capital Group Ltd., 3.64%, 06/30/2050		216,000		227,061
CNA Financial Corp., 3.45%, 08/15/2027		156,000		166,630
Fidelity National Financial, Inc., 3.40%, 06/15/2030		152,000		158,528
W.R. Berkley Corp., 4.00%, 05/12/2050		144,000		160,807
				713,026
Railroads–0.18%
Union Pacific Corp., 2.15%, 02/05/2027		145,000		153,503
2.40%, 02/05/2030		181,000		193,868
				347,371
Regional Banks–0.98%
Citizens Financial Group, Inc., 3.25%, 04/30/2030		98,000		106,107
Fifth Third Bancorp, 2.55%, 05/05/2027		130,000		139,194
Fifth Third Bank N.A., 3.85%, 03/15/2026		160,000		179,595
Huntington Bancshares, Inc., 4.00%, 05/15/2025		225,000		255,154
KeyCorp, 4.15%, 10/29/2025		72,000		82,651

	Principal Amount		Value
Regional Banks–(continued)
PNC Financial Services Group, Inc. (The), 3.15%, 05/19/2027	$	171,000	$	191,387
Santander Holdings USA, Inc., 3.50%, 06/07/2024		167,000		175,756
Synovus Financial Corp., 3.13%, 11/01/2022		119,000		120,752
Truist Financial Corp., Series Q, 5.10% (10 yr. U.S. Treasury Yield Curve Rate + 4.35%)(d)(e)		336,000		347,793
Zions Bancorporation N.A., 3.25%, 10/29/2029		250,000		246,806
				1,845,195
Residential REITs–0.20%
Camden Property Trust, 2.80%, 05/15/2030		86,000		93,102
Essex Portfolio L.P., 3.00%, 01/15/2030		100,000		109,180
Spirit Realty L.P., 3.20%, 01/15/2027		137,000		131,047
VEREIT Operating Partnership L.P., 3.40%, 01/15/2028		42,000		42,322
				375,651
Restaurants–0.02%
McDonald’s Corp., 3.30%, 07/01/2025		31,000		34,478
Retail REITs–0.20%
Kite Realty Group L.P., 4.00%, 10/01/2026		133,000		123,901
Realty Income Corp., 3.25%, 01/15/2031		93,000		100,813
Regency Centers L.P., 2.95%, 09/15/2029		149,000		151,324
				376,038
Semiconductor Equipment–0.11%
NXP B.V./NXP Funding LLC/NXP USA, Inc. (Netherlands), 2.70%, 05/01/2025(c)		55,000		57,865
3.88%, 06/18/2026(c)		134,000		150,171
				208,036
Semiconductors–1.18%
Analog Devices, Inc., 2.95%, 04/01/2025		85,000		92,198
Broadcom, Inc., 2.25%, 11/15/2023(c)		175,000		180,959
4.70%, 04/15/2025(c)		215,000		242,322
3.15%, 11/15/2025(c)		180,000		191,340
4.15%, 11/15/2030(c)		181,000		197,346
4.30%, 11/15/2032(c)		105,000		116,190
Microchip Technology, Inc., 3.92%, 06/01/2021		335,000		341,605
NXP B.V./NXP Funding LLC (Netherlands), 4.13%, 06/01/2021(c)		304,000		313,140
QUALCOMM, Inc., 2.15%, 05/20/2030		262,000		273,411
3.25%, 05/20/2050		256,000		281,251
				2,229,762
Soft Drinks–0.12%
Keurig Dr Pepper, Inc., 4.06%, 05/25/2023		205,000		223,743

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco Oppenheimer V.I. Conservative Balanced Fund

	Principal Amount		Value
Specialized REITs–0.37%
American Tower Corp.,
3.00%, 06/15/2023	$	185,000	$	197,344
4.00%, 06/01/2025		114,000		128,420
1.30%, 09/15/2025		136,000		136,601
Crown Castle International Corp.,
3.30%, 07/01/2030		70,000		76,587
4.15%, 07/01/2050		50,000		57,728
Equinix, Inc., 3.20%, 11/18/2029		98,000		106,542
				703,222
Specialty Chemicals–0.12%
RPM International, Inc., 3.45%, 11/15/2022		222,000		229,307
Steel–0.03%
Steel Dynamics, Inc., 3.25%, 01/15/2031		47,000		47,869
Systems Software–0.06%
VMware, Inc., 3.90%, 08/21/2027		114,000		120,834
Technology Distributors–0.09%
Arrow Electronics, Inc., 3.88%, 01/12/2028		167,000		175,089
Technology Hardware, Storage & Peripherals–0.35%
Apple, Inc.,
4.38%, 05/13/2045		126,000		167,161
2.65%, 05/11/2050		259,000		268,382
Dell International LLC/EMC Corp., 5.30%, 10/01/2029(c)		210,000		232,647
				668,190
Thrifts & Mortgage Finance–0.09%
Nationwide Building Society (United Kingdom), 3.96% (3 mo. USD LIBOR + 1.86%), 07/18/2030(c)(e)		150,000		169,030
Tobacco–0.56%
Altria Group, Inc., 3.49%, 02/14/2022		139,000		145,079
BAT International Finance PLC (United Kingdom), 3.25%, 06/07/2022(c)		215,000		224,059
Imperial Brands Finance PLC (United Kingdom),
2.95%, 07/21/2020(c)		230,000		230,226
3.75%, 07/21/2022(c)		328,000		342,586
Philip Morris International, Inc., 1.50%, 05/01/2025		107,000		109,767
				1,051,717
Trading Companies & Distributors–0.15%
AerCap Ireland Capital DAC/AerCap Global Aviation Trust (Ireland),
3.50%, 05/26/2022		124,000		122,722
4.50%, 09/15/2023		161,000		161,137
				283,859
Trucking–0.48%
Penske Truck Leasing Co. L.P./PTL Finance Corp.,
3.65%, 07/29/2021(c)		110,000		112,636
4.00%, 07/15/2025(c)		175,000		191,537
3.40%, 11/15/2026(c)		181,000		191,191

	Principal Amount		Value
Trucking–(continued)
Ryder System, Inc.,
2.50%, 09/01/2024	$	94,000	$	97,067
4.63%, 06/01/2025		212,000		236,636
3.35%, 09/01/2025		79,000		84,230
				913,297
Wireless Telecommunication Services–0.17%
T-Mobile USA, Inc.,
3.50%, 04/15/2025(c)		215,000		234,757
2.55%, 02/15/2031(c)		88,000		88,530
				323,287
Total U.S. Dollar Denominated Bonds & Notes (Cost $49,271,962)				52,714,296
Asset-Backed Securities–14.29%
Alternative Loan Trust, Series 2005-29CB, Class A4, 5.00%, 07/25/2035		139,108		115,446
American Credit Acceptance Receivables Trust,
Series 2017-4, Class C, 2.94%, 01/10/2024(c)		2,401		2,402
Series 2017-4, Class D, 3.57%, 01/10/2024(c)		246,000		248,696
Series 2018-2, Class C, 3.70%, 07/10/2024(c)		180,854		182,320
Series 2018-3, Class D, 4.14%, 10/15/2024(c)		25,000		25,489
Series 2018-4, Class C, 3.97%, 01/13/2025(c)		180,000		182,849
Series 2019-3, Class C, 2.76%, 09/12/2025(c)		155,000		157,170
AmeriCredit Automobile Receivables Trust,
Series 2017-2, Class D, 3.42%, 04/18/2023		320,000		328,550
Series 2017-4, Class D, 3.08%, 12/18/2023		205,000		209,768
Series 2018-3, Class C, 3.74%, 10/18/2024		260,000		273,609
Series 2019-2, Class C, 2.74%, 04/18/2025		100,000		103,036
Series 2019-2, Class D, 2.99%, 06/18/2025		270,000		272,164
Series 2019-3, Class D, 2.58%, 09/18/2025		130,000		129,331
Angel Oak Mortgage Trust,
Series 2020-1, Class A1, 2.47%, 12/25/2059(c)(g)		151,891		153,194
Series 2020-3, Class A1, 1.69%, 04/25/2065(c)		445,000		444,998
Banc of America Funding Trust,
Series 2007-1, Class 1A3, 6.00%, 01/25/2037		31,302		30,384
Series 2007-C, Class 1A4, 4.04%, 05/20/2036(g)		10,493		10,022
Banc of America Mortgage Trust, Series 2004-E, Class 2A6, 3.60%, 06/25/2034(g)		29,419		28,261
Bank, Series 2019-BNK16, Class XA, 1.13%, 02/15/2052(g)		1,568,703		102,398

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco Oppenheimer V.I. Conservative Balanced Fund

	Principal Amount		Value
Bear Stearns Adjustable Rate Mortgage Trust,
Series 2005-9, Class A1, 4.27% (1 yr. U.S. Treasury Yield Curve Rate + 2.30%), 10/25/2035(e)	$	200,153	$	197,816
Series 2006-1, Class A1, 3.84% (1 yr. U.S. Treasury Yield Curve Rate + 2.25%), 02/25/2036(e)		75,355		74,695
Benchmark Mortgage Trust, Series 2018-B1, Class XA, 0.66%, 01/15/2051(g)		2,181,460		65,632
Capital Auto Receivables Asset Trust,
Series 2017-1, Class D, 3.15%, 02/20/2025(c)		40,000		40,643
Series 2018-2, Class B, 3.48%, 10/20/2023(c)		125,000		127,159
Series 2018-2, Class C, 3.69%, 12/20/2023(c)		120,000		123,032
CarMax Auto Owner Trust,
Series 2017-1, Class D, 3.43%, 07/17/2023		245,000		248,210
Series 2017-4, Class D, 3.30%, 05/15/2024		110,000		111,487
CCG Receivables Trust, Series 2018-1, Class B, 3.09%, 06/16/2025(c)		90,000		90,711
Series 2018-2, Class C, 3.87%, 12/15/2025(c)		60,000		62,138
Series 2019-2, Class B, 2.55%, 03/15/2027(c)		105,000		105,903
Series 2019-2, Class C, 2.89%, 03/15/2027(c)		100,000		100,714
CD Mortgage Trust, Series 2017-CD6, Class XA, 1.10%, 11/13/2050(g)		868,057		37,137
Chase Home Lending Mortgage Trust, Series 2019-ATR1, Class A15, 4.00%, 04/25/2049(c)(g)		41,436		42,334
Chase Mortgage Finance Trust, Series 2005-A2, Class 1A3, 3.90%, 01/25/2036(g)		75,294		70,600
CHL Mortgage Pass-Through Trust,
Series 2005-26, Class 1A8, 5.50%, 11/25/2035		42,923		38,098
Series 2006-6, Class A3, 6.00%, 04/25/2036		27,834		21,367
Citigroup Commercial Mortgage Trust,
Series 2013-GC17, Class XA, 1.18%, 11/10/2046(g)		410,107		11,782
Series 2014-GC21, Class AAB, 3.48%, 05/10/2047		83,003		86,383
Series 2017-C4, Class XA, 1.25%, 10/12/2050(g)		2,330,334		132,541
Citigroup Mortgage Loan Trust, Inc., Series 2006-AR1, Class 1A1, 3.88% (1 yr. U.S. Treasury Yield Curve Rate + 2.40%), 10/25/2035(e)		177,728		173,890
CNH Equipment Trust,
Series 2017-C, Class B, 2.54%, 05/15/2025		70,000		70,730
Series 2019-A, Class A4, 3.22%, 01/15/2026		120,000		126,743
COLT Mortgage Loan Trust,
Series 2020-1, Class A1, 2.49%, 02/25/2050(c)(g)		339,334		343,895
Series 2020-2, Class A1, 1.85%, 03/25/2065(c)		242,251		243,103

	Principal Amount		Value
COMM Mortgage Trust, Series 2013-CR6, Class AM, 3.15%, 03/10/2046(c)	$	255,000	$	259,759
Series 2014-CR21, Class AM, 3.99%, 12/10/2047		865,000		919,805
Series 2014-LC15, Class AM, 4.20%, 04/10/2047		140,000		149,202
Commercial Mortgage Trust, Series 2012-CR5, Class XA, 1.66%, 12/10/2045(g)		302,140		8,711
Series 2014-CR20, Class ASB, 3.31%, 11/10/2047		61,181		63,508
Series 2014-UBS6, Class AM, 4.05%, 12/10/2047		495,000		531,524
CPS Auto Receivables Trust, Series 2018-A, Class B, 2.77%, 04/18/2022(c)		2,486		2,488
Series 2018-B, Class B, 3.23%, 07/15/2022(c)		55,079		55,192
Credit Suisse Mortgage Trust, Series 2006-6, Class 1A4, 6.00%, 07/25/2036		102,451		82,329
CSAIL Commercial Mortgage Trust, Series 2020-C19, Class A3, 2.56%, 03/15/2053		571,000		609,212
Dell Equipment Finance Trust, Series 2017-2, Class B, 2.47%, 10/24/2022(c)		40,522		40,590
Series 2018-1, Class B, 3.34%, 06/22/2023(c)		90,000		91,664
Series 2019-1, Class C, 3.14%, 03/22/2024(c)		330,000		333,507
Series 2019-2, Class D, 2.48%, 04/22/2025(c)		110,000		109,995
Drive Auto Receivables Trust, Series 2017-1, Class D, 3.84%, 03/15/2023		234,795		238,358
Series 2018-1, Class D, 3.81%, 05/15/2024		160,000		161,952
Series 2018-2, Class D, 4.14%, 08/15/2024		230,000		236,037
Series 2018-3, Class D, 4.30%, 09/16/2024		215,000		221,544
Series 2018-5, Class C, 3.99%, 01/15/2025		210,000		214,417
Series 2019-1, Class C, 3.78%, 04/15/2025		340,000		344,260
DT Auto Owner Trust, Series 2017-1A, Class D, 3.55%, 11/15/2022(c)		53,561		53,860
Series 2017-2A, Class D, 3.89%, 01/15/2023(c)		81,972		82,608
Series 2017-3A, Class D, 3.58%, 05/15/2023(c)		53,583		54,126
Series 2017-3A, Class E, 5.60%, 08/15/2024(c)		195,000		201,455
Series 2017-4A, Class D, 3.47%, 07/17/2023(c)		118,471		119,384
Series 2018-3A, Class B, 3.56%, 09/15/2022(c)		270,000		271,955
Series 2018-3A, Class C, 3.79%, 07/15/2024(c)		105,000		106,977
Element Rail Leasing I LLC, Series 2014-1A, Class A1, 2.30%, 04/19/2044(c)		40,576		40,720

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco Oppenheimer V.I. Conservative Balanced Fund

	Principal Amount		Value
Ellington Financial Mortgage Trust, Series 2020-1, Class A1, 2.01%, 06/25/2065(c)	$	103,652	$	104,165
Exeter Automobile Receivables Trust, Series 2018-4A, Class B, 3.64%, 11/15/2022(c)		93,688		94,093
Series 2019-2A, Class C, 3.30%, 03/15/2024(c)		322,000		327,365
Series 2019-4A, Class D, 2.58%, 09/15/2025(c)		230,000		229,743
First Horizon Alternative Mortgage Securities Trust, Series 2005-FA8, Class 1A6, 0.83% (1 mo. USD LIBOR + 0.65%), 11/25/2035(e)		59,800		29,038
Flagship Credit Auto Trust, Series 2016-1, Class C, 6.22%, 06/15/2022(c)		298,147		302,649
Ford Credit Floorplan Master Owner Trust, Series 2019-3, Class A2, 0.78% (1 mo. USD LIBOR + 0.60%), 09/15/2024(e)		550,000		541,485
FREMF Mortgage Trust,
Series 2013-K25, Class C, 3.74%, 11/25/2045(c)(g)		60,000		61,403
Series 2013-K26, Class C, 3.72%, 12/25/2045(c)(g)		40,000		40,950
Series 2013-K27, Class C, 3.62%, 01/25/2046(c)(g)		110,000		112,526
Series 2013-K28, Class C, 3.61%, 06/25/2046(c)(g)		450,000		460,999
Series 2014-K715, Class C, 4.27%, 02/25/2046(c)(g)		180,000		181,048
GLS Auto Receivables Trust, Series 2018-1A, Class A, 2.82%, 07/15/2022(c)		53,543		53,713
GM Financial Automobile Leasing Trust, Series 2018-2, Class C, 3.50%, 04/20/2022		145,000		146,367
GS Mortgage Securities Trust, Series 2012-GC6, Class A3, 3.48%, 01/10/2045		54,793		55,989
Series 2013-GC16, Class AS, 4.65%, 11/10/2046		65,000		69,545
Series 2013-GCJ12, Class AAB, 2.68%, 06/10/2046		19,762		20,021
Series 2014-GC18, Class AAB, 3.65%, 01/10/2047		65,041		67,360
Series 2020-GC47, Class A5, 2.38%, 05/12/2053		225,000		238,716
GSR Mortgage Loan Trust, Series 2005-AR, Class 6A1, 3.34%, 07/25/2035(g)		10,563		10,399
HomeBanc Mortgage Trust, Series 2005-3, Class A2, 0.79% (1 mo. USD LIBOR + 0.31%), 07/25/2035(e)		7,923		7,914

	Principal Amount		Value
JP Morgan Chase Commercial Mortgage Securities Trust, Series 2013-C10, Class AS, 3.37%, 12/15/2047	$	325,000	$	332,782
Series 2013-C16, Class AS, 4.52%, 12/15/2046		330,000		352,858
Series 2013-LC11, Class AS, 3.22%, 04/15/2046		78,000		79,662
Series 2014-C20, Class AS, 4.04%, 07/15/2047		245,000		259,376
Series 2016-JP3, Class A2, 2.43%, 08/15/2049		141,488		142,857
JP Morgan Mortgage Trust, Series 2007-A1, Class 5A1, 3.97%, 07/25/2035(g)		47,731		46,322
Series 2018-8, Class A17, 4.00%, 01/25/2049(c)(g)		50,000		50,571
JPMBB Commercial Mortgage Securities Trust, Series 2014-C24, Class B, 4.12%, 11/15/2047(g)		270,000		251,659
Series 2014-C25, Class AS, 4.07%, 11/15/2047		105,000		111,806
Series 2015-C27, Class XA, 1.31%, 02/15/2048(g)		2,197,670		96,574
MASTR Adjustable Rate Mortgages Trust, Series 2004-13, Class 2A2, 4.33%, 04/21/2034(g)		16,533		16,312
Morgan Stanley BAML Trust, Series 2013-C9, Class AS, 3.46%, 05/15/2046		240,000		247,278
Series 2014-C19, Class AS, 3.83%, 12/15/2047		720,000		761,759
Morgan Stanley Capital I Trust, Series 2011-C2, Class A4, 4.66%, 06/15/2044(c)		66,710		68,498
Series 2017-HR2, Class XA, 0.93%, 12/15/2050(g)		766,127		35,037
Morgan Stanley ReRemic Trust, Series 2012-R3, Class 1B, 3.27%, 11/26/2036(c)(g)		198,569		183,601
Mortgage-Linked Amortizing Notes, Series 2012-1, Class A10, 2.06%, 01/15/2022		91,091		92,995
Navistar Financial Dealer Note Master Owner Trust II, Series 2018-1, Class A, 0.81% (1 mo. USD LIBOR + 0.63%), 09/25/2023(c)(e)		115,000		114,598
Series 2018-1, Class B, 0.98% (1 mo. USD LIBOR + 0.80%), 09/25/2023(c)(e)		135,000		134,262
Neuberger Berman Loan Advisers CLO 24 Ltd., Series 2017-24A, Class AR, 2.16% (3 mo. USD LIBOR + 1.02%), 04/19/2030(c)(e)		276,000		271,320
OHA Loan Funding Ltd., Series 2016-1A, Class AR, 2.40% (3 mo. USD LIBOR + 1.26%), 01/20/2033(c)(e)		272,907		266,929
Prestige Auto Receivables Trust, Series 2019-1A, Class C, 2.70%, 10/15/2024(c)		115,000		116,626
Progress Residential Trust, Series 2020-SFR1, Class A, 1.73%, 04/17/2037(c)		360,000		363,727

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco Oppenheimer V.I. Conservative Balanced Fund

	Principal Amount		Value
RALI Trust, Series 2006-QS13, Class 1A8, 6.00%, 09/25/2036	$	6,316	$	5,784
RBSSP Resecuritization Trust, Series 2010-1, Class 2A1, 4.22% (Acquired 02/25/2015; Cost $4,746), 07/26/2045(c)(g)		3,277		3,304
Residential Mortgage Loan Trust, Series 2020-1, Class A1, 2.38%, 02/25/2024(c)(g)		138,366		140,492
Santander Drive Auto Receivables Trust, Series 2017-1, Class E, 5.05%, 07/15/2024(c)		410,000		419,522
Series 2017-3, Class D, 3.20%, 11/15/2023		295,000		299,717
Series 2018-1, Class D, 3.32%, 03/15/2024		110,000		112,749
Series 2018-2, Class D, 3.88%, 02/15/2024		170,000		173,470
Series 2018-5, Class C, 3.81%, 12/16/2024		225,000		228,906
Series 2019-2, Class D, 3.22%, 07/15/2025		195,000		200,289
Series 2019-3, Class D, 2.68%, 10/15/2025		165,000		164,854
Santander Retail Auto Lease Trust, Series 2019-A, Class C, 3.30%, 05/22/2023(c)		320,000		325,096
Series 2019-B, Class C, 2.77%, 08/21/2023(c)		115,000		115,017
Series 2019-C, Class C, 2.39%, 11/20/2023(c)		205,000		203,320
Starwood Mortgage Residential Trust, Series 2020-1, Class A1, 2.28%, 02/25/2050(c)(g)		193,573		195,440
Symphony CLO XXII Ltd., Series 2020-22A, Class A1A, 2.60% (3 mo. USD LIBOR + 1.29%), 04/18/2033(c)(e)		250,000		245,777
TICP CLO XV Ltd., Series 2020-15A, Class A, 2.92% (3 mo. USD LIBOR + 1.28%), 04/20/2033(c)(e)		256,000		250,160
UBS Commercial Mortgage Trust, Series 2017-C5, Class XA, 1.15%, 11/15/2050(g)		1,501,506		77,092
United Auto Credit Securitization Trust, Series 2019-1, Class C, 3.16%, 08/12/2024(c)		150,000		151,876
Verus Securitization Trust, Series 2020-1, Class A1, 2.42%, 01/25/2060(c)(g)		419,419		425,737
Series 2020-1, Class A2, 2.64%, 01/25/2060(c)(g)		99,729		100,187
Series 2020-INV1, Class A1, 1.98%, 04/25/2060(c)		97,594		97,507
WaMu Mortgage Pass-Through Ctfs. Trust, Series 2003-AR10, Class A7, 4.19%, 10/25/2033(g)		48,903		47,896
Series 2005-AR14, Class 1A4, 3.83%, 12/25/2035(g)		51,314		49,596
Series 2005-AR16, Class 1A1, 3.75%, 12/25/2035(g)		50,768		48,833
Wells Fargo Commercial Mortgage Trust, Series 2015-NXS1, Class ASB, 2.93%, 05/15/2048		330,221		339,545
Series 2017-C42, Class XA, 1.03%, 12/15/2050(g)		1,067,578		56,032

	Principal Amount		Value
Wells Fargo Mortgage Backed Securities Trust, Series 2019-1, Class A7, 4.00%, 11/25/2048(c)(g)	$	18,997	$	19,093
Westlake Automobile Receivables Trust, Series 2017-2A, Class E, 4.63%, 07/15/2024(c)		320,000		324,378
Series 2018-1A, Class D, 3.41%, 05/15/2023(c)		315,000		319,155
Series 2018-3A, Class B, 3.32%, 10/16/2023(c)		252,000		253,630
Series 2019-3A, Class C, 2.49%, 10/15/2024(c)		265,000		267,802
WFRBS Commercial Mortgage Trust, Series 2011-C3, Class XA, 1.48%, 03/15/2044(c)(g)		1,851,643		12,906
Series 2013-C14, Class AS, 3.49%, 06/15/2046		155,000		159,554
Series 2014-C20, Class AS, 4.18%, 05/15/2047		150,000		159,346
Series 2014-LC14, Class AS, 4.35%, 03/15/2047(g)		165,000		176,918
World Financial Network Credit Card Master Trust, Series 2018-A, Class A, 3.07%, 12/16/2024		540,000		547,194
Series 2018-B, Class A, 3.46%, 07/15/2025		245,000		252,403
Series 2018-C, Class A, 3.55%, 08/15/2025		490,000		506,408
Series 2019-A, Class A, 3.14%, 12/15/2025		75,000		77,465
Series 2019-B, Class A, 2.49%, 04/15/2026		260,000		266,078
Series 2019-C, Class A, 2.21%, 07/15/2026.		225,000		229,691
Total Asset-Backed Securities (Cost $26,879,714)				26,955,085
U.S. Government Sponsored Agency Mortgage-Backed Securities–11.44%
Collateralized Mortgage Obligations–1.25%
Fannie Mae Interest STRIPS, IO, 7.00%, 06/25/2023 to 04/25/2032		43,475		4,112
7.50%, 08/25/2023 to 11/25/2023		55,641		4,335
6.50%, 02/25/2032 to 02/25/2033		166,607		35,143
6.00%, 06/25/2033 to 09/25/2035		138,329		27,872
5.50%, 09/25/2033 to 06/25/2035		276,384		52,244

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco Oppenheimer V.I. Conservative Balanced Fund

	Principal Amount		Value
Collateralized Mortgage Obligations–(continued)
Fannie Mae REMICs,
3.00%, 12/25/2020 to 11/25/2027	$	156,382	$	9,611
4.00%, 08/25/2026 to 08/25/2047		452,323		42,083
6.00%, 11/25/2028		23,008		26,220
13.73% (1 mo. USD LIBOR + 14.10%), 12/25/2033(e)		289		299
0.43% (1 mo. USD LIBOR + 0.25%), 08/25/2035(e)		29,714		29,615
23.89% (24.57% - (3.67 x 1 mo. USD LIBOR)), 03/25/2036(e)		37,698		63,776
23.52% (24.20% - (3.67 x 1 mo. USD LIBOR)), 06/25/2036(e)		4,339		7,023
23.52% (24.20% - (3.67 x 1 mo. USD LIBOR)), 06/25/2036(e)		22,882		37,962
1.12% (1 mo. USD LIBOR + 0.94%), 06/25/2037(e)		15,839		16,150
1.50%, 01/25/2040		120,658		121,336
5.00%, 04/25/2040 to 09/25/2047		895,212		169,031
IO, 5.50%, 06/25/2023 to 07/25/2046		473,366		373,532
6.52%, 02/25/2024 to 05/25/2035		119,882		23,209
6.92% (7.10% - 1 mo. USD LIBOR), 11/25/2030(e)		40,970		7,655
7.72% (1 mo. USD LIBOR + 7.90%), 11/25/2031(e)		57,453		11,665
7.77% (1 mo. USD LIBOR + 7.95%), 01/25/2032(e)		13,884		2,947
7.92% (1 mo. USD LIBOR + 8.10%), 03/25/2032(e)		15,624		3,591
7.82%, 04/25/2032 to 12/25/2032		190,621		43,168
7.91% (1 mo. USD LIBOR + 8.10%), 12/18/2032(e)		20,016		3,460
8.07%, 02/25/2033 to 05/25/2033		89,289		21,703
7.37% (1 mo. USD LIBOR + 7.55%), 10/25/2033(e)		11,184		2,597
5.87%, 03/25/2035 to 07/25/2038		32,990		6,389
6.57% (6.75% - 1 mo. USD LIBOR), 03/25/2035(e)		6,326		1,119
6.42% (1 mo. USD LIBOR + 6.60%), 05/25/2035(e)		312,256		53,123
3.50%, 08/25/2035		371,217		45,518
5.92% (1 mo. USD LIBOR + 6.10%), 10/25/2035(e)		28,369		5,674
6.36% (1 mo. USD LIBOR + 6.54%), 06/25/2037(e)		53,139		11,388
6.37% (6.55% - 1 mo. USD LIBOR), 10/25/2041(e)		75,345		15,837
5.97% (6.15% - 1 mo. USD LIBOR), 12/25/2042(e)		297,650		61,477
PO, 0.00%, 09/25/2023(h)		14,501		14,289

	Principal Amount		Value
Collateralized Mortgage Obligations–(continued)
Freddie Mac Multifamily Structured Pass Through Ctfs.,
Series KC02, Class X1, 0.50%, 03/25/2024(g)	$	4,853,948	$	62,128
Series KC03, Class X1, 0.63%, 11/25/2024(g)		2,714,500		51,317
Series K734, Class X1, 0.79%, 02/25/2026(g)		2,067,746		64,253
Series K735, Class X1, 1.10%, 05/25/2026(g)		2,143,101		105,057
Series K093, Class X1, 1.09%, 05/25/2029(g)		1,652,049		118,664
Freddie Mac REMICs,
4.50%, 07/15/2020		3		3
1.50%, 07/15/2023		188,420		189,268
6.50%, 03/15/2032 to 06/15/2032		75,288		88,832
3.50%, 05/15/2032		19,200		20,612
24.07% (24.75% - (3.67 x 1 mo. USD LIBOR)), 08/15/2035(e)		8,595		14,576
0.58% (1 mo. USD LIBOR + 0.40%), 09/15/2035(e)		46,431		46,499
4.00%, 04/15/2040 to 03/15/2045		200,922		41,120
5.00%, 06/15/2040		1,931		1,936
IO, 7.47%, 07/15/2026 to 03/15/2029		63,308		9,488
3.00%, 06/15/2027 to 05/15/2040		503,073		32,867
2.50%, 05/15/2028		93,619		5,155
6.52% (6.70% - 1 mo. USD LIBOR), 01/15/2035(e)		232,844		47,371
6.57% (6.75% - 1 mo. USD LIBOR), 02/15/2035(e)		14,015		2,821
6.54% (6.72% - 1 mo. USD LIBOR), 05/15/2035(e)		107,888		18,305
6.82% (7.00% - 1 mo. USD LIBOR), 12/15/2037(e)		14,348		3,375
5.82% (1 mo. USD LIBOR + 6.00%), 04/15/2038(e)		5,379		988
5.89% (6.07% - 1 mo. USD LIBOR), 05/15/2038(e)		45,782		9,558
6.07% (1 mo. USD LIBOR + 6.25%), 12/15/2039(e)		22,192		4,416
5.92% (6.10% - 1 mo. USD LIBOR), 01/15/2044(e)		138,513		20,011
Freddie Mac STRIPS, PO,
0.00%, 06/01/2026(h)		8,430		8,185
IO, 7.00%, 04/01/2027		31,182		4,591
3.00%, 12/15/2027		200,307		13,704
3.27%, 12/15/2027(g)		51,519		2,930
6.50%, 02/01/2028		8,395		1,280
6.00%, 12/15/2032		24,737		4,189
				2,348,652

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco Oppenheimer V.I. Conservative Balanced Fund

	Principal
	Amount		Value
Federal Home Loan Mortgage Corp. (FHLMC)–0.13%
9.00%, 08/01/2022 to 05/01/2025	$	480	$	521
6.50%, 07/01/2028 to 04/01/2034		12,616		14,360
7.00%, 10/01/2031 to 10/01/2037		40,333		46,470
5.00%, 12/01/2034		1,605		1,795
5.50%, 09/01/2039		163,565		186,252
				249,398
Federal National Mortgage Association (FNMA)–7.47%
5.50%, 09/01/2020		20		20
5.00%, 03/01/2021		2		2
8.50%, 07/01/2032		993		1,000
7.50%, 01/01/2033		34,044		40,343
7.00%, 10/01/2035		2,845		2,855
6.00%, 03/01/2037		72,482		84,655
TBA, 2.50%, 07/01/2035(i)		1,435,000		1,502,097
3.00%, 07/01/2035 to 07/01/2050(i)		7,505,000		7,899,995
3.50%, 07/01/2050(i)		4,340,000		4,564,459
				14,095,426
Government National Mortgage Association (GNMA)–2.59%
7.50%, 01/15/2023 to 06/15/2024		8,226		8,411
8.00%, 04/15/2023		1,842		1,867
7.00%, 01/15/2024		5,684		5,706
IO, 7.30% (7.50% - 1 mo. USD LIBOR), 02/16/2032(e)		50,326		163
6.35% (6.55% - 1 mo. USD LIBOR), 04/16/2037(e)		204,195		41,715
6.45% (6.65% - 1 mo. USD LIBOR), 04/16/2041(e)		96,573		17,693
4.50%, 09/16/2047		317,537		47,752
6.00% (6.20% - 1 mo. USD LIBOR), 10/16/2047(e)		315,704		56,860
TBA, 3.50%, 07/01/2050(i)		4,465,000		4,711,970
				4,892,137
Total U.S. Government Sponsored Agency Mortgage-Backed Securities (Cost $21,786,161)				21,585,613
U.S. Treasury Securities–4.72%
U.S. Treasury Bonds–1.85%
1.13%, 05/15/2040		12,900		12,782
2.00%, 02/15/2050		3,028,100		3,467,056
				3,479,838
U.S. Treasury Notes–2.87%
0.13%, 05/15/2023		158,000		157,784
0.25%, 06/15/2023		291,000		291,637
0.25%, 06/30/2025		2,499,600		2,494,962
0.50%, 06/30/2027		442,400		442,728
0.63%, 05/15/2030		2,041,000		2,035,100
				5,422,211
Total U.S. Treasury Securities (Cost $8,766,277)				8,902,049

	Principal
	Amount		Value
Agency Credit Risk Transfer Notes–1.41%
Fannie Mae Connecticut Avenue Securities Series 2014-C02, Class M2, 4.58% (1 mo. USD LIBOR + 4.40%), 01/25/2024(e)	$	211,310	$	189,022
Series 2014-C02, Class 1M2, 2.78% (1 mo. USD LIBOR + 2.60%), 05/25/2024(e)		96,419		85,162
Series 2014-C03, Class 2M2, 3.08% (1 mo. USD LIBOR + 2.90%), 07/25/2024(e)		24,909		23,051
Series 2014-C03, Class 1M2, 3.18% (1 mo. USD LIBOR + 3.00%), 07/25/2024(e)		246,461		218,007
Series 2014-C04, Class 2M2, 5.18% (1 mo. USD LIBOR + 5.00%), 11/25/2024(e)		250,824		259,613
Series 2016-C01, Class 1M2, 6.93% (1 mo. USD LIBOR + 6.75%), 08/25/2028(e)		112,679		118,971
Series 2016-C02, Class 1M2, 6.18% (1 mo. USD LIBOR + 6.00%), 09/25/2028(e)		206,182		215,412
Series 2016-C06, Class 1M2, 4.43% (1 mo. USD LIBOR + 4.25%), 04/25/2029(e)		259,875		273,787
Series 2017-C01, Class 1M2, 3.73% (1 mo. USD LIBOR + 3.55%), 07/25/2029(e)		157,939		161,942
Series 2017-C03, Class 1M1, 1.13% (1 mo. USD LIBOR + 0.95%), 10/25/2029(e)		17,458		17,455
Freddie Mac Series 2014-DN1, Class M2, STACR®, 2.38% (1 mo. USD LIBOR + 2.20%), 02/25/2024(e)		16,478		16,535
Series 2014-DN3, Class M3, STACR®, 4.17% (1 mo. USD LIBOR + 4.00%), 08/25/2024(e)		133,500		136,563
Series 2014-HQ2, Class M3, STACR®, 3.93% (1 mo. USD LIBOR + 3.75%), 09/25/2024(e)		335,000		345,388
Series 2016-DNA2, Class M3, STACR®, 4.82% (1 mo. USD LIBOR + 4.65%), 10/25/2028(e)		189,297		198,753
Series 2016-DNA4, Class M2, STACR®, 1.48% (1 mo. USD LIBOR + 1.30%), 03/25/2029(e)		17,810		17,797
Series 2018-HQA1, Class M2, STACR®, 2.48% (1 mo. USD LIBOR + 2.30%), 09/25/2030(e)		88,165		87,680
Series 2018-DNA2, Class M1, STACR®, 0.98% (1 mo. USD LIBOR + 0.80%), 12/25/2030(c)(e)		49,435		49,341
Series 2018-HRP2, Class M2, STACR®, 1.43% (1 mo. USD LIBOR + 1.25%), 02/25/2047(c)(e)		164,282		162,128
Series 2018-DNA3, Class M1, STACR®, 0.93% (1 mo. USD LIBOR + 0.75%), 09/25/2048(c)(e)		177		177

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco Oppenheimer V.I. Conservative Balanced Fund

	Principal
	Amount		Value
Series 2018-HQA2, Class M1, STACR®, 0.93% (1 mo. USD LIBOR + 0.75%), 10/25/2048(c)(e)	$	28,180	$	28,147
Series 2019-HRP1, Class M2, STACR®, 1.57% (1 mo. USD LIBOR + 1.40%), 02/25/2049(c)(e)		60,000		57,532
Total Agency Credit Risk Transfer Notes (Cost $2,815,524)				2,662,463
Municipal Obligations–0.24%
Massachusetts (Commonwealth of), Series 2020 C, Ref. GO Bonds, 2.51%, 07/01/2041		100,000		100,550

	Principal
	Amount		Value
Texas (State of) Transportation Commission, Series 2020, Ref. GO Bonds, 2.56%, 04/01/2042	$	90,000	$	91,519
Texas (State of) Transportation Commission (Central Texas Turnpike System), Series 2020 C, Ref. RB, 3.03%, 08/15/2041		265,000		253,385
Total Municipal Obligations (Cost $455,000)				445,454
TOTAL INVESTMENTS IN SECURITIES–98.79% (Cost $166,738,818)				186,363,322
OTHER ASSETS LESS LIABILITIES—1.21%				2,279,100
NET ASSETS–100.00%			$	188,642,422

Investment Abbreviations:
ADR	– American Depositary Receipt
CLO	– Collateralized Loan Obligation
Ctfs.	– Certificates
GO	– General Obligation
ICE	– Intercontinental Exchange
IO	– Interest Only
LIBOR	– London Interbank Offered Rate
PO	– Principal only
RB	– Revenue Bonds
Ref.	– Refunding
REIT	– Real Estate Investment Trust
REMICs	– Real Estate Mortgage Investment Conduits
Rts.	– Rights
STACR®	– Structured Agency Credit Risk
STRIPS	– Separately Traded Registered Interest and Principal Security
TBA	– To Be Announced
USD	– U.S. Dollar

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 “1933 Act”). The security may be resold pursuant to an exemption from registration under the 1933 Act, typically to qualified institutional buyers. The aggregate value of these securities at June 30, 2020 was $26,842,254, which represented 14.23% of the Fund’s Net Assets.

^(d) Perpetual bond with no specified maturity date.

^(e) Interest or dividend rate is redetermined periodically. Rate shown is the rate in effect on June 30, 2020.

^(f) Step coupon bond. The interest rate represents the coupon rate at which the bond will accrue at a specified future date.

^(g) Interest rate is redetermined periodically based on the cash flows generated by the pool of assets backing the security, less any applicable fees. The rate shown is the rate in effect on June 30, 2020.

^(h) Zero coupon bond issued at a discount. The interest rate shown represents the yield to maturity at issue.

⁽ⁱ⁾ Security purchased on a forward commitment basis. This security is subject to dollar roll transactions. See Note 1L.

Open Futures Contracts

Long Futures Contracts	Number of Contracts		Expiration Month		Notional Value			Value			Unrealized Appreciation (Depreciation)
Interest Rate Risk
U.S. Treasury 2 Year Notes		134		September-2020		$	29,590,969		$	9,212		$	9,212
U.S. Treasury Long Bonds		5		September-2020			892,813			6,241			6,241
U.S. Treasury Ultra Bonds		37		September-2020			8,071,781			21,611			21,611
Subtotal–Long Futures Contracts										37,064			37,064

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco Oppenheimer V.I. Conservative Balanced Fund

Open Futures Contracts–(continued)

Short Futures Contracts	Number of Contracts		Expiration Month		Notional Value				Value				Unrealized Appreciation (Depreciation)
Interest Rate Risk
U.S. Treasury 5 Year Notes		1		September-2020		$	(125,742	)		$	(283	)		$	(283	)
U.S. Treasury 10 Year Notes		56		September-2020			(7,793,625	)			(18,494	)			(18,494	)
U.S. Treasury 10 Year Ultra Bonds		3		September-2020			(472,453	)			884				884
Subtotal–Short Futures Contracts											(17,893	)			(17,893	)
Total Futures Contracts										$	19,171			$	19,171

Portfolio Composition

By security type, based on Net Assets

as of June 30, 2020

Common Stocks & Other Equity Interests	38.75	%
U.S. Dollar Denominated Bonds & Notes	27.94
Asset-Backed Securities	14.29
U.S. Government Sponsored Agency Mortgage-Backed Securities	11.44
U.S. Treasury Securities	4.72
Agency Credit Risk Transfer Notes	1.41
Municipal Obligations	0.24
Other Assets Less Liabilities	1.21

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco Oppenheimer V.I. Conservative Balanced Fund

Statement of Assets and Liabilities

June 30, 2020

(Unaudited)

Assets:
Investments in securities, at value (Cost $166,738,818)	$	186,363,322
Other investments:
Variation margin receivable – futures contracts		509,299
Cash		21,731,299
Receivable for:
Investments sold		3,433,458
Fund shares sold		12,010
Dividends		57,567
Interest		536,577
Principal paydowns		484
Investment for trustee deferred compensation and retirement plans		48,719
Total assets		212,692,735
Liabilities:
Payable for:
Investments purchased		22,471,393
Fund shares reacquired		1,301,280
Accrued fees to affiliates		88,901
Accrued trustees’ and officers’ fees and benefits		2,920
Accrued other operating expenses		137,100
Trustee deferred compensation and retirement plans		48,719
Total liabilities		24,050,313
Net assets applicable to shares outstanding	$	188,642,422
Net assets consist of:
Shares of beneficial interest	$	154,095,157
Distributable earnings		34,547,265
	$	188,642,422
Net Assets:
Series I	$	143,566,053
Series II	$	45,076,369
Shares outstanding, no par value, with an unlimited number of shares authorized:
Series I		8,450,609
Series II		2,692,671
Series I:
Net asset value per share	$	16.99
Series II:
Net asset value per share	$	16.74

Statement of Operations

For the six months ended June 30, 2020

(Unaudited)

Investment income:
Interest (net of foreign withholding taxes of $11)	$	1,665,746
Dividends (net of foreign withholding taxes of $6,863)		703,279
Total investment income		2,369,025
Expenses:
Advisory fees		679,495
Administrative services fees		142,198
Custodian fees		25,037
Distribution fees – Series II		55,283
Transfer agent fees		13,252
Trustees’ and officers’ fees and benefits		8,572
Reports to shareholders		25,406
Professional services fees		23,772
Other		4,115
Total expenses		977,130
Less: Fees waived		(303,026	)
Net expenses		674,104
Net investment income		1,694,921
Realized and unrealized gain (loss) from:
Net realized gain (loss) from:
Investment securities		3,435,985
Foreign currencies		(10	)
Futures contracts		1,502,852
		4,938,827
Change in net unrealized appreciation of:
Investment securities		616,127
Foreign currencies		19
Futures contracts		373,315
		989,461
Net realized and unrealized gain		5,928,288
Net increase in net assets resulting from operations	$	7,623,209

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco Oppenheimer V.I. Conservative Balanced Fund

Statement of Changes in Net Assets

For the six months ended June 30, 2020 and the year ended December 31, 2019

(Unaudited)

	June 30, 2020			December 31, 2019
Operations:
Net investment income	$	1,694,921		$	3,922,312
Net realized gain		4,938,827			4,974,593
Change in net unrealized appreciation		989,461			21,690,735
Net increase in net assets resulting from operations		7,623,209			30,587,640
Distributions to shareholders from distributable earnings:
Series I		–			(5,596,424	)
Series II		–			(1,648,251	)
Total distributions from distributable earnings		–			(7,244,675	)
Share transactions–net:
Series I		(6,544,495	)		(13,751,593	)
Series II		(2,673,087	)		(2,673,730	)
Net increase (decrease) in net assets resulting from share transactions		(9,217,582	)		(16,425,323	)
Net increase (decrease) in net assets		(1,594,373	)		6,917,642
Net assets:
Beginning of period		190,236,795			183,319,153
End of period	$	188,642,422		$	190,236,795

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco Oppenheimer V.I. Conservative Balanced Fund

Financial Highlights

(Unaudited)

The following schedule presents financial highlights for a share of the Fund outstanding throughout the periods indicated.

																																				Ratio of			Ratio of
																																				expenses			expenses
							Net gains																													to average			to average net
							(losses)																													net assets			assets without			Ratio of net
	Net asset						on securities								Dividends				Distributions																	with fee waivers			fee waivers			investment
	value,			Net			(both				Total from				from net				from net								Net asset						Net assets,			and/or			and/or			income
	beginning			investment			realized and				investment				investment				realized				Total				value, end			Total			end of period			expenses			expenses			to average			Portfolio
	of period			income(a)			unrealized)				operations(a)				income				gains				distributions				of period			return (b)			(000’s omitted)			absorbed			absorbed(c)			net assets			turnover (d)(e)
Series I
Six months ended 06/30/20		$	16.31		$	0.15		$	0.53			$	0.68			$	–			$	–			$	–			$	16.99		4.17	%		$	143,566		0.67	%(f)		1.00	%(f)		1.89	%(f)		160	%
Year ended 12/31/19			14.43			0.33			2.16				2.49				(0.36	)			(0.25	)			(0.61	)			16.31		17.51				144,384		0.67			1.00			2.11			68
Year ended 12/31/18			15.92			0.32			(1.13	)			(0.81	)			(0.31	)			(0.37	)			(0.68	)			14.43		(5.32	)			140,290		0.67			0.98			2.05			60
Year ended 12/31/17			14.86			0.27			1.09				1.36				(0.30	)			–				(0.30	)			15.92		9.25				166,015		0.67			0.94			1.74			76
Year ended 12/31/16			14.46			0.26			0.49				0.75				(0.35	)			–				(0.35	)			14.86		5.26				172,573		0.67			0.94			1.78			68
Year ended 12/31/15			14.67			0.31			(0.18	)			0.13				(0.34	)			–				(0.34	)			14.46		0.83				182,406		0.67			0.91			2.09			68
Series II
Six months ended 06/30/20			16.09			0.13			0.52				0.65				–				–				–				16.74		4.04				45,076		0.92	(f)		1.25	(f)		1.64	(f)		160
Year ended 12/31/19			14.24			0.29			2.13				2.42				(0.32	)			(0.25	)			(0.57	)			16.09		17.22				45,853		0.92			1.25			1.86			68
Year ended 12/31/18			15.71			0.27			(1.10	)			(0.83	)			(0.27	)			(0.37	)			(0.64	)			14.24		(5.53	)			43,029		0.92			1.23			1.80			60
Year ended 12/31/17			14.67			0.23			1.07				1.30				(0.26	)			–				(0.26	)			15.71		8.95				51,633		0.92			1.19			1.49			76
Year ended 12/31/16			14.28			0.22			0.48				0.70				(0.31	)			–				(0.31	)			14.67		4.96				51,743		0.92			1.19			1.53			68
Year ended 12/31/15			14.49			0.27			(0.18	)			0.09				(0.30	)			–				(0.30	)			14.28		0.57				52,226		0.92			1.16			1.84			68

^(a) Calculated using average shares outstanding.

^(b) Includes adjustments in accordance with accounting principles generally accepted in the United States of America. 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) Does not include indirect expenses from affiliated fund fees and expenses of 0.00% for the years ended December 31, 2019, 2018, 2017, 2016 and 2015, respectively.

^(d) The portfolio turnover rate excludes purchase and sale transactions of To Be Announced (TBA) mortgage-related securities of $489,567,330 and $509,769,207, $685,887,902 and $703,549,464, $729,295,309 and $711,803,922, $737,550,642 and $742,753,245 and $829,988,104 and $849,696,153 for the years ended December 31, 2019, 2018, 2017, 2016 and 2015, respectively.

^(e) Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable.

^(f) Ratios are annualized and based on average daily net assets (000’s omitted) of $141,269 and $44,469 for Series I and Series II shares, respectively.

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco Oppenheimer V.I. Conservative Balanced Fund

Notes to Financial Statements

June 30, 2020

(Unaudited)

NOTE 1—Significant Accounting Policies

Invesco Oppenheimer V.I. Conservative Balanced 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. Information presented in these financial statements pertains only to the Fund. Matters affecting the Fund or each class will be voted on exclusively by the shareholders of the Fund or each class. 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 total return.

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 Fund is an investment company and accordingly follows the investment company accounting and reporting guidance in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 946, Financial Services – Investment Companies.

The following is a summary of the significant accounting policies followed by the Fund in the preparation of its financial statements.

A. Security Valuations – Securities, including restricted securities, are valued according to the following policy.

Debt obligations (including convertible securities) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. Pricing services generally value debt obligations assuming orderly transactions of institutional round lot size, but a fund may hold or transact in the same securities in smaller, odd lot sizes. Odd lots often trade at lower prices than institutional round lots. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.

A security listed or traded on an exchange (except convertible securities) is valued at its last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded, or lacking any sales or official closing price on a particular day, the security may be valued at the closing bid price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued by an independent pricing service they may be considered fair valued. Futures contracts are valued at the final settlement price set by an exchange on which they are principally traded. Listed options are valued at the mean between the last bid and asked 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 asked prices. For purposes of determining net asset value (“NAV”) 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, if available, provided by an independent pricing service. Evaluated quotes provided by the pricing service are valued based on a model which may include end-of-day net present values, spreads, ratings, industry, company performance and returns of referenced assets. Centrally cleared swap agreements are valued at the daily settlement price determined by the relevant exchange or clearinghouse.

Foreign securities’ (including foreign exchange contracts) prices are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the NYSE. If market quotations are available and reliable for foreign exchange-traded equity securities, the securities will be valued at the market quotations. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become unreliable. If between the time trading ends on a particular security and the close of the customary trading session on the NYSE, events occur that the investment adviser determines are significant and make the closing price unreliable, the Fund may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith using procedures approved by the Board of Trustees. Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities’ prices meeting the approved degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economic upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.

Securities for which market prices are not provided by any of the above methods may be valued based upon quotes furnished by independent sources. The last bid price may be used to value equity securities. The mean between the last bid and asked prices is used to value debt obligations, including corporate loans.

Securities for which market quotations are not readily available or became unreliable are valued at fair value as determined in good faith by or under the supervision of the Trust’s officers following procedures approved by the Board of Trustees. Issuer specific events, market trends, bid/asked quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security’s fair value.

The Fund may invest in securities that are subject to interest rate risk, meaning the risk that the prices will generally fall as interest rates rise and, conversely, the prices will generally rise as interest rates fall. Specific securities differ in their sensitivity to changes in interest rates depending on their individual characteristics. Changes in interest rates may result in increased market volatility, which may affect the value and/or liquidity of certain Fund investments.

Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the issuer’s assets, general market conditions which are not specifically related to the particular issuer, such as real or perceived adverse economic conditions, changes in the general outlook for revenues or corporate earnings, changes in interest or currency rates, regional or global instability, natural or environmental disasters, widespread disease or other public health issues, war, acts of terrorism or adverse investor sentiment generally and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

B. Securities Transactions and Investment Income – Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income (net of withholding tax, if any) is recorded on an accrual basis from settlement date. Bond premiums and discounts are amortized and/or accreted over the lives of the respective securities. Pay-in-kind interest income and non-cash

Invesco Oppenheimer V.I. Conservative Balanced Fund

dividend income received in the form of securities in-lieu of cash are recorded at the fair value of the securities received. Paydown gains and losses on mortgage and asset-backed securities are recorded as adjustments to interest income. Dividend income (net of withholding tax, if any) is recorded on the ex-dividend date.

The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Statement of Operations as realized gain (loss) for investments no longer held and as unrealized gain (loss) for investments still held.

Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of net realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the net realized and unrealized gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and the Statement of Changes in Net Assets, or the net investment income per share and the ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.

The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class.

C. Country Determination – For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues 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 net investment income and net realized capital gain, if any, are generally declared and paid to separate accounts of participating insurance companies annually and recorded on the ex-dividend date.

E. Federal Income Taxes – The Fund intends to comply with the requirements of Subchapter M of the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”), necessary to qualify as a regulated investment company and to distribute substantially all of the Fund’s taxable earnings to shareholders. As such, the Fund will not be subject to federal income taxes on otherwise taxable income (including net realized capital gain) that is distributed to shareholders. Therefore, no provision for federal income taxes is recorded in the financial statements.

The Fund recognizes the tax benefits of uncertain tax positions only when the position is more likely than not to be sustained. Management has analyzed the Fund’s uncertain tax positions and concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions. Management is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the next 12 months.

The Fund files tax returns in the U.S. Federal jurisdiction and certain other jurisdictions. Generally, the Fund is subject to examinations by such taxing authorities for up to three years after the filing of the return for the tax period.

F. Expenses – Fees provided for under the Rule 12b-1 plan of a particular class of the Fund and which are directly attributable to that class are charged to the operations of such class. All other expenses are allocated among the classes based on relative net assets.

G. Accounting Estimates – The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print.

H. Indemnifications – Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of the performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements, that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote.

I. Securities Purchased on a When-Issued and Delayed Delivery Basis – The Fund may purchase and sell interests in corporate loans and corporate debt securities and other portfolio securities on a when-issued and delayed delivery basis, with payment and delivery scheduled for a future date. No income accrues to the Fund on such interests or securities in connection with such transactions prior to the date the Fund actually takes delivery of such interests or securities. These transactions are subject to market fluctuations and are subject to the risk that the value at delivery may be more or less than the trade date purchase price. Although the Fund will generally purchase these securities with the intention of acquiring such securities, they may sell such securities prior to the settlement date.

J. Foreign Currency Translations – Foreign currency is valued at the close of the NYSE based on quotations posted by banks and major currency dealers. Portfolio securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at the date of valuation. Purchases and sales of portfolio securities (net of foreign taxes withheld on disposition) and income items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. The Fund does not separately account for the portion of the results of operations resulting from changes in foreign exchange rates on investments and the fluctuations arising from changes in market prices of securities held. The combined results of changes in foreign exchange rates and the fluctuation of market prices on investments (net of estimated foreign tax withholding) are included with the net realized and unrealized gain or loss from investments in the Statement of Operations. Reported net realized foreign currency gains or losses arise from (1) sales of foreign currencies, (2) currency gains or losses realized between the trade and settlement dates on securities transactions, and (3) the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign currency gains and losses arise from changes in the fair values of assets and liabilities, other than investments in securities at fiscal period end, resulting from changes in exchange rates.

The Fund may invest in foreign securities, which may be subject to foreign taxes on income, gains on investments or currency repatriation, a portion of which may be recoverable. Foreign taxes, if any, are recorded based on the tax regulations and rates that exist in the foreign markets in which the Fund invests and are shown in the Statement of Operations.

K. Futures Contracts – The Fund may enter into futures contracts to manage exposure to interest rate, equity and market price movements and/or currency risks. A futures contract is an agreement between two parties (“Counterparties”) to purchase or sell a specified underlying security, currency or commodity (or delivery of a cash settlement price, in the case of an index future) for a fixed price at a future date. The Fund currently invests only in exchange-traded futures and they are standardized as to maturity date and underlying financial instrument. Initial margin deposits required upon entering into futures contracts are satisfied by the segregation of specific securities or cash as collateral at the futures commission merchant (broker). During the period the futures contracts are open, changes in the value of the contracts are recognized as unrealized gains or losses by recalculating the value of the contracts on a daily basis. Subsequent or variation margin payments are received or made depending upon whether unrealized gains or losses are incurred. These amounts are reflected as receivables or payables on the Statement of Assets and Liabilities. When the contracts are closed or expire, the Fund recognizes a realized gain or loss equal to the difference between the proceeds from, or cost of, the closing transaction and the Fund’s basis in the contract. The net realized gain (loss) and the change in unrealized gain

Invesco Oppenheimer V.I. Conservative Balanced Fund

(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. Dollar Rolls and Forward Commitment Transactions – The Fund may enter into dollar roll transactions to enhance the Fund’s performance. The Fund executes its dollar roll transactions in the to be announced (“TBA”) market whereby the Fund makes a forward commitment to purchase a security and, instead of accepting delivery, the position is offset by the sale of the security with a simultaneous agreement to repurchase at a future date.

The Fund accounts for dollar roll transactions as purchases and sales and realizes gains and losses on these transactions. These transactions increase the Fund’s portfolio turnover rate. The Fund will segregate liquid assets in an amount equal to its dollar roll commitments.

Dollar roll transactions involve the risk that a Counterparty to the transaction may fail to complete the transaction. If this occurs, the Fund may lose the opportunity to purchase or sell the security at the agreed upon price. Dollar roll transactions also involve the risk that the value of the securities retained by the Fund may decline below the price of the securities that the Fund has sold but is obligated to purchase under the agreement. Dollar roll transactions covered in this manner are not treated as senior securities for purposes of a Fund’s fundamental investment limitation on borrowings.

M. Other Risks – Mortgage- and asset-backed securities, including collateralized debt obligations and collateralized mortgage obligations, are subject to prepayment or call risk, which is the risk that a borrower’s payments may be received earlier or later than expected due to changes in prepayment rates on underlying loans. This could result in the Fund reinvesting these early payments at lower interest rates, thereby reducing the Fund’s income. Mortgage- and asset-backed securities also are subject to extension risk, which is the risk that an unexpected rise in interest rates could reduce the rate of prepayments, causing the price of the mortgage- and asset-backed securities and the Fund’s share price to fall. An unexpectedly high rate of defaults on the mortgages held by a mortgage pool may adversely affect the value of mortgage-backed securities and could result in losses to the Fund. Privately-issued mortgage-backed securities and asset-backed securities may be less liquid than other types of securities and the Fund may be unable to sell these securities at the time or price it desires. Active trading of portfolio securities may result in added expenses, a lower return and increased tax liability.

Obligations of U.S. Government agencies and authorities receive varying levels of support and may not be backed by the full faith and credit of the U.S. Government, which could affect the Fund’s ability to recover should they default. No assurance can be given that the U.S. Government will provide financial support to its agencies and authorities if it is not obligated by law to do so.

N. Leverage Risk – Leverage exists when the Fund can lose more than it originally invests because it purchases or sells an instrument or enters into a transaction without investing an amount equal to the full economic exposure of the instrument or transaction.

NOTE 2—Advisory Fees and Other Fees Paid to Affiliates

The Trust has entered into a master investment advisory agreement with Invesco Advisers, Inc. (the “Adviser” or “Invesco”). Under the terms of the investment advisory agreement, the Fund accrues daily and pays monthly an advisory fee to the Adviser based on the annual rate of the Fund’s average daily net assets as follows:

Average Daily Net Assets*	Rate
First $ 200 million		0.750%
Next $ 200 million		0.720%
Next $ 200 million		0.690%
Next $ 200 million		0.660%
Over $ 800 million		0.600%

* The advisory fee paid by the Fund shall be reduced by any amounts paid by the Fund under the administrative services agreement with the Adviser.

For the six months ended June 30, 2020, the effective advisory fee rate incurred by the Fund was 0.74%.

Under the terms of a master sub-advisory agreement between the Adviser and each of Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Canada Ltd. and separate sub-advisory agreements with Invesco Capital Management LLC and Invesco Asset Management (India) Private Limited (collectively, the “Affiliated Sub-Advisers”) the Adviser, not the Fund, will pay 40% of the fees paid to the Adviser to any such Affiliated Sub-Adviser(s) that provide(s) discretionary investment management services to the Fund based on the percentage of assets allocated to such Affiliated Sub-Adviser(s). Invesco has also entered into a Sub-Advisory Agreement with OppenheimerFunds, Inc. to provide discretionary management services to the Funds.

The Adviser has contractually agreed, through at least May 31, 2021, 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 (the “expense limits”). In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause the total annual fund operating expenses after fee waiver and/or expense reimbursement to exceed the numbers reflected above: (1) interest; (2) taxes; (3) dividend expense on short sales; (4) extraordinary or non-routine items, including litigation expenses; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Unless Invesco continues the fee waiver agreement, it will terminate on May 31, 2021. During its term, the fee waiver agreement cannot be terminated or amended to increase the expense limits or reduce the advisory fee waiver without approval of the Board of Trustees. To the extent that the annualized expense ratio does not exceed the expense limits, the Adviser will retain its ability to be reimbursed for such fee waivers or reimbursements prior to the end of each fiscal year.

For the six months ended June 30, 2020, the Adviser waived advisory fees of $303,026.

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 fees paid to insurance companies that have agreed to provide certain administrative services to the Fund. These administrative services provided by the insurance companies may include, among other things: maintenance of master accounts with the Fund; tracking, recording and transmitting net purchase and redemption orders for Fund shares; maintaining and preserving records related to the purchase, redemption and other account activity of variable product owners; distributing copies of Fund documents such as prospectuses, proxy materials and periodic reports, to variable product owners, and responding to inquiries from variable product owners about the Fund. Pursuant to such agreement, for the six months ended June 30, 2020, Invesco was paid $13,216 for accounting and fund administrative services and was reimbursed $128,982 for fees paid to insurance companies. Invesco has entered into a sub-administration agreement whereby State Street Bank and Trust Company (“SSB”) serves as fund accountant and provides certain administrative services to the Fund. Pursuant to a custody agreement with the Trust on behalf of the Fund, SSB also serves as the Fund’s custodian.

The Trust has entered into a transfer agency and service agreement with Invesco Investment Services, Inc. (“IIS”) pursuant to which the Fund has agreed to pay IIS a fee for providing transfer agency and shareholder services to the Fund and reimburse IIS for certain expenses incurred by IIS in the course of providing such services. For the six months ended June 30, 2020, expenses incurred under the agreement are shown in the Statement of Operations as Transfer agent fees.

Invesco Oppenheimer V.I. Conservative Balanced 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. The fees are accrued daily and paid monthly. 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, 2020, 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, 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, 2020. The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

	Level 1			Level 2		Level 3		Total
Investments in Securities
Common Stocks & Other Equity Interests	$	73,098,362		$	–		$–	$	73,098,362
U.S. Dollar Denominated Bonds & Notes		–			52,714,296		–		52,714,296
Asset-Backed Securities		–			26,955,085		–		26,955,085
U.S. Government Sponsored Agency Mortgage-Backed Securities		–			21,585,613		–		21,585,613
U.S. Treasury Securities		–			8,902,049		–		8,902,049
Agency Credit Risk Transfer Notes		–			2,662,463		–		2,662,463
Municipal Obligations		–			445,454		–		445,454
Total Investments in Securities		73,098,362			113,264,960		–		186,363,322
Other Investments - Assets*
Futures Contracts		37,948			–		–		37,948
Other Investments - Liabilities*
Futures Contracts		(18,777	)		–		–		(18,777	)
Total Other Investments		19,171			–		–		19,171
Total Investments	$	73,117,533		$	113,264,960		$–	$	186,382,493

* Unrealized appreciation (depreciation).

NOTE 4—Derivative Investments

The Fund may enter into an International Swaps and Derivatives Association Master Agreement (“ISDA Master Agreement”) under which a fund may trade OTC derivatives. An OTC transaction entered into under an ISDA Master Agreement typically involves a collateral posting arrangement, payment netting provisions and close-out netting provisions. These netting provisions allow for reduction of credit risk through netting of contractual obligations. The enforceability of the netting provisions of the ISDA Master Agreement depends on the governing law of the ISDA Master Agreement, among other factors.

      For financial reporting purposes, the Fund does not offset OTC derivative assets or liabilities that are subject to ISDA Master Agreements in the Statement of Assets and Liabilities.

Value of Derivative Investments at Period-End

The table below summarizes the value of the Fund’s derivative investments, detailed by primary risk exposure, held as of June 30, 2020:

	Value
	Interest
Derivative Assets	Rate Risk
Unrealized appreciation on futures contracts – Exchange-Traded(a)	$	37,948
Derivatives not subject to master netting agreements		(37,948	)
Total Derivative Assets subject to master netting agreements	$	-

Invesco Oppenheimer V.I. Conservative Balanced Fund

	Value
	Interest
Derivative Liabilities	Rate Risk
Unrealized depreciation on futures contracts – Exchange-Traded(a)	$	(18,777	)
Derivatives not subject to master netting agreements		18,777
Total Derivative Liabilities subject to master netting agreements	$	-

^(a) The daily variation margin receivable at period-end is recorded in the Statement of Assets and Liabilities.

Effect of Derivative Investments for the six months ended June 30, 2020

The table below summarizes the gains on derivative investments, detailed by primary risk exposure, recognized in earnings during the period:

	Location of Gain on
	Statement of Operations
	Interest
	Rate Risk
Realized Gain:
Futures contracts		$1,502,852
Change in Net Unrealized Appreciation:
Futures contracts		373,315
Total		$1,876,167

The table below summarizes the average notional value of derivatives held during the period.
	Futures
	Contracts
Average notional value	$	37,136,740

NOTE 5—Trustees’ and Officers’ Fees and Benefits

Trustees’ and Officers’ Fees and Benefits include amounts accrued by the Fund to pay remuneration to certain Trustees and Officers of the Fund. Trustees have the option to defer compensation payable by the Fund, and Trustees’ and Officers’ Fees and Benefits also include amounts accrued by the Fund to fund such deferred compensation amounts. Those Trustees who defer compensation have the option to select various Invesco Funds in which their deferral accounts shall be deemed to be invested. Finally, certain current Trustees were eligible to participate in a retirement plan that provided for benefits to be paid upon retirement to Trustees over a period of time based on the number of years of service. The Fund may have certain former Trustees who also participate in a retirement plan and receive benefits under such plan. Trustees’ and Officers’ Fees and Benefits include amounts accrued by the Fund to fund such retirement benefits. Obligations under the deferred compensation and retirement plans represent unsecured claims against the general assets of the Fund.

NOTE 6—Cash Balances

The Fund is permitted to temporarily carry a negative or overdrawn balance in its account with SSB, the custodian bank. Such balances, if any at period-end, are shown in the Statement of Assets and Liabilities under the payable caption Amount due custodian. To compensate the custodian bank for such overdrafts, the overdrawn Fund may either (1) leave funds as a compensating balance in the account so the custodian bank can be compensated by earning the additional interest; or (2) compensate by paying the custodian bank at a rate agreed upon by the custodian bank and Invesco, not to exceed the contractually agreed upon rate. The Fund may not purchase additional securities when any borrowings from banks or broker-dealers exceed 5% of the Fund’s total assets, or when any borrowings from an Invesco Fund are outstanding.

NOTE 7—Tax Information

The amount and character of income and gains to be distributed are determined in accordance with income tax regulations, which may differ from GAAP. Reclassifications are made to the Fund’s capital accounts to reflect income and gains available for distribution (or available capital loss carryforward) under income tax regulations. The tax character of distributions paid during the year and the tax components of net assets will be reported at the Fund’s fiscal year-end.

Capital loss carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Fund to utilize. The ability to utilize capital loss carryforwards in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.

The Fund did not have a capital loss carryforward as of December 31, 2019.

NOTE 8—Investment Transactions

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, 2020 was $207,360,570 and $211,632,448, respectively. During the same period, purchases and sales of U.S. Treasury obligations were $83,477,258 and $81,986,894, respectively. Cost of investments, including any derivatives, on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end.

Unrealized Appreciation (Depreciation) of Investments on a Tax Basis
Aggregate unrealized appreciation of investments	$	25,650,012
Aggregate unrealized (depreciation) of investments		(5,734,173	)
Net unrealized appreciation of investments	$	19,915,839

Cost of investments for tax purposes is $166,466,654.

Invesco Oppenheimer V.I. Conservative Balanced Fund

NOTE 9—Share Information

				Summary of Share Activity
	Six months ended						Year ended
	June 30, 2020(a)						December 31, 2019
	Shares			Amount			Shares			Amount
Sold:
Series I		187,868		$	3,102,963			137,278		$	2,146,719
Series II		201,280			3,059,132			190,204			2,932,620
Issued as reinvestment of dividends:
Series I		-			-			362,933			5,596,424
Series II		-			-			108,224			1,648,251
Reacquired:
Series I		(591,092	)		(9,647,458	)		(1,371,558	)		(21,494,736	)
Series II		(358,577	)		(5,732,219	)		(470,960	)		(7,254,601	)
Net increase (decrease) in share activity		(560,521	)	$	(9,217,582	)		(1,043,879	)	$	(16,425,323	)

^(a) There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 72% 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 Fund 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—Coronavirus (COVID-19) Pandemic

During the first quarter of 2020, the World Health Organization declared COVID-19 to be a public health emergency. COVID-19 has led to increased short-term market volatility and may have adverse long-term effects on U.S. and world economies and markets in general. COVID-19 may adversely impact the Fund’s ability to achieve its investment objective. Because of the uncertainties on valuation, the global economy and business operations, values reflected in these financial statements may materially differ from the value received upon actual sales of those investments.

The extent of the impact on the performance of the Fund and its investments will depend on future developments, including the duration and spread of the COVID-19 outbreak, related restrictions and advisories, and the effects on the financial markets and economy overall, all of which are highly uncertain and cannot be predicted.

NOTE 11—Significant Event

Effective on or about April 30, 2021, the name of the Fund and all references thereto will change from Invesco Oppenheimer V.I. Conservative Balanced Fund to Invesco V.I. Conservative Balanced Fund.

Invesco Oppenheimer V.I. Conservative Balanced Fund

Calculating your ongoing Fund expenses

Example

As a shareholder of the Fund, you incur ongoing costs, including management fees; distribution and/or service fees (12b-1); and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period January 1, 2020 through June 30, 2020.

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.

		ACTUAL		HYPOTHETICAL (5% annual return before expenses)		Annualized     Expense Ratio
	Beginning   Account Value     (01/01/20)	Ending   Account Value     (06/30/20)1	Expenses   Paid During     Period2	Ending   Account Value     (06/30/20)	Expenses   Paid During     Period2
Series I	$1,000.00	$1,041.70	$3.40	$1,021.53	$3.37	0.67%
Series II	1,000.00	1,040.40	4.67	1,020.29	4.62	0.92

¹ The actual ending account value is based on the actual total return of the Fund for the period January 1, 2020 through June 30, 2020, 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 182/366 to reflect the most recent fiscal half year.

Invesco Oppenheimer V.I. Conservative Balanced Fund

Approval of Investment Advisory and Sub-Advisory Contracts

At meetings held on June 3, 2020, the Board of Trustees (the Board or the Trustees) of AIM Variable Insurance Funds (Invesco Variable Insurance Funds) as a whole, and the independent Trustees, who comprise over 75% of the Board, voting separately, approved the continuance of the Invesco Oppenheimer V.I. Conservative Balanced Fund’s (the Fund) Master Investment Advisory Agreement with Invesco Advisers, Inc. (Invesco Advisers and the investment advisory agreement) and the Master Intergroup Sub-Advisory Contract for Mutual Funds with Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Canada Ltd. and separate sub-advisory contracts with Invesco Capital Management LLC and Invesco Asset Management (India) Private Limited and OppenheimerFunds, Inc. (collectively, the Affiliated Sub-Advisers and the sub-advisory contracts) for another year, effective July 1, 2020. After evaluating the factors discussed below, among others, the Board approved the renewal of the Fund’s investment advisory agreement and the sub-advisory contracts and determined that the compensation payable thereunder by the Fund to Invesco Advisers and by Invesco Advisers to the Affiliated Sub-Advisers is fair and reasonable.

The Board’s Evaluation Process

The Board’s Investments Committee has established Sub-Committees, which meet throughout the year to review the performance of funds advised by Invesco Advisers (the Invesco Funds). The Sub-Committees meet regularly with portfolio managers for their assigned Invesco Funds and other members of management to review detailed information about investment performance and portfolio attributes of these funds. The Board took into account evaluations and reports that it received from the Investments Committee and Sub-Committees, as well as the information provided to such committees and the Board throughout the year, in considering whether to approve each Invesco Fund’s investment advisory agreement and sub-advisory contracts.

As part of the contract renewal process, the Board reviews and considers information provided in response to detailed requests for information submitted to management by the independent Trustees with assistance from legal counsel to the independent Trustees. The Board receives comparative investment performance and fee data regarding the Invesco Funds prepared by Invesco Advisers and Broadridge Financial Solutions, Inc. (Broadridge), an independent mutual fund data provider, as well as information on the composition of the peer groups provided by Broadridge and its methodology for determining peer groups. The Board also receives an independent written evaluation from the Senior Officer, an officer of the Invesco Funds who reports directly to the independent Trustees. 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. In addition to meetings with Invesco Advisers and fund counsel

throughout the year, the independent Trustees also discuss the continuance of the investment advisory agreement and sub-advisory contracts in separate sessions with the Senior Officer and with independent legal counsel.

The discussion below is a summary of 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. The Trustees’ review and conclusions are based on the comprehensive consideration of all information presented to them during the course of the year and in prior years and are not the result of any single determinative factor. Moreover, one Trustee may have weighed a particular piece of information or factor differently than another Trustee. This information is current as of June 3, 2020.

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 nature, extent and quality of the advisory services provided to the Fund by Invesco Advisers under the Fund’s investment advisory agreement, and the credentials and experience of the officers and employees of Invesco Advisers who provide these services, including the Fund’s portfolio manager(s). The Board’s review included consideration of Invesco Advisers’ investment process oversight and structure, credit analysis, investment risk management and research capabilities. The Board also considered non-advisory services that Invesco Advisers and its affiliates provide to the Invesco Funds, such as various back office support functions, third party oversight, internal audit, valuation, portfolio trading and legal and compliance. The Board also received and reviewed information about Invesco Advisers’ role as administrator of the Invesco Funds’ liquidity risk management program. The Board reviewed and considered the benefits to shareholders of investing in a Fund that is part of the Invesco family of funds under the umbrella of Invesco Ltd., Invesco Advisers’ parent company, and noted Invesco Ltd.’s depth and experience in conducting an investment management business, as well as its commitment of financial and other resources to such business. The Board also reviewed and considered information regarding the benefits to the Fund resulting from Invesco Ltd.’s acquisition of OppenheimerFunds, Inc. and its subsidiaries (the Transaction) and the resources that Invesco Advisers has committed to managing the Invesco family of funds following the Transaction. The Board concluded that the nature, extent and quality of the services provided to the Fund by Invesco Advisers are appropriate and satisfactory.

The Board reviewed the services that may be 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 the Affiliated Sub-Advisers’ expertise with respect to certain asset classes and that the Affiliated Sub-Advisers have offices and personnel

that are located in financial centers around the world. As a result, the Board noted that the Affiliated Sub-Advisers can provide research and investment analysis on the markets and economies of various countries in which the Fund may invest, make recommendations regarding securities and assist with security trades. The Board concluded that the sub-advisory contracts may 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 that may be provided by the Affiliated Sub-Advisers are appropriate and satisfactory.

B. Fund Investment Performance

The Board considered Fund investment performance as a relevant factor in considering whether to approve the investment advisory agreement. The Board did not view Fund investment 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 investment performance over multiple time periods ending December 31, 2019 to the performance of funds in the Broadridge performance universe and against the Custom Invesco Oppenheimer V.I. Conservative Balanced Index. The Board noted that performance of Series I shares of the Fund was in the third quintile of its performance universe for the one year period, the fifth quintile for the three year period, and the fourth quintile for the five year period (the first quintile being the best performing funds and the fifth quintile being the worst performing funds). The Board noted that performance of Series I shares of the Fund was above the performance of the Index for the one year period and below the performance of the Index for the three and five year periods. The Board considered that the Fund was created in connection with the Transaction and that the Fund’s performance prior to the closing of the Transaction after the close of business on May 24, 2019 is that of its predecessor fund. The Board noted that stock selection in and underweight exposure to certain equity sectors, as well as overweight exposure to asset and mortgage-backed securities, detracted from Fund performance. The Board recognized that the performance data reflects a snapshot in time as of a particular date and that selecting a different performance period could produce different results. The Board also reviewed more recent Fund performance as well as other performance metrics and this review did not change their conclusions.

C. Advisory and Sub-Advisory Fees and Fund Expenses

The Board compared the Fund’s contractual management fee rate to the contractual management fee rates of funds in the Fund’s Broadridge expense group. The Board noted that the contractual management fee rate for Series I shares of the Fund was above the median contractual management fee rate of funds in its expense group. The Board noted that the term “contractual management fee” for funds in the expense group may include both advisory and certain non-portfolio management administrative services fees, but that Broadridge does not provide information on a fund by fund basis as to what is included. The Board also reviewed the methodology

Invesco Oppenheimer V.I. Conservative Balanced Fund

used by Broadridge in providing expense group information, which includes using each fund’s contractual management fee schedule (including any applicable breakpoints) as reported in the most recent prospectus or statement of additional information for each fund in the expense group. The Board also considered comparative information regarding the Fund’s total expense ratio and its various components. The Board noted that the Fund’s contractual management fees were in the fourth quintile of its expense group and discussed with management reasons for such relative contractual management fees.

The Board noted that Invesco Advisers has contractually agreed to waive fees and/or limit expenses of the Fund for the term disclosed in the Fund’s registration statement 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 Invesco Advisers and the Affiliated Sub-Advisers do not manage other similarly managed mutual funds or client accounts.

The Board also considered the services that may be provided by the Affiliated Sub-Advisers pursuant to the sub-advisory contracts, as well as the fees payable by Invesco Advisers to the Affiliated Sub-Advisers pursuant to the sub-advisory contracts.

D. Economies of Scale and Breakpoints

The Board considered the extent to which there may be economies of scale in the provision of advisory services to the Fund. The Board also considered that the Fund benefits from economies of scale through contractual breakpoints in the Fund’s advisory fee schedule, which generally operate to reduce the Fund’s expense ratio as it grows in size. The Board 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. The Board noted that the Fund may also benefit from economies of scale through initial fee setting, fee waivers and expense reimbursements. The Board also considered Invesco’s reinvestment in its business, including investments in business infrastructure, technology and cybersecurity.

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 Invesco Funds and the profitability of Invesco Advisers and its affiliates in providing these services in the aggregate and on an individual Fund-by-Fund basis. The Board considered the methodology used for calculating profitability and noted the periodic review and enhancement of such methodology. The Board noted that Invesco Advisers continues to operate at a net profit from services Invesco Advisers and its affiliates provide to the Invesco Funds in the aggregate and to certain Funds on an individual fund level. The Board did not deem the level of profits realized by Invesco Advisers and its affiliates from providing such services to be excessive given the nature, extent and quality of the services provided. The Board received information from Invesco Advisers demonstrating that Invesco Advisers and the Affiliated Sub-Advisers are financially sound and have the resources necessary to perform their obligations under the investment advisory agreement and sub-advisory contracts.

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 providing administrative, transfer agency and distribution services to the Fund. The Board considered comparative information regarding fees charged for these services, including information provided by Broadridge and other independent sources. 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; and that the services are required for the operation of the Fund.

The Board considered the benefits realized by Invesco Advisers and the Affiliated Sub-Advisers as a result of portfolio brokerage transactions executed through “soft dollar” arrangements. The Board noted that soft dollar arrangements may result in the Fund bearing costs to purchase research that may be used by Invesco Advisers or the Affiliated Sub-Advisers with other clients and may reduce Invesco Advisers’ or the Affiliated Sub-Advisers’ expenses. The Board also considered that it receives periodic reports from Invesco representing that these arrangements are consistent with regulatory requirements. The Board did not deem the soft dollar arrangements to be inappropriate.

The Board considered that the Fund’s uninvested cash and cash collateral from any securities lending arrangements may be invested in registered money market funds or, with regard to securities lending cash collateral, unregistered funds that comply with Rule 2a-7 (collectively referred to as “affiliated money market funds”) advised by Invesco Advisers pursuant to procedures approved by the Board. The Board considered information regarding the returns of the affiliated money market funds relative to comparable overnight investments, as well as the costs to the Fund of such investments. 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 with respect to certain investments in the affiliated money market 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 amount of advisory fees received by Invesco Advisers from the Fund’s investment of cash collateral from any securities lending arrangements in the affiliated money market funds is fair and reasonable.

The Board also considered that an affiliated broker may receive commissions for executing certain trades for the Fund. Invesco Advisers and the Affiliated Sub-Advisers may use the affiliated broker to, among other things, control order routing and minimize information leakage, and the Board was advised that such trades are executed in compliance with rules under the federal securities laws and consistent with best execution obligations.

Invesco Oppenheimer V.I. Conservative Balanced Fund

	Semiannual Report to Shareholders	June 30, 2020
	Invesco Oppenheimer V.I. Discovery Mid Cap Growth Fund

Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, the insurance company that offers your variable annuity or variable life insurance contract may no longer send you paper copies of the Fund’s shareholder reports by mail, unless you specifically request paper copies of the reports from the insurance company or your financial intermediary. Instead of delivering paper copies of the report, the insurance company may choose to make the reports available on a website, and will notify you by mail each time a report is posted and provide you with a website link to access the report. Instructions for requesting paper copies will be provided by your insurance company.

    If the insurance company offers electronic delivery, you may elect to receive shareholder reports and other communications about the Fund electronically by following the instructions provided by the insurance company or by contacting your financial intermediary. If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action.

    You may elect to receive all future reports in paper free of charge from the insurance company. You can inform the insurance company or your financial intermediary that you wish to continue receiving paper copies of your shareholder reports by following the instructions provided by the insurance company or by contacting your financial intermediary. Your election to receive reports in paper will apply to all portfolio companies available under your contract with the insurance company.

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) as an exhibit to its reports on Form N-PORT. The Fund’s Form N-PORT filings are available on the SEC website, 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-PORT, 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 most recent 12-month period ended June 30 is available at invesco.com/proxysearch. The information is also available on the SEC website, sec.gov.

    Invesco Advisers, Inc. is an investment adviser; it provides investment advisory services to individual and institutional clients and does not sell securities. Invesco Distributors, Inc. is the US distributor for Invesco Ltd.’s retail mutual funds, exchange-traded funds and institutional money market funds. Both are wholly owned, indirect subsidiaries of Invesco Ltd.

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.

NOT FDIC INSURED   |   MAY LOSE VALUE   |   NO BANK GUARANTEE
Invesco Distributors, Inc.	O-VIDMCG-SAR-1

Fund Performance

Performance summary
Fund vs. Indexes
Cumulative total returns, 12/31/19 to 6/30/20, excluding variable product issuer charges. If variable product issuer charges were included, returns would be lower.
Series I Shares	9.41	%
Series II Shares	9.20
Russell Midcap Growth Indexq	4.16
Source(s): qRIMES Technologies Corp.
The Russell Midcap® Growth Index is an unmanaged index considered representative of mid-cap growth stocks. The Russell Midcap Growth Index is a trademark/service mark of the Frank Russell Co. Russell® is a trademark of the Frank Russell Co.
The Fund is not managed to track the performance of any particular index, including the index(es) described here, and consequently, the performance of the Fund may deviate significantly from the performance of the index(es).
A direct investment cannot be made in an index. Unless otherwise indicated, index results include reinvested dividends, and they do not reflect sales charges. Performance of the peer group, if applicable, reflects fund expenses; performance of a market index does not.

Average Annual Total Returns
As of 6/30/20
Series I Shares
Inception (8/15/86)	9.96%
10 Years	16.39
5 Years	12.88
1 Year	17.28
Series II Shares
Inception (10/16/00)	3.19%
10 Years	16.09
5 Years	12.58
1 Year	16.91

Effective May 24, 2019, Non-Service and Service shares of the Oppenheimer Discovery Mid Cap Growth Fund/VA, (the predecessor fund) were reorganized into Series I and Series II shares, respectively, of Invesco Oppenheimer V.I. Discovery Mid Cap Growth Fund. Returns shown above, prior to May 24, 2019, for Series I and Series II shares are those of the Non-Service shares and Service shares of the predecessor fund. Share class returns will differ from the predecessor fund because of different expenses.

    The performance data quoted represent past performance and cannot guarantee future results; current performance may be lower or higher. Please 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. Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares. Investment return and principal value will fluctuate so that you may have a gain or loss when you sell shares.

    Invesco Oppenheimer V.I. Discovery Mid Cap Growth Fund, a series portfolio of AIM Variable Insurance Funds (Invesco Variable Insurance Funds), is currently offered through insurance companies issuing variable products. You cannot purchase shares of the Fund directly. Performance figures given represent the Fund and are not intended to reflect actual variable product values. They do not reflect sales charges,

expenses and fees assessed in connection with a variable product. Sales charges, expenses and fees, which are determined by the variable product issuers, will vary and will lower the total return.

    The most recent month-end performance 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.

    Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information.

Invesco Oppenheimer V.I. Discovery Mid Cap Growth Fund

Liquidity Risk Management Program

The Securities and Exchange Commission has adopted Rule 22e-4 under the Investment Company Act of 1940 (the “Liquidity Rule”) in order to promote effective liquidity risk management throughout the open-end investment company industry, thereby reducing the risk that funds will be unable to meet their redemption obligations and mitigating dilution of the interests of fund shareholders. The Fund has adopted and implemented a liquidity risk management program in accordance with the Liquidity Rule (the “Program”). The Program is reasonably designed to assess and manage the Fund’s liquidity risk, which is the risk that the Fund could not meet redemption requests without significant dilution of remaining investors’ interests in the Fund. The Board of Trustees of the Fund (the “Board”) has appointed Invesco Advisers, Inc. (“Invesco”), the Fund’s investment adviser, as the Program’s administrator, and Invesco has delegated oversight of the Program to the Liquidity Risk Management Committee (the “Committee”), which is composed of senior representatives from relevant business groups at Invesco.

As required by the Liquidity Rule, the Program includes policies and procedures providing for an assessment, no less frequently than annually, of the Fund’s liquidity risk that takes into account, as relevant to the Fund’s liquidity risk: (1) the Fund’s investment strategy and liquidity of portfolio investments during both normal and reasonably foreseeable stressed conditions; (2) short-term and long-term cash flow projections for the Fund during both normal and reasonably foreseeable stressed conditions; and (3) the Fund’s holdings of cash and cash equivalents and any borrowing arrangements. The Liquidity Rule also requires the classification of the Fund’s investments into categories that reflect the assessment of their relative liquidity under current market conditions. The Fund classifies its investments into one of four categories defined in the Liquidity Rule: “Highly Liquid,” “Moderately Liquid,” “Less Liquid” and “Illiquid.” Funds that are not invested primarily in “Highly Liquid Investments” that are assets (cash or investments that are reasonably expected to be convertible into cash within three business days without significantly changing the market value of the investment) are required to establish a “Highly Liquid Investment Minimum” (“HLIM”), which is the minimum percentage of net assets that must be invested in Highly Liquid Investments. Funds with HLIMs have procedures for addressing HLIM shortfalls, including reporting to the Board and the SEC (on a non-public basis) as required by the Program and the Liquidity Rule. In addition, the Fund may not acquire an investment if, immediately after the acquisition, over 15% of the Fund’s net assets would consist of “Illiquid Investments” that are assets (an investment that cannot reasonably be expected to be sold or disposed of in current market conditions in seven calendar days or less without the sale or disposition significantly changing the market value of the investment). The Liquidity Rule and the Program also require reporting to the Board and the SEC (on a non-public basis) if a Fund’s holdings of Illiquid Investments exceed 15% of the Fund’s assets.

At a meeting held on March 30-April 1, 2020, the Committee presented a report to the Board that addressed the operation of the Program and assessed the Program’s adequacy and effectiveness of implementation (the “Report”). The Report covered the period from December 1, 2018 through December 31, 2019 (the “Program Reporting Period”).

The Report stated, in relevant part, that during the Program Reporting Period:

∎ The Program, as adopted and implemented, remained reasonably designed to assess and manage the Fund’s liquidity risk and was operated effectively to achieve that goal;

∎ The Fund’s investment strategy remained appropriate for an open-end fund;

∎ The Fund was able to meet requests for redemption without significant dilution of remaining investors’ interests in the Fund;

∎ The Fund did not breach the 15% limit on Illiquid Investments; and

∎ The Fund primarily held Highly Liquid Investments and therefore has not adopted an HLIM.

Invesco Oppenheimer V.I. Discovery Mid Cap Growth Fund

Schedule of Investments^(a)

June 30, 2020

(Unaudited)

	Shares		Value
Common Stocks & Other Equity Interests–99.82%
Alternative Carriers–0.38%
Cogent Communications Holdings, Inc.		47,745	$	3,693,553
Apparel Retail–1.41%
Burlington Stores, Inc.(b)		70,129		13,810,504
Apparel, Accessories & Luxury Goods–1.76%
lululemon athletica, inc.(b)		54,970		17,151,190
Application Software–15.74%
Alteryx, Inc., Class A(b)		66,345		10,899,156
ANSYS, Inc.(b)		35,682		10,409,510
Atlassian Corp. PLC, Class A(b)		80,921		14,587,629
Coupa Software, Inc.(b)		55,504		15,376,828
DocuSign, Inc.(b)		68,978		11,878,701
Dynatrace, Inc.(b)		164,667		6,685,480
Paycom Software, Inc.(b)		19,423		6,015,886
RingCentral, Inc., Class A(b)		88,273		25,158,688
Splunk, Inc.(b)		89,364		17,756,627
Synopsys, Inc.(b)		105,989		20,667,855
Trade Desk, Inc. (The), Class A(b)		35,324		14,359,206
				153,795,566
Asset Management & Custody Banks–0.99%
KKR & Co., Inc., Class A		312,602		9,653,150
Auto Parts & Equipment–0.70%
Aptiv PLC		87,605		6,826,182
Automotive Retail–1.12%
O’Reilly Automotive, Inc.(b)		25,867		10,907,338
Biotechnology–2.28%
Alnylam Pharmaceuticals, Inc.(b)		52,764		7,814,876
Neurocrine Biosciences, Inc.(b)		36,610		4,466,420
Seattle Genetics, Inc.(b)		58,834		9,997,073
				22,278,369
Building Products–0.88%
Trex Co., Inc.(b)		65,783		8,556,395
Cable & Satellite–1.40%
Cable One, Inc.		7,733		13,724,915
Construction Materials–0.72%
Martin Marietta Materials, Inc.		33,877		6,997,972
Consumer Electronics–0.94%
Garmin Ltd.		94,365		9,200,588
Data Processing & Outsourced Services–1.62%
Black Knight, Inc.(b)		82,146		5,960,514
Euronet Worldwide, Inc.(b)		51,881		4,971,237
Global Payments, Inc.		28,905		4,902,866
				15,834,617
Distributors–2.24%
Pool Corp.		80,445		21,870,582

	Shares		Value
Diversified Support Services–1.95%
Cintas Corp.		27,650	$	7,364,854
Copart, Inc.(b)		140,919		11,734,325
				19,099,179
Electrical Components & Equipment–1.85%
AMETEK, Inc.		134,911		12,056,996
Rockwell Automation, Inc.		28,085		5,982,105
				18,039,101
Electronic Equipment & Instruments–0.82%
Keysight Technologies, Inc.(b)		79,422		8,004,149
Environmental & Facilities Services–0.95%
Republic Services, Inc.		113,638		9,323,998
Fertilizers & Agricultural Chemicals–0.88%
FMC Corp.		86,521		8,619,222
Financial Exchanges & Data–3.10%
MarketAxess Holdings, Inc.		22,860		11,451,031
MSCI, Inc.		56,547		18,876,520
				30,327,551
Health Care Equipment–9.92%
DexCom, Inc.(b)		67,878		27,517,741
IDEXX Laboratories, Inc.(b)		31,215		10,305,945
Masimo Corp.(b)		76,477		17,435,991
ResMed, Inc.		75,155		14,429,760
STERIS PLC		80,012		12,277,041
Teleflex, Inc.		41,138		14,973,409
				96,939,887
Health Care Supplies–2.91%
Align Technology, Inc.(b)		32,924		9,035,663
Quidel Corp.(b)		10,705		2,395,137
West Pharmaceutical Services, Inc.		74,679		16,964,828
				28,395,628
Health Care Technology–1.38%
Veeva Systems, Inc., Class A(b)		57,316		13,436,017
Homebuilding–1.79%
D.R. Horton, Inc.		216,149		11,985,462
TopBuild Corp.(b)		48,485		5,516,139
				17,501,601
Household Products–0.69%
Clorox Co. (The)		30,593		6,711,186
Industrial Conglomerates–1.95%
Roper Technologies, Inc.		49,177		19,093,462
Industrial Machinery–1.51%
IDEX Corp.		55,077		8,704,369
Nordson Corp.		31,655		6,005,270
				14,709,639
Insurance Brokers–0.89%
Arthur J. Gallagher & Co.		89,290		8,704,882

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco Oppenheimer V.I. Discovery Mid Cap Growth Fund

	Shares		Value
Interactive Home Entertainment–0.70%
Zynga, Inc., Class A(b)		721,234	$	6,880,572
Internet & Direct Marketing Retail–0.53%
Chewy, Inc., Class A(b)		116,989		5,228,238
Internet Services & Infrastructure–2.28%
Twilio, Inc., Class A(b)		75,563		16,580,034
Wix.com Ltd. (Israel)(b)		22,174		5,681,422
				22,261,456
Investment Banking & Brokerage–1.36%
LPL Financial Holdings, Inc.		169,073		13,255,323
IT Consulting & Other Services–2.84%
Booz Allen Hamilton Holding Corp.		125,555		9,766,923
CACI International, Inc., Class A(b)		33,724		7,314,061
EPAM Systems, Inc.(b)		42,155		10,623,482
				27,704,466
Life Sciences Tools & Services–2.34%
Bio-Rad Laboratories, Inc., Class A(b)		21,443		9,681,300
Bio-Techne Corp.		21,129		5,579,535
ICON PLC (Ireland)(b)		44,872		7,559,137
				22,819,972
Managed Health Care–1.00%
Centene Corp.(b)		153,222		9,737,258
Office REITs–0.89%
Alexandria Real Estate Equities, Inc.		53,531		8,685,405
Packaged Foods & Meats–1.11%
McCormick & Co., Inc.		60,521		10,858,073
Paper Packaging–0.81%
Avery Dennison Corp.		69,114		7,885,216
Pharmaceuticals–1.44%
Catalent, Inc.(b)		110,887		8,128,017
Royalty Pharma PLC, Class A(b)		122,236		5,934,558
				14,062,575
Railroads–0.99%
Kansas City Southern		65,085		9,716,540
Regional Banks–1.14%
First Republic Bank		105,256		11,156,084
Research & Consulting Services–4.02%
CoStar Group, Inc.(b)		19,824		14,088,322

	Shares		Value
Research & Consulting Services–(continued)
IHS Markit Ltd.		94,539	$	7,137,694
TransUnion		206,893		18,007,967
				39,233,983
Restaurants–2.45%
Chipotle Mexican Grill, Inc.(b)		16,275		17,127,159
Domino’s Pizza, Inc.		18,391		6,794,371
				23,921,530
Semiconductor Equipment–4.20%
KLA Corp.		84,344		16,403,221
Lam Research Corp.		52,367		16,938,630
MKS Instruments, Inc.		67,519		7,645,852
				40,987,703
Semiconductors–4.19%
Marvell Technology Group Ltd.		336,634		11,802,388
Microchip Technology, Inc.		114,207		12,027,139
Monolithic Power Systems, Inc.		72,197		17,110,689
				40,940,216
Specialized REITs–1.49%
SBA Communications Corp., Class A		48,725		14,516,152
Systems Software–0.93%
Crowdstrike Holdings, Inc., Class A(b)		90,991		9,125,487
Technology Distributors–1.08%
CDW Corp.		91,105		10,584,579
Trucking–1.26%
Old Dominion Freight Line, Inc.		72,580		12,308,842
Total Common Stocks & Other Equity Interests (Cost $676,651,598)				975,076,093
Money Market Funds–0.70%
Invesco Government & Agency Portfolio, Institutional Class, 0.09%(c)(d)		2,400,753		2,400,753
Invesco Liquid Assets Portfolio, Institutional Class, 0.39%(c)(d)		1,714,104		1,715,303
Invesco Treasury Portfolio, Institutional Class, 0.08%(c)(d)		2,743,717		2,743,717
Total Money Market Funds (Cost $6,859,809)				6,859,773
TOTAL INVESTMENTS IN SECURITIES–100.52% (Cost $683,511,407)				981,935,866
OTHER ASSETS LESS LIABILITIES–(0.52)%				(5,049,721	)
NET ASSETS–100.00%			$	976,886,145

Investment Abbreviations:

REIT - Real Estate Investment Trust

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco Oppenheimer V.I. Discovery Mid Cap Growth 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)  Affiliated issuer. The issuer and/or the Fund is a wholly-owned subsidiary of Invesco Ltd., or is affiliated by having an investment adviser that is under common control of Invesco Ltd. The table below shows the Fund’s transactions in, and earnings from, its investments in affiliates for the six months ended June 30, 2020.

	Value December 31, 2019		Purchases at Cost		Proceeds from Sales			Change in Unrealized Appreciation (Depreciation)	Realized Gain		Value June 30, 2020		Dividend Income
Investments in Affiliated Money Market Funds:
Invesco Government & Agency Portfolio, Institutional Class		$5,411,943		$129,501,462		$(132,512,652	)	$    -		$    -		$2,400,753		$34,490
Invesco Liquid Assets Portfolio, Institutional Class		-		17,679,426		(15,965,109	)	(35)		1,021		1,715,303		3,474
Invesco Treasury Portfolio, Institutional Class		-		27,506,353		(24,762,636	)	-		-		2,743,717		1,185
Total		$5,411,943		$174,687,241		$(173,240,397	)	$(35)		$1,021		$6,859,773		$39,149

^(d)  The rate shown is the 7-day SEC standardized yield as of June 30, 2020.

Portfolio Composition

By sector, based on Net Assets

as of June 30, 2020

Information Technology	33.70%
Health Care	21.26
Industrials	15.36
Consumer Discretionary	12.94
Financials	7.48
Communication Services	2.49
Materials	2.41
Real Estate	2.38
Consumer Staples	1.80
Money Market Funds Plus Other Assets Less Liabilities	0.18

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco Oppenheimer V.I. Discovery Mid Cap Growth Fund

Statement of Assets and Liabilities

June 30, 2020

(Unaudited)

Assets:
Investments in securities, at value (Cost $ 676,651,598)	$	975,076,093
Investments in affiliated money market funds, at value (Cost $ 6,859,809)		6,859,773
Cash		497,913
Receivable for:
Investments sold		3,220,366
Fund shares sold		564,046
Dividends		264,280
Investment for trustee deferred compensation and retirement plans		180,309
Total assets		986,662,780
Liabilities:
Payable for:
Investments purchased		1,315,966
Fund shares reacquired		7,562,727
Accrued fees to affiliates		418,547
Accrued trustees’ and officers’ fees and benefits		4,080
Accrued other operating expenses		286,663
Trustee deferred compensation and retirement plans		188,652
Total liabilities		9,776,635
Net assets applicable to shares outstanding	$	976,886,145
Net assets consist of:
Shares of beneficial interest	$	661,602,175
Distributable earnings		315,283,970
	$	976,886,145
Net Assets:
Series I	$	814,408,263
Series II	$	162,477,882
Shares outstanding, no par value, with an unlimited number of shares authorized:
Series I		9,793,032
Series II		2,128,154
Series I:
Net asset value and offering price per share	$	83.16
Series II:
Net asset value and offering price per share	$	76.35

Statement of Operations

For the six months ended June 30, 2020

(Unaudited)

Investment income:
Dividends (net of foreign withholding taxes of $3,813)	$	1,845,706
Dividends from affiliated money market funds		39,149
Total investment income		1,884,855
Expenses:
Advisory fees		2,665,204
Administrative services fees		629,825
Custodian fees		2,132
Distribution fees - Series II		104,532
Transfer agent fees		25,790
Trustees’ and officers’ fees and benefits		11,343
Reports to shareholders		27,251
Professional services fees		19,750
Other		(4,171	)
Total expenses		3,481,656
Less: Fees waived		(301,838	)
Net expenses		3,179,818
Net investment income (loss)		(1,294,963	)
Realized and unrealized gain from:
Net realized gain from:
Investment securities (includes net gains (losses) from securities sold to affiliates of $(118,411))		19,290,430
Foreign currencies		35
		19,290,465
Change in net unrealized appreciation of investment securities		73,127,494
Net realized and unrealized gain		92,417,959
Net increase in net assets resulting from operations	$	91,122,996

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco Oppenheimer V.I. Discovery Mid Cap Growth Fund

Statement of Changes in Net Assets

For the six months ended June 30, 2020 and the year ended December 31, 2019

(Unaudited)

	June 30, 2020			December 31, 2019
Operations:
Net investment income (loss)	$	(1,294,963	)	$	260,969
Net realized gain		19,290,465			67,792,034
Change in net unrealized appreciation		73,127,494			163,454,901
Net increase in net assets resulting from operations		91,122,996			231,507,904
Distributions to shareholders from distributable earnings:
Series I		(59,869,406	)		(84,658,513	)
Series II		(5,791,819	)		(5,797,957	)
Total distributions from distributable earnings		(65,661,225	)		(90,456,470	)
Share transactions–net:
Series I		107,515,187			(25,925,623	)
Series II		99,172,774			8,283,693
Net increase (decrease) in net assets resulting from share transactions		206,687,961			(17,641,930	)
Net increase in net assets		232,149,732			123,409,504
Net assets:
Beginning of period		744,736,413			621,326,909
End of period	$	976,886,145		$	744,736,413

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco Oppenheimer V.I. Discovery Mid Cap Growth Fund

Financial Highlights

(Unaudited)

The following schedule presents financial highlights for a share of the Fund outstanding throughout the periods indicated.

	Net asset value, beginning of period		Net investment income (loss)(a)			Net gains (losses) on securities (both realized and unrealized)			Total from investment operations			Dividends from net investment income			Distributions from net realized gains			Total distributions			Net asset value, end of period		Total return (b)			Net assets, end of period (000’s omitted)		Ratio of expenses to average net assets with fee waivers and/or expenses absorbed			Ratio of expenses to average net assets without fee waivers and/or expenses absorbed(c)			Ratio of net investment income (loss) to average net assets			Portfolio turnover (d)
Series I
Six months ended 06/30/20	$	83.82	$	(0.12	)	$	6.80		$	6.68		$	(0.04	)	$	(7.30	)	$	(7.34	)	$	83.16		9.41	%	$	814,408		0.80	%(e)		0.88	%(e)		(0.31	)%(e)		46	%
Year ended 12/31/19		68.65		0.04	(f)		26.04			26.08			-			(10.91	)		(10.91	)		83.82		39.37			693,424		0.80			0.87			0.05	(f)		76
Year ended 12/31/18		84.21		(0.19	)		(3.07	)		(3.26	)		-			(12.30	)		(12.30	)		68.65		(6.08	)		586,273		0.80			0.86			(0.23	)		104
Year ended 12/31/17		72.65		(0.10	)		20.08			19.98			(0.03	)		(8.39	)		(8.42	)		84.21		28.79			694,675		0.80			0.84			(0.12	)		105
Year ended 12/31/16		76.85		0.03			1.69			1.72			-			(5.92	)		(5.92	)		72.65		2.34			603,708		0.80			0.84			0.04			141
Year ended 12/31/15		78.82		(0.19	)		5.67			5.48			-			(7.45	)		(7.45	)		76.85		6.61			660,450		0.80			0.83			(0.24	)		81
Series II
Six months ended 06/30/20		77.70		(0.20	)		6.15			5.95			-			(7.30	)		(7.30	)		76.35		9.20			162,478		1.05	(e)		1.13	(e)		(0.56	)(e)		46
Year ended 12/31/19		64.41		(0.14	)(f)		24.34			24.20			-			(10.91	)		(10.91	)		77.70		39.01			51,312		1.05			1.12			(0.19	)(f)		76
Year ended 12/31/18		79.87		(0.37	)		(2.79	)		(3.16	)		-			(12.30	)		(12.30	)		64.41		(6.31	)		35,054		1.05			1.11			(0.48	)		104
Year ended 12/31/17		69.43		(0.28	)		19.11			18.83			-			(8.39	)		(8.39	)		79.87		28.46			39,599		1.05			1.09			(0.37	)		105
Year ended 12/31/16		73.88		(0.15	)		1.62			1.47			-			(5.92	)		(5.92	)		69.43		2.08			32,252		1.05			1.09			(0.21	)		141
Year ended 12/31/15		76.21		(0.38	)		5.50			5.12			-			(7.45	)		(7.45	)		73.88		6.35			37,029		1.05			1.08			(0.49	)		81

^(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)  Does not include indirect expenses from affiliated fund fees and expenses of 0.00% for the years ended December 31, 2019, 2018, 2017, 2016 and 2015, respectively. (d) Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable. For the six months ended June 30, 2020, the portfolio turnover calculation excludes the value of securities purchased of $123,217,891 in the effort to realign the Fund’s portfolio holdings after the reorganization of Invesco V.I. Mid Cap Growth Fund into the Fund.

^(e)  Ratios are annualized and based on average daily net assets (000’s omitted) of $690,273 and $84,085 for Series I and Series II shares, respectively.

^(f)  Net investment income (loss) per share and the ratio of net investment income (loss) to average net assets includes significant dividends received during the year ended December 31, 2019. Net investment income (loss) per share and the ratio of net investment income (loss) to average net assets excluding the significant dividends are $(0.13) and (0.16)% for Series I Shares and $(0.30) and (0.40)% for Series II Shares.

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco Oppenheimer V.I. Discovery Mid Cap Growth Fund

Notes to Financial Statements

June 30, 2020

(Unaudited)

NOTE 1—Significant Accounting Policies

Invesco Oppenheimer V.I. Discovery 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. Information presented in these financial statements pertains only to the Fund. Matters affecting the Fund or each class will be voted on exclusively by the shareholders of the Fund or each class. 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 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 Fund is an investment company and accordingly follows the investment company accounting and reporting guidance in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 946, Financial Services - Investment Companies.

The following is a summary of the significant accounting policies followed by the Fund in the preparation of its financial statements.

A. Security Valuations – Securities, including restricted securities, are valued according to the following policy.

A security listed or traded on an exchange (except convertible securities) is valued at its last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded, or lacking any sales or official closing price on a particular day, the security may be valued at the closing bid price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued by an independent pricing service they may be considered fair valued. Futures contracts are valued at the final settlement price set by an exchange on which they are principally traded. Listed options are valued at the mean between the last bid and asked 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 asked prices. For purposes of determining net asset value (“NAV”) per share, futures and option contracts generally are valued 15 minutes after the close of the customary trading session of the New York Stock Exchange (“NYSE”).

Investments in open-end and closed-end registered investment companies that do not trade on an exchange are valued at the end-of-day net asset value per share. Investments in open-end and closed-end registered investment companies that trade on an exchange are valued at the last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded.

Debt obligations (including convertible securities) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. Pricing services generally value debt obligations assuming orderly transactions of institutional round lot size, but a fund may hold or transact in the same securities in smaller, odd lot sizes. Odd lots often trade at lower prices than institutional round lots. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.

Foreign securities’ (including foreign exchange contracts) prices are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the NYSE. If market quotations are available and reliable for foreign exchange-traded equity securities, the securities will be valued at the market quotations. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become unreliable. If between the time trading ends on a particular security and the close of the customary trading session on the NYSE, events occur that the investment adviser determines are significant and make the closing price unreliable, the Fund may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith using procedures approved by the Board of Trustees. Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities’ prices meeting the approved degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economic upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.

Securities for which market prices are not provided by any of the above methods may be valued based upon quotes furnished by independent sources. The last bid price may be used to value equity securities. The mean between the last bid and asked prices is used to value debt obligations, including corporate loans.

Securities for which market quotations are not readily available or became unreliable are valued at fair value as determined in good faith by or under the supervision of the Trust’s officers following procedures approved by the Board of Trustees. Issuer specific events, market trends, bid/asked quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security’s fair value.

The Fund may invest in securities that are subject to interest rate risk, meaning the risk that the prices will generally fall as interest rates rise and, conversely, the prices will generally rise as interest rates fall. Specific securities differ in their sensitivity to changes in interest rates depending on their individual characteristics. Changes in interest rates may result in increased market volatility, which may affect the value and/or liquidity of certain Fund investments.

Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the issuer’s assets, general market conditions which are not specifically related to the particular issuer, such as real or perceived adverse economic conditions, changes in the general outlook for revenues or corporate earnings, changes in interest or currency rates, regional or global instability, natural or environmental disasters, widespread disease or other public health issues, war, acts of terrorism or adverse investor sentiment generally and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

B. Securities Transactions and Investment Income – Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income (net of withholding tax, if any) is recorded on an accrual basis from settlement date. 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

Invesco Oppenheimer V.I. Discovery Mid Cap Growth Fund

share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and the Statement of Changes in Net Assets, or the net investment income per share and the ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.

The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class.

C. Country Determination – For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues 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 net investment income and net realized capital gain, if any, are generally declared and paid to separate accounts of participating insurance companies annually and recorded on the ex-dividend date.

E. Federal Income Taxes – The Fund intends to comply with the requirements of Subchapter M of the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”), necessary to qualify as a regulated investment company and to distribute substantially all of the Fund’s taxable earnings to shareholders. As such, the Fund will not be subject to federal income taxes on otherwise taxable income (including net realized capital gain) that is distributed to shareholders. Therefore, no provision for federal income taxes is recorded in the financial statements.

The Fund recognizes the tax benefits of uncertain tax positions only when the position is more likely than not to be sustained. Management has analyzed the Fund’s uncertain tax positions and concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions. Management is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the next 12 months.

The Fund files tax returns in the U.S. Federal jurisdiction and certain other jurisdictions. Generally, the Fund is subject to examinations by such taxing authorities for up to three years after the filing of the return for the tax period.

F. Expenses – Fees provided for under the Rule 12b-1 plan of a particular class of the Fund and which are directly attributable to that class are charged to the operations of such class. All other expenses are allocated among the classes based on relative net assets.

G. Accounting Estimates – The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print.

H. Indemnifications – Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of the performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements, that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote.

I. Foreign Currency Translations – Foreign currency is valued at the close of the NYSE based on quotations posted by banks and major currency dealers. Portfolio securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at the date of valuation. Purchases and sales of portfolio securities (net of foreign taxes withheld on disposition) and income items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. The Fund does not separately account for the portion of the results of operations resulting from changes in foreign exchange rates on investments and the fluctuations arising from changes in market prices of securities held. The combined results of changes in foreign exchange rates and the fluctuation of market prices on investments (net of estimated foreign tax withholding) are included with the net realized and unrealized gain or loss from investments in the Statement of Operations. Reported net realized foreign currency gains or losses arise from (1) sales of foreign currencies, (2) currency gains or losses realized between the trade and settlement dates on securities transactions, and (3) the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign currency gains and losses arise from changes in the fair values of assets and liabilities, other than investments in securities at fiscal period end, resulting from changes in exchange rates.

The Fund may invest in foreign securities, which may be subject to foreign taxes on income, gains on investments or currency repatriation, a portion of which may be recoverable. Foreign taxes, if any, are recorded based on the tax regulations and rates that exist in the foreign markets in which the Fund invests and are shown in the Statement of Operations.

NOTE 2—Advisory Fees and Other Fees Paid to Affiliates

The Trust has entered into a master investment advisory agreement with Invesco Advisers, Inc. (the “Adviser” or “Invesco”). Under the terms of the investment advisory agreement, the Fund accrues daily and pays monthly an advisory fee to the Adviser based on the annual rate of the Fund’s average daily net assets as follows:

Average Daily Net Assets*	Rate
Up to $200 million		0.750%
Next $200 million		0.720%
Next $200 million		0.690%
Next $200 million		0.660%
Next $700 million		0.600%
Over $1.5 billion		0.580%

* The advisory fee payable by the Fund shall be reduced by any amounts paid by the Fund under the administrative services agreement with Invesco.

For the six months ended June 30, 2020, the effective advisory fee rate incurred by the Fund was 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 Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Canada Ltd. and separate sub-advisory agreements with Invesco Capital Management LLC and Invesco Asset Management (India) Private Limited (collectively, the “Affiliated Sub-Advisers”) the Adviser, not the Fund, will pay 40% of the fees paid to the Adviser to any such Affiliated Sub-Adviser(s) that provide(s) discretionary investment management services to the Fund based on the percentage of assets allocated to such Affiliated Sub-Adviser(s).

Invesco Oppenheimer V.I. Discovery Mid Cap Growth Fund

The Adviser has contractually agreed, through at least May 31, 2021, 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 (the “expense limits”). In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause the total annual fund operating expenses after fee waiver and/or expense reimbursement to exceed the numbers reflected above: (1) interest; (2) taxes; (3) dividend expense on short sales; (4) extraordinary or non-routine items, including litigation expenses; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Unless Invesco continues the fee waiver agreement, it will terminate on May 31, 2021. During its term, the fee waiver agreement cannot be terminated or amended to increase the expense limits or reduce the advisory fee waiver without approval of the Board of Trustees. To the extent that the annualized expense ratio does not exceed the expense limits, the Adviser will retain its ability to be reimbursed for such fee waivers or reimbursements prior to the end of each fiscal year. The Adviser did not waive fees and/or reimburse expenses during the period under these expense limits.

The Adviser has contractually agreed, through at least June 30, 2022, 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, 2020, the Adviser waived advisory fees of $301,838.

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 fees paid to insurance companies that have agreed to provide certain administrative services to the Fund. These administrative services provided by the insurance companies may include, among other things: maintenance of master accounts with the Fund; tracking, recording and transmitting net purchase and redemption orders for Fund shares; maintaining and preserving records related to the purchase, redemption and other account activity of variable product owners; distributing copies of Fund documents such as prospectuses, proxy materials and periodic reports, to variable product owners, and responding to inquiries from variable product owners about the Fund. Pursuant to such agreement, for the six months ended June 30, 2020, Invesco was paid $55,231 for accounting and fund administrative services and was reimbursed $574,594 for fees paid to insurance companies. Invesco has entered into a sub-administration agreement whereby State Street Bank and Trust Company (“SSB”) serves as fund accountant and provides certain administrative services to the Fund. Pursuant to a custody agreement with the Trust on behalf of the Fund, SSB also serves as the Fund’s custodian.

The Trust has entered into a transfer agency and service agreement with Invesco Investment Services, Inc. (“IIS”) pursuant to which the Fund has agreed to pay IIS a fee for providing transfer agency and shareholder services to the Fund and reimburse IIS for certain expenses incurred by IIS in the course of providing such services. For the six months ended June 30, 2020, 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. The fees are accrued daily and paid monthly. 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, 2020, expenses incurred under the Plan are detailed in the Statement of Operations as Distribution fees.

For the six months ended June 30, 2020, the Fund incurred $888 in brokerage commissions with Invesco Capital Markets, Inc., an affiliate of the Adviser and IDI, for portfolio transactions executed on behalf of the Fund.

Certain officers and trustees of the Trust are officers and directors of the Adviser, IIS and/or IDI.

NOTE 3–Additional Valuation Information

GAAP defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, under current market conditions. GAAP establishes a hierarchy that prioritizes the inputs to valuation methods, giving the highest priority to readily available unadjusted quoted prices in an active market for identical assets (Level 1) and the lowest priority to significant unobservable inputs (Level 3), generally when market prices are not readily available or are unreliable. Based on the valuation inputs, the securities or other investments are tiered into one of three levels. Changes in valuation methods may result in transfers in or out of an investment’s assigned level:

Level 1  – Prices are determined using quoted prices in an active market for identical assets.

Level 2  – Prices are determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk, yield curves, loss severities, default rates, discount rates, volatilities and others.

Level 3  – Prices are determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. 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.

As of June 30, 2020, all of the securities in this Fund were valued based on Level 1 inputs (see the Schedule of Investments for security categories). The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

NOTE 4–Security Transactions with Affiliated Funds

The Fund is permitted to purchase 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, 2020, the Fund engaged in securities sales of $993,638, which resulted in net realized gains (losses) of $(118,411).

NOTE 5–Trustees’ and Officers’ Fees and Benefits

Trustees’ and Officers’ Fees and Benefits include amounts accrued by the Fund to pay remuneration to certain Trustees and Officers of the Fund. Trustees have the option to defer compensation payable by the Fund, and Trustees’ and Officers’ Fees and Benefits also include amounts accrued by the Fund to fund such deferred compensation amounts. Those Trustees who defer compensation have the option to select various Invesco Funds in which their deferral accounts shall be deemed to be invested. Finally, certain current Trustees were eligible to participate in a retirement plan that provided for benefits to be paid upon retirement to Trustees over a period of time based on the number of years of service. The Fund may have certain former Trustees who also participate in a retirement plan and receive benefits under such plan. Trustees’ and Officers’ Fees and Benefits include amounts accrued by the Fund to fund such retirement benefits. Obligations under the deferred compensation and retirement plans represent unsecured claims against the general assets of the Fund.

Invesco Oppenheimer V.I. Discovery Mid Cap 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. Such balances, if any at period-end, are shown in the Statement of Assets and Liabilities under the payable caption Amount due custodian. To compensate the custodian bank for such overdrafts, the overdrawn Fund may either (1) leave funds as a compensating balance in the account so the custodian bank can be compensated by earning the additional interest; or (2) compensate by paying the custodian bank at a rate agreed upon by the custodian bank and Invesco, not to exceed the contractually agreed upon rate. The Fund may not purchase additional securities when any borrowings from banks or broker-dealers exceed 5% of the Fund’s total assets, or when any borrowings from an Invesco Fund are outstanding.

NOTE 7–Tax Information

The amount and character of income and gains to be distributed are determined in accordance with income tax regulations, which may differ from GAAP. Reclassifications are made to the Fund’s capital accounts to reflect income and gains available for distribution (or available capital loss carryforward) under income tax regulations. The tax character of distributions paid during the year and the tax components of net assets will be reported at the Fund’s fiscal year-end.

Capital loss carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Fund to utilize. The ability to utilize capital loss carryforwards in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.

The Fund did not have a capital loss carryforward as of December 31, 2019.

NOTE 8–Investment Transactions

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, 2020 was $332,999,817 and $337,440,688, respectively. Cost of investments, including any derivatives, on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end.

Unrealized Appreciation (Depreciation) of Investments on a Tax Basis
Aggregate unrealized appreciation of investments	$304,240,528
Aggregate unrealized (depreciation) of investments	(6,823,291	)
Net unrealized appreciation of investments	$297,417,237

Cost of investments for tax purposes is $684,518,629.

NOTE 9–Share Information

	Summary of Share Activity
	Six months ended June 30, 2020(a)						Year ended December 31, 2019
	Shares			Amount			Shares			Amount
Sold:
Series I		774,748		$	59,254,466			189,092		$	15,154,696
Series II		1,149,736			78,820,461			150,758			11,141,446
Issued as reinvestment of dividends:
Series I		839,683			59,869,406			1,097,324			84,658,513
Series II		88,384			5,791,819			80,955			5,797,957
Issued in connection with acquisitions:(b)
Series I		803,912			57,978,197			-			-
Series II		775,472			51,406,035			-			-
Reacquired:
Series I		(897,919	)		(69,586,882	)		(1,553,777	)		(125,738,832	)
Series II		(545,799	)		(36,845,541	)		(115,611	)		(8,655,710	)
Net increase (decrease) in share activity		2,988,217		$	206,687,961			(151,259	)	$	(17,641,930	)

^(a)  There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 32% of the outstanding shares of the Fund. 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 Fund has no knowledge as to whether all or any portion of the shares owned of record by these entities are also owned beneficially.

^(b)  After the close of business on April 30, 2020, the Fund acquired all the net assets of Invesco V.I. Mid Cap Growth Fund (the “Target Fund”) pursuant to a plan of reorganization approved by the Board of Trustees of the Fund on February 14, 2020 and by the shareholders of the Target Fund on April 24, 2020. The reorganization was executed in order to reduce overlap and increase efficiencies in the Adviser’s product line. The acquisition was accomplished by a tax-free exchange of 1,579,384 shares of the Fund for 30,799,415 shares outstanding of the Target Fund as of the close of business on April 30, 2020. Shares of the Target Fund were exchanged for the like class of shares of the Fund, based on the relative net asset value of the Target Fund to the net asset value of the Fund on the close of business, April 30, 2020. The Target Fund’s net assets as of the close of business on April 30, 2020 of $109,384,232, including $25,370,264 of unrealized appreciation, were combined with those of the Fund. The net assets of the Fund immediately before the acquisition were $753,884,660 and $863,268,891 immediately after the acquisition.

The pro forma results of operations for the six months ended June 30, 2020 assuming the reorganization had been completed on January 1, 2020, the beginning of the annual reporting period are as follows:

Invesco Oppenheimer V.I. Discovery Mid Cap Growth Fund

Net investment income (loss)	$	(1,959,739	)
Net realized/unrealized gains		79,379,078
Change in net assets resulting from operations		$77,419,339

As the combined investment portfolios have been managed as a single integrated portfolio since the acquisition was completed, it is not practicable to separate the amounts of revenue and earnings of the Target Fund that has been included in the Fund’s Statement of Operations since May 1, 2020.

NOTE 10–Coronavirus (COVID-19) Pandemic

During the first quarter of 2020, the World Health Organization declared COVID-19 to be a public health emergency. COVID-19 has led to increased short-term market volatility and may have adverse long-term effects on U.S. and world economies and markets in general. COVID-19 may adversely impact the Fund’s ability to achieve its investment objective. Because of the uncertainties on valuation, the global economy and business operations, values reflected in these financial statements may materially differ from the value received upon actual sales of those investments.

The extent of the impact on the performance of the Fund and its investments will depend on future developments, including the duration and spread of the COVID-19 outbreak, related restrictions and advisories, and the effects on the financial markets and economy overall, all of which are highly uncertain and cannot be predicted.

NOTE 11–Significant Event

Effective on or about April 30, 2021, the name of the Fund and all references thereto will change from Invesco Oppenheimer V.I. Discovery Mid Cap Growth Fund to Invesco V.I. Discovery Mid Cap Growth Fund.

Invesco Oppenheimer V.I. Discovery 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, 2020 through June 30, 2020.

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.

	Beginning     Account Value     (01/01/20)	ACTUAL		HYPOTHETICAL (5% annual return before expenses)		Annualized     Expense     Ratio
		Ending     Account Value     (06/30/20)1	Expenses     Paid During     Period2	Ending     Account Value     (06/30/20)	Expenses     Paid During     Period2
Series I	$1,000.00	$1,094.10	$4.17	$1,020.89	$4.02	0.80%
Series II	1,000.00	1,092.00	5.46	1,019.64	5.27	1.05

¹  The actual ending account value is based on the actual total return of the Fund for the period January 1, 2020 through June 30, 2020, 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 182/366 to reflect the most recent fiscal half year.

Invesco Oppenheimer V.I. Discovery Mid Cap Growth Fund

Approval of Investment Advisory and Sub-Advisory Contracts

At meetings held on June 3, 2020, the Board of Trustees (the Board or the Trustees) of AIM Variable Insurance Funds (Invesco Variable Insurance Funds) as a whole, and the independent Trustees, who comprise over 75% of the Board, voting separately, approved the continuance of the Invesco Oppenheimer V.I. Discovery Mid Cap Growth Fund’s (the Fund) Master Investment Advisory Agreement with Invesco Advisers, Inc. (Invesco Advisers and the investment advisory agreement) and the Master Intergroup Sub-Advisory Contract for Mutual Funds with Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Canada Ltd. and separate sub-advisory contracts with Invesco Capital Management LLC and Invesco Asset Management (India) Private Limited and OppenheimerFunds, Inc. (collectively, the Affiliated Sub-Advisers and the sub-advisory contracts) for another year, effective July 1, 2020. After evaluating the factors discussed below, among others, the Board approved the renewal of the Fund’s investment advisory agreement and the sub-advisory contracts and determined that the compensation payable thereunder by the Fund to Invesco Advisers and by Invesco Advisers to the Affiliated Sub-Advisers is fair and reasonable.

The Board’s Evaluation Process

The Board’s Investments Committee has established Sub-Committees, which meet throughout the year to review the performance of funds advised by Invesco Advisers (the Invesco Funds). The Sub-Committees meet regularly with portfolio managers for their assigned Invesco Funds and other members of management to review detailed information about investment performance and portfolio attributes of these funds. The Board took into account evaluations and reports that it received from the Investments Committee and Sub-Committees, as well as the information provided to such committees and the Board throughout the year, in considering whether to approve each Invesco Fund’s investment advisory agreement and sub-advisory contracts.

As part of the contract renewal process, the Board reviews and considers information provided in response to detailed requests for information submitted to management by the independent Trustees with assistance from legal counsel to the independent Trustees. The Board receives comparative investment performance and fee data regarding the Invesco Funds prepared by Invesco Advisers and Broadridge Financial Solutions, Inc. (Broadridge), an independent mutual fund data provider, as well as information on the composition of the peer groups provided by Broadridge and its methodology for determining peer groups. The Board also receives an independent written evaluation from the Senior Officer, an officer of the Invesco Funds who reports directly to the independent Trustees. 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. In addition to meetings with Invesco Advisers and fund counsel

throughout the year, the independent Trustees also discuss the continuance of the investment advisory agreement and sub-advisory contracts in separate sessions with the Senior Officer and with independent legal counsel.

The discussion below is a summary of 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. The Trustees’ review and conclusions are based on the comprehensive consideration of all information presented to them during the course of the year and in prior years and are not the result of any single determinative factor. Moreover, one Trustee may have weighed a particular piece of information or factor differently than another Trustee. This information is current as of June 3, 2020.

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 nature, extent and quality of the advisory services provided to the Fund by Invesco Advisers under the Fund’s investment advisory agreement, and the credentials and experience of the officers and employees of Invesco Advisers who provide these services, including the Fund’s portfolio manager(s). The Board’s review included consideration of Invesco Advisers’ investment process oversight and structure, credit analysis, investment risk management and research capabilities. The Board also considered non-advisory services that Invesco Advisers and its affiliates provide to the Invesco Funds, such as various back office support functions, third party oversight, internal audit, valuation, portfolio trading and legal and compliance. The Board also received and reviewed information about Invesco Advisers’ role as administrator of the Invesco Funds’ liquidity risk management program. The Board reviewed and considered the benefits to shareholders of investing in a Fund that is part of the Invesco family of funds under the umbrella of Invesco Ltd., Invesco Advisers’ parent company, and noted Invesco Ltd.’s depth and experience in conducting an investment management business, as well as its commitment of financial and other resources to such business. The Board also reviewed and considered information regarding the benefits to the Fund resulting from Invesco Ltd.’s acquisition of OppenheimerFunds, Inc. and its subsidiaries (the Transaction) and the resources that Invesco Advisers has committed to managing the Invesco family of funds following the Transaction. The Board concluded that the nature, extent and quality of the services provided to the Fund by Invesco Advisers are appropriate and satisfactory.

The Board reviewed the services that may be 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 the Affiliated Sub-Advisers’ expertise with respect to certain asset classes and that the Affiliated Sub-Advisers have offices and personnel

that are located in financial centers around the world. As a result, the Board noted that the Affiliated Sub-Advisers can provide research and investment analysis on the markets and economies of various countries in which the Fund may invest, make recommendations regarding securities and assist with security trades. The Board concluded that the sub-advisory contracts may 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 that may be provided by the Affiliated Sub-Advisers are appropriate and satisfactory.

B. Fund Investment Performance

The Board considered Fund investment performance as a relevant factor in considering whether to approve the investment advisory agreement. The Board did not view Fund investment 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 investment performance over multiple time periods ending December 31, 2019 to the performance of funds in the Broadridge performance universe and against the Russell Midcap^® Growth Index. The Board noted that performance of Series I shares of the Fund was in the first quintile of its performance universe for the one and five year periods and the second 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. The Board considered that the Fund was created in connection with the Transaction and that the Fund’s performance prior to the closing of the Transaction after the close of business on May 24, 2019 is that of its predecessor fund. The Board recognized that the performance data reflects a snapshot in time as of a particular date and that selecting a different performance period could produce different results. The Board also reviewed more recent Fund performance as well as other performance metrics and this review did not change their conclusions.

C. Advisory and Sub-Advisory Fees and Fund Expenses

The Board compared the Fund’s contractual management fee rate to the contractual management fee rates of funds in the Fund’s Broadridge expense group. The Board noted that the contractual management fee rate for Series I shares of the Fund was below the median contractual management fee rate of funds in its expense group. The Board noted that the term “contractual management fee” for funds in the expense group may include both advisory and certain non-portfolio management administrative services fees, but that Broadridge does not provide information on a fund by fund basis as to what is included. The Board also reviewed the methodology used by Broadridge in providing expense group information, which includes using each fund’s contractual management fee schedule (including any applicable breakpoints) as reported in the most recent prospectus or statement of additional information for each fund in the expense group. The

Invesco Oppenheimer V.I. Discovery Mid Cap Growth Fund

Board also considered comparative information regarding the Fund’s total expense ratio and its various components.

The Board noted that Invesco Advisers has contractually agreed to waive fees and/or limit expenses of the Fund for the term disclosed in the Fund’s registration statement 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 Invesco Advisers and the Affiliated Sub-Advisers do not manage other similarly managed mutual funds or client accounts.

The Board also considered the services that may be provided by the Affiliated Sub-Advisers pursuant to the sub-advisory contracts, as well as the fees payable by Invesco Advisers to the Affiliated Sub-Advisers pursuant to the sub-advisory contracts.

D. Economies of Scale and Breakpoints

The Board considered the extent to which there may be economies of scale in the provision of advisory services to the Fund. The Board also considered that the Fund benefits from economies of scale through contractual breakpoints in the Fund’s advisory fee schedule, which generally operate to reduce the Fund’s expense ratio as it grows in size. The Board 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. The Board noted that the Fund may also benefit from economies of scale through initial fee setting, fee waivers and expense reimbursements. The Board also considered Invesco’s reinvestment in its business, including investments in business infrastructure, technology and cybersecurity.

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 Invesco Funds and the profitability of Invesco Advisers and its affiliates in providing these services in the aggregate and on an individual Fund-by-Fund basis. The Board considered the methodology used for calculating profitability and noted the periodic review and enhancement of such methodology. The Board noted that Invesco Advisers continues to operate at a net profit from services Invesco Advisers and its affiliates provide to the Invesco Funds in the aggregate and to certain Funds on an individual fund level. The Board did not deem the level of profits realized by Invesco Advisers and its affiliates from providing such services to be excessive given the nature, extent and quality of the services provided. The Board received information from Invesco Advisers demonstrating that Invesco Advisers and the Affiliated Sub-Advisers are financially sound and have the resources necessary to perform their obligations under the investment advisory agreement and sub-advisory contracts.

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 providing administrative, transfer agency and distribution services to the Fund. The Board considered comparative information regarding fees charged for these services, including information provided by Broadridge and other independent sources. 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; and that the services are required for the operation of the Fund.

The Board considered the benefits realized by Invesco Advisers and the Affiliated Sub-Advisers as a result of portfolio brokerage transactions executed through “soft dollar” arrangements. The Board noted that soft dollar arrangements may result in the Fund bearing costs to purchase research that may be used by Invesco Advisers or the Affiliated Sub-Advisers with other clients and may reduce Invesco Advisers’ or the Affiliated Sub-Advisers’ expenses. The Board also considered that it receives periodic reports from Invesco representing that these arrangements are consistent with regulatory requirements. The Board did not deem the soft dollar arrangements to be inappropriate.

The Board considered that the Fund’s uninvested cash and cash collateral from any securities lending arrangements may be invested in registered money market funds or, with regard to securities lending cash collateral, unregistered funds that comply with Rule 2a-7 (collectively referred to as “affiliated money market funds”) advised by Invesco Advisers pursuant to procedures approved by the Board. The Board considered information regarding the returns of the affiliated money market funds relative to comparable overnight investments, as well as the costs to the Fund of such investments. 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 with respect to certain investments in the affiliated money market 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 amount of advisory fees received by Invesco Advisers from the Fund’s investment of cash collateral from any securities lending arrangements in the affiliated money market funds is fair and reasonable.

The Board also considered that an affiliated broker may receive commissions for executing certain trades for the Fund. Invesco Advisers and the Affiliated Sub-Advisers may use the affiliated broker to, among other things, control order routing and minimize information leakage, and the Board was advised that such trades are executed in compliance with rules under the federal securities laws and consistent with best execution obligations.

Invesco Oppenheimer V.I. Discovery Mid Cap Growth Fund

	Semiannual Report to Shareholders	June 30, 2020
	Invesco Oppenheimer V.I. Global Fund

Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, the insurance company that offers your variable annuity or variable life insurance contract may no longer send you paper copies of the Fund’s shareholder reports by mail, unless you specifically request paper copies of the reports from the insurance company or your financial intermediary. Instead of delivering paper copies of the report, the insurance company may choose to make the reports available on a website, and will notify you by mail each time a report is posted and provide you with a website link to access the report. Instructions for requesting paper copies will be provided by your insurance company.

If the insurance company offers electronic delivery, you may elect to receive shareholder reports and other communications about the Fund electronically by following the instructions provided by the insurance company or by contacting your financial intermediary. If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action.

You may elect to receive all future reports in paper free of charge from the insurance company. You can inform the insurance company or your financial intermediary that you wish to continue receiving paper copies of your shareholder reports by following the instructions provided by the insurance company or by contacting your financial intermediary. Your election to receive reports in paper will apply to all portfolio companies available under your contract with the insurance company.

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) as an exhibit to its reports on Form N-PORT. The Fund’s Form N-PORT filings are available on the SEC website, 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-PORT, 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 most recent 12-month period ended June 30 is available at invesco.com/proxysearch. The information is also available on the SEC website, sec.gov.

Invesco Advisers, Inc. is an investment adviser; it provides investment advisory services to individual and institutional clients and does not sell securities. Invesco Distributors, Inc. is the US distributor for Invesco Ltd.’s retail mutual funds, exchange-traded funds and institutional money market funds. Both are wholly owned, indirect subsidiaries of Invesco Ltd.

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.

NOT FDIC INSURED  |  MAY LOSE VALUE  |  NO BANK GUARANTEE

Invesco Distributors, Inc. O-VIGLBL-SAR-1                                 

Fund Performance

Performance summary

Fund vs. Indexes

Cumulative total returns, 12/31/19 to 6/30/20, excluding variable product issuer charges. If variable product issuer charges were included, returns would be lower.

Series I Shares	-1.81	%
Series II Shares	-1.93
MSCI All Country World Indexq	-6.25
Source(s): qRIMES Technologies Corp.

The MSCI All Country World Index (Net) is an unmanaged index considered representative of large- and mid-cap stocks across developed and emerging markets. The index is computed using the net return, which withholds applicable taxes for non-resident investors.

The Fund is not managed to track the performance of any particular index, including the index(es) described here, and consequently, the performance of the Fund may deviate significantly from the performance of the index(es).

A direct investment cannot be made in an index. Unless otherwise indicated, index results include reinvested dividends, and they do not reflect sales charges. Performance of the peer group, if applicable, reflects fund expenses; performance of a market index does not.

Average Annual Total Returns
As of 6/30/20
Series I Shares
Inception (11/12/90)	9.87	%
10 Years	11.26
5 Years	7.69
1 Year	6.53
Series II Shares
Inception (7/13/00)	6.19	%
10 Years	10.98
5 Years	7.42
1 Year	6.28

Effective May 24, 2019, Non-Service and Service shares of the Oppenheimer Global Fund/VA, (the predecessor fund) were reorganized into Series I and Series II shares, respectively, of Invesco Oppenheimer V.I. Global Fund. Returns shown above, prior to May 24, 2019, for Series I and Series II shares are those of the Non-Service shares and Service shares of the predecessor fund. Share class returns will differ from the predecessor fund because of different expenses.

The performance data quoted represent past performance and cannot guarantee future results; current performance may be lower or higher. Please 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. Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares. Investment return and principal value will fluctuate so that you may have a gain or loss when you sell shares.

Invesco Oppenheimer V.I. Global 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 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.

Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information.

Invesco Oppenheimer V.I. Global Fund

Liquidity Risk Management Program

The Securities and Exchange Commission has adopted Rule 22e-4 under the Investment Company Act of 1940 (the “Liquidity Rule”) in order to promote effective liquidity risk management throughout the open-end investment company industry, thereby reducing the risk that funds will be unable to meet their redemption obligations and mitigating dilution of the interests of fund shareholders. The Fund has adopted and implemented a liquidity risk management program in accordance with the Liquidity Rule (the “Program”). The Program is reasonably designed to assess and manage the Fund’s liquidity risk, which is the risk that the Fund could not meet redemption requests without significant dilution of remaining investors’ interests in the Fund. The Board of Trustees of the Fund (the “Board”) has appointed Invesco Advisers, Inc. (“Invesco”), the Fund’s investment adviser, as the Program’s administrator, and Invesco has delegated oversight of the Program to the Liquidity Risk Management Committee (the “Committee”), which is composed of senior representatives from relevant business groups at Invesco.

As required by the Liquidity Rule, the Program includes policies and procedures providing for an assessment, no less frequently than annually, of the Fund’s liquidity risk that takes into account, as relevant to the Fund’s liquidity risk: (1) the Fund’s investment strategy and liquidity of portfolio investments during both normal and reasonably foreseeable stressed conditions; (2) short-term and long-term cash flow projections for the Fund during both normal and reasonably foreseeable stressed conditions; and (3) the Fund’s holdings of cash and cash equivalents and any borrowing arrangements. The Liquidity Rule also requires the classification of the Fund’s investments into categories that reflect the assessment of their relative liquidity under current market conditions. The Fund classifies its investments into one of four categories defined in the Liquidity Rule: “Highly Liquid,” “Moderately Liquid,” “Less Liquid” and “Illiquid.” Funds that are not invested primarily in “Highly Liquid Investments” that are assets (cash or investments that are reasonably expected to be convertible into cash within three business days without significantly changing the market value of the investment) are required to establish a “Highly Liquid Investment Minimum” (“HLIM”), which is the minimum percentage of net assets that must be invested in Highly Liquid Investments. Funds with HLIMs have procedures for addressing HLIM shortfalls, including reporting to the Board and the SEC (on a non-public basis) as required by the Program and the Liquidity Rule. In addition, the Fund may not acquire an investment if, immediately after the acquisition, over 15% of the Fund’s net assets would consist of “Illiquid Investments” that are assets (an investment that cannot reasonably be expected to be sold or disposed of in current market conditions in seven calendar days or less without the sale or disposition significantly changing the market value of the investment). The Liquidity Rule and the Program also require reporting to the Board and the SEC (on a non-public basis) if a Fund’s holdings of Illiquid Investments exceed 15% of the Fund’s assets.

At a meeting held on March 30-April 1, 2020, the Committee presented a report to the Board that addressed the operation of the Program and assessed the Program’s adequacy and effectiveness of implementation (the “Report”). The Report covered the period from December 1, 2018 through December 31, 2019 (the “Program Reporting Period”).

The Report stated, in relevant part, that during the Program Reporting Period:

∎ The Program, as adopted and implemented, remained reasonably designed to assess and manage the Fund’s liquidity risk and was operated effectively to achieve that goal;

∎ The Fund’s investment strategy remained appropriate for an open-end fund;

∎ The Fund was able to meet requests for redemption without significant dilution of remaining investors’ interests in the Fund;

∎ The Fund did not breach the 15% limit on Illiquid Investments; and

∎ The Fund primarily held Highly Liquid Investments and therefore has not adopted an HLIM.

Invesco Oppenheimer V.I. Global Fund

Schedule of Investments

June 30, 2020

(Unaudited)

	Shares		Value
Common Stocks & Other Equity Interests–98.09%
Brazil–0.60%
StoneCo Ltd., Class A(a)		355,600	$13,783,056
China–3.55%
JD.com, Inc., ADR(a)		1,353,404	81,447,853
France–9.62%
Airbus SE		687,322	48,908,963
Dassault Systemes SE		39,172	6,751,045
Kering S.A.		100,733	54,715,092
LVMH Moet Hennessy Louis Vuitton SE		228,470	100,069,571
Societe Generale S.A.(a)		600,506	9,990,541
			220,435,212
Germany–3.21%
SAP SE		528,245	73,529,328
India–2.83%
DLF Ltd.		19,535,883	38,297,424
ICICI Bank Ltd., ADR		2,873,443	26,694,285
			64,991,709
Italy–0.22%
Brunello Cucinelli S.p.A.(a)		169,819	5,039,646
Japan–14.40%
Capcom Co. Ltd.		627,500	22,774,183
FANUC Corp.		131,400	23,480,216
Keyence Corp.		144,144	60,183,327
MINEBEA MITSUMI, Inc.		404,200	7,328,507
Murata Manufacturing Co. Ltd.		951,200	55,734,776
Nidec Corp.		838,899	56,010,672
Omron Corp.		493,500	33,062,914
Takeda Pharmaceutical Co. Ltd.		575,994	20,557,605
TDK Corp.		513,200	50,875,792
			330,007,992
Netherlands–0.89%
ASML Holding N.V.		27,915	10,233,031
uniQure N.V.(a)		226,662	10,213,390
			20,446,421
Spain–1.32%
Industria de Diseno Textil S.A.		1,147,418	30,336,878
Sweden–2.87%
Assa Abloy AB, Class B		1,406,145	28,550,650
Atlas Copco AB, Class A		878,389	37,143,632
			65,694,282
Switzerland–0.26%
Zur Rose Group AG(a)		21,836	5,951,135
United Kingdom–2.16%
Farfetch Ltd., Class A(a)		686,835	11,861,640
Prudential PLC		1,877,167	28,269,509
Unilever PLC		173,965	9,379,767
			49,510,916

	Shares		Value
United States–56.16%
Adobe, Inc.(a)		269,213	$117,191,111
Agilent Technologies, Inc.		407,831	36,040,025
Alphabet, Inc., Class A(a)		135,091	191,565,793
Amazon.com, Inc.(a)		11,705	32,291,988
Analog Devices, Inc.		19,472	2,388,046
Anthem, Inc.		131,299	34,529,011
Avantor, Inc.(a)		1,290,323	21,935,491
Blueprint Medicines Corp.(a)		146,294	11,410,932
Boston Scientific Corp.(a)		303,577	10,658,588
Centene Corp.(a)		372,562	23,676,315
Colgate-Palmolive Co.		227,160	16,641,742
Electronic Arts, Inc.(a)		173,404	22,897,998
Equifax, Inc.		230,170	39,561,620
Facebook, Inc., Class A(a)		450,366	102,264,608
Fidelity National Information Services, Inc.		226,591	30,383,587
Illumina, Inc.(a)		32,096	11,886,754
Incyte Corp.(a)		154,117	16,023,545
Intel Corp.		208,151	12,453,674
International Game Technology PLC		761,308	6,775,641
Intuit, Inc.		304,206	90,102,775
Ionis Pharmaceuticals, Inc.(a)		272,464	16,064,477
IQVIA Holdings, Inc.(a)		48,575	6,891,821
MacroGenics, Inc.(a)		530,500	14,811,560
Maxim Integrated Products, Inc.		927,051	56,188,561
Microsoft Corp.		125,632	25,567,368
PayPal Holdings, Inc.(a)		437,821	76,281,553
Pegasystems, Inc.		74,215	7,508,332
Phathom Pharmaceuticals, Inc.(a)		246,764	8,121,003
S&P Global, Inc.		333,796	109,979,106
Sage Therapeutics, Inc.(a)		125,198	5,205,733
Sarepta Therapeutics, Inc.(a)		114,986	18,436,855
Twist Bioscience Corp.(a)		13,582	615,265
United Parcel Service, Inc., Class B		277,465	30,848,559
Veracyte, Inc.(a)		287,274	7,440,397
Visa, Inc., Class A		135,126	26,102,289
Walt Disney Co. (The)(a)		317,943	35,453,824
Zimmer Biomet Holdings, Inc.		92,250	11,010,961
			1,287,206,908
Total Common Stocks & Other Equity Interests (Cost $996,943,435)			2,248,381,336
Preferred Stocks–0.01%
India–0.01%
Zee Entertainment Enterprises Ltd., 6.00%, Pfd. (Cost $0)		4,053,320	187,356
Money Market Funds–1.59%
Invesco Government & Agency Portfolio, Institutional Class, 0.09%(b)(c) (Cost $36,431,638)		36,431,638	36,431,638
TOTAL INVESTMENTS IN SECURITIES–99.69% (Cost $1,033,375,073)			2,285,000,330
OTHER ASSETS LESS LIABILITIES–0.31%			7,049,924
NET ASSETS–100.00%			$2,292,050,254

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco Oppenheimer V.I. Global Fund

Investment Abbreviations:

ADR - American Depositary Receipt

Pfd. - Preferred

Notes to Schedule of Investments:

^(a)  Non-income producing security.

^(b)  Affiliated issuer. The issuer and/or the Fund is a wholly-owned subsidiary of Invesco Ltd., or is affiliated by having an investment adviser that is under common control of Invesco Ltd. The table below shows the Fund’s transactions in, and earnings from, its investments in affiliates for the six months ended June 30, 2020.

	Value December 31, 2019		Purchases at Cost		Proceeds from Sales		Change in Unrealized Appreciation		Realized Gain		Value June 30, 2020		Dividend Income
Investments in Affiliated Money Market Funds:
Invesco Government & Agency Portfolio, Institutional Class		$20,491,964		$163,623,964		$(147,684,290)		$-		$-		$36,431,638		$33,132

^(c)  The rate shown is the 7-day SEC standardized yield as of June 30, 2020.

Portfolio Composition

By sector, based on Net Assets

as of June 30, 2020

Information Technology	32.65%
Communication Services	16.37
Consumer Discretionary	14.07
Health Care	12.46
Industrials	11.86
Financials	7.63
Other Sectors, Each Less than 2% of Net Assets	3.06
Money Market Funds Plus Other Assets Less Liabilities	1.90

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco Oppenheimer V.I. Global Fund

Statement of Assets and Liabilities

June 30, 2020

(Unaudited)

Assets:
Investments in securities, at value (Cost $996,943,435)	$2,248,568,692
Investments in affiliated money market funds, at value (Cost $36,431,638)	36,431,638
Cash	2,000,000
Foreign currencies, at value (Cost $8)	8
Receivable for:
Investments sold	6,594,689
Fund shares sold	91,736
Dividends	6,006,667
Investment for trustee deferred compensation and retirement plans	151,847
Total assets	2,299,845,277
Liabilities:
Payable for:
Investments purchased	170,233
Fund shares reacquired	6,151,091
Accrued fees to affiliates	982,102
Accrued trustees’ and officers’ fees and benefits	5,041
Accrued other operating expenses	334,709
Trustee deferred compensation and retirement plans	151,847
Total liabilities	7,795,023
Net assets applicable to shares outstanding	$2,292,050,254
Net assets consist of:
Shares of beneficial interest	$881,777,710
Distributable earnings	1,410,272,544
	$2,292,050,254
Net Assets:
Series I	$1,226,060,208
Series II	$1,065,990,046
Shares outstanding, no par value, with an unlimited number of shares authorized:
Series I	29,348,523
Series II	25,914,034
Series I:
Net asset value per share	$41.78
Series II:
Net asset value per share	$41.14

Statement of Operations

For the six months ended June 30, 2020

(Unaudited)

Investment income:
Dividends (net of foreign withholding taxes of $779,539)	$	10,780,931
Dividends from affiliated money market funds		33,132
Total investment income		10,814,063
Expenses:
Advisory fees		6,813,700
Administrative services fees		1,789,067
Custodian fees		90,563
Distribution fees - Series II		1,250,902
Transfer agent fees		50,683
Trustees’ and officers’ fees and benefits		17,180
Reports to shareholders		89,209
Professional services fees		23,326
Other		19,232
Total expenses		10,143,862
Less: Fees waived		(491,906	)
Net expenses		9,651,956
Net investment income		1,162,107
Realized and unrealized gain (loss) from:
Net realized gain from:
Investment securities		76,071,048
Foreign currencies		90,195
		76,161,243
Change in net unrealized appreciation (depreciation) of:
Investment securities (net of foreign taxes of $556,236)		(152,443,605	)
Foreign currencies		581,255
		(151,862,350	)
Net realized and unrealized gain (loss)		(75,701,107	)
Net increase (decrease) in net assets resulting from operations	$	(74,539,000	)

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco Oppenheimer V.I. Global Fund

Statement of Changes in Net Assets

For the six months ended June 30, 2020 and the year ended December 31, 2019

(Unaudited)

	June 30, 2020			December 31, 2019
Operations:
Net investment income	$	1,162,107		$	14,040,147
Net realized gain		76,161,243			90,146,991
Change in net unrealized appreciation (depreciation)		(151,862,350	)		529,044,048
Net increase (decrease) in net assets resulting from operations		(74,539,000	)		633,231,186
Distributions to shareholders from distributable earnings:
Series I		–			(194,974,813	)
Series II		–			(166,963,633	)
Total distributions from distributable earnings		–			(361,938,446	)
Share transactions–net:
Series I		(79,624,216	)		21,278,948
Series II		(75,465,553	)		156,942,783
Net increase (decrease) in net assets resulting from share transactions		(155,089,769	)		178,221,731
Net increase (decrease) in net assets		(229,628,769	)		449,514,471
Net assets:
Beginning of period		2,521,679,023			2,072,164,552
End of period	$	2,292,050,254		$	2,521,679,023

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco Oppenheimer V.I. Global Fund

Financial Highlights

(Unaudited)

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
								(losses)																													net assets			assets without			investment
	Net asset			Net				on securities								Dividends				Distributions																	with fee waivers			fee waivers			income
	value,			investment				(both				Total from				from net				from net								Net asset						Net assets,			and/or			and/or			(loss)
	beginning			income				realized and				investment				investment				realized				Total				value, end			Total			end of period			expenses			expenses			to average			Portfolio
	of period			(loss)(a)				unrealized)				operations				income				gains				distributions				of period			return (b)			(000’s omitted)			absorbed			absorbed(c)			net assets			turnover (d)
Series I
Six months ended 06/30/20		$	42.55		$	0.04			$	(0.81	)		$	(0.77	)		$	–			$	–			$	–			$	41.78		(1.81	)%		$	1,226,060		0.77	%(e)		0.81	%(e)		0.22	%(e)		8	%
Year ended 12/31/19			38.00			0.29				11.03				11.32				(0.40	)			(6.37	)			(6.77	)			42.55		31.79				1,334,573		0.77			0.80			0.70			23
Year ended 12/31/18			47.42			0.37				(5.99	)			(5.62	)			(0.47	)			(3.33	)			(3.80	)			38.00		(13.18	)			1,160,317		0.78			0.78			0.81			16
Year ended 12/31/17			35.02			0.29				12.50				12.79				(0.39	)			–				(0.39	)			47.42		36.66				1,479,034		0.76			0.76			0.69			9
Year ended 12/31/16			38.00			0.26				(0.42	)			(0.16	)			(0.38	)			(2.44	)			(2.82	)			35.02		0.08				1,245,070		0.77			0.77			0.75			14
Year ended 12/31/15			39.50			0.37	(f)			1.38	(f)			1.75				(0.54	)			(2.71	)			(3.25	)			38.00		3.94				1,406,001		0.76			0.76			0.92	(f)		14
Series II
Six months ended 06/30/20			41.95			(0.01	)			(0.80	)			(0.81	)			–				–				–				41.14		(1.93	)			1,065,990		1.02	(e)		1.06	(e)		(0.03	)(e)		8
Year ended 12/31/19			37.53			0.18				10.89				11.07				(0.28	)			(6.37	)			(6.65	)			41.95		31.45				1,187,107		1.02			1.04			0.45			23
Year ended 12/31/18			46.88			0.26				(5.92	)			(5.66	)			(0.36	)			(3.33	)			(3.69	)			37.53		(13.39	)			911,848		1.03			1.03			0.56			16
Year ended 12/31/17			34.64			0.18				12.36				12.54				(0.30	)			–				(0.30	)			46.88		36.32				1,309,590		1.01			1.01			0.43			9
Year ended 12/31/16			37.59			0.17				(0.41	)			(0.24	)			(0.27	)			(2.44	)			(2.71	)			34.64		(0.16	)			1,065,147		1.02			1.02			0.49			14
Year ended 12/31/15			39.10			0.28	(f)			1.36	(f)			1.64				(0.44	)			(2.71	)			(3.15	)			37.59		3.67				1,081,711		1.01			1.01			0.70	(f)		14

^(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)  Does not include indirect expenses from affiliated fund fees and expenses of 0.00% for the years ended December 31, 2019, 2018, 2017, 2016 and 2015, respectively.

^(d)  Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable.

^(e)  Ratios are annualized and based on average daily net assets (000’s omitted) of $1,189,604 and $1,006,220 for Series I and Series II shares, respectively.

^(f)  Net investment income per share, net realized and unrealized gain (loss) per share and the net investment income ratio include an adjustment for a prior period reclassification for the year ended December 31, 2015.

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco Oppenheimer V.I. Global Fund

Notes to Financial Statements

June 30, 2020

(Unaudited)

NOTE 1–Significant Accounting Policies

Invesco Oppenheimer V.I. Global 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. Information presented in these financial statements pertains only to the Fund. Matters affecting the Fund or each class will be voted on exclusively by the shareholders of the Fund or each class. 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 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 Fund is an investment company and accordingly follows the investment company accounting and reporting guidance in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 946, Financial Services – Investment Companies.

The following is a summary of the significant accounting policies followed by the Fund in the preparation of its financial statements.

A. Security Valuations – Securities, including restricted securities, are valued according to the following policy.

A security listed or traded on an exchange (except convertible securities) is valued at its last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded, or lacking any sales or official closing price on a particular day, the security may be valued at the closing bid price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued by an independent pricing service they may be considered fair valued. Futures contracts are valued at the final settlement price set by an exchange on which they are principally traded. Listed options are valued at the mean between the last bid and asked 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 asked prices. For purposes of determining net asset value (“NAV”) per share, futures and option contracts generally are valued 15 minutes after the close of the customary trading session of the New York Stock Exchange (“NYSE”).

Investments in open-end and closed-end registered investment companies that do not trade on an exchange are valued at the end-of-day net asset value per share. Investments in open-end and closed-end registered investment companies that trade on an exchange are valued at the last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded.

Debt obligations (including convertible securities) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. Pricing services generally value debt obligations assuming orderly transactions of institutional round lot size, but a fund may hold or transact in the same securities in smaller, odd lot sizes. Odd lots often trade at lower prices than institutional round lots. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.

Foreign securities’ (including foreign exchange contracts) prices are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the NYSE. If market quotations are available and reliable for foreign exchange-traded equity securities, the securities will be valued at the market quotations. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become unreliable. If between the time trading ends on a particular security and the close of the customary trading session on the NYSE, events occur that the investment adviser determines are significant and make the closing price unreliable, the Fund may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith using procedures approved by the Board of Trustees. Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities’ prices meeting the approved degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economic upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.

Securities for which market prices are not provided by any of the above methods may be valued based upon quotes furnished by independent sources. The last bid price may be used to value equity securities. The mean between the last bid and asked prices is used to value debt obligations, including corporate loans.

Securities for which market quotations are not readily available or became unreliable are valued at fair value as determined in good faith by or under the supervision of the Trust’s officers following procedures approved by the Board of Trustees. Issuer specific events, market trends, bid/asked quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security’s fair value.

The Fund may invest in securities that are subject to interest rate risk, meaning the risk that the prices will generally fall as interest rates rise and, conversely, the prices will generally rise as interest rates fall. Specific securities differ in their sensitivity to changes in interest rates depending on their individual characteristics. Changes in interest rates may result in increased market volatility, which may affect the value and/or liquidity of certain Fund investments.

Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the issuer’s assets, general market conditions which are not specifically related to the particular issuer, such as real or perceived adverse economic conditions, changes in the general outlook for revenues or corporate earnings, changes in interest or currency rates, regional or global instability, natural or environmental disasters, widespread disease or other public health issues, war, acts of terrorism or adverse investor sentiment generally and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

B. Securities Transactions and Investment Income – Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income (net of withholding tax, if any) is recorded on an accrual basis from settlement date. 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

Invesco Oppenheimer V.I. Global Fund

share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and the Statement of Changes in Net Assets, or the net investment income per share and the ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.

The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class.

C. Country Determination – For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues 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 net investment income and net realized capital gain, if any, are generally declared and paid to separate accounts of participating insurance companies annually and recorded on the ex-dividend date.

E. Federal Income Taxes – The Fund intends to comply with the requirements of Subchapter M of the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”), necessary to qualify as a regulated investment company and to distribute substantially all of the Fund’s taxable earnings to shareholders. As such, the Fund will not be subject to federal income taxes on otherwise taxable income (including net realized capital gain) that is distributed to shareholders. Therefore, no provision for federal income taxes is recorded in the financial statements.

The Fund recognizes the tax benefits of uncertain tax positions only when the position is more likely than not to be sustained. Management has analyzed the Fund’s uncertain tax positions and concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions. Management is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the next 12 months.

The Fund files tax returns in the U.S. Federal jurisdiction and certain other jurisdictions. Generally, the Fund is subject to examinations by such taxing authorities for up to three years after the filing of the return for the tax period.

F. Expenses – Fees provided for under the Rule 12b-1 plan of a particular class of the Fund and which are directly attributable to that class are charged to the operations of such class. All other expenses are allocated among the classes based on relative net assets.

G. Accounting Estimates – The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print.

H. Indemnifications – Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of the performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements, that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote.

I. Foreign Currency Translations – Foreign currency is valued at the close of the NYSE based on quotations posted by banks and major currency dealers. Portfolio securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at the date of valuation. Purchases and sales of portfolio securities (net of foreign taxes withheld on disposition) and income items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. The Fund does not separately account for the portion of the results of operations resulting from changes in foreign exchange rates on investments and the fluctuations arising from changes in market prices of securities held. The combined results of changes in foreign exchange rates and the fluctuation of market prices on investments (net of estimated foreign tax withholding) are included with the net realized and unrealized gain or loss from investments in the Statement of Operations. Reported net realized foreign currency gains or losses arise from (1) sales of foreign currencies, (2) currency gains or losses realized between the trade and settlement dates on securities transactions, and (3) the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign currency gains and losses arise from changes in the fair values of assets and liabilities, other than investments in securities at fiscal period end, resulting from changes in exchange rates.

The Fund may invest in foreign securities, which may be subject to foreign taxes on income, gains on investments or currency repatriation, a portion of which may be recoverable. Foreign taxes, if any, are recorded based on the tax regulations and rates that exist in the foreign markets in which the Fund invests and are shown in the Statement of Operations.

NOTE 2–Advisory Fees and Other Fees Paid to Affiliates

The Trust has entered into a master investment advisory agreement with Invesco Advisers, Inc. (the “Adviser” or “Invesco”). Under the terms of the investment advisory agreement, the Fund accrues daily and pays monthly an advisory fee to the Adviser based on the annual rate of the Fund’s average daily net assets as follows:

Average Daily Net Assets*	Rate
Up to $200 million		0.750%
Next $200 million		0.720%
Next $200 million		0.690%
Next $200 million		0.660%
Next $4.2 billion		0.600%
Over $5 billion		0.580%

* The advisory fee payable by the Fund shall be reduced by any amounts paid by the Fund under the administrative services agreement with Invesco.

For the six months ended June 30, 2020, the effective advisory fee rate incurred by the Fund was 0.63%.

Under the terms of a master sub-advisory agreement between the Adviser and each of Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Canada Ltd. and separate sub-advisory agreements with Invesco Capital Management LLC and Invesco Asset Management (India) Private Limited (collectively, the “Affiliated Sub-Advisers”) the Adviser, not the Fund, will pay 40% of the fees paid to the Adviser to any such Affiliated Sub-Adviser(s) that provide(s) discretionary investment management services to the Fund based on the percentage of assets allocated to such Affiliated Sub-Adviser(s).

Invesco Oppenheimer V.I. Global Fund

The Adviser has contractually agreed, through at least May 31, 2021, 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 0.77% and Series II shares to 1.02% of average daily net assets (the “expense limits”). In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause the total annual fund operating expenses after fee waiver and/or expense reimbursement to exceed the numbers reflected above: (1) interest; (2) taxes; (3) dividend expense on short sales; (4) extraordinary or non-routine items, including litigation expenses; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Unless Invesco continues the fee waiver agreement, it will terminate on May 31, 2021. During its term, the fee waiver agreement cannot be terminated or amended to increase the expense limits or reduce the advisory fee waiver without approval of the Board of Trustees. To the extent that the annualized expense ratio does not exceed the expense limits, the Adviser will retain its ability to be reimbursed for such fee waivers or reimbursements prior to the end of each fiscal year. The Adviser did not waive fees and/or reimburse expenses during the period under these expense limits.

Further, the Adviser has contractually agreed, through at least June 30, 2022, 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, 2020, the Adviser waived advisory fees of $491,906.

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 fees paid to insurance companies that have agreed to provide certain administrative services to the Fund. These administrative services provided by the insurance companies may include, among other things: maintenance of master accounts with the Fund; tracking, recording and transmitting net purchase and redemption orders for Fund shares; maintaining and preserving records related to the purchase, redemption and other account activity of variable product owners; distributing copies of Fund documents such as prospectuses, proxy materials and periodic reports, to variable product owners, and responding to inquiries from variable product owners about the Fund. Pursuant to such agreement, for the six months ended June 30, 2020, Invesco was paid $155,481 for accounting and fund administrative services and was reimbursed $1,633,586 for fees paid to insurance companies. Invesco has entered into a sub-administration agreement whereby State Street Bank and Trust Company (“SSB”) serves as fund accountant and provides certain administrative services to the Fund. Pursuant to a custody agreement with the Trust on behalf of the Fund, SSB also serves as the Fund’s custodian.

The Trust has entered into a transfer agency and service agreement with Invesco Investment Services, Inc. (“IIS”) pursuant to which the Fund has agreed to pay IIS a fee for providing transfer agency and shareholder services to the Fund and reimburse IIS for certain expenses incurred by IIS in the course of providing such services. For the six months ended June 30, 2020, 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. The fees are accrued daily and paid monthly. 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, 2020, 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, 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, 2020. The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

	Level 1		Level 2		Level 3		Total
Investments in Securities
Brazil	$	13,783,056	$	–		$–	$	13,783,056
China		81,447,853		–		–		81,447,853
France		–		220,435,212		–		220,435,212
Germany		–		73,529,328		–		73,529,328
India		26,881,641		38,297,424		–		65,179,065
Italy		–		5,039,646		–		5,039,646
Japan		–		330,007,992		–		330,007,992
Netherlands		10,213,390		10,233,031		–		20,446,421
Spain		–		30,336,878		–		30,336,878
Sweden		–		65,694,282		–		65,694,282
Switzerland		–		5,951,135		–		5,951,135
United Kingdom		11,861,640		37,649,276		–		49,510,916
United States		1,287,206,908		–		–		1,287,206,908
Money Market Funds		36,431,638		–		–		36,431,638
Total Investments	$	1,467,826,126	$	817,174,204		$–	$	2,285,000,330

Invesco Oppenheimer V.I. Global 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 were eligible to participate in a retirement plan that provided for benefits to be paid upon retirement to Trustees over a period of time based on the number of years of service. The Fund may have certain former Trustees who also participate in a retirement plan and receive benefits under such plan. Trustees’ and Officers’ Fees and Benefits include amounts accrued by the Fund to fund such retirement benefits. Obligations under the deferred compensation and retirement plans represent unsecured claims against the general assets of the Fund.

NOTE 5–Cash Balances

The Fund is permitted to temporarily carry a negative or overdrawn balance in its account with SSB, the custodian bank. Such balances, if any at period-end, are shown in the Statement of Assets and Liabilities under the payable caption Amount due custodian. To compensate the custodian bank for such overdrafts, the overdrawn Fund may either (1) leave funds as a compensating balance in the account so the custodian bank can be compensated by earning the additional interest; or (2) compensate by paying the custodian bank at a rate agreed upon by the custodian bank and Invesco, not to exceed the contractually agreed upon rate. The Fund may not purchase additional securities when any borrowings from banks or broker-dealers exceed 5% of the Fund’s total assets, or when any borrowings from an Invesco Fund are outstanding.

NOTE 6–Tax Information

The amount and character of income and gains to be distributed are determined in accordance with income tax regulations, which may differ from GAAP. Reclassifications are made to the Fund’s capital accounts to reflect income and gains available for distribution (or available capital loss carryforward) under income tax regulations. The tax character of distributions paid during the year and the tax components of net assets will be reported at the Fund’s fiscal year-end.

Capital loss carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Fund to utilize. The ability to utilize capital loss carryforwards in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.

The Fund did not have a capital loss carryforward as of December 31, 2019.

NOTE 7–Investment Transactions

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, 2020 was $173,195,573 and $347,612,377, respectively. Cost of investments, including any derivatives, on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end.

Unrealized Appreciation (Depreciation) of Investments on a Tax Basis
Aggregate unrealized appreciation of investments	$	1,259,408,781
Aggregate unrealized (depreciation) of investments		(23,200,201	)
Net unrealized appreciation of investments	$	1,236,208,580

Cost of investments for tax purposes is $1,048,791,750.

NOTE 8–Share Information

	Summary of Share Activity
	Six months ended						Year ended
	June 30, 2020(a)						December 31, 2019
	Shares			Amount			Shares			Amount
Sold:
Series I		715,913		$	26,879,340			1,087,675		$	44,342,732
Series II		2,684,173			106,141,878			5,583,631			232,838,451
Issued as reinvestment of dividends:
Series I		–			–			5,090,726			194,974,813
Series II		–			–			4,415,859			166,963,633
Reacquired:
Series I		(2,733,870	)		(106,503,556	)		(5,343,326	)		(218,038,597	)
Series II		(5,069,809	)		(181,607,431	)		(5,995,084	)		(242,859,301	)
Net increase (decrease) in share activity		(4,403,593	)	$	(155,089,769	)		4,839,481		$	178,221,731

^(a)  There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 30% 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 Fund has no knowledge as to whether all or any portion of the shares owned of record by these entities are also owned beneficially.

NOTE 9– Coronavirus (COVID-19) Pandemic

During the first quarter of 2020, the World Health Organization declared COVID-19 to be a public health emergency. COVID-19 has led to increased short-term market volatility and may have adverse long-term effects on U.S. and world economies and markets in general. COVID-19 may adversely impact the Fund’s ability to achieve its investment objective. Because of the uncertainties on valuation, the global economy and business operations, values reflected in these financial statements may materially differ from the value received upon actual sales of those investments.

Invesco Oppenheimer V.I. Global Fund

The extent of the impact on the performance of the Fund and its investments will depend on future developments, including the duration and spread of the COVID-19 outbreak, related restrictions and advisories, and the effects on the financial markets and economy overall, all of which are highly uncertain and cannot be predicted.

NOTE 10–Significant Event

Effective on or about April 30, 2021, the name of the Fund and all references thereto will change from Invesco Oppenheimer V.I. Global Fund to Invesco V.I. Global Fund.

Invesco Oppenheimer V.I. Global 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, 2020 through June 30, 2020.

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.

		ACTUAL		HYPOTHETICAL (5% annual return before expenses)
	Beginning   Account Value     (01/01/20)	Ending   Account Value     (06/30/20)1	Expenses       Paid During       Period2	Ending Account Value       (06/30/20)	Expenses   Paid During     Period2	Annualized     Expense Ratio
Series I	$1,000.00	$981.90	$3.79	$1,021.03	$3.87	0.77%
Series II	1,000.00	980.70	5.02	1,019.79	5.12	1.02

¹  The actual ending account value is based on the actual total return of the Fund for the period January 1, 2020 through June 30, 2020, 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 182/366 to reflect the most recent fiscal half year.

Invesco Oppenheimer V.I. Global Fund

Approval of Investment Advisory and Sub-Advisory Contracts

At meetings held on June 3, 2020, the Board of Trustees (the Board or the Trustees) of AIM Variable Insurance Funds (Invesco Variable Insurance Funds) as a whole, and the independent Trustees, who comprise over 75% of the Board, voting separately, approved the continuance of the Invesco Oppenheimer V.I. Global Fund’s (the Fund) Master Investment Advisory Agreement with Invesco Advisers, Inc. (Invesco Advisers and the investment advisory agreement) and the Master Intergroup Sub-Advisory Contract for Mutual Funds with Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Canada Ltd. and separate sub-advisory contracts with Invesco Capital Management LLC and Invesco Asset Management (India) Private Limited and OppenheimerFunds, Inc. (collectively, the Affiliated Sub-Advisers and the sub-advisory contracts) for another year, effective July 1, 2020. After evaluating the factors discussed below, among others, the Board approved the renewal of the Fund’s investment advisory agreement and the sub-advisory contracts and determined that the compensation payable thereunder by the Fund to Invesco Advisers and by Invesco Advisers to the Affiliated Sub-Advisers is fair and reasonable.

The Board’s Evaluation Process

The Board’s Investments Committee has established Sub-Committees, which meet throughout the year to review the performance of funds advised by Invesco Advisers (the Invesco Funds). The Sub-Committees meet regularly with portfolio managers for their assigned Invesco Funds and other members of management to review detailed information about investment performance and portfolio attributes of these funds. The Board took into account evaluations and reports that it received from the Investments Committee and Sub-Committees, as well as the information provided to such committees and the Board throughout the year, in considering whether to approve each

Invesco Fund’s investment advisory agreement and sub-advisory contracts.

As part of the contract renewal process, the Board reviews and considers information provided in response to detailed requests for information submitted to management by the independent Trustees with assistance from legal counsel to the independent Trustees. The Board receives comparative investment performance and fee data regarding the Invesco Funds prepared by Invesco Advisers and Broadridge Financial Solutions, Inc. (Broadridge), an independent mutual fund data provider, as well as information on the composition of the peer groups provided by Broadridge and its methodology for determining peer groups. The Board also receives an independent written evaluation from the Senior Officer, an officer of the Invesco Funds who reports directly to the independent Trustees. 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. In addition to meetings with Invesco Advisers and fund counsel

throughout the year, the independent Trustees also discuss the continuance of the investment advisory agreement and sub-advisory contracts in separate sessions with the Senior Officer and with independent legal counsel.

The discussion below is a summary of 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. The Trustees’ review and conclusions are based on the comprehensive consideration of all information presented to them during the course of the year and in prior years and are not the result of any single determinative factor. Moreover, one Trustee may have weighed a particular piece of information or factor differently than another Trustee. This information is current as of June 3, 2020.

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 nature, extent and quality of the advisory services provided to the Fund by Invesco Advisers under the Fund’s investment advisory agreement, and the credentials and experience of the officers and employees of Invesco Advisers who provide these services, including the Fund’s portfolio manager(s). The Board’s review included consideration of Invesco Advisers’ investment process oversight and structure, credit analysis, investment risk management and research capabilities. The Board also considered non-advisory services that Invesco Advisers and its affiliates provide to the Invesco Funds, such as various back office support functions, third party oversight, internal audit, valuation, portfolio trading and legal and compliance. The Board also received and reviewed information about Invesco Advisers’ role as administrator of the Invesco Funds’ liquidity risk management program. The Board reviewed and considered the benefits to shareholders of investing in a Fund that is part of the Invesco family of funds under the umbrella of Invesco Ltd., Invesco Advisers’ parent company, and noted Invesco Ltd.’s depth and experience in conducting an investment management business, as well as its commitment of financial and other resources to such business. The Board also reviewed and considered information regarding the benefits to the Fund resulting from Invesco Ltd.’s acquisition of OppenheimerFunds, Inc. and its subsidiaries (the Transaction) and the resources that Invesco Advisers has committed to managing the Invesco family of funds following the Transaction. The Board concluded that the nature, extent and quality of the services provided to the Fund by Invesco Advisers are appropriate and satisfactory.

The Board reviewed the services that may be 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 the Affiliated Sub-Advisers’ expertise with respect to certain asset classes and that the Affiliated Sub-Advisers have offices and personnel

that are located in financial centers around the world. As a result, the Board noted that the Affiliated Sub-Advisers can provide research and investment analysis on the markets and economies of various countries in which the Fund may invest, make recommendations regarding securities and assist with security trades. The Board concluded that the sub-advisory contracts may 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 that may be provided by the Affiliated Sub-Advisers are appropriate and satisfactory.

B. Fund Investment Performance

The Board considered Fund investment performance as a relevant factor in considering whether to approve the investment advisory agreement. The Board did not view Fund investment 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 investment performance over multiple time periods ending December 31, 2019 to the performance of funds in the Broadridge performance universe and against the MSCI All Country World Index. The Board noted that performance of Series I shares of the Fund was in the second quintile of its 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 above the performance of the Index for the one, three and five year periods. The Board considered that the Fund was created in connection with the Transaction and that the Fund’s performance prior to the closing of the Transaction after the close of business on May 24, 2019 is that of its predecessor fund. The Board recognized that the performance data reflects a snapshot in time as of a particular date and that selecting a different performance period could produce different results. The Board also reviewed more recent Fund performance as well as other performance metrics and this review did not change their conclusions.

C. Advisory and Sub-Advisory Fees and Fund Expenses

The Board compared the Fund’s contractual management fee rate to the contractual management fee rates of funds in the Fund’s Broadridge expense group. The Board noted that the contractual management fee rate for Series I shares of the Fund was the same as the median contractual management fee rate of funds in its expense group. The Board noted that the term “contractual management fee” for funds in the expense group may include both advisory and certain non-portfolio management administrative services fees, but that Broadridge does not provide information on a fund by fund basis as to what is included. The Board also reviewed the methodology used by Broadridge in providing expense group information, which includes using each fund’s contractual management fee schedule (including any applicable breakpoints) as reported in the most recent prospectus or statement of additional information for each fund in the expense

Invesco Oppenheimer V.I. Global Fund

group. The Board also considered comparative information regarding the Fund’s total expense ratio and its various components.

The Board noted that Invesco Advisers has contractually agreed to waive fees and/or limit expenses of the Fund for the term disclosed in the Fund’s registration statement 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 fees charged by Invesco Advisers and the Affiliated Sub-Advisers to other similarly managed client accounts. Invesco Advisers reviewed with the Board differences in the scope of services it provides to the Invesco Funds relative to certain other types of client accounts, including, among others: management of cash flows as a result of redemptions and purchases; necessary infrastructure such as officers, office space, technology, legal and distribution; oversight of service providers; costs and business risks associated with launching new funds and sponsoring and maintaining the product line; and compliance with federal and state laws and regulations.

The Board also compared the Fund’s effective advisory fee rate (the advisory fee rate after advisory fee waivers and before other expense limitations/ waivers) to the effective advisory fee rates of other similarly managed third-party mutual funds advised or sub-advised by Invesco Advisers and its affiliates, based on asset balances as of December 31, 2019.

The Board also considered the services that may be provided by the Affiliated Sub-Advisers pursuant to the sub-advisory contracts, as well as the fees payable by Invesco Advisers to the Affiliated Sub-Advisers pursuant to the sub-advisory contracts.

D. Economies of Scale and Breakpoints

The Board considered the extent to which there may be economies of scale in the provision of advisory services to the Fund. The Board also considered that the Fund benefits from economies of scale through contractual breakpoints in the Fund’s advisory fee schedule, which generally operate to reduce the Fund’s expense ratio as it grows in size. The Board 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. The Board noted that the Fund may also benefit from economies of scale through initial fee setting, fee waivers and expense reimbursements. The Board also considered Invesco’s reinvestment in its business, including investments in business infrastructure, technology and cybersecurity.

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 Invesco Funds and the profitability of Invesco Advisers and its affiliates in providing these services in the aggregate and on an individual Fund-by-Fund basis. The Board considered the methodology used for calculating profitability and noted the periodic review and enhancement of such methodology. The Board noted that Invesco Advisers continues to operate at a net profit from services Invesco Advisers and its affiliates provide to the Invesco Funds in the aggregate and to certain Funds on an individual fund level. The Board did not deem the level of profits realized by Invesco Advisers and its affiliates from providing such services to be excessive given the nature, extent and quality of the

services provided. The Board received information from Invesco Advisers demonstrating that Invesco Advisers and the Affiliated Sub-Advisers are financially sound and have the resources necessary to perform their obligations under the investment advisory agreement and sub-advisory contracts.

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 providing administrative, transfer agency and distribution services to the Fund. The Board considered comparative information regarding fees charged for these services, including information provided by Broadridge and other independent sources. 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; and that the services are required for the operation of the Fund.

The Board considered the benefits realized by Invesco Advisers and the Affiliated Sub-Advisers as a result of portfolio brokerage transactions executed through “soft dollar” arrangements. The Board noted that soft dollar arrangements may result in the Fund bearing costs to purchase research that may be used by Invesco Advisers or the Affiliated Sub-Advisers with other clients and may reduce Invesco Advisers’ or the Affiliated Sub-Advisers’ expenses. The Board also considered that it receives periodic reports from Invesco representing that these arrangements are consistent with regulatory requirements. The Board did not deem the soft dollar arrangements to be inappropriate.

The Board considered that the Fund’s uninvested cash and cash collateral from any securities lending arrangements may be invested in registered money market funds or, with regard to securities lending cash collateral, unregistered funds that comply with Rule 2a-7 (collectively referred to as “affiliated money market funds”) advised by Invesco Advisers pursuant to procedures approved by the Board. The Board considered information regarding the returns of the affiliated money market funds relative to comparable overnight investments, as well as the costs to the Fund of such investments. 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 with respect to certain investments in the affiliated money market 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 amount of advisory fees received by Invesco Advisers from the Fund’s investment of cash collateral from any securities lending arrangements in the affiliated money market funds is fair and reasonable.

The Board also considered that an affiliated broker may receive commissions for executing certain trades for the Fund. Invesco Advisers and the Affiliated Sub-Advisers may use the affiliated broker to, among other things, control order routing and minimize

information leakage, and the Board was advised that such trades are executed in compliance with rules under the federal securities laws and consistent with best execution obligations.

Invesco Oppenheimer V.I. Global Fund

	Semiannual Report to Shareholders	June 30, 2020
	Invesco Oppenheimer V.I. Global Strategic Income Fund

Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, the insurance company that offers your variable annuity or variable life insurance contract may no longer send you paper copies of the Fund’s shareholder reports by mail, unless you specifically request paper copies of the reports from the insurance company or your financial intermediary. Instead of delivering paper copies of the report, the insurance company may choose to make the reports available on a website, and will notify you by mail each time a report is posted and provide you with a website link to access the report. Instructions for requesting paper copies will be provided by your insurance company.

    If the insurance company offers electronic delivery, you may elect to receive shareholder reports and other communications about the Fund electronically by following the instructions provided by the insurance company or by contacting your financial intermediary. If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action.

    You may elect to receive all future reports in paper free of charge from the insurance company. You can inform the insurance company or your financial intermediary that you wish to continue receiving paper copies of your shareholder reports by following the instructions provided by the insurance company or by contacting your financial intermediary. Your election to receive reports in paper will apply to all portfolio companies available under your contract with the insurance company.

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) as an exhibit to its reports on Form N-PORT. The Fund’s Form N-PORT filings are available on the SEC website, 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-PORT, 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 most recent 12-month period ended June 30 is available at invesco.com/proxysearch. The information is also available on the SEC website, sec.gov.

    Invesco Advisers, Inc. is an investment adviser; it provides investment advisory services to individual and institutional clients and does not sell securities. Invesco Distributors, Inc. is the US distributor for Invesco Ltd.’s retail mutual funds, exchange-traded funds and institutional money market funds. Both are wholly owned, indirect subsidiaries of Invesco Ltd.

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.

NOT FDIC INSURED  |  MAY LOSE VALUE  |  NO BANK GUARANTEE

Invesco Distributors, Inc. O-VIGLSI-SAR-1                                

Fund Performance

Performance summary

Fund vs. Indexes

Cumulative total returns, 12/31/19 to 6/30/20, excluding variable product issuer charges. If variable product issuer charges were included, returns would be lower.

Series I Shares	-4.83	%
Series II Shares	-5.07
Bloomberg Barclays U.S. Aggregate Bond Indexq	6.14
Source(s): qRIMES Technologies Corp.

    The Bloomberg Barclays U.S. Aggregate Bond Index is an unmanaged index considered representative of the US investment grade, fixed-rate bond market.

    The Fund is not managed to track the performance of any particular index, including the index(es) described here, and consequently, the performance of the Fund may deviate significantly from the performance of the index(es).

    A direct investment cannot be made in an index. Unless otherwise indicated, index results include reinvested dividends, and they do not reflect sales charges. Performance of the peer group, if applicable, reflects fund expenses; performance of a market index does not.

Average Annual Total Returns
As of 6/30/20
Series I Shares
Inception (5/3/93)	5.35	%
10 Years	3.66
5 Years	1.94
1 Year	-2.87
Series II Shares
Inception (3/19/01)	4.83	%
10 Years	3.41
5 Years	1.70
1 Year	-2.99

Effective May 24, 2019, Non-Service and Service shares of the Oppenheimer Global Strategic Income Fund/VA, (the predecessor fund) were reorganized into Series I and Series II shares, respectively, of Invesco Oppenheimer V.I. Global Strategic Income Fund. Returns shown above, prior to May 24, 2019, for Series I and Series II shares are those of the Non-Service shares and Service shares of the predecessor fund. Share class returns will differ from the predecessor fund because of different expenses.

    The performance data quoted represent past performance and cannot guarantee future results; current performance may be lower or higher. Please 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. Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares. Investment return and principal value will fluctuate so that you may have a gain or loss when you sell shares.

    Invesco Oppenheimer V.I. Global Strategic 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 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.

    Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information.

Invesco Oppenheimer V.I. Global Strategic Income Fund

Liquidity Risk Management Program

The Securities and Exchange Commission has adopted Rule 22e-4 under the Investment Company Act of 1940 (the “Liquidity Rule”) in order to promote effective liquidity risk management throughout the open-end investment company industry, thereby reducing the risk that funds will be unable to meet their redemption obligations and mitigating dilution of the interests of fund shareholders. The Fund has adopted and implemented a liquidity risk management program in accordance with the Liquidity Rule (the “Program”). The Program is reasonably designed to assess and manage the Fund’s liquidity risk, which is the risk that the Fund could not meet redemption requests without significant dilution of remaining investors’ interests in the Fund. The Board of Trustees of the Fund (the “Board”) has appointed Invesco Advisers, Inc. (“Invesco”), the Fund’s investment adviser, as the Program’s administrator, and Invesco has delegated oversight of the Program to the Liquidity Risk Management Committee (the “Committee”), which is composed of senior representatives from relevant business groups at Invesco.

As required by the Liquidity Rule, the Program includes policies and procedures providing for an assessment, no less frequently than annually, of the Fund’s liquidity risk that takes into account, as relevant to the Fund’s liquidity risk: (1) the Fund’s investment strategy and liquidity of portfolio investments during both normal and reasonably foreseeable stressed conditions; (2) short-term and long-term cash flow projections for the Fund during both normal and reasonably foreseeable stressed conditions; and (3) the Fund’s holdings of cash and cash equivalents and any borrowing arrangements. The Liquidity Rule also requires the classification of the Fund’s investments into categories that reflect the assessment of their relative liquidity under current market conditions. The Fund classifies its investments into one of four categories defined in the Liquidity Rule: “Highly Liquid,” “Moderately Liquid,” “Less Liquid” and “Illiquid.” Funds that are not invested primarily in “Highly Liquid Investments” that are assets (cash or investments that are reasonably expected to be convertible into cash within three business days without significantly changing the market value of the investment) are required to establish a “Highly Liquid Investment Minimum” (“HLIM”), which is the minimum percentage of net assets that must be invested in Highly Liquid Investments. Funds with HLIMs have procedures for addressing HLIM shortfalls, including reporting to the Board and the SEC (on a non-public basis) as required by the Program and the Liquidity Rule. In addition, the Fund may not acquire an investment if, immediately after the acquisition, over 15% of the Fund’s net assets would consist of “Illiquid Investments” that are assets (an investment that cannot reasonably be expected to be sold or disposed of in current market conditions in seven calendar days or less without the sale or disposition significantly changing the market value of the investment). The Liquidity Rule and the Program also require reporting to the Board and the SEC (on a non-public basis) if a Fund’s holdings of Illiquid Investments exceed 15% of the Fund’s assets.

At a meeting held on March 30-April 1, 2020, the Committee presented a report to the Board that addressed the operation of the Program and assessed the Program’s adequacy and effectiveness of implementation (the “Report”). The Report covered the period from December 1, 2018 through December 31, 2019 (the “Program Reporting Period”).

The Report stated, in relevant part, that during the Program Reporting Period:

∎ The Program, as adopted and implemented, remained reasonably designed to assess and manage the Fund’s liquidity risk and was operated effectively to achieve that goal;

∎ The Fund’s investment strategy remained appropriate for an open-end fund;

∎ The Fund was able to meet requests for redemption without significant dilution of remaining investors’ interests in the Fund;

∎ The Fund did not breach the 15% limit on Illiquid Investments; and

∎ The Committee had established an HLIM for the Fund and the Fund complied with its HLIM. Subsequent to the Program Reporting Period, in connection with its annual evaluation of the Fund, the Committee determined that the Fund primarily holds Highly Liquid Investments on a consistent basis and thus does not require an HLIM under the Program. As of March 1, 2020, the Fund no longer has an HLIM.

Invesco Oppenheimer V.I. Global Strategic Income Fund

Consolidated Schedule of Investments

June 30, 2020

(Unaudited)

	Principal       Amount		Value
U.S. Dollar Denominated Bonds & Notes–36.30%(a)
Argentina–0.15%
Argentine Republic Government
International Bond,
5.63%, 01/26/2022(b)	$	1,185,000	$	495,348
7.50%, 04/22/2026(b)		2,600,000		1,065,194
				1,560,542
Australia–0.01%
FMG Resources August 2006 Pty. Ltd., 4.75%, 05/15/2022(c)		119,000		121,558
Belarus–0.10%
Republic of Belarus Ministry of Finance, 6.38%, 02/24/2031(c)		1,040,000		1,006,502
Belgium–0.04%
Telenet Finance Luxembourg Notes S.a.r.l., 5.50%, 03/01/2028(c)		405,000		425,250
Brazil–0.99%
Banco do Brasil S.A., 6.25% (10 yr. U.S. Treasury Yield Curve Rate + 4.40%)(c)(d)(e)		625,000		550,469
Brazilian Government International Bond,
2.88%, 06/06/2025		650,000		642,687
3.88%, 06/12/2030		650,000		627,932
CSN Islands XI Corp., 6.75%, 01/28/2028(c)		1,150,000		986,125
Itau Unibanco Holding S.A., 4.63% (5 yr. U.S. Treasury Yield Curve Rate + 3.22%)(c)(d)(e)		1,075,000		887,547
Petrobras Global Finance B.V.,
5.60%, 01/03/2031		650,000		653,494
6.75%, 06/03/2050		650,000		670,150
6.85%, 06/05/2115		225,000		223,808
Rede D’or Finance S.a.r.l., 4.50%, 01/22/2030(c)		905,000		800,074
Rumo Luxembourg S.a.r.l., 5.25%, 01/10/2028(c)		520,000		520,000
Suzano Austria GmbH, 5.00%, 01/15/2030		3,050,000		3,094,408
Usiminas International S.a.r.l., 5.88%, 07/18/2026(c)		390,000		358,192
				10,014,886
Canada–1.14%
1011778 BC ULC/New Red Finance, Inc., 5.00%, 10/15/2025(c)		381,000		379,741
Bombardier, Inc.,
7.50%, 03/15/2025(c)		151,000		99,014
7.88%, 04/15/2027(c)		147,000		96,533
Canadian Natural Resources Ltd., 2.05%, 07/15/2025		2,600,000		2,608,247

	Principal       Amount		Value
Canada–(continued)
Cascades, Inc./Cascades USA, Inc., 5.38%, 01/15/2028(c)	$	165,000	$	167,991
Cenovus Energy, Inc., 4.25%, 04/15/2027		598,000		543,168
Ensign Drilling, Inc., 9.25%, 04/15/2024(c)		92,000		41,227
Garda World Security Corp., 9.50%, 11/01/2027(c)		153,000		162,056
Magna International, Inc., 2.45%, 06/15/2030		1,300,000		1,332,209
Mattamy Group Corp., 5.25%, 12/15/2027(c)		209,000		208,608
MEG Energy Corp., 6.50%, 01/15/2025(c)		87,000		81,195
Norbord, Inc., 5.75%, 07/15/2027(c)		594,000		607,995
Nutrien Ltd.,
1.90%, 05/13/2023		1,300,000		1,342,476
2.95%, 05/13/2030		1,300,000		1,380,442
Parkland Corp., 6.00%, 04/01/2026(c)		567,000		582,488
Precision Drilling Corp., 7.13%, 01/15/2026(c)		106,000		65,037
Superior Plus L.P./Superior General Partner, Inc., 7.00%, 07/15/2026(c)		340,000		357,360
Taseko Mines Ltd., 8.75%, 06/15/2022(c)		337,000		282,580
Transcanada Trust, Series 16-A, 5.88%, 08/15/2076		1,130,000		1,195,926
				11,534,293
Chile–0.18%
AES Gener S.A., 6.35%, 10/07/2079(c)		750,000		755,156
Sociedad Quimica y Minera de Chile S.A., 4.25%, 01/22/2050(c)		625,000		618,713
VTR Finance B.V., 6.88%, 01/15/2024(c)		488,000		499,185
				1,873,054
China–1.61%
China Construction Bank Corp., 2.45% (5 yr. U.S. Treasury Yield Curve Rate + 2.15%), 06/24/2030(c)(e)		1,950,000		1,949,057
China Evergrande Group,
11.50%, 01/22/2023(c)		625,000		589,814
10.00%, 04/11/2023(c)		375,000		339,844
China Resources Land Ltd., 3.75% (5 yr. U.S. Treasury Yield Curve Rate + 5.14%)(c)(d)(e)		625,000		634,375
CIFI Holdings Group Co. Ltd., 6.45%, 11/07/2024(c)		600,000		611,157

See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.

Invesco Oppenheimer V.I. Global Strategic Income Fund

	Principal Amount		Value
China–(continued)
Country Garden Holdings Co. Ltd., 5.40%, 05/27/2025(c)	$	1,040,000	$	1,086,717
Eagle Intermediate Global Holding B.V./Ruyi US Finance LLC, 7.50%, 05/01/2025(c)		135,000		94,500
ENN Clean Energy International Investment Ltd., 7.50%, 02/27/2021(c)		1,250,000		1,264,063
Kaisa Group Holdings Ltd., 6.75%, 02/18/2021(c)		625,000		624,219
Logan Group Co. Ltd.,
7.50%, 08/25/2022(c)		565,000		585,810
5.25%, 02/23/2023(c)		1,250,000		1,245,239
Tencent Holdings Ltd.,
1.81%, 01/26/2026(c)		2,600,000		2,636,026
3.24%, 06/03/2050(c)		650,000		653,169
3.29%, 06/03/2060(c)		650,000		658,452
Times China Holdings Ltd., 7.85%, 06/04/2021(c)		3,305,000		3,351,201
				16,323,643
Colombia–0.13%
Colombia Government International Bond, 3.13%, 04/15/2031		650,000		645,619
Grupo Aval Ltd., 4.38%, 02/04/2030(c)		750,000		716,955
				1,362,574
Congo, Democratic Republic of the–0.04%
HTA Group Ltd., 7.00%, 12/18/2025(c)		390,000		395,832
Denmark–0.14%
Danske Bank A/S, 6.13% (USD 7yr Swap Rate + 3.90%)(c)(d)(e)		1,475,000		1,468,126
Dominican Republic–0.45%
AES Andres B.V./Dominican Power Partners/Empresa Generadora de Electricidad Itabo S.A., 7.95%, 05/11/2026(c)		490,000		497,350
Dominican Republic International Bond,
6.00%, 07/19/2028(c)		2,482,000		2,505,728
6.40%, 06/05/2049(c)		1,187,000		1,092,040
5.88%, 01/30/2060(c)		500,000		431,750
				4,526,868
Egypt–0.25%
Egypt Government International Bond,
7.63%, 05/29/2032(c)		1,250,000		1,223,238
8.70%, 03/01/2049(c)		1,388,000		1,366,368
				2,589,606
France–1.29%
Altice France S.A., 7.38%, 05/01/2026(c)		287,000		299,912

	Principal Amount		Value
France–(continued)
BNP Paribas S.A.,
7.63% (5 yr. U.S. Swap Rate + 6.31%)(c)(d)(e)	$	970,000	$	985,156
6.75% (5 yr. U.S. Swap Rate + 4.92%)(c)(d)(e)		2,000,000		2,035,620
Credit Agricole S.A.,
6.88%(c)(d)		1,600,000		1,651,112
8.13% (5 yr. U.S. Swap Rate + 6.19%)(c)(d)(e)		600,000		687,375
7.88% (5 yr. U.S. Swap Rate + 4.90%)(c)(d)(e)		625,000		680,409
Numericable-SFR S.A., 8.13%, 02/01/2027(c)		264,000		289,382
Societe Generale S.A., 7.38%(c)(d)		3,745,000		3,785,896
Total Capital International S.A., 3.13%, 05/29/2050		2,600,000		2,661,631
				13,076,493
Germany–0.11%
Mercer International, Inc., 5.50%, 01/15/2026		244,000		230,130
Volkswagen Group of America Finance LLC, 3.35%, 05/13/2025(c)		780,000		838,431
				1,068,561
Ghana–0.17%
Ghana Government International Bond,
7.63%, 05/16/2029(c)		625,000		592,625
8.95%, 03/26/2051(c)		1,250,000		1,149,894
				1,742,519
Guatemala–0.10%
Guatemala Government Bond,
5.38%, 04/24/2032(c)		375,000		415,312
6.13%, 06/01/2050(c)		500,000		580,750
				996,062
Hong Kong–0.40%
Bank of East Asia Ltd. (The), 4.00% (5 yr. U.S. Treasury Yield Curve Rate + 3.75%), 05/29/2030(c)(e)		520,000		532,462
Melco Resorts Finance Ltd.,
4.88%, 06/06/2025(c)		3,250,000		3,278,236
5.63%, 07/17/2027(c)		290,000		293,769
				4,104,467
India–0.57%
Azure Power Energy Ltd., 5.50%, 11/03/2022(c)		1,515,000		1,531,892
Future Retail Ltd., 5.60%, 01/22/2025(c)		375,000		248,302
Muthoot Finance Ltd., 6.13%, 10/31/2022(c)		1,250,000		1,268,438
Oil India International Pte. Ltd., 4.00%, 04/21/2027(c)		2,119,000		2,127,722
ReNew Power Pvt Ltd., 5.88%, 03/05/2027(c)		625,000		606,869
				5,783,223

See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.

Invesco Oppenheimer V.I. Global Strategic Income Fund

	Principal Amount		Value
Indonesia–1.46%
Indonesia Government International Bond,
4.20%, 10/15/2050	$	1,875,000	$	2,100,261
4.45%, 04/15/2070		1,875,000		2,164,315
Listrindo Capital B.V., 4.95%, 09/14/2026(c)		2,285,000		2,307,850
PT Bank Mandiri (Persero) Tbk, 4.75%, 05/13/2025(c)		1,300,000		1,380,164
PT Indonesia Asahan Aluminium (Persero),
4.75%, 05/15/2025(c)		2,600,000		2,784,954
5.45%, 05/15/2030(c)		650,000		726,505
PT Perusahaan Perseroan (Persero) Perusahaan Listrik Negara, 4.13%, 05/15/2027(c)		2,045,000		2,159,643
PT Tower Bersama Infrastructure Tbk, 4.25%, 01/21/2025(c)		1,250,000		1,256,032
				14,879,724
Ireland–0.63%
AerCap Global Aviation Trust, 6.50% (3 mo. USD LIBOR + 4.30%), 06/15/2045(c)(e)		283,000		213,170
Coriolanus DAC, Series 116,
0.00%, 04/30/2025(c)(f)		711,688		711,163
0.00%, 04/30/2025(c)(f)		757,149		756,590
0.00%, 04/30/2025(c)(f)		947,759		947,060
0.00%, 04/30/2025(c)(f)		830,386		829,773
0.00%, 04/30/2025(c)(f)		666,933		666,441
0.00%, 04/30/2025(c)(f)		746,115		745,565
0.00%, 04/30/2025(c)(f)		864,220		863,583
0.00%, 04/30/2025(c)(f)		678,269		677,769
				6,411,114
Israel–0.06%
Bank Leumi Le-Israel BM, 3.28% (5 yr. U.S. Treasury Yield Curve Rate + 1.63%), 01/29/2031(c)(e)		625,000		609,287
Italy–0.33%
Intesa Sanpaolo S.p.A., Series XR, 4.70%, 09/23/2049(c)		1,100,000		1,207,080
Telecom Italia Capital S.A., 7.20%, 07/18/2036		690,000		823,343
Telecom Italia S.p.A., 5.30%, 05/30/2024(c)		235,000		245,431
UniCredit S.p.A., 5.46% (5 yr. U.S. Treasury Yield Curve Rate + 4.75%), 06/30/2035(c)(e)		1,090,000		1,100,710
				3,376,564
Japan–0.13%
Takeda Pharmaceutical Co. Ltd., 3.18%, 07/09/2050		1,300,000		1,311,299
Kazakhstan–0.17%
Astana-Finance JSC, 0.00%, 12/22/2024(c)(f)(g)		315,159		0

	Principal Amount		Value
Kazakhstan–(continued)
KazTransGas JSC, 4.38%, 09/26/2027(c)	$	1,590,000	$	1,717,677
				1,717,677
Kuwait–0.09%
MEGlobal Canada ULC, 5.88%, 05/18/2030(c)		780,000		884,263
Luxembourg–0.41%
Altice Financing S.A., 7.50%, 05/15/2026(c)		174,000		182,705
ArcelorMittal S.A.,
3.60%, 07/16/2024		2,500,000		2,479,054
6.13%, 06/01/2025		1,185,000		1,286,827
Intelsat Jackson Holdings S.A., 8.50%, 10/15/2024(b)(c)		367,000		221,831
				4,170,417
Macau–0.50%
MGM China Holdings Ltd., 5.38%, 05/15/2024(c)		1,505,000		1,531,495
Sands China Ltd.,
3.80%, 01/08/2026(c)		520,000		536,905
4.38%, 06/18/2030(c)		650,000		679,458
Wynn Macau Ltd., 4.88%, 10/01/2024(c)		2,335,000		2,282,708
				5,030,566
Malaysia–0.32%
Petronas Capital Ltd.,
3.50%, 04/21/2030(c)		375,000		417,544
4.55%, 04/21/2050(c)		625,000		795,643
4.80%, 04/21/2060(c)		1,450,000		1,998,969
				3,212,156
Mexico–0.56%
Alpha Holding S.A. de C.V., 9.00%, 02/10/2025(c)		580,000		519,100
Axtel S.A.B de C.V., 6.38%, 11/14/2024(c)		1,155,000		1,202,499
CEMEX Finance LLC, 6.00%, 04/01/2024(c)		985,000		977,918
Cemex S.A.B. de C.V., 5.45%, 11/19/2029(c)		730,000		674,987
Fomento Economico Mexicano, S.A.B. de C.V., 3.50%, 01/16/2050		650,000		672,665
Petroleos Mexicanos,
4.50%, 01/23/2026		1,797,000		1,571,225
5.95%, 01/28/2031(c)		133,000		109,919
				5,728,313
Netherlands–0.33%
ING Groep N.V.,
6.88% (5 yr. U.S. Swap Rate + 5.12%)(c)(d)(e)		1,250,000		1,295,700
5.75% (5 yr. U.S. Treasury Yield Curve Rate + 4.34%)(d)(e)		1,300,000		1,291,336
NXP B.V./NXP Funding LLC/NXP USA, Inc., 2.70%, 05/01/2025(c)		335,000		352,450

See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.

Invesco Oppenheimer V.I. Global Strategic Income Fund

	Principal Amount		Value
Netherlands–(continued)
Trivium Packaging Finance B.V., 5.50%, 08/15/2026(c)	$	145,000	$	146,994
Ziggo B.V., 5.50%, 01/15/2027(c)		231,000		235,189
				3,321,669
Norway–0.13%
Yara International ASA, 3.15%, 06/04/2030(c)		1,300,000		1,354,295
Oman–0.23%
Oman Government International Bond, 3.88%, 03/08/2022(c)		2,355,000		2,331,090
Panama–0.02%
Cable Onda S.A., 4.50%, 01/30/2030(c)		235,000		238,568
Paraguay–0.07%
Paraguay Government International Bond, 4.95%, 04/28/2031(c)		625,000		699,219
Peru–0.49%
Banco de Credito del Peru, 3.13% (5 yr. U.S. Treasury Yield Curve Rate + 3.00%), 07/01/2030(c)(e)		650,000		646,913
Hudbay Minerals, Inc., 7.63%, 01/15/2025(c)		355,000		340,837
Inkia Energy Ltd., 5.88%, 11/09/2027(c)		1,865,000		1,847,516
Nexa Resources S.A., 6.50%, 01/18/2028(c)		780,000		792,090
Peruvian Government International Bond, 2.78%, 01/23/2031		625,000		667,812
Southern Copper Corp., 7.50%, 07/27/2035		480,000		673,640
				4,968,808
Philippines–0.09%
SMC Global Power Holdings Corp., 5.95% (5 yr. U.S. Treasury Yield Curve Rate + 6.80%)(c)(d)(e)		900,000		868,489
Qatar–0.15%
Qatar Government International Bond, 4.40%, 04/16/2050(c)		1,250,000		1,550,226
Saudi Arabia–0.05%
ADES International Holding PLC, 8.63%, 04/24/2024(c)		500,000		470,600
Senegal–0.08%
Senegal Government International Bond, 6.75%, 03/13/2048(c)		890,000		862,744

	Principal Amount		Value
Singapore–0.04%
Puma International Financing S.A., 5.13%, 10/06/2024(c)	$	500,000	$	423,750
South Africa–0.06%
Eskom Holdings SOC Ltd., 6.75%, 08/06/2023(c)		625,000		593,638
Spain–0.15%
Banco Santander S.A.,
2.75%, 05/28/2025		200,000		207,401
3.49%, 05/28/2030		1,200,000		1,287,115
				1,494,516
Sri Lanka–0.21%
Sri Lanka Government International Bond,
5.88%, 07/25/2022(c)		1,350,000		1,053,000
6.35%, 06/28/2024(c)		1,210,000		847,011
6.20%, 05/11/2027(c)		200,000		131,511
6.75%, 04/18/2028(c)		200,000		131,512
				2,163,034
Sweden–0.06%
Skandinaviska Enskilda Banken AB, 5.13% (5 yr. U.S. Treasury Yield Curve Rate + 3.46%)(c)(d)(e)		600,000		584,020
Switzerland–1.18%
Alcon Finance Corp., 2.60%, 05/27/2030(c)		780,000		802,685
Credit Suisse Group AG,
7.50% (5 yr. U.S. Swap Rate + 4.60%)(c)(d)(e)		4,620,000		4,989,230
6.38% (5 yr. U.S. Treasury Yield Curve Rate + 4.82%)(c)(d)(e)		565,000		574,229
6.25% (5 yr. U.S. Swap Rate + 3.46%)(c)(d)(e)		625,000		653,799
UBS Group AG,
7.00% (5 yr. U.S. Swap Rate + 4.34%)(c)(d)(e)		1,250,000		1,299,306
7.00% (5 yr. U.S. Swap Rate + 4.87%)(c)(d)(e)		2,400,000		2,650,836
7.13% (5 yr. U.S. Swap Rate + 5.88%)(c)(d)(e)		400,000		408,854
6.88% (5 yr. USD ICE Swap Rate + 5.50%)(c)(d)(e)		630,000		639,252
				12,018,191
Thailand–0.30%
Bangkok Bank PCL, 3.73% (5 yr. U.S. Treasury Yield Curve Rate + 1.90%), 09/25/2034(c)(e)		450,000		430,698
PTTEP Treasury Center Co. Ltd., 2.59%, 06/10/2027(c)		260,000		266,468
Thaioil Treasury Center Co. Ltd., 3.75%, 06/18/2050(c)		1,300,000		1,316,579

See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.

Invesco Oppenheimer V.I. Global Strategic Income Fund

	Principal Amount		Value
Thailand–(continued)
TMB Bank PCL, 4.90% (5 yr. U.S. Treasury Yield Curve Rate + 3.26%)(c)(d)(e)	$	1,130,000	$	1,053,725
				3,067,470
Ukraine–0.36%
Metinvest B.V.,
8.50%, 04/23/2026(c)		1,250,000		1,229,812
7.75%, 10/17/2029(c)		920,000		863,986
NAK Naftogaz Ukraine via Kondor Finance PLC, 7.63%, 11/08/2026(c)		600,000		585,104
Ukraine Government International Bond, 7.75%, 09/01/2025(c)		938,000		981,902
				3,660,804
United Arab Emirates–0.64%
Abu Dhabi Government International Bond,
3.13%, 04/16/2030(c)		875,000		966,275
3.88%, 04/16/2050(c)		4,000,000		4,743,000
GEMS MENASA Cayman Ltd./GEMS Education Delaware LLC, 7.13%, 07/31/2026(c)		815,000		776,120
				6,485,395
United Kingdom–0.94%
BP Capital Markets PLC, 4.88% (5 yr. U.S. Treasury Yield Curve Rate + 4.40%)(d)(e)		910,000		941,850
eG Global Finance PLC, 8.50%, 10/30/2025(c)		296,000		303,986
HSBC Bank PLC, Series 2M, 1.43% (6 mo. USD LIBOR + 0.25%)(d)(e)		370,000		290,450
HSBC Holdings PLC,
6.38% (5 yr. USD ICE Swap Rate + 4.37%)(d)(e)		625,000		642,061
6.38% (5 yr. USD ICE Swap Rate + 3.71%)(d)(e)		815,000		822,698
Lloyds Bank PLC, Series 3, 1.69% (6 mo. USD LIBOR + 0.10%)(d)(e)		750,000		622,500
Standard Chartered PLC,
4.64% (5 yr. U.S. Treasury Yield Curve Rate + 3.85%), 04/01/2031(c)(e)		650,000		739,077
7.75% (5 yr. U.S. Swap Rate + 5.72%)(c)(d)(e)		1,590,000		1,660,341
6.00% (5 yr. U.S. Treasury Yield Curve Rate + 5.66%)(c)(d)(e)		1,300,000		1,303,250
Standard Life Aberdeen PLC, 4.25%, 06/30/2028(c)		1,875,000		1,903,125
Virgin Media Secured Finance PLC,
5.50%, 08/15/2026(c)		169,000		173,368
5.50%, 05/15/2029(c)		130,000		137,240
				9,539,946

	Principal Amount		Value
United States–18.14%
Acadia Healthcare Co., Inc.,
5.63%, 02/15/2023	$	56,000	$	56,165
6.50%, 03/01/2024		78,000		79,663
ACCO Brands Corp., 5.25%, 12/15/2024(c)		291,000		295,698
Adient Global Holdings Ltd., 4.88%, 08/15/2026(c)		95,000		78,782
Adient US LLC, 9.00%, 04/15/2025(c)		91,000		98,423
ADT Security Corp. (The), 6.25%, 10/15/2021		437,000		451,104
AECOM, 5.13%, 03/15/2027		189,000		203,848
AES Corp. (The),
3.30%, 07/15/2025(c)		520,000		536,476
6.00%, 05/15/2026		101,000		105,779
3.95%, 07/15/2030(c)		780,000		826,312
Affinion Group, Inc., 14.00% PIK Rate, 12.50% Cash Rate, 11/10/2022(c)(h)		1,248,291		780,182
Alliance Data Systems Corp., 4.75%, 12/15/2024(c)		289,000		261,003
Ally Financial, Inc.,
5.13%, 09/30/2024		373,000		403,203
5.75%, 11/20/2025		521,000		557,229
8.00%, 11/01/2031		254,000		328,320
AMC Entertainment Holdings, Inc.,
10.50%, 04/15/2025(c)		525,000		427,914
5.75%, 06/15/2025		151,000		48,698
5.88%, 11/15/2026		458,000		149,995
AMC Networks, Inc.,
5.00%, 04/01/2024		579,000		575,019
4.75%, 08/01/2025		147,000		144,663
American Airlines Group, Inc., 5.00%, 06/01/2022(c)		262,000		152,756
AmeriGas Partners L.P./AmeriGas Finance Corp.,
5.50%, 05/20/2025		153,000		158,067
5.88%, 08/20/2026		434,000		458,875
Amsted Industries, Inc., 5.63%, 07/01/2027(c)		165,000		170,744
AmWINS Group, Inc., 7.75%, 07/01/2026(c)		126,000		132,749
Antero Midstream Partners L.P./Antero Midstream Finance Corp., 5.75%, 01/15/2028(c)		422,000		334,448
Antero Resources Corp.,
5.38%, 11/01/2021		156,000		144,818
5.13%, 12/01/2022		64,000		46,382
Applied Materials, Inc.,
1.75%, 06/01/2030		1,300,000		1,325,005
2.75%, 06/01/2050		1,300,000		1,332,054
Ardagh Packaging Finance PLC/Ardagh Holdings USA, Inc., 4.13%, 08/15/2026(c)		380,000		376,645
Asbury Automotive Group, Inc., 4.75%, 03/01/2030(c)		68,000		66,470
Ascent Resources Utica Holdings LLC/ARU Finance Corp., 10.00%, 04/01/2022(c)		281,000		240,428

See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.

Invesco Oppenheimer V.I. Global Strategic Income Fund

	Principal       Amount		Value
United States–(continued)
ASGN, Inc., 4.63%, 05/15/2028(c)	$	239,000	$	233,816
Ashland LLC, 4.75%, 08/15/2022		18,000		19,024
Avis Budget Car Rental LLC/Avis Budget Finance, Inc.,
10.50%, 05/15/2025(c)		108,000		120,353
5.75%, 07/15/2027(c)		162,000		124,422
Bank of New York Mellon Corp. (The), Series G, 4.70%(d)		1,300,000		1,355,250
Basic Energy Services, Inc., 10.75%, 10/15/2023(c)		138,000		20,700
Bausch Health Americas, Inc., 8.50%, 01/31/2027(c)		193,000		205,202
Bausch Health Cos., Inc.,
7.00%, 03/15/2024(c)		349,000		362,810
5.75%, 08/15/2027(c)		156,000		165,720
6.25%, 02/15/2029(c)		300,000		302,062
Beazer Homes USA, Inc., 6.75%, 03/15/2025		349,000		343,946
Becton, Dickinson and Co., 3.79%, 05/20/2050		2,600,000		2,901,697
Belo Corp., 7.75%, 06/01/2027		207,000		230,148
Blue Cube Spinco LLC, 9.75%, 10/15/2023		78,000		80,583
BMC East LLC, 5.50%, 10/01/2024(c)		400,000		404,458
Boise Cascade Co., 5.63%, 09/01/2024(c)		692,000		699,712
BorgWarner, Inc., 2.65%, 07/01/2027		1,300,000		1,333,171
Boxer Parent Co., Inc.,
7.13%, 10/02/2025(c)		104,000		109,426
9.13%, 03/01/2026(c)		210,000		218,269
Brink’s Co. (The),
5.50%, 07/15/2025(c)		53,000		54,115
4.63%, 10/15/2027(c)		591,000		569,077
BWX Technologies, Inc., 4.13%, 06/30/2028(c)		79,000		79,099
Callon Petroleum Co.,
6.25%, 04/15/2023		35,000		13,366
8.25%, 07/15/2025		70,000		24,755
6.38%, 07/01/2026		418,000		139,428
Calpine Corp.,
5.75%, 01/15/2025		57,000		57,736
5.25%, 06/01/2026(c)		244,000		247,078
Calumet Specialty Products Partners L.P./Calumet Finance Corp., 7.63%, 01/15/2022		402,000		385,323
Carnival Corp., 11.50%, 04/01/2023(c)		235,000		254,373
Carrier Global Corp., 2.70%, 02/15/2031(c)		1,300,000		1,294,790

	Principal Amount		Value
United States–(continued)
CCO Holdings LLC/CCO Holdings Capital Corp.,
4.00%, 03/01/2023(c)	$	92,000	$	92,517
5.88%, 04/01/2024(c)		88,000		90,838
5.38%, 05/01/2025(c)		60,000		61,656
5.75%, 02/15/2026(c)		387,000		401,143
5.13%, 05/01/2027(c)		253,000		262,121
5.88%, 05/01/2027(c)		60,000		62,667
5.00%, 02/01/2028(c)		167,000		172,595
4.50%, 08/15/2030(c)		529,000		541,778
CEC Entertainment, Inc., 8.00%, 02/15/2022		158,000		17,380
Celanese US Holdings LLC, 5.88%, 06/15/2021		1,019,000		1,063,523
Centene Corp.,
4.75%, 05/15/2022		178,000		180,851
5.38%, 06/01/2026(c)		561,000		583,847
5.38%, 08/15/2026(c)		393,000		410,400
4.63%, 12/15/2029		104,000		110,372
CenturyLink, Inc., Series Y,
7.50%, 04/01/2024		145,000		159,596
5.63%, 04/01/2025		219,000		227,017
Charles River Laboratories International, Inc., 4.25%, 05/01/2028(c)		541,000		541,638
Charles Schwab Corp. (The), Series G, 5.38%(d)		2,500,000		2,677,050
Chemours Co. (The), 6.63%, 05/15/2023		128,000		123,213
CIT Group, Inc.,
4.13%, 03/09/2021		253,000		254,011
5.25%, 03/07/2025		156,000		162,029
Clarios Global L.P., 6.75%, 05/15/2025(c)		122,000		127,261
Clarios Global L.P./Clarios US Finance Co., 8.50%, 05/15/2027(c)		185,000		186,383
Cleaver-Brooks, Inc., 7.88%, 03/01/2023(c)		626,000		532,817
Cleveland-Cliffs, Inc., 9.88%, 10/17/2025(c)		53,000		55,694
Colfax Corp.,
6.00%, 02/15/2024(c)		149,000		154,044
6.38%, 02/15/2026(c)		70,000		73,260
Colt Merger Sub, Inc.,
5.75%, 07/01/2025(c)		66,000		66,495
8.13%, 07/01/2027(c)		190,000		185,250
CommScope, Inc., 6.00%, 03/01/2026(c)		454,000		466,544
Comstock Resources, Inc., 9.75%, 08/15/2026		142,000		133,245
Continental Resources, Inc., 4.50%, 04/15/2023		590,000		564,659
Core & Main Holdings L.P., 9.38% PIK Rate, 8.63% Cash Rate, 09/15/2024(c)(h)		818,000		821,779
Crestwood Midstream Partners L.P./Crestwood Midstream Finance Corp.,
6.25%, 04/01/2023		46,000		41,060
5.75%, 04/01/2025		41,000		35,542
5.63%, 05/01/2027(c)		308,000		257,748

See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.

Invesco Oppenheimer V.I. Global Strategic Income Fund

	Principal Amount		Value
United States–(continued)
Crown Castle International Corp. REIT,
1.35%, 07/15/2025	$	1,300,000	$	1,306,101
3.25%, 01/15/2051		1,300,000		1,303,628
CSC Holdings LLC,
5.88%, 09/15/2022		100,000		104,723
10.88%, 10/15/2025(c)		119,000		128,204
5.50%, 04/15/2027(c)		304,000		316,616
6.50%, 02/01/2029(c)		280,000		306,425
4.63%, 12/01/2030(c)		200,000		195,272
Cumulus Media New Holdings, Inc., 6.75%, 07/01/2026(c)		302,000		279,490
Dana Financing Luxembourg S.a.r.l., 6.50%, 06/01/2026(c)		180,000		186,953
Dana, Inc.,
5.38%, 11/15/2027		146,000		145,270
5.63%, 06/15/2028		53,000		52,745
Darling Ingredients, Inc., 5.25%, 04/15/2027(c)		79,000		81,424
DaVita, Inc., 4.63%, 06/01/2030(c)		255,000		253,757
DCP Midstream Operating L.P.,
4.75%, 09/30/2021(c)		156,000		159,253
5.63%, 07/15/2027		79,000		79,790
5.13%, 05/15/2029		440,000		420,944
Dell International LLC/EMC Corp.,
7.13%, 06/15/2024(c)		409,000		424,107
6.20%, 07/15/2030(c)		2,600,000		3,034,082
Delta Air Lines, Inc.,
7.00%, 05/01/2025(c)		276,000		285,196
7.38%, 01/15/2026		1,775,000		1,719,043
Diamond Sports Group LLC/ Diamond Sports Finance Co.,
5.38%, 08/15/2026(c)		766,000		559,119
6.63%, 08/15/2027(c)		387,000		208,411
Discovery Communications LLC, 3.63%, 05/15/2030		1,040,000		1,139,786
DISH DBS Corp., 5.88%, 11/15/2024		283,000		281,807
Downstream Development Authority of the Quapaw Tribe of Oklahoma, 10.50%, 02/15/2023(c)		88,000		74,681
DPL, Inc., 4.35%, 04/15/2029		301,000		305,241
eBay, Inc., 2.70%, 03/11/2030		520,000		547,694
Edgewell Personal Care Co., 5.50%, 06/01/2028(c)		120,000		123,675
Element Solutions, Inc., 5.88%, 12/01/2025(c)		325,000		329,161
Embarq Corp., 8.00%, 06/01/2036		300,000		337,566
Encompass Health Corp., 4.75%, 02/01/2030		122,000		116,716
Endeavor Energy Resources L.P./EER Finance, Inc.,
6.63%, 07/15/2025(c)		66,000		66,681
5.75%, 01/30/2028(c)		120,000		115,478

	Principal Amount		Value
United States–(continued)
Energizer Holdings, Inc., 4.75%, 06/15/2028(c)	$	53,000	$	52,124
Energy Transfer Operating L.P., Series A, 6.25%(d)		175,000		134,618
EnerSys, 5.00%, 04/30/2023(c)		497,000		511,237
EnLink Midstream Partners L.P.,
4.40%, 04/01/2024		35,000		29,177
4.85%, 07/15/2026		412,000		306,200
5.60%, 04/01/2044		391,000		240,189
EnPro Industries, Inc., 5.75%, 10/15/2026		606,000		608,157
EQM Midstream Partners L.P.,
6.50%, 07/01/2027(c)		268,000		275,190
5.50%, 07/15/2028		577,000		550,879
EQT Corp.,
6.13%, 02/01/2025		195,000		194,661
3.90%, 10/01/2027		145,000		118,559
7.00%, 02/01/2030		250,000		257,842
Equinix, Inc. REIT,
1.25%, 07/15/2025		1,820,000		1,828,645
5.88%, 01/15/2026		519,000		547,394
Everi Payments, Inc., 7.50%, 12/15/2025(c)		175,000		168,200
Flex Acquisition Co., Inc., 7.88%, 07/15/2026(c)		228,000		221,822
Flex Ltd., 3.75%, 02/01/2026		4,069,000		4,317,330
Ford Motor Co.,
8.50%, 04/21/2023		649,000		687,534
9.00%, 04/22/2025		157,000		170,051
9.63%, 04/22/2030		84,000		99,639
4.75%, 01/15/2043		241,000		190,931
Ford Motor Credit Co. LLC,
5.58%, 03/18/2024		1,135,000		1,148,353
5.13%, 06/16/2025		204,000		204,975
4.13%, 08/04/2025		2,500,000		2,378,937
4.39%, 01/08/2026		138,000		131,036
Freeport-McMoRan, Inc.,
3.55%, 03/01/2022		13,000		13,029
4.55%, 11/14/2024		66,000		67,244
5.40%, 11/14/2034		1,223,000		1,212,412
5.45%, 03/15/2043		64,000		62,937
Frontier Communications Corp.,
10.50%, 09/15/2022(b)		732,000		255,113
11.00%, 09/15/2025(b)		105,000		36,642
Genesis Energy L.P./Genesis Energy Finance Corp.,
6.50%, 10/01/2025		150,000		128,717
6.25%, 05/15/2026		274,000		236,035
7.75%, 02/01/2028		112,000		99,785
Golden Nugget, Inc., 8.75%, 10/01/2025(c)		300,000		170,435
Gray Television, Inc.,
5.13%, 10/15/2024(c)		143,000		143,373
5.88%, 07/15/2026(c)		136,000		135,805
Gulfport Energy Corp.,
6.63%, 05/01/2023		76,000		45,487
6.00%, 10/15/2024		85,000		43,616
6.38%, 05/15/2025		78,000		39,191

See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.

Invesco Oppenheimer V.I. Global Strategic Income Fund

	Principal       Amount		Value
United States–(continued)
Hadrian Merger Sub, Inc., 8.50%, 05/01/2026(c)	$	445,000	$	404,478
Hanesbrands, Inc., 5.38%, 05/15/2025(c)		308,000		312,042
4.88%, 05/15/2026(c)		222,000		224,179
HCA, Inc., 5.38%, 02/01/2025		133,000		142,849
5.38%, 09/01/2026		654,000		713,645
5.63%, 09/01/2028		163,000		182,325
4.13%, 06/15/2029		491,000		542,101
Herbalife Nutrition Ltd./HLF Financing, Inc., 7.88%, 09/01/2025(c)		245,000		253,422
Herc Holdings, Inc., 5.50%, 07/15/2027(c)		281,000		282,315
Hess Midstream Operations L.P., 5.63%, 02/15/2026(c)		465,000		461,173
HighPoint Operating Corp., 8.75%, 06/15/2025		81,000		19,845
Hilcorp Energy I L.P./Hilcorp Finance Co., 6.25%, 11/01/2028(c)		298,000		240,206
Hillenbrand, Inc., 5.75%, 06/15/2025		127,000		131,604
HLF Financing S.a.r.l. LLC/Herbalife International, Inc., 7.25%, 08/15/2026(c)		250,000		251,641
Holly Energy Partners L.P./Holly Energy Finance Corp., 5.00%, 02/01/2028(c)		109,000		104,078
Honeywell International, Inc., 1.35%, 06/01/2025		1,300,000		1,335,897
Howmet Aerospace, Inc., 6.88%, 05/01/2025		163,000		177,218
HP, Inc., 2.20%, 06/17/2025		3,900,000		4,035,005
Hughes Satellite Systems Corp.,
5.25%, 08/01/2026		217,000		225,194
6.63%, 08/01/2026		207,000		215,578
Icahn Enterprises L.P./Icahn Enterprises Finance Corp., 6.75%, 02/01/2024		147,000		148,638
6.38%, 12/15/2025		124,000		123,083
6.25%, 05/15/2026		94,000		94,350
iHeartCommunications, Inc., 8.38%, 05/01/2027		327,000		300,246
Ingles Markets, Inc., 5.75%, 06/15/2023		145,000		146,177
International Game Technology PLC, 6.25%, 02/15/2022(c)		1,279,000		1,293,836
Intrado Corp., 5.38%, 07/15/2022(c)		526,000		398,445
IRB Holding Corp., 7.00%, 06/15/2025(c)		84,000		86,573
Iron Mountain US Holdings, Inc. REIT, 5.38%, 06/01/2026(c)		347,000		349,970

	Principal       Amount		Value
United States–(continued)
Iron Mountain, Inc. REIT, 4.88%, 09/15/2027(c)	$	109,000	$	106,503
5.25%, 03/15/2028(c)		155,000		154,584
4.88%, 09/15/2029(c)		246,000		239,481
5.25%, 07/15/2030(c)		396,000		389,001
iStar, Inc. REIT, 4.75%, 10/01/2024		584,000		546,466
J.B. Poindexter & Co., Inc., 7.13%, 04/15/2026(c)		609,000		617,258
JBS Investments GmbH, 6.25%, 02/05/2023(c)		1,250,000		1,245,181
JBS USA LUX S.A./JBS USA Food Co./JBS USA Finance, Inc., 5.50%, 01/15/2030(c)		335,000		343,941
Kellogg Co., 2.10%, 06/01/2030		2,600,000		2,639,139
Kenan Advantage Group, Inc. (The), 7.88%, 07/31/2023(c)		434,000		383,502
Kohl’s Corp., 9.50%, 05/15/2025		33,000		37,675
Koppers, Inc., 6.00%, 02/15/2025(c)		379,000		369,756
Kraft Heinz Foods Co. (The), 5.00%, 06/04/2042		265,000		279,508
5.50%, 06/01/2050(c)		351,000		375,421
L Brands, Inc., 6.88%, 11/01/2035		367,000		306,794
Lamar Media Corp., 5.75%, 02/01/2026		177,000		183,007
Lennar Corp., 4.50%, 04/30/2024		89,000		92,773
4.75%, 05/30/2025		244,000		261,106
5.25%, 06/01/2026		162,000		175,537
5.00%, 06/15/2027		381,000		412,836
Level 3 Financing, Inc., 5.38%, 05/01/2025		460,000		470,973
5.25%, 03/15/2026		645,000		666,069
Lions Gate Capital Holdings LLC,
6.38%, 02/01/2024(c)		156,000		152,586
5.88%, 11/01/2024(c)		299,000		286,635
Lithia Motors, Inc.,
5.25%, 08/01/2025(c)		452,000		453,648
4.63%, 12/15/2027(c)		126,000		125,055
Louisiana-Pacific Corp., 4.88%, 09/15/2024		816,000		825,266
Macy’s, Inc., 8.38%, 06/15/2025(c)		579,000		577,191
Marriott International, Inc., 4.63%, 06/15/2030		780,000		812,551
Marriott Ownership Resorts, Inc., 4.75%, 01/15/2028(c)		713,000		649,857
Mattel, Inc., 6.75%, 12/31/2025(c)		281,000		292,025
McDermott Technology Americas, Inc./McDermott Technology U.S., Inc., 10.63%, 12/31/2049(b)(c)		1,470,000		97,851
Meredith Corp., 6.88%, 02/01/2026		384,000		319,730

See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.

Invesco Oppenheimer V.I. Global Strategic Income Fund

	Principal Amount		Value
United States–(continued)
Meritage Homes Corp., 5.13%, 06/06/2027	$	337,000	$	348,310
MGM Growth Properties Operating Partnership L.P./MGP Finance Co.-Issuer, Inc. REIT,
5.63%, 05/01/2024		233,000		242,943
5.75%, 02/01/2027		70,000		71,860
MGM Resorts International,
6.00%, 03/15/2023		758,000		767,555
6.75%, 05/01/2025		319,000		317,231
5.75%, 06/15/2025		82,000		81,335
4.63%, 09/01/2026		221,000		201,752
Michaels Stores, Inc., 8.00%, 07/15/2027(c)		410,000		357,032
Micron Technology, Inc., 4.66%, 02/15/2030		424,000		493,578
MPT Operating Partnership L.P./MPT Finance Corp. REIT,
6.38%, 03/01/2024		52,000		53,641
5.00%, 10/15/2027		52,000		53,594
4.63%, 08/01/2029		466,000		469,132
Murphy Oil USA, Inc., 5.63%, 05/01/2027		250,000		259,015
Murray Energy Corp., 12.00%, 04/15/2024(b)(c)		2,352,945		2,965
Nationstar Mortgage Holdings, Inc., 6.00%, 01/15/2027(c)		77,000		73,282
Navient Corp.,
6.63%, 07/26/2021		157,000		154,301
6.50%, 06/15/2022		147,000		144,887
6.13%, 03/25/2024		288,000		274,497
5.88%, 10/25/2024		210,000		197,924
6.75%, 06/25/2025		203,000		194,753
6.75%, 06/15/2026		110,000		102,555
5.00%, 03/15/2027		277,000		233,288
NetApp, Inc., 1.88%, 06/22/2025		1,820,000		1,845,814
Netflix, Inc.,
5.88%, 11/15/2028		1,134,000		1,291,722
5.38%, 11/15/2029(c)		262,000		288,127
NGL Energy Partners L.P./NGL Energy Finance Corp.,
7.50%, 11/01/2023		82,000		68,315
6.13%, 03/01/2025		245,000		185,868
7.50%, 04/15/2026		98,000		74,709
NMI Holdings, Inc., 7.38%, 06/01/2025(c)		65,000		68,177
Nordstrom, Inc., 8.75%, 05/15/2025(c)		290,000		312,338
Novelis Corp., 4.75%, 01/30/2030(c)		226,000		216,390
NRG Energy, Inc.,
6.63%, 01/15/2027		376,000		393,484
5.25%, 06/15/2029(c)		217,000		228,849
Nucor Corp.,
2.00%, 06/01/2025		780,000		810,753
2.70%, 06/01/2030		780,000		819,911
NuStar Logistics L.P.,
4.80%, 09/01/2020		156,000		156,563
6.00%, 06/01/2026		543,000		533,071

	Principal Amount		Value
United States–(continued)
Occidental Petroleum Corp.,
2.70%, 08/15/2022	$	900,000	$	839,515
2.70%, 02/15/2023		287,000		262,964
6.95%, 07/01/2024		165,000		162,525
2.90%, 08/15/2024		996,000		853,562
3.20%, 08/15/2026		544,000		441,513
6.20%, 03/15/2040		249,000		209,627
OI European Group B.V., 4.00%, 03/15/2023(c)		240,000		237,258
Olin Corp.,
5.13%, 09/15/2027		73,000		68,467
5.63%, 08/01/2029		626,000		576,718
5.00%, 02/01/2030		78,000		69,211
Omnicare, Inc., 4.75%12/01/2022		1,765,000		1,884,356
Owens-Brockway Glass Container, Inc.,
5.00%, 01/15/2022(c)		36,000		36,080
6.63%, 05/13/2027(c)		96,000		100,020
Par Pharmaceutical, Inc., 7.50%, 04/01/2027(c)		324,000		333,573
Parsley Energy LLC/Parsley Finance Corp.,
5.38%, 01/15/2025(c)		115,000		112,089
4.13%, 02/15/2028(c)		97,000		88,028
Party City Holdings, Inc., 6.63%, 08/01/2026(c)		145,000		32,625
PBF Holding Co. LLC/PBF Finance Corp.,
7.25%, 06/15/2025		111,000		101,022
6.00%, 02/15/2028(c)		217,000		180,653
PDC Energy, Inc., 5.75%, 05/15/2026		296,000		270,294
Penn National Gaming, Inc., 5.63%, 01/15/2027(c)		185,000		173,241
Penske Automotive Group, Inc., 5.50%, 05/15/2026		337,000		336,938
PetSmart, Inc., 5.88%, 06/01/2025(c)		167,000		167,936
Phillips 66,
3.85%, 04/09/2025		3,120,000		3,461,996
2.15%, 12/15/2030		3,900,000		3,783,043
Pilgrim’s Pride Corp.,
5.75%, 03/15/2025(c)		158,000		157,769
5.88%, 09/30/2027(c)		223,000		223,561
Plains All American Pipeline L.P./PAA Finance Corp., 3.80%, 09/15/2030		780,000		769,701
Post Holdings, Inc., 4.63%, 04/15/2030(c)		228,000		224,158
Prime Security Services Borrower LLC/Prime Finance, Inc., 5.75%, 04/15/2026(c)		290,000		301,191
QEP Resources, Inc.,
6.88%, 03/01/2021		156,000		149,546
5.63%, 03/01/2026		260,000		165,920
QUALCOMM, Inc., 3.25%, 05/20/2050		780,000		856,937
Quicken Loans LLC,
5.75%, 05/01/2025(c)		93,000		95,315
5.25%, 01/15/2028(c)		98,000		102,205

See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.

Invesco Oppenheimer V.I. Global Strategic Income Fund

	Principal Amount		Value
United States–(continued)
Ralph Lauren Corp., 1.70%, 06/15/2022	$	780,000	$	793,819
Roper Technologies, Inc., 2.00%, 06/30/2030		780,000		781,417
Royal Caribbean Cruises Ltd.,
10.88%, 06/01/2023(c)		153,000		157,306
9.13%, 06/15/2023(c)		151,000		149,887
11.50%, 06/01/2025(c)		39,000		40,686
RR Donnelley & Sons Co., 8.25%, 07/01/2027		165,000		163,763
Sally Holdings LLC/Sally Capital, Inc., 8.75%, 04/30/2025(c)		183,000		198,898
SBA Communications Corp. REIT, 4.00%, 10/01/2022		186,000		188,514
Scientific Games International, Inc.,
8.63%, 07/01/2025(c)		135,000		126,522
8.25%, 03/15/2026(c)		124,000		110,261
7.00%, 05/15/2028(c)		186,000		149,114
Seagate HDD Cayman, 4.13%, 01/15/2031(c)		1,040,000		1,091,867
Sensata Technologies B.V., 5.63%, 11/01/2024(c)		163,000		173,374
Sherwin-Williams Co. (The), 2.30%, 05/15/2030		2,965,000		3,029,601
Silgan Holdings, Inc., 4.13%, 02/01/2028(c)		232,000		230,550
Simmons Foods, Inc.,
7.75%, 01/15/2024(c)		76,000		79,560
5.75%, 11/01/2024(c)		214,000		203,857
Southwestern Energy Co.,
6.20%, 01/23/2025		44,000		37,812
7.50%, 04/01/2026		307,000		269,686
Spectrum Brands, Inc.,
6.13%, 12/15/2024		153,000		157,765
5.00%, 10/01/2029(c)		295,000		292,363
Spirit AeroSystems, Inc., 7.50%, 04/15/2025(c)		163,000		161,472
Springleaf Finance Corp.,
6.88%, 03/15/2025		434,000		446,262
8.88%, 06/01/2025		356,000		381,299
7.13%, 03/15/2026		543,000		562,681
Standard Industries, Inc.,
5.38%, 11/15/2024(c)		231,000		238,072
6.00%, 10/15/2025(c)		531,000		548,196
5.00%, 02/15/2027(c)		112,000		113,725
Station Casinos LLC, 4.50%, 02/15/2028(c)		147,000		123,939
Steel Dynamics, Inc.,
2.40%, 06/15/2025		780,000		804,273
3.25%, 01/15/2031		780,000		794,425
Stryker Corp.,
1.15%, 06/15/2025		1,820,000		1,833,330
1.95%, 06/15/2030		1,820,000		1,830,082
Suburban Propane Partners L.P./Suburban Energy Finance Corp., 5.88%, 03/01/2027		182,000		180,828
SunCoke Energy Partners L.P./SunCoke Energy Partners Finance Corp., 7.50%, 06/15/2025(c)		818,000		693,922

	Principal Amount		Value
United States–(continued)
Sunoco L.P./Sunoco Finance Corp.,
6.00%, 04/15/2027	$	70,000	$	69,460
5.88%, 03/15/2028		487,000		485,159
Sysco Corp.,
3.75%, 10/01/2025		1,761,000		1,930,309
3.30%, 02/15/2050		2,055,000		1,925,381
Talen Energy Supply LLC, 7.63%, 06/01/2028(c)		169,000		169,317
Targa Resources Partners L.P./Targa Resources Partners Finance Corp.,
5.13%, 02/01/2025		391,000		377,555
5.88%, 04/15/2026		781,000		775,018
6.50%, 07/15/2027		70,000		70,350
5.00%, 01/15/2028		246,000		232,048
5.50%, 03/01/2030(c)		75,000		72,492
Taylor Morrison Communities, Inc.,
5.88%, 01/31/2025(c)		198,000		201,899
5.75%, 01/15/2028(c)		272,000		281,128
Taylor Morrison Communities, Inc./Taylor Morrison Holdings II, Inc., 5.88%, 04/15/2023(c)		266,000		274,285
TEGNA, Inc., 5.50%, 09/15/2024(c)		139,000		140,608
Teleflex, Inc., 4.88%, 06/01/2026		393,000		406,936
Tenet Healthcare Corp.,
7.50%, 04/01/2025(c)		117,000		124,824
5.13%, 11/01/2027(c)		383,000		379,017
4.63%, 06/15/2028(c)		51,000		50,091
Tenneco, Inc., 5.38%, 12/15/2024		417,000		284,559
Terraform Global Operating LLC, 6.13%, 03/01/2026(c)		227,000		224,403
TerraForm Power Operating LLC,
4.25%, 01/31/2023(c)		104,000		104,844
5.00%, 01/31/2028(c)		29,000		30,372
Titan International, Inc., 6.50%, 11/30/2023		574,000		376,920
T-Mobile USA, Inc.,
4.00%, 04/15/2022		199,000		204,400
6.00%, 04/15/2024		154,000		157,822
5.13%, 04/15/2025		92,000		94,357
4.75%, 02/01/2028		284,000		300,365
Toyota Motor Credit Corp.,
1.35%, 08/25/2023		3,900,000		3,980,398
1.80%, 02/13/2025		2,600,000		2,696,772
TransDigm, Inc.,
6.50%, 07/15/2024		240,000		231,575
6.38%, 06/15/2026		469,000		429,491
Transocean, Inc., 8.00%, 02/01/2027(c)		93,000		52,661
TreeHouse Foods, Inc., 6.00%, 02/15/2024(c)		438,000		447,901
Triumph Group, Inc., 7.75%, 08/15/2025		389,000		294,181
United Airlines Holdings, Inc.,
4.25%, 10/01/2022		214,000		182,235
4.88%, 01/15/2025		173,000		138,684

See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.

Invesco Oppenheimer V.I. Global Strategic Income Fund

	Principal Amount		Value
United States–(continued)
United Rentals North America, Inc.,
5.88%, 09/15/2026	$	744,000	$	780,542
6.50%, 12/15/2026		313,000		329,245
5.25%, 01/15/2030		335,000		346,663
Upjohn, Inc.,
1.65%, 06/22/2025(c)		1,560,000		1,592,215
3.85%, 06/22/2040(c)		780,000		839,440
4.00%, 06/22/2050(c)		780,000		838,556
Vericast Corp., 8.38%, 08/15/2022(c)		106,000		89,197
Verizon Communications, Inc., 3.15%, 03/22/2030		3,900,000		4,417,419
VICI Properties L.P./VICI Note Co., Inc. REIT,
3.50%, 02/15/2025(c)		106,000		99,889
3.75%, 02/15/2027(c)		107,000		100,764
4.13%, 08/15/2030(c)		107,000		102,219
Viking Cruises Ltd., 13.00%, 05/15/2025(c)		48,000		50,850
Vistra Operations Co. LLC,
5.50%, 09/01/2026(c)		87,000		89,266
5.63%, 02/15/2027(c)		149,000		153,238
5.00%, 07/31/2027(c)		326,000		331,786
Wabtec Corp., 3.20%, 06/15/2025		780,000		797,172
Walt Disney Co. (The),
1.75%, 01/13/2026		780,000		803,559
2.65%, 01/13/2031		2,600,000		2,761,715
3.60%, 01/13/2051		2,600,000		2,904,776
WESCO Distribution, Inc., 7.25%, 06/15/2028(c)		254,000		268,496
Western Midstream Operating L.P.,
3.10%, 02/01/2025		130,000		123,471
4.75%, 08/15/2028		304,000		292,600
Whiting Petroleum Corp.,
5.75%, 03/15/2021(b)		410,000		79,438
6.63%, 01/15/2026(b)		831,000		148,978
William Carter Co. (The),
5.50%, 05/15/2025(c)		80,000		82,650
5.63%, 03/15/2027(c)		225,000		232,404
WPX Energy, Inc.,
5.75%, 06/01/2026		406,000		394,999
5.25%, 10/15/2027		48,000		44,922
5.88%, 06/15/2028		26,000		24,960
4.50%, 01/15/2030		27,000		23,910
WRKCo, Inc., 3.00%, 06/15/2033		1,820,000		1,902,895
Wynn Las Vegas LLC/Wynn Las Vegas Capital Corp., 5.50%, 03/01/2025(c)		310,000		284,640
Wynn Resorts Finance LLC/ Wynn Resorts Capital Corp., 5.13%, 10/01/2029(c)		237,000		212,226
XPO Logistics, Inc.,
6.13%, 09/01/2023(c)		313,000		317,728
6.75%, 08/15/2024(c)		147,000		154,380
				184,306,639

	Principal Amount		Value
Zambia–0.05%
First Quantum Minerals Ltd., 7.25%, 04/01/2023(c)		$       524,000	$	503,729
Total U.S. Dollar Denominated Bonds & Notes (Cost $375,055,940)				368,812,279
Non-U.S. Dollar Denominated Bonds & Notes–29.41%
Argentina–1.99%
Argentina Treasury Bond BONCER,
1.00%, 08/05/2021	ARS	1,134,126,525		17,758,643
1.40%, 03/25/2023	ARS	69,727,000		901,959
1.50%, 03/25/2024	ARS	51,260,000		617,243
4.00%, 04/27/2025	ARS	29,500,000		792,185
Argentine Bonos del Tesoro, 18.20%, 10/03/2021	ARS	9,285,000		108,126
				20,178,156
Australia–1.63%
Australia Government Bond, Series 156, 2.75%, 05/21/2041(c)	AUD	20,000,000		16,588,680
Austria–0.34%
Republic of Austria Government Bond, 0.85%, 06/30/2120(c)	EUR	2,730,000		3,410,813
Belgium–0.07%
KBC Group N.V., 4.25% (5 yr. EUR Swap Rate + 3.59%)(c)(d)(e)	EUR	600,000		647,136
Sarens Finance Co. N.V., 5.75%, 02/21/2027(c)	EUR	107,000		95,059
				742,195
Brazil–0.35%
Brazil Notas do Tesouro Nacional, Series B, 6.00%, 05/15/2045	BRL	3,400,000		2,637,350
Swiss Insured Brazil Power Finance S.a r.l., 9.85%, 07/16/2032(c)	BRL	4,500,000		947,482
				3,584,832
Colombia–0.33%
Colombian Titulos De Tesoreria, Series B, 10.00%, 07/24/2024	COP	10,146,000,000		3,325,994
Croatia–0.04%
Croatia Government Bond, 1.50%, 06/17/2031(c)	EUR	390,000		439,067
Cyprus–1.11%
Cyprus Government International Bond,
1.25%, 01/21/2040(c)	EUR	3,710,000		4,076,842
2.25%, 04/16/2050(c)	EUR	5,725,000		7,171,719
				11,248,561
Denmark–0.04%
Danske Bank A/S, 5.88% (EUSA7 + 5.47%)(c)(d)(e)	EUR	360,000		409,154

See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.

Invesco Oppenheimer V.I. Global Strategic Income Fund

		Principal Amount		Value
Egypt–0.70%
Egypt Government Bond,
16.00%, 12/12/2020	EGP		29,000,000	$	1,826,077
16.00%, 06/11/2022	EGP		50,300,000		3,257,712
Egypt Government International Bond, 4.75%, 04/16/2026(c)	EUR		1,900,000		2,033,232
					7,117,021
France–0.40%
Credit Agricole S.A., 6.50% (5 yr. EUR Swap Rate + 5.12%)(c)(d)(e)	EUR		1,560,000		1,788,971
La Mondiale SAM, 5.05% (5 yr. EUR Swap Rate + 5.05%)(c)(d)(e)	EUR		825,000		1,025,378
Rubis Terminal Infra S.A.S, 5.63%, 05/15/2025(c)	EUR		100,000		116,668
Societe Generale S.A., 6.75% (5 yr. EUR Swap Rate + 5.54%)(c)(d)(e)	EUR		1,031,000		1,152,360
					4,083,377
Germany–0.30%
Deutsche Bank AG, 2.63%, 02/12/2026(c)	EUR		2,450,000		2,892,779
Nidda Healthcare Holding GmbH, 3.50%, 09/30/2024(c)	EUR		100,000		109,872
					3,002,651
Greece–5.80%
Hellenic Republic Government Bond,
1.88%, 07/23/2026(c)	EUR		8,320,000		9,952,488
2.00%, 04/22/2027(c)	EUR		16,625,000		20,010,495
1.50%, 06/18/2030(c)	EUR		25,000,000		28,876,222
Series GDP, 0.00%, 10/15/2042(f)	EUR		23,730,000		80,382
					58,919,587
India–2.51%
Export-Import Bank of India,
Series T-03, 8.00%, 05/27/2021	INR		80,000,000		1,093,844
Series U-01, 7.35%, 05/18/2022	INR		70,000,000		972,548
India Government Bond,
7.72%, 05/25/2025	INR		15,000,000		219,327
8.20%, 09/24/2025	INR		215,600,000		3,205,953
7.59%, 01/11/2026	INR		300,000,000		4,349,370
8.24%, 02/15/2027	INR		215,000,000		3,157,923
7.17%, 01/08/2028	INR		155,000,000		2,200,685
LIC Housing Finance Ltd., Series 351, 7.45%, 10/17/2022	INR		70,000,000		960,711
National Bank for Agriculture and Rural Development, Series 19D, 8.39%, 07/19/2021	INR		55,000,000		757,557
Power Finance Corp. Ltd.,
Series 150, 7.50%, 08/16/2021	INR		140,000,000		1,907,469
Series 154, 7.27%, 12/22/2021	INR		140,000,000		1,915,867

		Principal Amount		Value
India–(continued)
REC Ltd., Series 139, 7.24%, 10/21/2021	INR		140,000,000	$	1,904,844
Reliance Industries Ltd., Series A, 7.00%, 08/31/2022	INR		210,000,000		2,880,773
					25,526,871
Indonesia–3.11%
Indonesia Treasury Bond,
Series FR56, 8.38%, 09/15/2026	IDR		104,095,000,000		7,873,619
Series FR64, 6.13%, 05/15/2028	IDR		20,000,000,000		1,314,806
Series FR77, 8.13%, 05/15/2024	IDR		41,000,000,000		3,038,047
Series FR78, 8.25%, 05/15/2029	IDR		29,100,000,000		2,175,217
Series FR82, 7.00%, 09/15/2030	IDR		55,000,000,000		3,797,060
Series FR83, 7.50%, 04/15/2040	IDR		21,250,000,000		1,470,393
Indonesian Treasury Bond,
Series FR59, 7.00%, 05/15/2027	IDR		90,000,000,000		6,319,216
Series FR74, 7.50%, 08/15/2032	IDR		72,480,000,000		5,009,923
PT Jasa Marga (Persero) Tbk, 7.50%, 12/11/2020(c)	IDR		9,160,000,000		624,451
					31,622,732
Italy–2.13%
Banca Monte dei Paschi di Siena S.p.A., 5.38% (5 yr. EUR Swap Rate + 5.01%), 01/18/2028(c)(e)	EUR		750,000		757,098
Intesa Sanpaolo S.p.A., 1.75%, 07/04/2029(c)	EUR		260,000		293,842
7.00% (5 yr. EUR Swap Rate + 6.88%)(c)(d)(e)	EUR		1,300,000		1,457,526
Italy Buoni Poliennali Del Tesoro, 2.80%, 03/01/2067(c)	EUR		13,861,000		17,350,684
UniCredit S.p.A.,
1.80%, 01/20/2030(c)	EUR		625,000		679,955
6.63% (5 yr. EUR Swap Rate + 6.39%)(c)(d)(e)	EUR		500,000		552,384
Unipol Gruppo S.p.A., 3.50%, 11/29/2027(c)	EUR		500,000		576,002
					21,667,491
Ivory Coast–0.43%
Ivory Coast Government
International Bond,
5.25%, 03/22/2030(c)	EUR		1,819,000		1,909,869
6.88%, 10/17/2040(c)	EUR		2,330,000		2,459,034
					4,368,903
Mexico–0.19%
Banco Invex S.A./ Hipotecaria Credito y Casa S.A. de C.V., Series 062U, 6.45%, 03/13/2034(b)(g)	MXN		4,830,531		0
J.P. Morgan S.A./ Hipotecaria Su Casita S.A. de C.V., 6.47%, 08/26/2035(c)(g)	MXN		5,808,600		29,244

See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.

Invesco Oppenheimer V.I. Global Strategic Income Fund

		Principal       Amount		Value
Mexico–(continued)
Mexican Bonos, Series M, 5.75%, 03/05/2026	MXN		24,445,000	$	1,092,779
Petroleos Mexicanos, 3.75%, 04/16/2026(c)	EUR		766,000		759,803
					1,881,826
Netherlands–0.59%
ABN AMRO Bank N.V., 5.75% (5 yr. EUR Swap Rate + 5.45%)(c)(d)(e)	EUR		1,300,000		1,460,830
Cooperatieve Rabobank U.A., 4.63% (5 yr. EUR Swap Rate + 4.10%)(c)(d)(e)	EUR		1,800,000		2,050,106
3.25% (5 yr. EUR Swap Rate + 3.70%)(c)(d)(e)	EUR		800,000		828,605
Nouryon Holding B.V., 6.50%, 10/01/2026(c)	EUR		1,455,000		1,659,212
					5,998,753
Portugal–0.46%
Banco Comercial Portugues S.A., 4.50% (5 yr. EUR Swap Rate + 4.27%), 12/07/2027(c)(e)	EUR		500,000		562,244
Caixa Geral de Depositos S.A., 10.75% (5 yr. EUR Swap Rate + 10.93%)(c)(d)(e)	EUR		2,400,000		2,955,590
Novo Banco S.A.,
3.50%, 02/19/2043(c)	EUR		750,000		686,576
3.50%, 03/18/2043(c)	EUR		500,000		456,764
					4,661,174
Romania–0.11%
Romanian Government International Bond, 3.62%, 05/26/2030(c)	EUR		910,000		1,105,791
Russia–1.73%
Mos.ru, 5.00%, 08/22/2034	RUB		22,725,040		8,679
Russia Government Bond, Series 6212, 7.05%, 01/19/2028	RUB		250,000,000		3,836,565
Russian Federal Bond - OFZ,
Series 6221, 7.70%, 03/23/2033	RUB		133,300,000		2,145,733
Series 6225, 7.25%, 05/10/2034	RUB		537,500,000		8,389,056
Series 6228, 7.65%, 04/10/2030	RUB		200,000,000		3,186,651
					17,566,684
South Africa–2.12%
Republic of South Africa Government Bond,
Series 2032, 8.25%, 03/31/2032	ZAR		86,400,000		4,348,153
Series 2037, 8.50%, 01/31/2037	ZAR		9,400,000		438,678
Series 2048, 8.75%, 02/28/2048	ZAR		54,000,000		2,454,701
Series R186, 10.50%, 12/21/2026	ZAR		216,775,000		14,258,867
					21,500,399

		Principal       Amount		Value
Spain–1.70%
Banco Bilbao Vizcaya Argentaria S.A.,
5.88% (5 yr. EUR Swap Rate + 5.78%)(c)(d)(e)	EUR		825,000	$	906,432
8.88% (5 yr. EUR Swap Rate + 9.18%)(c)(d)(e)	EUR		220,000		256,114
Banco Santander S.A.,
4.38% (5 yr. EUR Swap Rate + 4.53%)(c)(d)(e)	EUR		600,000		611,722
6.25% (5 yr. EUR Swap Rate + 5.64%)(c)(d)(e)	EUR		1,600,000		1,726,023
Bankinter S.A., 8.63% (5 yr. EUR Swap Rate + 8.87%)(c)(d)(e)	EUR		1,145,000		1,327,906
Spain Government Bond,
1.20%, 10/31/2040(c)	EUR		5,500,000		6,344,635
3.45%, 07/30/2066(c)	EUR		3,300,000		6,112,910
					17,285,742
Supranational–0.16%
African Development Bank, 0.00%, 01/17/2050(f)	ZAR		78,000,000		685,110
European Bank for Reconstruction and Development, 6.85%, 06/21/2021	IDR		10,600,000,000		729,749
International Finance Corp., 0.00%, 02/15/2029(c)(f)	TRY		3,700,000		217,398
					1,632,257
United Kingdom–0.66%
Barclays PLC,
7.25% (5 yr. GBP Swap Rate + 6.46%)(c)(d)(e)	GBP		625,000		771,491
7.13% (5 yr. UK Gilt Rate + 6.58%)(d)(e)	GBP		625,000		767,855
eG Global Finance PLC, 6.25%, 10/30/2025(c)	EUR		150,000		164,522
HSBC Holdings PLC,
5.25% (5 yr. EUR Swap Rate + 4.38%)(c)(d)(e)	EUR		1,620,000		1,814,766
6.00% (5 yr. EUR Swap Rate + 5.34%)(c)(d)(e)	EUR		2,205,000		2,583,058
Nationwide Building Society, 5.75% (5 yr. UK Gilt Rate + 5.63%)(c)(d)(e)	GBP		520,000		648,459
					6,750,151
United States–0.41%
AT&T, Inc.,
2.05%, 05/19/2032	EUR		1,820,000		2,132,177
Series B, 2.88%(d)	EUR		700,000		748,443
Upjohn Finance B.V.,
1.36%, 06/23/2027(c)	EUR		390,000		441,956
1.91%, 06/23/2032(c)	EUR		780,000		890,509
					4,213,085
Total Non-U.S. Dollar Denominated Bonds & Notes (Cost $326,576,429)					298,831,947

See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.

Invesco Oppenheimer V.I. Global Strategic Income Fund

	Principal       Amount		Value
Asset-Backed Securities–11.73%
American Credit Acceptance Receivables Trust,
Series 2017-4, Class C, 2.94%, 01/10/2024(c)	$	6,280	$	6,283
Series 2019-2, Class D, 3.41%, 06/12/2025(c)		1,720,000		1,758,649
AmeriCredit Automobile Receivables Trust,
Series 2019-3, Class D, 2.58%, 09/18/2025		1,550,000		1,542,027
Series 2020-1, Class D, 1.80%, 12/18/2025		2,350,000		2,275,463
Series 2017-4, Class D, 3.08%, 12/18/2023		375,000		383,721
Series 2019-2, Class C, 2.74%, 04/18/2025		1,185,000		1,220,978
Series 2019-2, Class D, 2.99%, 06/18/2025		3,290,000		3,316,371
Bear Stearns Adjustable Rate Mortgage Trust, Series 2006-1, Class A1, 3.84% (1 yr. U.S. Treasury Yield Curve Rate + 2.25%), 02/25/2036(e)		21,296		21,109
Benchmark Mortgage Trust, Series 2018-B1, Class XA, 0.66%, 01/15/2051(i)		5,706,120		171,675
Capital Auto Receivables Asset Trust, Series 2017-1, Class D, 3.15%, 02/20/2025(c)		110,000		111,769
CarMax Auto Owner Trust,
Series 2019-3, Class D, 2.85%, 01/15/2026		990,000		1,001,661
Series 2017-4, Class D, 3.30%, 05/15/2024		280,000		283,785
Series 2018-1, Class D, 3.37%, 07/15/2024		195,000		196,833
CCG Receivables Trust,
Series 2018-1, Class C, 3.42%, 06/16/2025(c)		70,000		70,487
Series 2019-1, Class B, 3.22%, 09/14/2026(c)		140,000		143,490
Series 2019-1, Class C, 3.57%, 09/14/2026(c)		35,000		35,622
Series 2018-1, Class B, 3.09%, 06/16/2025(c)		240,000		241,896
CD Mortgage Trust, Series 2017-CD6, Class XA, 1.10%, 11/13/2050(i)		2,272,553		97,223
Chase Mortgage Finance Trust, Series 2005-A2, Class 1A3, 3.90%, 01/25/2036(i)		8,214		7,702
CHL Mortgage Pass-Through Trust,
Series 2005-17, Class 1A8, 5.50%, 09/25/2035		299,929		296,101
Series 2005-JA, Class A7, 5.50%, 11/25/2035		316,950		312,265
Citigroup Commercial Mortgage Trust, Series 2017-C4, Class XA, 1.25%, 10/12/2050(i)		6,061,819		344,774

	Principal       Amount		Value
Citigroup Mortgage Loan Trust, Inc.,
Series 2005-2, Class 1A3, 4.22%, 05/25/2035(i)	$	359,584	$	355,860
Series 2006-AR1, Class 1A1, 3.88% (1 yr. U.S. Treasury Yield Curve Rate + 2.40%), 10/25/2035(e)		86,014		84,157
Series 2014-8, Class 1A2, 0.48% (1 mo. USD LIBOR + 0.29%), 07/20/2036(c)(e)		2,337,022		2,284,764
CNH Equipment Trust, Series 2017-C, Class B, 2.54%, 05/15/2025		185,000		186,930
COMM Mortgage Trust,
Series 2014-LC15, Class AM, 4.20%, 04/10/2047		455,000		484,906
Series 2014-CR21, Class AM, 3.99%, 12/10/2047		25,000		26,584
Commercial Mortgage Trust,
Series 2012-CR5, Class XA, 1.66%, 12/10/2045(i)		2,403,694		69,298
Series 2014-UBS6, Class AM, 4.05%, 12/10/2047		1,600,000		1,718,058
CPS Auto Receivables Trust, Series 2018-A, Class B, 2.77%, 04/18/2022(c)		6,342		6,347
Credit Acceptance Auto Loan Trust,
Series 2019-1A, Class B, 3.75%, 04/17/2028(c)		85,000		87,659
Series 2019-1A, Class C, 3.94%, 06/15/2028(c)		515,000		530,326
Series 2017-3A, Class C, 3.48%, 10/15/2026(c)		565,000		565,502
Series 2018-1A, Class C, 3.77%, 06/15/2027(c)		1,040,000		1,052,499
CWHEQ Revolving Home Equity Loan Trust,
Series 2005-G, Class 2A, 0.41% (1 mo. USD LIBOR + 0.23%), 12/15/2035(e)		12,683		12,447
Series 2006-H, Class 2A1A, 0.33% (1 mo. USD LIBOR + 0.15%), 11/15/2036(e)		13,670		10,271
Dell Equipment Finance Trust,
Series 2019-1, Class C, 3.14%, 03/22/2024(c)		270,000		272,869
Series 2019-2, Class D, 2.48%, 04/22/2025(c)		1,290,000		1,289,942
Deutsche Alt-B Securities, Inc. Mortgage Loan Trust, Series 2006-AB2, Class A1, 5.08%, 06/25/2036(i)		37,904		36,331
Deutsche Mortgage Securities, Inc., Series 2013-RS1, Class 1A2, 0.41% (1 mo. USD LIBOR + 0.22%), 07/22/2036(c)(e)		2,365,790		2,322,712

See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.

Invesco Oppenheimer V.I. Global Strategic Income Fund

	Principal       Amount		Value
Drive Auto Receivables Trust,
Series 2019-3, Class C, 2.90%, 08/15/2025	$	2,255,000	$	2,291,498
Series 2019-3, Class D, 3.18%, 10/15/2026		2,540,000		2,580,831
DT Auto Owner Trust,
Series 2019-3A, Class D, 2.96%, 04/15/2025(c)		875,000		879,897
Series 2019-2A, Class D, 3.48%, 02/18/2025(c)		285,000		289,414
Series 2019-4A, Class D, 2.85%, 07/15/2025(c)		2,050,000		2,061,393
Exeter Automobile Receivables Trust,
Series 2019-1A, Class D, 4.13%, 12/16/2024(c)		2,170,000		2,245,259
Series 2019-4A, Class D, 2.58%, 09/15/2025(c)		2,730,000		2,726,946
FREMF Mortgage Trust,
Series 2017-K62, Class B, 4.00%, 01/25/2050(c)(i)		280,000		300,490
Series 2013-K25, Class C, 3.74%, 11/25/2045(c)(i)		135,000		138,158
Series 2013-K26, Class C, 3.72%, 12/25/2045(c)(i)		95,000		97,256
Series 2013-K27, Class C, 3.62%, 01/25/2046(c)(i)		1,460,000		1,493,524
Series 2013-K28, Class C, 3.61%, 06/25/2046(c)(i)		2,330,000		2,386,952
Series 2013-K29, Class C, 3.60%, 05/25/2046(c)(i)		2,300,000		2,358,236
Series 2015-K44, Class B, 3.81%, 01/25/2048(c)(i)		2,310,000		2,467,050
Series 2015-K45, Class B, 3.71%, 04/25/2048(c)(i)		4,646,000		4,946,224
Series 2017-K724, Class B, 3.60%, 11/25/2023(c)(i)		1,535,000		1,609,214
Series 2016-K54, Class C, 4.19%, 04/25/2048(c)(i)		1,810,000		1,911,458
Series 2016-K723, Class C, 3.70%, 11/25/2023(c)(i)		815,000		831,997
GLS Auto Receivables Trust, Series 2018-1A, Class A, 2.82%, 07/15/2022(c)		141,329		141,776
GS Mortgage Securities Trust, Series 2013-GC16, Class AS, 4.65%, 11/10/2046		160,000		171,188
GSR Mortgage Loan Trust, Series 2005-AR, Class 6A1, 3.34%, 07/25/2035(i)		6,264		6,167
HomeBanc Mortgage Trust, Series 2005-3, Class A2, 0.79% (1 mo. USD LIBOR + 0.31%), 07/25/2035(e)		5,762		5,756
JP Morgan Chase Commercial Mortgage Securities Trust,
Series 2013-LC11, Class AS, 3.22%, 04/15/2046		235,000		240,008
Series 2014-C20, Class AS, 4.04%, 07/15/2047		630,000		666,967

	Principal       Amount		Value
JP Morgan Mortgage Trust, Series 2007-A1, Class 5A1, 3.97%, 07/25/2035(i)	$	27,573	$	26,759
JPMBB Commercial Mortgage Securities Trust, Series 2014-C24, Class B, 4.12%, 11/15/2047(i)		680,000		633,809
MASTR Asset Backed Securities Trust, Series 2006-WMC3, Class A3, 0.28% (1 mo. USD LIBOR + 0.10%), 08/25/2036(e)		808,705		354,029
Morgan Stanley BAML Trust,
Series 2013-C9, Class AS, 3.46%, 05/15/2046		570,000		587,286
Series 2014-C14, Class B, 4.92%, 02/15/2047(i)		240,000		252,052
Morgan Stanley Capital I Trust,
Series 2017-HR2, Class XA, 0.93%, 12/15/2050(i)		2,001,816		91,547
Navistar Financial Dealer Note Master Owner Trust II,
Series 2019-1, Class C, 1.13% (1 mo. USD LIBOR + 0.95%), 05/25/2024(c)(e)		270,000		268,832
Series 2019-1, Class D, 1.63% (1 mo. USD LIBOR + 1.45%), 05/25/2024(c)(e)		255,000		252,647
Prestige Auto Receivables Trust, Series 2019-1A, Class C, 2.70%, 10/15/2024(c)		1,410,000		1,429,931
RALI Trust, Series 2006-QS13, Class 1A8, 6.00%, 09/25/2036		9,996		9,155
Residential Asset Securitization Trust, Series 2005-A6CB, Class A7, 6.00%, 06/25/2035		1,416,116		1,251,153
Santander Drive Auto Receivables Trust,
Series 2019-2, Class D, 3.22%, 07/15/2025		170,000		174,611
Series 2019-3, Class D, 2.68%, 10/15/2025		1,910,000		1,908,309
Series 2017-2, Class D, 3.49%, 07/17/2023		190,000		193,280
Series 2018-2, Class D, 3.88%, 02/15/2024		145,000		147,960
Santander Retail Auto Lease Trust,
Series 2019-A, Class C, 3.30%, 05/22/2023(c)		2,680,000		2,722,675
Series 2019-B, Class C, 2.77%, 08/21/2023(c)		1,410,000		1,410,207
Series 2019-C, Class C, 2.39%, 11/20/2023(c)		2,365,000		2,345,616
SLM Student Loan Trust, Series 2004-5X, Class A6, 0.24% (3 mo. EURIBOR + 0.40%), 10/25/2039(c)(e)		EUR        8,041,255		8,578,300
Sonic Capital LLC, Series 2020-1A, Class A2I, 3.85%, 01/20/2050(c)		482,387		508,453

See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.

Invesco Oppenheimer V.I. Global Strategic Income Fund

		Principal       Amount		Value
UBS Commercial Mortgage Trust, Series 2017-C5, Class XA, 1.15%, 11/15/2050(i)		$	3,768,486	$	193,487
United Auto Credit Securitization Trust, Series 2019-1, Class C, 3.16%, 08/12/2024(c)			130,000		131,626
WaMu Mortgage Pass-Through Ctfs. Trust,
Series 2005-AR16, Class 1A1, 3.75%, 12/25/2035(i)			5,412		5,205
Series 2003-AR10, Class A7, 4.19%, 10/25/2033(i)			35,531		34,799
Wells Fargo Commercial Mortgage Trust, Series 2017-C42, Class XA, 1.03%, 12/15/2050(i)			2,777,679		145,787
Westlake Automobile Receivables Trust, Series 2020-1A, Class D, 2.80%, 06/16/2025(c)			2,565,000		2,567,392
WFRBS Commercial Mortgage Trust,
Series 2011-C3, Class XA, 1.48%, 03/15/2044(c)(i)			2,729,788		19,027
Series 2013-C14, Class AS, 3.49%, 06/15/2046			640,000		658,804
Series 2014-LC14, Class AS, 4.35%, 03/15/2047(i)			395,000		423,531
Series 2014-C20, Class AS, 4.18%, 05/15/2047			490,000		520,530
Madison Park Funding XI Ltd., Series 2013-11A, Class DR, 4.29% (3 mo. USD LIBOR + 3.25%), 07/23/2029(c)(e)			250,000		230,442
Alba PLC, Series 2007-1, Class F, 3.42% (3 mo. GBP LIBOR + 3.25%), 03/17/2039(c)(e)	GBP		426,258		484,717
Eurosail PLC, Series 2006-2X, Class E1C, 3.44% (3 mo. GBP LIBOR + 3.25%), 12/15/2044(c)(e)	GBP		1,830,000		1,940,523
Gemgarto PLC, Series 2018-1, Class E, 2.45% (3 mo. GBP LIBOR + 2.25%), 09/16/2065(c)(e) GBP			2,224,480		2,613,945
Hawksmoor Mortgage Funding PLC, Series 2019-1X, Class C, 2.17% (SONIO/N + 2.10%), 05/25/2053(c)(e)	GBP		4,040,000		4,912,905
Ludgate Funding PLC, Series 2007-1, Class MA, 0.38% (3 mo. GBP LIBOR + 0.24%), 01/01/2061(c)(e)	GBP		1,246,840		1,430,086
Towd Point Mortgage Funding, Series 2019-GR4X, Class C, 2.40% (3 mo. GBP LIBOR + 1.75%), 10/20/2051(c)(e)	GBP		3,700,000		4,561,551

		Principal       Amount		Value
Prosil Acquisition S.A., Series 2019-1, Class A, 1.77% (3 mo. EURIBOR + 2.00%), 10/31/2039(c)(e)	EUR		2,338,538	$	2,523,829
Alhambra SME Funding,
Series 2019-1, Class A, 2.00% (EUR001M + 2.00%), 11/30/2028(c)(e)	EUR		4,622,642		5,149,843
Series 2019-1, Class B, 2.50% (EUR001M + 2.50%), 11/30/2028(c)(e)	EUR		625,000		686,693
Series 2019-1, Class D, 8.75% (EUR001M + 9.25%), 11/30/2028(c)(e)	EUR		141,425		151,818
Futura Srl, Series 2019-1, Class A, 2.67% (6 mo. EURIBOR + 3.00%), 07/31/2044(c)(e)	EUR		2,740,000		2,928,499
BBVA Consumer Auto, Series 2018-1, Class C, 2.30%, 07/20/2031(c)	EUR		5,000,000		5,608,886
Element Rail Leasing I LLC, Series 2014-1A, Class A1, 2.30%, 04/19/2044(c)		$	40,576		40,721
Total Asset-Backed Securities (Cost $119,134,578)					119,196,262
U.S. Government Sponsored Agency Mortgage-Backed Securities–8.65%
Federal National Mortgage Association, 7.00%, 07/01/2032			29,408		34,239
Fannie Mae Interest STRIPS, IO, 5.50%, 04/25/2034			89,753		17,007
Fannie Mae Interest STRIPS, IO, 5.50%, 04/25/2034			48,978		9,218
Freddie Mac REMICs, IO, 5.82% (1 mo. USD LIBOR + 6.00%), 03/15/2024(e)			113,343		9,496
Fannie Mae REMICs, IO, 7.37% (1 mo. USD LIBOR + 7.55%), 10/25/2033(e)			227,905		52,928
Fannie Mae Interest STRIPS, IO, 5.50%, 06/25/2035			64,917		11,145
Fannie Mae Interest STRIPS, IO, 5.50%, 02/25/2035			32,242		5,889
Freddie Mac REMICs, IO, 6.52% (6.70% - 1 mo. USD LIBOR), 01/15/2035(e)			96,336		19,599
Fannie Mae REMICs, IO, 5.87% (6.05% - 1 mo. USD LIBOR), 03/25/2035(e)			277,314		53,017
Fannie Mae REMICs, IO, 6.52% (6.70% - 1 mo. USD LIBOR), 05/25/2035(e)			248,800		48,200
Fannie Mae REMICs, IO, 6.57% (6.75% - 1 mo. USD LIBOR), 05/25/2035(e)			377,874		62,128
Fannie Mae REMICs, IO, 6.42% (1 mo. USD LIBOR + 6.60%), 05/25/2035(e)			150,640		25,628
Freddie Mac REMICs, IO, 6.54% (1 mo. USD LIBOR + 6.72%), 05/15/2035(e)			199,334		42,435
Fannie Mae REMICs, IO, 6.52% (1 mo. USD LIBOR + 6.70%), 10/25/2031(e)			13,618		2,623

See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.

Invesco Oppenheimer V.I. Global Strategic Income Fund

	Principal Amount		Value
Fannie Mae REMICs, 4.50%, 08/25/2025	$	36,528	$	37,778
Fannie Mae Interest STRIPS, IO, 6.00%, 08/25/2035		41,957		9,190
Freddie Mac REMICs, 24.07% (24.75% - (3.67 x 1 mo. USD LIBOR)), 08/15/2035(e)		57,449		97,432
Fannie Mae REMICs, 5.50%, 12/25/2025		286,772		300,469
Fannie Mae REMICs, 23.89% (24.57% - (3.67 x 1 mo. USD LIBOR)), 03/25/2036(e)		58,364		98,737
Fannie Mae REMICs, 23.52% (24.20% - (3.67 x 1 mo. USD LIBOR)), 06/25/2036(e)		80,690		133,866
Fannie Mae REMICs, IO, 7.05% (1 mo. USD LIBOR + 7.23%), 09/25/2036(e)		275,465		49,248
Freddie Mac STRIPS, IO, 6.00%, 12/15/2032		40,696		6,892
Fannie Mae REMICs, IO, 6.36% (1 mo. USD LIBOR + 6.54%), 06/25/2037(e)		241,616		51,782
Freddie Mac REMICs, IO, 6.82% (7.00% - 1 mo. USD LIBOR), 12/15/2037(e)		62,093		14,604
Freddie Mac REMICs, IO, 5.82% (1 mo. USD LIBOR + 6.00%), 04/15/2038(e)		18,689		3,434
Freddie Mac REMICs, IO, 5.89% (6.07% - 1 mo. USD LIBOR), 05/15/2038(e)		118,921		24,829
Fannie Mae REMICs, IO, 5.87% (1 mo. USD LIBOR + 6.05%), 07/25/2038(e)		9,346		1,854
Fannie Mae REMICs, IO, 6.52% (1 mo. USD LIBOR + 6.70%), 02/25/2024(e)		369		23
Fannie Mae REMICs, 1.12% (1 mo. USD LIBOR + 0.94%), 06/25/2037(e)		11,457		11,682
Freddie Mac REMICs, IO, 6.07% (1 mo. USD LIBOR + 6.25%), 12/15/2039(e)		32,759		6,520
Fannie Mae REMICs, 3.00%, 12/25/2020		106		106
Fannie Mae REMICs, IO, 4.50%, 11/25/2020		134		0
Fannie Mae REMICs, 5.00%, 04/25/2040		72,007		76,575
Fannie Mae REMICs, 4.00%, 03/25/2041		33,283		36,116
Government National Mortgage Association, IO, 6.45% (6.65% - 1 mo. USD LIBOR), 04/16/2041(e)		250,416		45,878
Freddie Mac REMICs, 3.00%, 05/15/2040		2,986		3,084
Fannie Mae REMICs, 4.00%, 08/25/2026		3,294		3,322
Fannie Mae REMICs, IO, 6.37% (6.55% - 1 mo. USD LIBOR), 10/25/2041(e)		111,852		23,511

	Principal Amount		Value
Freddie Mac REMICs, 4.00%, 06/15/2038	$	42,901	$	47,053
Fannie Mae REMICs, 0.58% (1 mo. USD LIBOR + 0.40%), 03/25/2042(e)		132,619		132,520
Fannie Mae REMICs, IO, 4.00%, 04/25/2041		548,008		54,338
Fannie Mae REMICs, IO, 5.97% (6.15% - 1 mo. USD LIBOR), 12/25/2042(e)		382,119		78,923
Freddie Mac REMICs, 1.50%, 07/15/2023		73,385		73,715
Federal National Mortgage Association, 5.50%, 04/01/2022		2,278		2,337
Freddie Mac Multifamily Structured Pass Through Ctfs., Series K734, Class X1, 0.79%, 02/25/2026(i)		1,678,171		52,148
Freddie Mac Multifamily Structured Pass Through Ctfs., Series K735, Class X1, 1.10%, 05/25/2026(i)		3,102,252		152,076
Federal National Mortgage Association, 7.50%, 10/01/2029		68,050		80,310
Freddie Mac REMICs, IO, 6.57% (6.75% - 1 mo. USD LIBOR), 02/15/2035(e)		16,549		3,331
Freddie Mac REMICs, IO, 6.54% (6.72% - 1 mo. USD LIBOR), 05/15/2035(e)		133,403		22,634
Government National Mortgage Association, IO, 6.35% (6.55% - 1 mo. USD LIBOR), 04/16/2037(e)		152,486		31,151
Federal National Mortgage Association, 6.00%, 05/25/2029		1		0
Federal National Mortgage Association, 5.00%, 01/01/2022		397		417
Federal Home Loan Mortgage Corp., 6.00%, 11/01/2021		8,971		9,973
Federal National Mortgage Association, 5.50%, 02/01/2035		15,157		17,394
Government National Mortgage Association, ARM, 3.13% (1 yr. U.S. Treasury Yield Curve Rate + 1.50%), 11/20/2025(e)		1,331		1,378
Freddie Mac REMICs, 4.00%, 04/15/2040		54,831		56,265
Federal Home Loan Mortgage Corp., 5.00%, 09/01/2033		154,063		177,007
Freddie Mac STRIPS, IO, 6.50%, 02/01/2028		3,005		458
Fannie Mae REMICs, IO, 6.57% (6.75% - 1 mo. USD LIBOR), 03/25/2035(e)		7,487		1,324
Fannie Mae REMICs, 3.00%, 01/25/2021		242		242

See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.

Invesco Oppenheimer V.I. Global Strategic Income Fund

	Principal Amount		Value
Federal Home Loan Mortgage Corp., 6.50%, 08/01/2031	$	82,728	$	93,110
Federal Home Loan Mortgage Corp., 7.00%, 10/01/2037		12,889		14,776
Federal Home Loan Mortgage Corp., 6.50%, 11/01/2022		3,147		3,189
Federal National Mortgage Association, 5.00%, 07/01/2033		160,495		183,542
Federal National Mortgage Association, 5.50%, 07/01/2022		1,631		1,686
Federal National Mortgage Association, 7.50%, 03/01/2033		221,821		259,844
Federal National Mortgage Association, 8.50%, 07/01/2032		343		345
Federal National Mortgage Association, 7.00%, 04/01/2033		3,578		4,138
Federal National Mortgage Association, 5.00%, 03/01/2021		4		4
Federal National Mortgage Association, 5.50%, 04/01/2021		878		888
Federal National Mortgage Association, 5.00%, 12/01/2021		4,807		5,056
Federal National Mortgage Association, 5.50%, 04/01/2022		2,353		2,411
Federal National Mortgage Association, 5.00%, 01/01/2024		29		30
Government National Mortgage Association, 8.00%, 05/15/2026		6,623		6,651
Government National Mortgage Association, 7.00%, 04/15/2028		10,715		11,953
Government National Mortgage Association, 7.00%, 07/15/2028		22,467		25,066
Freddie Mac REMICs, 7.50%, 09/15/2022		72,679		76,254
Fannie Mae Interest STRIPS, IO, 7.50%, 03/25/2023		28,383		2,123
Fannie Mae Interest STRIPS, IO, 7.50%, 05/25/2023		3,354		257
Freddie Mac REMICs, 6.75%, 02/15/2024		49,142		52,536
Fannie Mae Interest STRIPS, IO, 7.50%, 01/25/2024		70,186		6,410
Freddie Mac REMICs, 7.00%, 09/15/2026		186,519		208,064
Freddie Mac REMICs, 6.50%, 04/15/2028		96,715		110,937
Freddie Mac REMICs, IO, 8.51% (8.70% - 1 mo. USD LIBOR), 07/17/2028(e)		3,129		288

	Principal Amount		Value
Freddie Mac REMICs, IO, 8.51% (8.70% - 1 mo. USD LIBOR), 07/17/2028(e)	$	6,388	$	724
Freddie Mac REMICs, 0.63% (1 mo. USD LIBOR + 0.45%), 12/15/2028(e)		160,076		160,042
Freddie Mac REMICs, 0.63% (1 mo. USD LIBOR + 0.45%), 02/15/2029(e)		4,897		4,896
Freddie Mac REMICs, IO, 7.47% (1 mo. USD LIBOR + 7.65%), 03/15/2029(e)		227,945		39,919
Freddie Mac REMICs, 6.00%, 04/15/2029		88,901		100,797
Fannie Mae Interest STRIPS, IO, 6.50%, 04/25/2029		18,645		3,262
Freddie Mac STRIPS, IO, 7.00%, 09/01/2029		18,086		3,369
Fannie Mae REMICs, 6.50%, 11/25/2029		57,417		65,748
Freddie Mac REMICs, 6.50%, 10/15/2029		68,235		78,344
Freddie Mac REMICs, 6.50%, 06/15/2031		8,440		9,704
Fannie Mae Interest STRIPS, IO, 6.50%, 06/25/2031		192,883		31,187
Freddie Mac REMICs, 1.13% (1 mo. USD LIBOR + 0.95%), 08/15/2031(e)		46,560		47,389
Freddie Mac REMICs, 6.50%, 10/15/2031		33,825		39,857
Fannie Mae REMICs, IO, 7.71% (7.90% - 1 mo. USD LIBOR), 11/18/2031(e)		28,033		6,344
Fannie Mae REMICs, IO, 7.71% (7.90% - 1 mo. USD LIBOR), 12/18/2031(e)		6,655		1,296
Fannie Mae REMICs, IO, 7.72% (7.90% - 1 mo. USD LIBOR), 11/25/2031(e)		5,204		1,142
Fannie Mae REMICs, 6.00%, 01/25/2032		47,238		53,100
Fannie Mae REMICs, IO, 7.77% (1 mo. USD LIBOR + 7.95%), 01/25/2032(e)		5,730		1,216
Freddie Mac REMICs, IO, 7.77% (1 mo. USD LIBOR + 7.95%), 12/15/2026(e)		118,241		15,334
Fannie Mae Interest STRIPS, IO, 6.50%, 02/25/2032		97,600		17,724
Fannie Mae REMICs, IO, 7.92% (1 mo. USD LIBOR + 8.10%), 03/25/2032(e)		8,157		1,875
Freddie Mac REMICs, 1.13% (1 mo. USD LIBOR + 0.95%), 02/15/2032(e)		56,372		57,295
Fannie Mae REMICs, 1.18% (1 mo. USD LIBOR + 1.00%), 04/25/2032(e)		24,029		24,467
Fannie Mae Interest STRIPS, IO, 6.50%, 04/25/2032		29,304		6,261
Fannie Mae REMICs, IO, 7.62% (7.80% - 1 mo. USD LIBOR), 04/25/2032(e)		4,456		993

See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.

Invesco Oppenheimer V.I. Global Strategic Income Fund

	Principal Amount		Value
Freddie Mac REMICs, IO, 7.82% (1 mo. USD LIBOR + 8.00%), 04/15/2032(e)	$	413,427	$	67,360
Freddie Mac REMICs, 0.73% (1 mo. USD LIBOR + 0.55%), 01/15/2032(e)		53,988		54,155
Freddie Mac REMICs, 6.50%, 06/15/2032		117,187		136,174
Freddie Mac REMICs, 1.18% (1 mo. USD LIBOR + 1.00%), 03/15/2032(e)		25,162		25,221
Fannie Mae REMICs, IO, 6.82% (7.00% - 1 mo. USD LIBOR), 04/25/2032(e)		30,361		6,315
Freddie Mac REMICs, 1.18% (1 mo. USD LIBOR + 1.00%), 02/15/2032(e)		23,017		23,434
Fannie Mae Interest STRIPS, IO, 6.50%, 07/25/2032		28,368		5,548
Freddie Mac REMICs, 1.18% (1 mo. USD LIBOR + 1.00%), 03/15/2032(e)		43,172		43,947
Fannie Mae REMICs, IO, 7.82% (8.00% - 1 mo. USD LIBOR), 07/25/2032(e)		6,437		1,499
Freddie Mac REMICs, 1.18% (1 mo. USD LIBOR + 1.00%), 02/15/2032(e)		23,555		23,981
Fannie Mae REMICs, IO, 7.82% (8.00% - 1 mo. USD LIBOR), 09/25/2032(e)		4,477		1,023
Freddie Mac REMICs, 0.73% (1 mo. USD LIBOR + 0.55%), 06/15/2031(e)		91,814		92,080
Fannie Mae REMICs, IO, 7.82% (8.00% - 1 mo. USD LIBOR), 07/25/2032(e)		8,845		2,059
Fannie Mae REMICs, 0.69% (1 mo. USD LIBOR + 0.50%), 10/18/2032(e)		17,193		17,217
Fannie Mae REMICs, 1.18% (1 mo. USD LIBOR + 1.00%), 04/25/2032(e)		7,399		7,534
Fannie Mae REMICs, IO, 7.91% (1 mo. USD LIBOR + 8.10%), 12/18/2032(e)		8,230		1,422
Freddie Mac REMICs, 1.18% (1 mo. USD LIBOR + 1.00%), 02/15/2032(e)		20,480		20,850
Freddie Mac REMICs, IO, 7.92% (8.10% - 1 mo. USD LIBOR), 06/15/2029(e)		8,547		1,740
Fannie Mae REMICs, 1.18% (1 mo. USD LIBOR + 1.00%), 12/25/2032(e)		104,571		106,490
Fannie Mae REMICs, IO, 7.91% (8.10% - 1 mo. USD LIBOR), 12/18/2032(e)		51,726		12,082
Fannie Mae Interest STRIPS, IO, 6.00%, 12/25/2032		56,198		10,902
Fannie Mae REMICs, 0.67% (1 mo. USD LIBOR + 0.50%), 09/25/2032(e)		58,507		58,590
Fannie Mae REMICs, 1.18% (1 mo. USD LIBOR + 1.00%), 09/25/2032(e)		104,573		106,493

	Principal Amount		Value
Fannie Mae Interest STRIPS, IO, 6.00%, 02/25/2033	$	110,491	$	22,071
Fannie Mae REMICs, IO, 8.07% (8.25% - 1 mo. USD LIBOR), 02/25/2033(e)		13,505		3,217
Fannie Mae REMICs, IO, 7.00%, 03/25/2033		89,254		19,530
Fannie Mae Interest STRIPS, IO, 6.00%, 03/25/2033		480,531		91,414
Fannie Mae Interest STRIPS, IO, 6.00%, 03/25/2033		89,683		17,339
Fannie Mae REMICs, IO, 7.00%, 04/25/2033		65,071		15,326
Fannie Mae REMICs, IO, 8.07% (1 mo. USD LIBOR + 8.25%), 05/25/2033(e)		47,503		11,673
Freddie Mac REMICs, 3.50%, 05/15/2032		29,463		31,629
Fannie Mae Interest STRIPS, IO, 6.00%, 10/25/2033(i)		259,274		52,199
Freddie Mac REMICs, 5.00%, 09/15/2023		183,904		191,998
Freddie Mac REMICs, IO, 6.87% (1 mo. USD LIBOR + 7.05%), 10/15/2033(e)		96,691		20,143
Fannie Mae REMICs, 0.58% (1 mo. USD LIBOR + 0.40%), 11/25/2033(e)		11,018		11,018
Fannie Mae Interest STRIPS, IO, 5.50%, 01/25/2034		83,246		15,157
Freddie Mac Multifamily Structured Pass Through Ctfs., Series K093, Class X1, 1.09%, 05/25/2029(i)		20,084,125		1,442,611
Federal National Mortgage Association, TBA, 2.50%, 07/01/2050(j)		27,000,000		28,138,008
Federal National Mortgage Association, TBA, 3.00%, 07/01/2050(j)		28,970,000		30,504,504
Government National Mortgage Association, TBA, 3.50%, 07/01/2050(j)		11,310,000		11,935,585
Federal National Mortgage Association, TBA, 3.00%, 07/01/2035(j)		4,525,000		4,755,315
Federal National Mortgage Association, TBA, 2.50%, 07/01/2035(j)		5,285,000		5,532,115
Total U.S. Government Sponsored Agency Mortgage-Backed Securities (Cost $87,627,174)				87,904,289
U.S. Treasury Securities–5.14%
U.S. Treasury Inflation — Indexed Bonds–3.22%
1.00%, 02/15/2048(k)		17,789,905		18,011,803
1.00%, 02/15/2049(k)		14,555,089		14,650,395
				32,662,198
U.S. Treasury Inflation — Indexed Notes–1.92%
0.13%, 04/15/2025(k)		19,324,938		19,524,228
Total U.S. Treasury Securities (Cost $51,669,932)				52,186,426

See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.

Invesco Oppenheimer V.I. Global Strategic Income Fund

	Units		Value
Agency Credit Risk Transfer Notes–2.76%
United States–2.76%
Connecticut Avenue Securities Trust, Series 2018-R07, Class 1M2,2.57% (1 mo. USD LIBOR + 2.40%), 04/25/2031(c)(e)		1,701,778	$	1,696,990
Connecticut Avenue Securities Trust, Series 2019-R02, Class 1M2,2.47% (1 mo. USD LIBOR + 2.30%), 08/25/2031(c)(e)		508,690		505,328
Fannie Mae Connecticut Avenue Securities, Series 2014-C03, Class 1M2,3.18% (1 mo. USD LIBOR + 3.00%), 07/25/2024(e)		646,961		572,269
Fannie Mae Connecticut Avenue Securities, Series 2016-C05, Class 2M2,4.63% (1 mo. USD LIBOR + 4.45%), 01/25/2029(e)		1,463,749		1,507,722
Fannie Mae Connecticut Avenue Securities, Series 2017-C04, Class 2M2,3.02% (1 mo. USD LIBOR + 2.85%), 11/25/2029(e)		956,761		948,866
Fannie Mae Connecticut Avenue Securities, Series 2017-C07, Class 1M2,2.58% (1 mo. USD LIBOR + 2.40%), 05/25/2030(e)		519,700		512,796
Fannie Mae Connecticut Avenue Securities, Series 2018-C04, Class 2M2,2.73% (1 mo. USD LIBOR + 2.55%), 12/25/2030(e)		640,539		636,386
Fannie Mae Connecticut Avenue Securities, Series 2018-C06, Class 2M2,2.27% (1 mo. USD LIBOR + 2.10%), 03/25/2031(e)		1,058,014		1,042,694
Fannie Mae Connecticut Avenue Securities, Series 2019-R03, Class 1M2,2.33% (1 mo. USD LIBOR + 2.15%), 09/25/2031(c)(e)		1,124,243		1,119,769
Freddie Mac, Series 2014-DN1, Class M3, STACR®, 4.68% (1 mo. USD LIBOR + 4.50%), 02/25/2024(e)		815,000		715,222
Freddie Mac, Series 2014-DN2, Class M3, STACR®, 3.77% (1 mo. USD LIBOR + 3.60%), 04/25/2024(e)		840,000		748,279
Freddie Mac, Series 2014-DN3, Class M3, STACR®, 4.17% (1 mo. USD LIBOR + 4.00%), 08/25/2024(e)		1,621,077		1,658,264
Freddie Mac, Series 2014-HQ2, Class M3, STACR®, 3.93% (1 mo. USD LIBOR + 3.75%), 09/25/2024(e)		915,000		943,374
Freddie Mac, Series 2016-DNA2, Class M3, STACR®, 4.82% (1 mo. USD LIBOR + 4.65%), 10/25/2028(e)		802,619		842,712

	Units		Value
United States–(continued)
Freddie Mac, Series 2016-DNA3, Class M3, STACR®, 5.17% (1 mo. USD LIBOR + 5.00%), 12/25/2028(e)		3,331,225	$	3,464,958
Freddie Mac, Series 2016-HQA3, Class M3, STACR®, 4.02% (1 mo. USD LIBOR + 3.85%), 03/25/2029(e)		3,400,000		3,526,522
Freddie Mac, Series 2016-HQA4, Class M3, STACR®, 4.07% (1 mo. USD LIBOR + 3.90%), 04/25/2029(e)		4,580,000		4,760,983
Freddie Mac, Series 2017-DNA1, Class M2, STACR®, 3.43% (1 mo. USD LIBOR + 3.25%), 07/25/2029(e)		1,980,000		2,015,465
Freddie Mac, Series 2019-HRP1, Class M2, STACR®, 1.57% (1 mo. USD LIBOR + 1.40%), 02/25/2049(c)(e)		745,000		714,360
Freddie Mac Multifamily Connecticut Avenue Securities Trust, Series 2019-01, Class M10,3.43% (1 mo. USD LIBOR + 3.25%), 10/15/2049(c)(e)		133,000		122,011
Total Agency Credit Risk Transfer Notes (Cost $28,185,128)				28,054,970
Variable Rate Senior Loan Interests–0.35%(l)(m)
Canada–0.05%
Bausch Health Americas, Inc., First Lien Incremental Term Loan, 2.94% (1 mo. USD LIBOR + 2.75%), 11/27/2025		467,200		452,990
Luxembourg–0.03%
Altice Financing S.A., Term Loan, 2.93% (1 mo. USD LIBOR + 2.75%), 07/15/2025		366,859		348,287
United States–0.27%
American Greetings Corp., Term Loan, (1 mo. USD LIBOR + 4.50%), 04/06/2024		510,696		474,948
Caesars Resort Collection LLC, Term Loan B, (1 mo. USD LIBOR + 2.75%), 12/23/2024		722,589		645,250
Claire’s Stores, Inc., Term Loan B, (1 mo. USD LIBOR + 6.50%), 12/18/2026		72,606		58,303
Dun & Bradstreet Corp. (The), Term Loan, (1 mo. USD LIBOR + 4.00%), 02/06/2026		430,920		420,955
Murray Energy Corp., Term Loan B-2, (1 mo. USD LIBOR + 2.00%), 10/17/2022(b)		540,737		16,222
PetSmart, Inc., First Lien Term Loan, (1 mo. USD LIBOR + 4.00%), 03/11/2022		353,054		349,363
Scientific Games International, Inc., Term Loan B-5, (3 mo. USD LIBOR + 2.75%), 08/14/2024		700,684		622,908

See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.

Invesco Oppenheimer V.I. Global Strategic Income Fund

	Units		Value
United States–(continued)
Windstream Services LLC, Term Loan B-6, (3 mo. Prime Rate + 5.00%), 03/29/2021		169,086	$	104,537
				2,692,486
Total Variable Rate Senior Loan Interests (Cost $4,249,654)				3,493,763
Investment Companies–0.23%
United States–0.23%
Invesco Conservative Income Fund, Class Y,(n)		138		1,396
Invesco Oppenheimer Master Event-Linked Bond Fund, Class R6,(n)		148,653		2,349,252
Total Investment Companies (Cost $1,788,529)				2,350,648
	Shares
Common Stocks & Other Equity Interests–0.03%
Kazakhstan–0.00%
Astana-Finance JSC, GDR (Acquired 06/05/2015; Cost $0)(c)(g)(o)		446,838		1
United States–0.03%
Affinion Group, Inc., Wts. expiring 04/10/2024(g)(o)		775		0
Claire’s Stores, Inc.(n)		235		81,271
Clear Channel Worldwide Holdings, Inc.(o)		46,536		48,397

	Shares		Value
United States–(continued)
Hexion Holdings Corp., Class B(o)		25,804	$	174,177
Quicksilver Resources, Inc.(g)(o)		4,151,000		0
Sabine Oil & Gas Holdings, Inc.(n)		837		11,718
				315,563
Total Common Stocks & Other Equity Interests (Cost $5,329,461)				315,564
Preferred Stocks–0.00%
United States–0.00%
Claire’s Stores, Inc., 0.00%, Series A, Pfd. (Cost $36,875)		71		12,425
Money Market Funds–5.69%
Invesco Government & Agency Portfolio, Institutional Class, 0.09%(n)(p) (Cost $57,836,662)		57,836,662		57,836,662
Options Purchased–0.54%(q)
(Cost $13,051,774)				5,468,997
TOTAL INVESTMENTS IN SECURITIES–100.83% (Cost $1,070,542,136)				1,024,464,232
OTHER ASSETS LESS LIABILITIES–(0.83)%				(8,440,899	)
NET ASSETS–100.00%			$	1,016,023,333

Investment Abbreviations:
ARM	– Adjustable Rate Mortgage
ARS	– Argentina Peso
AUD	– Australian Dollar
BRL	– Brazilian Real
COP	– Colombia Peso
Ctfs.	– Certificates
EGP	– Egypt Pound
EUR	– Euro
EURIBOR	– Euro Interbank Offered Rate
GBP	– British Pound Sterling
GDR	– Global Depositary Receipt
ICE	– Intercontinental Exchange
IDR	– Indonesian Rupiah
INR	– Indian Rupee
IO	– Interest Only
IRB	– Interest Rate Reduction Bond
LIBOR	– London Interbank Offered Rate
MXN	– Mexican Peso
Pfd.	– Preferred
PIK	– Pay-in-Kind
REIT	– Real Estate Investment Trust
REMICs	– Real Estate Mortgage Investment Conduits
RUB	– Russian Ruble
STACR®	– Structured Agency Credit Risk
STRIPS	– Separately Traded Registered Interest and Principal Security
TBA	– To Be Announced
TRY	– Turkish Lira
USD	– U.S. Dollar
Wts.	– Warrants
ZAR	– South African Rand

See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.

Invesco Oppenheimer V.I. Global Strategic Income Fund

Notes to Consolidated Schedule of Investments:

^(a)  Foreign denominated security. Principal amount is denominated in the currency indicated.

^(b)  Defaulted security. Currently, the issuer is in default with respect to principal and/or interest payments. The aggregate value of these securities at June 30, 2020 was $2,419,582, which represented less than 1% of the Fund’s Net Assets.

^(c)  Security purchased or received in a transaction exempt from registration under the Securities Act of 1933, as amended (the “1933 Act”). The security may be resold pursuant to an exemption from registration under the 1933 Act, typically to qualified institutional buyers. The aggregate value of these securities at June 30, 2020 was $460,449,741, which represented 45.32% of the Fund’s Net Assets.

^(d)  Perpetual bond with no specified maturity date.

^(e)  Interest or dividend rate is redetermined periodically. Rate shown is the rate in effect on June 30, 2020.

^(f)  Zero coupon bond issued at a discount.

^(g)  Security valued using significant unobservable inputs (Level 3). See Note 3.

^(h)  All or a portion of this security is Pay-in-Kind. Pay-in-Kind securities pay interest income in the form of securities.

⁽ⁱ⁾  Interest rate is redetermined periodically based on the cash flows generated by the pool of assets backing the security, less any applicable fees. The rate shown is the rate in effect on June 30, 2020.

^(j)  Security purchased on a forward commitment basis. This security is subject to dollar roll transactions. See Note 1P.

^(k)  Principal amount of security and interest payments are adjusted for inflation. See Note 1I.

^(l)  Variable rate senior loan interests often require prepayments from excess cash flow or permit the borrower to repay at its election. The degree to which borrowers repay, whether as a contractual requirement or at their election, cannot be predicted with any accuracy. As a result, the actual remaining maturity may be substantially less than the stated maturities shown. However, it is anticipated that the variable rate senior loan interests will have an expected average life of three to five years.

^(m)  Variable rate senior loan interests are, at present, not readily marketable, not registered under the 1933 Act and may be subject to contractual and legal restrictions on sale. Variable rate senior loan interests in the Fund’s portfolio generally have variable rates which adjust to a base, such as the London Interbank Offered Rate (“LIBOR”), on set dates, typically every 30 days, but not greater than one year, and/or have interest rates that float at margin above a widely recognized base lending rate such as the Prime Rate of a designated U.S. bank.

⁽ⁿ⁾  Affiliated issuer. The issuer is affiliated by having an investment adviser that is under common control of Invesco Ltd. and/or the Investment Company Act of 1940, as amended (the “1940 Act”), defines “affiliated person” to include an issuer of which a fund holds 5% or more of the outstanding voting securities. The Fund has not owned enough of the outstanding voting securities of the issuer to have control (as defined in the 1940 Act) of that issuer. The table below shows the Fund’s transactions in, and earnings from, its investments in affiliates for the six months ended June 30, 2020.

	Value December 31, 2019			Purchases at Cost			Proceeds from Sales				Change in Unrealized Appreciation (Depreciation)				Realized Gain (Loss)				Value June 30, 2020			Dividend Income
Investments in Affiliated Money Market Funds:
Invesco Government & Agency Portfolio, Institutional Class		$	111,331,442		$	503,314,779		$	(556,809,559	)		$	-			$	-			$	57,836,662		$	276,710
Investments in Other Affiliates:
Carlyle Tactical Private Credit Fund*			664,049			-			(669,100	)			38,352				(33,301	)			-			-
Claire’s Stores, Inc.			152,750			-			-				(71,479	)			-				81,271			-
Invesco Conservative Income Fund, Class Y			26,120,338			105,283			(26,237,238	)			98,868				(85,855	)			1,396			123,370
Invesco Oppenheimer Limited-Term Bond Fund, Class R6*			9,920			-			(9,942	)			-				22				-			-
Invesco Oppenheimer Master Event-Linked Bond Fund, Class R6			25,095,080			372,431			(22,802,346	)			(6,884,939	)			6,569,026				2,349,252			462,645
Sabine Oil & Gas Holdings, Inc.			58,800			-			-				(47,082	)			-				11,718			46,688
Total		$	163,432,379		$	503,792,493		$	(606,528,185	)		$	(6,866,280	)		$	6,449,892			$	60,280,299		$	909,413

* At June 30, 2020, this security was no longer held.

^(o)  Non-income producing security.

^(p)  The rate shown is the 7-day SEC standardized yield as of June 30, 2020.

^(q)  The table below details options purchased.

Open Over-The-Counter Foreign Currency Options Purchased(a)

Description

Type of Contract

Counterparty

Expiration Date

Exercise Price

Notional Value

Value

Currency Risk

USD Versus AUD

Call

Standard Chartered Bank PLC

05/07/2021

AUD

0.71

USD

15,000,000

$

350,385

USD Versus JPY

Call

J.P. Morgan Chase Bank, N.A.

05/06/2021

JPY

112.15

USD

15,000,000

123,465

USD Versus KRW

Call

Standard Chartered Bank PLC

12/24/2020

KRW

1,264.00

USD

13,000,000

121,329

Subtotal — Foreign Currency Call Options Purchased

595,179

See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.

Invesco Oppenheimer V.I. Global Strategic Income Fund

Open Over-The-Counter Foreign Currency Options Purchased(a)—(continued)

Description

Type of Contract

Counterparty

Expiration Date

Exercise Price

Notional Value

Value

Currency Risk

EUR Versus INR

Put

Goldman Sachs International

08/05/2020

INR

84.12

EUR

1,500,000

$

2,039

EUR Versus NOK

Put

Goldman Sachs International

12/18/2020

NOK

11.61

EUR

31,250,000

308,857

EUR Versus NOK

Put

Goldman Sachs International

01/06/2021

NOK

9.72

EUR

3,650,000

34,775

EUR Versus NOK

Put

Goldman Sachs International

01/06/2021

NOK

9.39

EUR

3,650,000

19,700

EUR Versus NOK

Put

J.P. Morgan Chase Bank, N.A.

12/23/2020

NOK

11.68

EUR

13,000,000

157,739

EUR Versus NOK

Put

J.P. Morgan Chase Bank, N.A.

08/26/2021

NOK

10.00

EUR

3,750,000

190,732

USD Versus BRL

Put

Goldman Sachs International

02/12/2021

BRL

3.85

USD

1,250,000

28,519

USD Versus BRL

Put

Goldman Sachs International

04/26/2021

BRL

4.75

USD

1,250,000

210,781

USD Versus BRL

Put

Goldman Sachs International

08/17/2021

BRL

3.85

USD

1,460,000

68,671

USD Versus CNH

Put

Standard Chartered Bank PLC

09/22/2020

CNH

7.00

USD

22,500,000

74,678

USD Versus IDR

Put

J.P. Morgan Chase Bank, N.A.

05/17/2021

IDR

14,790.00

USD

18,750,000

345,319

USD Versus INR

Put

Bank of America, N.A.

10/27/2020

INR

72.50

USD

25,000,000

22,500

USD Versus INR

Put

Bank of America, N.A.

11/23/2020

INR

73.00

USD

25,000,000

41,750

USD Versus INR

Put

Goldman Sachs International

06/11/2021

INR

71.00

USD

1,250,000

156,969

USD Versus KRW

Put

Standard Chartered Bank PLC

12/24/2020

KRW

1,180.00

USD

13,000,000

209,820

USD Versus MXN

Put

Citibank, N.A.

03/04/2021

MXN

19.98

USD

12,500,000

43,925

USD Versus MXN

Put

Goldman Sachs International

05/06/2021

MXN

22.41

USD

15,000,000

399,780

USD Versus MXN

Put

J.P. Morgan Chase Bank, N.A.

01/06/2022

MXN

20.10

USD

25,000,000

218,750

USD Versus MXN

Put

Morgan Stanley Capital Services LLC

05/07/2021

MXN

22.10

USD

15,000,000

329,550

USD Versus RUB

Put

Goldman Sachs International

08/04/2020

RUB

58.50

USD

1,650,000

2,614

USD Versus RUB

Put

Goldman Sachs International

03/08/2021

RUB

67.99

USD

29,450,000

426,259

USD Versus RUB

Put

J.P. Morgan Chase Bank, N.A.

08/05/2020

RUB

59.00

USD

1,650,000

3,371

USD Versus ZAR

Put

Goldman Sachs International

07/23/2020

ZAR

14.50

USD

15,858,620

270

Subtotal — Foreign Currency Put Options Purchased

3,297,368

Total Foreign Currency Options Purchased

$

3,892,547

^(a)  Over-The-Counter options purchased, options written and Swap agreements are collateralized by cash held with Counterparties in the amount of $2,986,000.

Open Over-The-Counter Interest Rate Swaptions Purchased(a)

Description

Type of Contract

Counterparty

Exercise Rate

Pay/ Receive Exercise Rate

Floating Rate Index

Payment Frequency

Expiration Date

Notional Value

Value

Interest Rate Risk

10 Year Interest Rate Swap

Call

Goldman Sachs International

2.00

%

Pay

3 Month KWCDC

Quarterly

08/28/2020

KRW

36,000,000,000

$

11

Interest Rate Risk

1 Year Interest Rate Swap

Put

Bank of America, N.A.

(0.41)

Pay

6 Month EUR LIBOR

Annually

02/10/2021

EUR

312,500,000

199,312

10 Year Interest Rate Swap

Put

Bank of America, N.A.

2.04

Pay

3 Month USD LIBOR

Semi-Annual

10/16/2020

USD

62,500,000

8,793

10 Year Interest Rate Swap

Put

Goldman Sachs International

2.27

Pay

3 Month USD LIBOR

Semi-Annual

12/02/2020

USD

45,000,000

9,451

10 Year Interest Rate Swap

Put

Morgan Stanley Capital Services LLC

2.50

Pay

3 Month USD LIBOR

Semi-Annually

08/26/2020

USD

75,000,000

132

10 Year Interest Rate Swap

Put

Morgan Stanley Capital Services LLC

0.53

Pay

6 Month EUR LIBOR

Annually

11/25/2021

EUR

9,375,000

67,108

2 Year Interest Rate Swap

Put

J.P. Morgan Chase Bank, N.A.

0.61

Pay

6 Month EUR LIBOR

Annually

04/06/2021

EUR

146,000,000

4,066

2 Year Interest Rate Swap

Put

J.P. Morgan Chase Bank, N.A.

0.62

Pay

6 Month EUR LIBOR

Annually

04/12/2021

EUR

146,250,000

4,211

30 Year Interest Rate Swap

Put

Goldman Sachs International

2.00

Pay

3 Month USD LIBOR

Semi-Annual

05/31/2022

USD

46,800,000

1,274,153

See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.

Invesco Oppenheimer V.I. Global Strategic Income Fund

Open Over-The-Counter Interest Rate Swaptions Purchased(a)—(continued)

Description

Type of Contract

Counterparty

Exercise Rate

Pay/ Receive Exercise Rate

Floating Rate Index

Payment Frequency

Expiration Date

Notional Value

Value

5 Year Interest Rate Swap

Put

J.P. Morgan Chase Bank, N.A.

1.12%

Pay

6 Month EUR LIBOR

Annually

03/29/2021 EUR

146,200,000

$

9,213

Subtotal — Interest Rate Put Swaptions Purchased

1,576,439

Total Interest Rate Swaptions Purchased

1,576,450

^(a)  Over-The-Counter options purchased, options written and Swap agreements are collateralized by cash held with Counterparties in the amount of $2,986,000.

Open Over-The-Counter Credit Default Swaptions Written
Counterparty	Type of Contract		Exercise Rate		Reference Entity	(Pay)/ Receive Fixed Rate		Payment Frequency		Expiration Date		Implied Credit Spread(a)		Premiums Received			Notional Value			Value			Unrealized Appreciation (Depreciation)
Credit Risk
J.P. Morgan Chase Bank, N.A.		Call		3.50%	Markit iTraxx Europe Crossover Index, Series 33, Version 1		Pay%		Quarterly		07/15/2020		3.800%	$	(126,027	)	$	(15,600,000	)	$	(64,560	)	$	61,467
J.P. Morgan Chase Bank, N.A.		Call		3.50%	Markit iTraxx Europe Crossover Index, Series 33, Version 1		Pay		Quarterly		08/19/2020		3.800		(193,830	)		(15,000,000	)		(154,503	)		39,327
J.P. Morgan Chase Bank, N.A.		Call		3.50%	Markit iTraxx Europe Crossover Index, Series 33, Version 1		Pay		Quarterly		09/16/2020		3.800		(211,753	)		(15,600,000	)		(204,558	)		7,195
Credit Risk
J.P. Morgan Chase Bank, N.A.		Put		5.50%	Markit iTraxx Europe Crossover Index, Series 33, Version 1		Pay		Quarterly		10/21/2020		3.800		(492,387	)		(23,400,000	)		(372,674	)		119,713
J.P. Morgan Chase Bank, N.A.		Put		5.25%	Markit iTraxx Europe Crossover Index, Series 33, Version 1		Pay		Quarterly		09/16/2020		3.800		(180,467	)		(15,600,000	)		(191,434	)		(10,967	)
Morgan Stanley & Co. International PLC		Put		0.98%	Markit CDX North America Investment Grade Index, Series 34, Version 4		Pay		Quarterly		08/19/2020		5.165		(20,079	)		(3,000,000	)		(87,378	)		(67,299	)
Total Credit Default Swaptions Written															(1,224,543	)					(1,075,107	)		149,436

^(a)  Implied credit spreads represent the current level, as of June 30, 2020, at which protection could be bought or sold given the terms of the existing credit default swap agreement and serve as an indicator of the current status of the payment/performance risk of the credit default swap agreement. An implied credit spread that has widened or increased since entry into the initial agreement 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 generally.

See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.

Invesco Oppenheimer V.I. Global Strategic Income Fund

Open Over-The-Counter Foreign Currency Options Written(a)
Description	Type of Contract	Counterparty	Expiration Date		Exercise Price			Premiums Received			Notional Value				Value			Unrealized Appreciation (Depreciation)
Currency Risk
EUR Versus BRL	Call	Morgan Stanley & Co. International PLC		08/24/2021		BRL	5.90	$	(635,206	)		EUR	(11,300,000	)	$	(2,272,769	)	$	(1,637,563	)
EUR Versus INR	Call	Goldman Sachs International		08/05/2020		INR	101.11		(293,515	)		EUR	(1,500,000	)		(65,356	)		228,159
EUR Versus NOK	Call	Goldman Sachs International		12/18/2020		NOK	12.95		(452,702	)		EUR	(31,250,000	)		(436,409	)		16,293
EUR Versus NOK	Call	J.P. Morgan Chase Bank, N.A.		12/23/2020		NOK	13.03		(183,079	)		EUR	(13,000,000	)		(172,476	)		10,603
EUR Versus RUB	Call	Bank of America, N.A.		11/03/2020		RUB	87.63		(517,232	)		EUR	(15,100,000	)		(927,468	)		(410,236	)
EUR Versus ZAR	Call	J.P. Morgan Chase Bank, N.A.		12/08/2020		ZAR	21.40		(449,997	)		EUR	(15,100,000	)		(1,098,609	)		(648,612	)
EUR Versus ZAR	Call	J.P. Morgan Chase Bank, N.A.		01/27/2021		ZAR	17.21		(958,875	)		USD	(37,500,000	)		(2,404,537	)		(1,445,662	)
GBP Versus AUD	Call	Bank of America, N.A.		11/30/2020		AUD	2.36		(306,125	)		GBP	(15,000,000	)		(133,098	)		173,027
USD Versus AUD	Call	Standard Chartered Bank PLC		08/07/2020		AUD	0.68		(86,437	)		USD	(15,000,000	)		(315,075	)		(228,638	)
USD Versus BRL	Call	J.P. Morgan Chase Bank, N.A.		04/26/2021		BRL	6.50		(125,000	)		USD	(3,125,000	)		(86,591	)		38,409
USD Versus CLP	Call	Morgan Stanley Capital Services LLC		08/27/2020		CLP	854.00		(54,373	)		USD	(8,750,000	)		(92,269	)		(37,896	)
USD Versus CNH	Call	Standard Chartered Bank PLC		09/22/2020		CNH	7.24		(92,326	)		USD	(22,500,000	)		(83,813	)		8,513
USD Versus IDR	Call	J.P. Morgan Chase Bank, N.A.		05/17/2021		IDR	17,910.00		(487,125	)		USD	(18,750,000	)		(177,319	)		309,806
USD Versus INR	Call	Bank of America, N.A.		10/27/2020		INR	77.55		(272,750	)		USD	(25,000,000	)		(226,875	)		45,875
USD Versus INR	Call	Bank of America, N.A.		11/23/2020		INR	77.10		(223,000	)		USD	(25,000,000	)		(339,675	)		(116,675	)
USD Versus INR	Call	Goldman Sachs International		06/11/2021		INR	83.00		(210,000	)		USD	(1,250,000	)		(162,025	)		47,975
USD Versus JPY	Call	J.P. Morgan Chase Bank, N.A.		08/06/2020		JPY	109.25		(64,200	)		USD	(15,000,000	)		(43,155	)		21,045
USD Versus MXN	Call	Citibank, N.A.		03/04/2021		MXN	22.52		(251,368	)		USD	(12,500,000	)		(948,938	)		(697,570	)
USD Versus MXN	Call	J.P. Morgan Chase Bank, N.A.		01/06/2022		MXN	23.09		(570,125	)		USD	(25,000,000	)		(2,554,875	)		(1,984,750	)
USD Versus RUB	Call	Goldman Sachs International		01/08/2021		RUB	94.00		(154,925	)		USD	(6,250,000	)		(26,144	)		128,781
USD Versus RUB	Call	Goldman Sachs International		02/24/2021		RUB	104.00		(172,137	)		USD	(6,250,000	)		(19,331	)		152,806
USD Versus RUB	Call	Goldman Sachs International		03/08/2021		RUB	77.09		(637,475	)		USD	(29,450,000	)		(842,152	)		(204,677	)
USD Versus ZAR	Call	Goldman Sachs International		12/08/2020		ZAR	22.00		(77,403	)		USD	(2,500,000	)		(14,020	)		63,383
USD Versus ZAR	Call	Goldman Sachs International		01/07/2021		ZAR	20.00		(439,750	)		USD	(12,500,000	)		(205,700	)		234,050
USD Versus ZAR	Call	Goldman Sachs International		04/23/2021		ZAR	22.88		(74,073	)		USD	(2,100,000	)		(24,284	)		49,789
Subtotal — Foreign Currency Call Options Written									(7,789,198	)						(13,672,963	)		(5,883,765	)

See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.

Invesco Oppenheimer V.I. Global Strategic Income Fund

Open Over-The-Counter Foreign Currency Options Written(a)—(continued)
Description	Type of Contract		Counterparty	Expiration Date		Exercise Price			Premiums Received			Notional Value				Value			Unrealized Appreciation (Depreciation)
Currency Risk
USD Versus CLP		Put	Morgan Stanley & Co. International PLC		08/27/2020		CLP	779.00	$	(123,450	)		USD	(15,000,000	)	$	(66,270	)	$	57,180
USD Versus INR		Put	Bank of America, N.A.		10/27/2020		INR	69.30		(114,250	)		USD	(25,000,000	)		(3,175	)		111,075
USD Versus INR		Put	Bank of America, N.A.		11/23/2020		INR	70.30		(84,500	)		USD	(25,000,000	)		(8,200	)		76,300
USD Versus KRW		Put	Standard Chartered Bank PLC		12/24/2020		KRW	1,204.00		(308,620	)		USD	(13,000,000	)		(348,296	)		(39,676	)
USD Versus MXN		Put	Citibank, N.A.		03/04/2021		MXN	18.57		(99,731	)		USD	(12,500,000	)		(12,675	)		87,056
USD Versus MXN		Put	J.P. Morgan Chase Bank, N.A.		01/06/2022		MXN	18.40		(224,600	)		USD	(25,000,000	)		(71,075	)		153,525
USD Versus RUB		Put	Goldman Sachs International		08/26/2020		RUB	69.01		(182,340	)		USD	(15,000,000	)		(100,620	)		81,720
USD Versus RUB		Put	Goldman Sachs International		03/08/2021		RUB	62.82		(241,018	)		USD	(29,450,000	)		(96,154	)		144,864
USD Versus ZAR		Put	Bank of America, N.A.		05/26/2021		ZAR	17.00		(555,975	)		USD	(15,000,000	)		(550,350	)		5,625
Subtotal — Foreign Currency Put Options Written										(1,934,484	)						(1,256,815	)		677,669
Total – Foreign Currency Options Written									$	(9,723,682	)					$	(14,929,778	)	$	(5,206,096	)

^(a)  Over-The-Counter options purchased, options written and Swap agreements are collateralized by cash held with Counterparties in the amount of $2,986,000.

Open Over-The-Counter Interest Rate Swaptions Written(a)
Description	Type of Contract	Counterparty	Exercise Rate			Floating Rate Index	Pay/ Receive Exercise Rate		Payment Frequency		Expiration Date		Premiums Received			Notional Value			Value			Unrealized Appreciation (Depreciation)
Interest Rate Risk
10 Year Interest Rate Swap	Call	Morgan Stanley Capital Services LLC		0.03	%	6 Month EUR LIBOR		Receive		Semi-Annual		11/25/2021	$	(158,283	)		EUR	(9,375,000)	$	(322,620	)	$	(164,337	)
Interest Rate Risk
5 Year Interest Rate Swap	Put	Bank of America, N.A.		0.77		3 Month CDOR		Pay		Semi-Annual		07/23/2020		(122,197	)		CAD	(62,500,000)		(107,804	)		14,393
5 Year Interest Rate Swap	Put	Bank of America, N.A.		0.76		3 Month CDOR		Pay		Semi-Annual		07/17/2020		(55,278	)		CAD	(25,000,000)		(41,958	)		13,320
5 Year Interest Rate Swap	Put	Bank of America, N.A.		0.75		3 Month CDOR		Pay		Semi-Annual		07/27/2020		(80,043	)		CAD	(39,000,000)		(88,998	)		(8,955	)
10 Year Interest Rate Swap	Put	Goldman Sachs International		0.90		3 Month CDOR		Pay		Semi-Annual		08/28/2020		(413,400	)		USD	(78,000,000)		(208,232	)		205,168
5 Year Interest Rate Swap	Put	Toronto-Dominion Bank (The)		0.74		3 Month CDOR		Pay		Semi-Annual		07/30/2020		(59,664	)		CAD	(30,000,000)		(59,664	)		-
5 Year Interest Rate Swap	Put	Toronto-Dominion Bank (The)		0.74		3 Month CDOR		Pay		Semi-Annual		07/27/2020		(51,310	)		CAD	(25,000,000)		(63,372	)		(12,062	)
Subtotal — Interest Rate Put Swaptions Written														(781,892	)					(570,028	)		211,864
Total Open Over-The-Counter Interest Rate Swaptions Written													$	(940,175	)				$	(892,648	)	$	47,527

^(a)  Over-The-Counter options purchased, options written and Swap agreements are collateralized by cash held with Counterparties in the amount of $2,986,000.

Open Futures Contracts
Long Futures Contracts	Number of Contracts		Expiration Month	Notional Value		Value		Unrealized Appreciation (Depreciation)
Interest Rate Risk
U.S. Treasury 10 Year Notes		1,991	September-2020	$	277,091,203	$	424,851	$	424,851
U.S. Treasury Long Bonds		45	September-2020		8,035,313		81,483		81,483
Subtotal - Long Futures Contracts							506,334		506,334

See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.

Invesco Oppenheimer V.I. Global Strategic Income Fund

Open Futures Contracts—(continued)
Short Futures Contracts	Number of Contracts		Expiration Month	Notional Value			Value			Unrealized Appreciation (Depreciation)
Interest Rate Risk
U.S. Treasury Notes		189	September-2020	$	(41,736,516	)	$	(3,326	)	$	(3,326	)
Short-Term Euro-BTP		141	September-2020		(22,792,526	)		(416,760	)		(416,760	)
Euro Buxl 30 Year Bonds		15	September-2020		(3,706,874	)		(7,775	)		(7,775	)
Euro Bund		28	September-2020		(5,552,964	)		(81,921	)		(81,921	)
U.S. Treasury Ultra Bonds		679	September-2020		(148,128,094	)		(480,808	)		(480,808	)
Canada 10 Year Bonds		278	September-2020		(31,498,203	)		(569,703	)		(569,703	)
U.S. Treasury 5 Year Notes		50	September-2020		(6,287,109	)		(3,597	)		(3,597	)
U.S. Treasury 10 Year Ultra Bonds		283	September-2020		(44,568,078	)		(403,986	)		(403,986	)
Subtotal-Short Futures Contracts								(1,967,876	)		(1,967,876	)
Total Futures Contracts							$	(1,461,542	)	$	(1,461,542	)

Open Forward Foreign Currency Contracts
		Contract to							Unrealized Appreciation (Depreciation)
Settlement Date	Counterparty			Deliver			Receive
Currency Risk
07/09/2020	Bank of America, N.A.		USD		10,100,000	ZAR		186,930,800	$	664,121
07/09/2020	Bank of America, N.A.		ZAR		86,230,200	USD		5,880,000		914,567
07/24/2020	Bank of America, N.A.		USD		19,250,000	MXN		492,800,000		2,127,792
08/10/2020	Bank of America, N.A.		USD		1,500,000	AUD		2,330,169		108,373
09/16/2020	Bank of America, N.A.		COP		52,882,875,000	USD		14,558,258		574,501
09/16/2020	Bank of America, N.A.		EUR		25,231,000	USD		28,708,076		313,645
09/16/2020	Bank of America, N.A.		GBP		20,285,030	USD		25,671,923		525,615
09/16/2020	Bank of America, N.A.		USD		20,017,126	AUD		29,309,797		214,826
09/16/2020	Bank of America, N.A.		ZAR		82,047,600	USD		4,843,710		152,250
09/17/2020	Bank of America, N.A.		MXN		741,990,026	USD		32,571,826		614,292
12/02/2020	Bank of America, N.A.		GBP		3,000,000	AUD		5,484,720		64,938
09/16/2020	Citibank, N.A.		EUR		86,890,000	USD		98,777,795		993,633
09/16/2020	Citibank, N.A.		GBP		24,760,000	USD		31,299,909		606,210
09/16/2020	Citibank, N.A.		PEN		490,000	USD		142,281		4,118
09/16/2020	Citibank, N.A.		RUB		2,627,810,000	USD		37,448,758		837,177
09/17/2020	Citibank, N.A.		MXN		362,865,845	USD		16,073,649		445,005
07/27/2020	Goldman Sachs International		USD		16,600,000	ZAR		318,969,000		1,731,008
09/16/2020	Goldman Sachs International		NZD		30,500,000	USD		19,722,306		41,980
09/16/2020	Goldman Sachs International		USD		8,422,395	INR		641,702,310		4,820
09/16/2020	Goldman Sachs International		USD		2,166,785	TRY		15,200,000		4,702
09/16/2020	Goldman Sachs International		ZAR		107,400,000	USD		6,328,461		187,358
11/05/2020	Goldman Sachs International		RUB		198,747,540	EUR		2,700,000		288,118
12/10/2020	Goldman Sachs International		USD		2,500,000	ZAR		48,329,250		241,839
01/11/2021	Goldman Sachs International		USD		8,575,000	RUB		704,142,127		1,111,719
01/11/2021	Goldman Sachs International		USD		6,100,000	ZAR		113,074,480		296,431
02/25/2021	Goldman Sachs International		RUB		492,093,750	USD		7,250,000		510,364
02/25/2021	Goldman Sachs International		USD		8,750,000	RUB		741,125,000		1,400,328
07/02/2020	J.P. Morgan Chase Bank, N.A.		BRL		96,716,097	USD		18,392,069		607,163
07/06/2020	J.P. Morgan Chase Bank, N.A.		USD		9,525,000	MXN		243,330,412		1,056,377
08/04/2020	J.P. Morgan Chase Bank, N.A.		BRL		60,140,000	USD		11,600,857		560,055
08/11/2020	J.P. Morgan Chase Bank, N.A.		JPY		158,895,000	USD		1,500,000		27,679
09/16/2020	J.P. Morgan Chase Bank, N.A.		AUD		24,285,000	USD		16,780,328		16,890
09/16/2020	J.P. Morgan Chase Bank, N.A.		EUR		103,060,343	USD		117,108,231		1,126,312
09/16/2020	J.P. Morgan Chase Bank, N.A.		GBP		30,640,518	USD		38,750,774		767,299

See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.

Invesco Oppenheimer V.I. Global Strategic Income Fund

Open Forward Foreign Currency Contracts—(continued)
									Unrealized
Settlement		Contract to							Appreciation
Date	Counterparty			Deliver			Receive		(Depreciation)
09/16/2020	J.P. Morgan Chase Bank, N.A.		HUF		8,700,000	USD		28,692	$	1,101
09/16/2020	J.P. Morgan Chase Bank, N.A.		IDR		479,294,000,000	USD		33,261,208		737,284
09/16/2020	J.P. Morgan Chase Bank, N.A.		JPY		285,000,000	USD		2,664,864		22,699
09/16/2020	J.P. Morgan Chase Bank, N.A.		USD		7,862,189	EUR		7,005,000		21,091
09/16/2020	J.P. Morgan Chase Bank, N.A.		USD		8,405,636	INR		641,665,232		21,092
09/16/2020	J.P. Morgan Chase Bank, N.A.		USD		20,017,126	KRW		24,233,333,250		192,718
09/16/2020	J.P. Morgan Chase Bank, N.A.		USD		711,828	THB		22,140,000		4,405
09/16/2020	J.P. Morgan Chase Bank, N.A.		USD		6,190,568	TRY		43,360,000		3,886
09/16/2020	J.P. Morgan Chase Bank, N.A.		ZAR		1,370,790,622	USD		80,753,571		2,372,130
09/17/2020	J.P. Morgan Chase Bank, N.A.		MXN		746,337,460	USD		33,417,490		1,272,712
01/10/2022	J.P. Morgan Chase Bank, N.A.		MXN		140,358,825	USD		6,750,000		1,026,081
08/31/2020	Morgan Stanley & Co. International PLC		CLP		760,500,000	USD		946,190		19,536
09/16/2020	Morgan Stanley & Co. International PLC		CLP		7,531,045,875	USD		9,818,194		639,253
09/16/2020	Morgan Stanley & Co. International PLC		KRW		3,360,000	USD		2,826		23
10/26/2020	Morgan Stanley & Co. International PLC		IDR		133,542,500,000	USD		9,100,000		101,862
08/07/2020	Royal Bank of Canada		EUR		12,750,000	USD		14,639,550		303,728
08/07/2020	Royal Bank of Canada		INR		1,083,750,000	USD		14,624,263		329,221
09/16/2020	Royal Bank of Canada		EUR		55,421,842	USD		63,053,430		682,865
01/08/2021	Royal Bank of Canada		NOK		243,000,000	USD		28,911,957		3,648,895
02/08/2021	Royal Bank of Canada		RUB		690,200,000	USD		10,122,832		654,122
03/08/2021	Royal Bank of Canada		BRL		40,000,000	USD		9,713,453		2,427,331
08/30/2021	Royal Bank of Canada		NOK		162,250,000	USD		18,063,302		1,198,043
09/16/2020	Royal Bank of Scotland PLC		EUR		805,000	USD		914,971		9,041
08/11/2020	Standard Chartered Bank PLC		USD		1,500,000	AUD		2,308,687		93,548
09/16/2020	Standard Chartered Bank PLC		CNY		68,112,960	USD		9,600,000		2,219
09/16/2020	Standard Chartered Bank PLC		USD		10,000,000	CNY		71,150,000		25,729
Subtotal—Appreciation										34,952,120
Currency Risk
08/07/2020	Bank of America, N.A.		EUR		6,300,000	ZAR		119,826,000		(205,251	)
08/07/2020	Bank of America, N.A.		USD		7,173,180	EUR		6,300,000		(89,597	)
08/10/2020	Bank of America, N.A.		AUD		4,500,000	USD		3,098,520		(7,553	)
09/16/2020	Bank of America, N.A.		CHF		18,947,010	USD		20,017,126		(25,749	)
09/16/2020	Bank of America, N.A.		TRY		13,530,000	USD		1,918,469		(14,441	)
09/16/2020	Bank of America, N.A.		USD		4,045,877	AUD		5,800,000		(42,256	)
09/16/2020	Bank of America, N.A.		USD		10,517,086	COP		38,203,315,000		(415,028	)
09/16/2020	Bank of America, N.A.		USD		10,289,128	EUR		9,072,812		(78,778	)
09/16/2020	Bank of America, N.A.		USD		2,669,739	JPY		285,000,000		(27,575	)
09/16/2020	Bank of America, N.A.		USD		17,430,571	NOK		164,980,000		(285,418	)
09/16/2020	Bank of America, N.A.		USD		2,524,216	NZD		3,900,000		(7,716	)
09/16/2020	Bank of America, N.A.		USD		10,008,660	SEK		93,170,616		(631	)
09/17/2020	Bank of America, N.A.		USD		3,142,857	MXN		72,213,740		(32,609	)
12/02/2020	Bank of America, N.A.		AUD		8,352,675	GBP		4,500,000		(184,098	)
08/04/2020	Citibank, N.A.		USD		3,946,407	BRL		20,989,740		(93,006	)
09/16/2020	Citibank, N.A.		USD		2,064,381	EUR		1,815,936		(20,766	)
09/16/2020	Citibank, N.A.		USD		19,256,514	NOK		182,250,000		(316,618	)
09/16/2020	Citibank, N.A.		USD		17,133,907	RUB		1,201,969,314		(387,644	)
08/10/2020	Goldman Sachs International		EGP		20,500,000	USD		1,250,000		(9,967	)
09/16/2020	Goldman Sachs International		INR		1,123,300,131	USD		14,743,407		(8,437	)
09/16/2020	Goldman Sachs International		USD		42,850,882	EUR		37,693,638		(431,262	)
09/17/2020	Goldman Sachs International		USD		382,659	MXN		8,687,500		(8,488	)

See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.

Invesco Oppenheimer V.I. Global Strategic Income Fund

Open Forward Foreign Currency Contracts—(continued)
									Unrealized
Settlement		Contract to							Appreciation
Date	Counterparty			Deliver			Receive		(Depreciation)
01/11/2021	Goldman Sachs International		ZAR		113,074,480	USD		6,129,263	$	(267,169	)
02/18/2021	Goldman Sachs International		USD		3,175,000	BRL		16,068,357		(245,952	)
04/28/2021	Goldman Sachs International		BRL		9,144,450	USD		1,575,000		(86,710	)
06/15/2021	Goldman Sachs International		INR		677,925,000	USD		8,625,000		(17,353	)
08/19/2021	Goldman Sachs International		USD		4,500,000	BRL		22,756,050		(398,892	)
07/02/2020	J.P. Morgan Chase Bank, N.A.		USD		18,503,502	BRL		96,716,097		(718,596	)
07/27/2020	J.P. Morgan Chase Bank, N.A.		USD		7,750,000	IDR		112,646,250,000		(24,991	)
08/04/2020	J.P. Morgan Chase Bank, N.A.		USD		10,085,741	BRL		52,712,460		(408,525	)
09/16/2020	J.P. Morgan Chase Bank, N.A.		CNY		4,248,188	USD		598,212		(400	)
09/16/2020	J.P. Morgan Chase Bank, N.A.		EUR		4,365,000	USD		4,904,265		(8,013	)
09/16/2020	J.P. Morgan Chase Bank, N.A.		INR		1,123,299,869	USD		14,714,915		(36,924	)
09/16/2020	J.P. Morgan Chase Bank, N.A.		THB		22,140,000	USD		712,069		(4,165	)
09/16/2020	J.P. Morgan Chase Bank, N.A.		TRY		39,910,000	USD		5,699,393		(2,190	)
09/16/2020	J.P. Morgan Chase Bank, N.A.		USD		114,643,169	EUR		101,062,171		(909,948	)
09/16/2020	J.P. Morgan Chase Bank, N.A.		USD		38,340,389	GBP		30,080,000		(1,051,761	)
09/16/2020	J.P. Morgan Chase Bank, N.A.		USD		29,773,081	IDR		429,455,912,500		(631,069	)
09/16/2020	J.P. Morgan Chase Bank, N.A.		USD		12,440,675	JPY		1,330,496,580		(105,969	)
09/16/2020	J.P. Morgan Chase Bank, N.A.		USD		1,700,689	NOK		16,000,000		(37,927	)
09/16/2020	J.P. Morgan Chase Bank, N.A.		USD		17,342,850	NZD		26,789,000		(57,072	)
09/16/2020	J.P. Morgan Chase Bank, N.A.		USD		93,940	PLN		370,000		(396	)
09/16/2020	J.P. Morgan Chase Bank, N.A.		USD		4,987,664	ZAR		86,020,000		(69,064	)
09/17/2020	J.P. Morgan Chase Bank, N.A.		USD		17,360,723	MXN		393,522,803		(411,684	)
04/28/2021	J.P. Morgan Chase Bank, N.A.		BRL		3,587,500	USD		625,000		(26,913	)
05/19/2021	J.P. Morgan Chase Bank, N.A.		IDR		140,043,750,000	USD		8,750,000		(360,833	)
01/10/2022	J.P. Morgan Chase Bank, N.A.		USD		4,500,000	MXN		93,574,800		(683,962	)
08/04/2020	Morgan Stanley & Co. International PLC		USD		3,030,303	BRL		16,109,091		(72,916	)
08/07/2020	Morgan Stanley & Co. International PLC		USD		14,624,250	EUR		12,750,000		(288,428	)
08/07/2020	Morgan Stanley & Co. International PLC		USD		14,639,374	INR		1,085,290,000		(324,019	)
08/31/2020	Morgan Stanley & Co. International PLC		USD		937,500	CLP		760,500,000		(10,846	)
09/16/2020	Morgan Stanley & Co. International PLC		USD		9,817,792	CLP		7,530,737,500		(639,227	)
09/16/2020	Morgan Stanley & Co. International PLC		USD		10,046,796	KRW		11,947,046,531		(83,331	)
09/17/2020	Morgan Stanley & Co. International PLC		USD		178,824	MYR		760,000		(2,079	)
01/08/2021	Morgan Stanley & Co. International PLC		USD		28,432,650	EUR		23,500,000		(1,908,849	)
03/08/2021	Morgan Stanley & Co. International PLC		USD		9,643,202	BRL		40,000,000		(2,357,079	)
08/30/2021	Morgan Stanley & Co. International PLC		USD		18,061,785	EUR		15,525,000		(445,029	)
09/16/2020	Royal Bank of Canada		USD		5,020,194	EUR		4,412,581		(54,368	)
09/16/2020	Royal Bank of Canada		USD		4,256,314	GBP		3,360,000		(91,094	)
09/16/2020	Royal Bank of Canada		USD		7,868,049	JPY		841,000,000		(71,345	)
02/08/2021	Royal Bank of Canada		USD		10,139,786	RUB		690,200,000		(671,076	)
Subtotal—Depreciation										(16,279,052	)
Total Forward Foreign Currency Contracts									$	18,673,068

See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.

Invesco Oppenheimer V.I. Global Strategic Income Fund

	Open Centrally Cleared Credit Default Swap Agreements
Reference Entity	Buy/Sell Protection		(Pay)/ Receive Fixed Rate			Payment Frequency		Maturity Date		Implied Credit Spread(a)			Notional Value			Upfront Payments Paid (Received)			Value			Unrealized Appreciation (Depreciation)
Credit Risk
South African Government Bonds		Buy		(1.00	)%		Quarterly		12/20/2024		2.945	%		USD	625,000	$	23,238		$	50,213		$	26,975
Indonesian Government Bonds		Buy		(1.00	)		Quarterly		12/20/2024		1.198			USD	600,000		(2,388	)		5,124			7,512
Brazilian Government Bonds		Sell		1.00			Quarterly		06/20/2022		1.512			USD	2,500,000		(58,191	)		(24,988	)		33,203
Subtotal - Appreciation																	(37,341	)		30,349			67,690
Credit Risk
Lloyds Banking Group PLC		Buy		(1.00	)		Quarterly		06/20/2025		0.740	%		EUR	1,300,000		(18,760	)		(18,843	)		(83	)
Italy Government International Bond		Sell		1.00			Quarterly		06/20/2025		1.682	%		USD	1,950,000		(61,892	)		(61,997	)		(105	)
Subtotal - Depreciation																	(80,652	)		(80,840	)		(188	)
Total Centrally Cleared Credit Default Swap Agreements																$	(117,993	)	$	(50,491	)	$	67,502

^(a)  Implied credit spreads represent the current level, as of June 30, 2020, at which protection could be bought or sold given the terms of the existing credit default swap agreement and serve as an indicator of the current status of the payment/performance risk of the credit default swap agreement. An implied credit spread that has widened or increased since entry into the initial agreement 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 generally.

			Open Centrally Cleared Interest Rate Swap Agreements
Pay/ Receive Floating Rate	Floating Rate Index	Payment Frequency	(Pay)/ Receive Fixed Rate			Payment Frequency	Maturity Date		Notional Value		Upfront Payments Paid (Received)		Value		Unrealized Appreciation (Depreciation)
Interest Rate Risk
Receive	1 Month CLICP	Semi-Annually		(0.520	)%	Semi-Annually		06/26/2022	CLP	12,625,000,000	$	-	$	1,911	$	1,911
Pay	1 Month BZDIOVRA	Semi-Annually		0.760		Semi-Annually		06/25/2025	THB	237,500,000		-		4,371		4,371
Pay	1 Month CLICP	Semi-Annually		1.195		Semi-Annually		06/26/2025	CLP	5,125,000,000		-		6,737		6,737
Receive	1 Month BZDIOVRA	At Maturity		(2.048	)	At Maturity		01/04/2021	BRL	646,844,399		-		16,089		16,089
Receive	1 Month BZDIOVRA	At Maturity		(2.045	)	At Maturity		01/04/2021	BRL	624,812,135		-		18,733		18,733
Pay	1 Month BZDIOVRA	At Maturity		2.958		At Maturity		01/03/2022	BRL	223,021,899		-		33,109		33,109
Pay	1 Month MXIBTIIE	At Maturity		5.565		At Maturity		04/24/2025	MXN	24,000,000		-		34,957		34,957
Pay	3 Month CDOR	Semi-Annually		0.940		Semi-Annually		03/25/2025	CAD	5,246,000		62		35,178		35,116
Pay	1 Month BZDIOVRA	At Maturity		5.750		At Maturity		01/02/2025	BRL	16,852,097		-		46,669		46,669
Pay	1 Month COOVIBR	Quarterly		2.520		Quarterly		05/19/2022	COP	50,000,000,000		-		68,922		68,922
Pay	3 Month CDOR	Semi-Annually		0.970		Semi-Annually		03/25/2025	CAD	9,375,000		105		72,623		72,518
Pay	1 Month BZDIOVRA	At Maturity		3.018		At Maturity		01/03/2022	BRL	218,567,065		-		76,381		76,381
Pay	1 Month MXIBTIIE	At Maturity		4.760		At Maturity		05/17/2023	MXN	260,000,000		-		82,047		82,047
Pay	1 Month MXIBTIIE	At Maturity		4.870		At Maturity		06/02/2023	MXN	193,500,000		-		87,343		87,343
Pay	1 Month MXIBTIIE	At Maturity		4.900		At Maturity		06/07/2023	MXN	187,500,000		-		90,990		90,990
Pay	1 Month COOVIBR	Quarterly		3.120		Quarterly		04/16/2022	COP	23,750,000,000		-		101,173		101,173
Pay	1 Month BZDIOVRA	At Maturity		5.930		At Maturity		01/02/2025	BRL	21,886,802		-		112,295		112,295
Pay	1 Month MXIBTIIE	At Maturity		6.910		At Maturity		12/16/2026	MXN	247,125,000		-		122,088		122,088
Pay	1 Month MXIBTIIE	At Maturity		5.900		At Maturity		04/16/2025	MXN	62,900,000		-		132,112		132,112
Pay	1 Month BZDIOVRA	At Maturity		6.030		At Maturity		01/02/2025	BRL	23,294,056		-		140,715		140,715
Pay	1 Month BZDIOVRA	At Maturity		4.500		At Maturity		01/02/2023	BRL	48,942,861		-		142,157		142,157
Pay	1 Month COOVIBR	Quarterly		4.890		Quarterly		10/17/2020	COP	46,900,000,000		-		148,986		148,986
Pay	1 Month MXIBTIIE	At Maturity		5.960		At Maturity		04/15/2025	MXN	81,100,000		-		179,647		179,647

See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.

Invesco Oppenheimer V.I. Global Strategic Income Fund

		Open Centrally Cleared Interest Rate Swap Agreements—(continued)
Pay/ Receive Floating Rate	Floating Rate Index	Payment Frequency	(Pay)/ Receive Fixed Rate			Payment Frequency		Maturity Date		Notional Value			Upfront Payments Paid (Received)			Value			Unrealized Appreciation (Depreciation)
Pay	1 Month MXIBTIIE	At Maturity		5.920	%		At Maturity		04/16/2025		MXN	93,600,000	$	-		$	200,168		$	200,168
Pay	1 Month COOVIBR	Quarterly		4.260			Quarterly		02/28/2023		COP	15,600,000,000		-			202,975			202,975
Pay	1 Month MXIBTIIE	At Maturity		6.520			At Maturity		09/29/2022		MXN	108,000,000		-			213,665			213,665
Pay	1 Month COOVIBR	Quarterly		5.200			Quarterly		08/01/2029		COP	12,445,000,000		-			247,485			247,485
Pay	1 Month BZDIOVRA	At Maturity		6.060			At Maturity		01/02/2025		BRL	59,558,872		-			325,414			325,414
Pay	1 Month MXIBTIIE	At Maturity		6.465			At Maturity		12/12/2024		MXN	106,250,000		-			327,066			327,066
Pay	1 Month MXIBTIIE	At Maturity		8.620			At Maturity		12/26/2028		MXN	37,300,000		-			362,428			362,428
Pay	1 Month MXIBTIIE	At Maturity		6.570			At Maturity		01/01/2025		MXN	112,500,000		-			368,857			368,857
Pay	1 Month MXIBTIIE	At Maturity		8.525			At Maturity		01/15/2024		MXN	70,450,000		-			401,160			401,160
Pay	1 Month COOVIBR	Quarterly		5.560			Quarterly		08/26/2026		COP	12,803,000,000		-			402,252			402,252
Pay	1 Month MXIBTIIE	At Maturity		7.210			At Maturity		07/17/2024		MXN	135,555,000		-			560,665			560,665
Pay	1 Month BZDIOVRA	At Maturity		6.610			At Maturity		01/02/2023		BRL	358,875,496		-			604,627			604,627
Pay	1 Month MXIBTIIE	At Maturity		7.845			At Maturity		12/07/2023		MXN	146,300,000		-			672,317			672,317
Pay	1 Month MXIBTIIE	At Maturity		6.873			At Maturity		03/06/2025		MXN	172,500,000		-			675,505			675,505
Pay	1 Month MXIBTIIE	At Maturity		6.415			At Maturity		02/22/2023		MXN	368,400,000		-			791,954			791,954
Pay	1 Month MXIBTIIE	At Maturity		6.395			At Maturity		10/21/2024		MXN	275,000,000		-			798,152			798,152
Pay	1 Month MXIBTIIE	At Maturity		7.810			At Maturity		12/07/2023		MXN	176,800,000		-			803,758			803,758
Pay	3 Month CDOR	Semi-Annually		1.060			Semi- Annually		03/26/2030		CAD	213,850,000		2,121			809,177			807,056
Pay	1 Month BZDIOVRA	At Maturity		5.565			At Maturity		01/02/2023		BRL	107,234,096		-			883,735			883,735
Pay	1 Month BZDIOVRA	At Maturity		8.415			At Maturity		01/02/2025		BRL	26,699,194		-			933,524			933,524
Pay	1 Month BZDIOVRA	At Maturity		8.680			At Maturity		01/04/2027		BRL	24,429,011		-			985,586			985,586
Subtotal - Appreciation														2,288			13,325,703			13,323,415
Interest Rate Risk
Receive	3 mo. USD LIBOR	Quarterly		(1.085	)		Quarterly		06/12/2050		USD	26,375,000		-			(1,221,048	)		(1,221,048	)
Receive	1 Month BZDIOVRA	At Maturity		(3.940	)		At Maturity		01/04/2021		BRL	207,186,561		-			(436,739	)		(436,739	)
Receive	1 Month BZDIOVRA	At Maturity		(3.910	)		At Maturity		01/04/2021		BRL	175,601,853		-			(362,890	)		(362,890	)
Receive	1 Month BZDIOVRA	At Maturity		(4.320	)		At Maturity		01/04/2021		BRL	122,273,181		-			(331,359	)		(331,359	)
Receive	1 Month BZDIOVRA	At Maturity		(4.280	)		At Maturity		01/04/2021		BRL	123,298,859		-			(325,930	)		(325,930	)
Receive	1 Month MXIBTIIE	At Maturity		(4.810	)		At Maturity		05/19/2021		MXN	750,000,000		-			(85,491	)		(85,491	)
Pay	1 Month MXIBTIIE	At Maturity		7.070			At Maturity		12/12/2029		MXN	107,250,000		-			(80,350	)		(80,350	)
Receive	1 Month MXIBTIIE	At Maturity		(4.830	)		At Maturity		06/04/2021		MXN	557,500,000		-			(77,951	)		(77,951	)
Pay	1 Month CNRR07	Quarterly		1.990			Quarterly		06/15/2022		CNY	175,000,000		-			(72,491	)		(72,491	)
Receive	1 Month MXIBTIIE	At Maturity		(4.800	)		At Maturity		06/09/2021		MXN	550,000,000		-			(71,078	)		(71,078	)
Pay	1 Month CNRR07	Quarterly		2.040			Quarterly		06/18/2022		CNY	247,500,000		-			(66,701	)		(66,701	)
Receive	6 Month ADBB	Semi-Annually		(1.184	)		Semi- Annually		05/21/2041		AUD	14,750,000		-			(10,403	)		(10,403	)
Pay	1 Month CNRR07	Quarterly		2.125			Quarterly		06/30/2022		CNY	181,250,000		-			(9,833	)		(9,833	)
Pay	3 Month CDOR	Semi-Annually		0.760			Semi- Annually		06/29/2025		CAD	107,640,000		(429	)		(6,019	)		(5,590	)
Pay	1 Month CNRR07	Quarterly		2.125			Quarterly		06/29/2022		CNY	45,000,000		-			(2,476	)		(2,476	)
Subtotal — Depreciation														(429	)		(3,160,759	)		(3,160,330	)
Total Centrally Cleared Interest Rate Swap Agreements													$	1,859		$	10,164,944		$	10,163,085

See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.

Invesco Oppenheimer V.I. Global Strategic Income Fund

		Open Over-The-Counter Credit Default Swap Agreements(a)
Counterparty	Reference Entity	Buy/Sell Protection	(Pay)/ Receive Fixed Rate			Payment Frequency		Maturity Date		Implied Credit Spread(b)			Notional Value				Upfront Payments Paid (Received)			Value			Unrealized Appreciation (Depreciation)
Credit Risk
Barclays Bank PLC	UniCredit S.p.A.	Buy		(1.00	)%				06/20/2025		1.251	%		EUR		1,950,000	$	13,856		$	26,809		$	12,953
Citibank, N.A.	Assicurazioni Generali International Bonds	Buy		(1.00	)%		Quarterly		12/20/2024		1.696	%		EUR		1,250,000	$	14,666		$	43,207		$	28,541
Subtotal—Appreciation																		28,522			70,016			41,494
Credit Risk
Bank of America, N.A.	Uruguary Government Bonds	Sell		1.00	%		Quarterly		12/20/2021		1.530	%			$	2,697,000	$	(16,203	)	$	(21,033	)	$	(4,830	)
Citibank, N.A.	Assicurazioni Generali International Bonds	Sell		1.00	%		Quarterly		12/20/2024		0.825	%		EUR		2,500,000	$	45,153		$	22,036		$	(23,117	)
J.P. Morgan Chase Bank, N.A.	Markit iTraxx Europe Crossover Index, Series 28, Version 1	Sell		5.00	%		Quarterly		12/20/2022		2.128	%		EUR		15,000,000	$	1,865,215		$	1,201,225		$	(663,990	)
J.P. Morgan Chase Bank, N.A.	Markit iTraxx Europe Crossover Index, Series 28, Version 1	Sell		5.00	%		Quarterly		12/20/2022		12.453	%		EUR		2,500,000	$	60,323		$	(466,516	)	$	(526,839	)
J.P. Morgan Chase Bank, N.A.	Royal Bank of Scotland PLC	Buy		(1.00	)%		Quarterly		12/20/2021		0.879	%		EUR		2,500,000	$	24,654		$	6,109		$	(18,545	)
J.P. Morgan Chase Bank, N.A.	Markit iTraxx Europe Index, Series 32, Version 1	Sell		5.00	%		Quarterly		12/20/2021		12.480	%		EUR		2,500,000	$	(199,234	)	$	(288,852	)	$	(89,618	)
Subtotal—Depreciation																		1,779,908			452,969			(1,326,939	)
Total Open Over-The-Counter Credit Default Swap Agreements																	$	1,808,430		$	522,985		$	(1,285,445	)

^(a)  Over-The-Counter options purchased, options written and Swap agreements are collateralized by cash held with Counterparties in the amount of $2,986,000.

^(b)  Implied credit spreads represent the current level, as of June 30, 2020, at which protection could be bought or sold given the terms of the existing credit default swap agreement and serve as an indicator of the current status of the payment/performance risk of the credit default swap agreement. An implied credit spread that has widened or increased since entry into the initial agreement 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 generally.

Open Over-The-Counter Interest Rate Swap Aggreements^(a)

Counterparty

Pay/ Receive Floating Rate

Floating Rate Index

Payment Frequency

Fixed Rate

Payment Frequency

Maturity Date

Notional Value

Upfront Payments Paid (Received)

Value

Unrealized Appreciation (Depreciation)

Interest Rate Risk

Bank of America, N.A.

Pay

Bank of America, N.A.

Semi-Annually

6.33

Semi-Annually

01/31/2022

INR

210,000,000

$

-

$

133,891

$

133,891

Goldman Sachs International

Pay

Goldman Sachs International

Annually

8.27

Annually

05/23/2024

RUB

100,000,000

-

160,815

160,815

Goldman Sachs International

Pay

Goldman Sachs International

Annually

6.58

Annually

10/25/2021

RUB

1,720,000,000

-

556,023

556,023

Goldman Sachs International

Pay

Goldman Sachs International

Annually

6.77

Annually

01/14/2030

RUB

198,000,000

-

222,927

222,927

Goldman Sachs International

Pay

Goldman Sachs International

Annually

6.35

Annually

02/28/2025

RUB

287,500,000

-

196,064

196,064

Goldman Sachs International

Pay

Goldman Sachs International

Annually

5.89

Annually

03/05/2022

RUB

700,000,000

-

179,837

179,837

Goldman Sachs International

Pay

Goldman Sachs International

Annually

5.94

Annually

04/30/2026

RUB

860,000,000

-

346,113

346,113

Subtotal—Appreciation

-

1,795,670

1,795,670

See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.

Invesco Oppenheimer V.I. Global Strategic Income Fund

Open Over-The-Counter Interest Rate Swap Aggreements(a)–(continued)
Counterparty	Pay/ Receive Floating Rate		Floating Rate Index	Payment Frequency		Fixed Rate			Payment Frequency		Maturity Date		Notional Value			Upfront Payments Paid (Received)		Value			Unrealized Appreciation (Depreciation)
Interest Rate Risk
Standard Chartered Bank PLC		Receive	Standard Chartered Bank PLC		Semi-Annually		(6.44	)		Semi-Annually		01/10/2024		INR	250,000,000	$	-	$	(305,157	)	$	(305,157	)
Total Over-The-Counter Interest Rate Swap Aggreements																$	-	$	1,490,513		$	1,490,513

^(a)  Over-The-Counter options purchased, options written and Swap agreements are collateralized by cash held with Counterparties in the amount of $2,986,000.

Abbreviations:
AUD	—Australian Dollar
BRL	—Brazilian Real
BRL	—Brazilian Real
CAD	—Canadian Dollar
CDOR	—Canadian Dealer Offered Rate
CHF	—Swiss Franc
CLP	—Chile Peso
CNY	—Chinese Yuan Renminbi
COP	—Colombia Peso
EGP	—Egypt Pound
EUR	—Euro
GBP	—British Pound Sterling
HUF	—Hungarian Forint
IDR	—Indonesian Rupiah
INR	—Indian Rupee
JPY	—Japanese Yen
KRW	—South Korean Won
KWCDC	—South Korean Won Certificate of Deposit
LIBOR	—London Interbank Offered Rate
MXN	—Mexican Peso
MYR	—Malaysian Ringgit
NOK	—Norwegian Krone
NZD	—New Zealand Dollar
PEN	—Peruvian Sol
PLN	—Polish Zloty
RUB	—Russian Ruble
SEK	—Swedish Krona
THB	—Thai Baht
TRY	—Turkish Lira
USD	—U.S. Dollar
ZAR	—South African Rand

Portfolio Composition

By security type, based on Net Assets

as of June 30, 2020

U.S. Dollar Denominated Bonds & Notes	36.30	%
Non-U.S. Dollar Denominated Bonds & Notes	29.41
Asset-Backed Securities	11.73
U.S. Government Sponsored Agency Mortgage-Backed Securities	8.65
U.S. Treasury Securities	5.14
Agency Credit Risk Transfer Notes	2.76
Security Types Each Less Than 1% of Portfolio	0.61
Money Market Funds Plus Other Assets Less Liabilities	5.40

See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.

Invesco Oppenheimer V.I. Global Strategic Income Fund

Consolidated Statement of Assets and Liabilities

June 30, 2020

(Unaudited)

Assets:
Investments in securities, at value (Cost $1,010,916,945)	$	964,276,922
Investments in affiliates, at value (Cost $59,625,191)		60,187,310
Other investments:
Variation margin receivable — futures contracts		1,869,789
Variation margin receivable—centrally cleared swap agreements		3,181,079
Swaps receivable — OTC		2,126,761
Unrealized appreciation on swap agreements — OTC		1,837,164
Premiums paid on swap agreements — OTC		1,808,430
Unrealized appreciation on forward foreign currency contracts outstanding		34,952,120
Deposits with brokers:
Cash collateral — exchange-traded futures contracts		12,260,374
Cash collateral — centrally cleared swap agreements		21,178,016
Cash collateral — OTC Derivatives		2,986,000
Cash		16,800,783
Foreign currencies, at value (Cost $2,833,152)		2,816,260
Receivable for:
Investments sold		33,828,519
Fund shares sold		3,358,845
Dividends		67,765
Interest		8,130,771
Investments matured, at value (Cost $65,364)		10,065
Investment for trustee deferred compensation and retirement plans		133,157
Other assets		7,976,610
Total assets		1,179,786,740
Liabilities:
Other investments:
Options written, at value (premiums received $11,888,400)		16,897,533
Unrealized depreciation on forward foreign currency contracts outstanding		16,279,052
Swaps payable — OTC		655,797
Unrealized depreciation on swap agreements —OTC		1,632,096
Payable for:
Investments purchased		118,339,976
Fund shares reacquired		730,802
Accrued foreign taxes		249,406
Accrued fees to affiliates		581,949
Accrued interest expense		746
Accrued trustees’ and officers’ fees and benefits		5,802
Accrued other operating expenses		492,091
Trustee deferred compensation and retirement plans		133,157
Collateral received from brokers		7,765,000
Total liabilities		163,763,407
Net assets applicable to shares outstanding	$	1,016,023,333

Net assets consist of:
Shares of beneficial interest	$	1,202,779,421
Distributable earnings (loss)		(186,756,088	)
	$	1,016,023,333
Net Assets:
Series I	$	361,342,077
Series II	$	654,681,256
Shares outstanding, no par value, with an unlimited number of shares authorized:
Series I		76,539,258
Series II		134,690,001
Series I:
Net asset value per share	$	4.72
Series II:
Net asset value per share	$	4.86

See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.

Invesco Oppenheimer V.I. Global Strategic Income Fund

Consolidated Statement of Operations

For the six months ended June 30, 2020

(Unaudited)

Investment income:
Interest (net of foreign withholding taxes of $406,649)	$	22,487,963
Dividends from affiliates		909,413
Dividends		127,251
Total investment income		23,524,627
Expenses:
Advisory fees		3,388,848
Administrative services fees		832,995
Custodian fees		55,868
Distribution fees - Series II		825,819
Transfer agent fees		22,410
Trustees’ and officers’ fees and benefits		13,675
Reports to shareholders		51,205
Professional services fees		55,598
Other		14,956
Total expenses		5,261,374
Less: Expenses reimbursed		(258,056	)
Net expenses		5,003,318
Net investment income		18,521,309
Realized and unrealized gain (loss) from:
Net realized gain (loss) from:
Investment securities (net of foreign taxes of $41,160)		(31,667,931	)
Foreign currencies		(4,417,474	)
Forward foreign currency contracts		(3,571,663	)
Futures contracts		13,889,931
Option contracts written		(76,366,170	)
Swap agreements		21,615,963
		(80,517,344	)
Change in net unrealized appreciation (depreciation) of:
Investment securities (net of foreign taxes of $38,170)		(23,744,251	)
Foreign currencies		632,067
Forward foreign currency contracts		28,997,167
Futures contracts		(307,766	)
Option contracts written		(12,723,480	)
Swap agreements		9,107,669
		1,961,406
Net realized and unrealized gain (loss)		(78,555,938	)
Net increase (decrease) in net assets resulting from operations	$	(60,034,629	)

See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.

Invesco Oppenheimer V.I. Global Strategic Income Fund

Consolidated Statement of Changes in Net Assets

For the six months ended June 30, 2020 and the year ended December 31, 2019

(Unaudited)

	June 30, 2020			December 31, 2019
Operations:
Net investment income	$	18,521,309		$	65,657,033
Net realized gain (loss)		(80,517,344	)		(4,708,162	)
Change in net unrealized appreciation		1,961,406			79,839,376
Net increase (decrease) in net assets resulting from operations		(60,034,629	)		140,788,247
Distributions to shareholders from distributable earnings:
Series I		-			(15,389,942	)
Series II		-			(36,879,378	)
Total distributions from distributable earnings		-			(52,269,320	)
Share transactions–net:
Series I		(13,432,780	)		25,392,026
Series II		(42,171,845	)		(410,787,898	)
Net increase (decrease) in net assets resulting from share transactions		(55,604,625	)		(385,395,872	)
Net increase (decrease) in net assets		(115,639,254	)		(296,876,945	)
Net assets:
Beginning of period		1,131,662,587			1,428,539,532
End of period	$	1,016,023,333		$	1,131,662,587

See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.

Invesco Oppenheimer V.I. Global Strategic Income Fund

Consolidated Financial Highlights

(Unaudited)

The following schedule presents financial highlights for a share of the Fund outstanding throughout the periods indicated.

																					Ratio of			Ratio of
																					expenses			expenses
					Net gains																to average			to average net
					(losses)																net assets			assets without			Ratio of net
	Net asset				on securities						Dividends										with fee waivers			fee waivers			investment
	value,		Net		(both			Total from			from net			Net assets					Net assets,		and/or			and/or			income
	beginning		investment		realized and			investment			investment			value, end		Total			end of period		expenses			expenses			to average			Portfolio
	of period		income(a)		unrealized)			operations			income			of period		return (b)			(000’s omitted)		absorbed			absorbed(c)			net assets			turnover (d)(e)
Series I
Six months ended 06/30/20	$	4.97	$	0.09	$	(0.34	)	$	(0.25	)	$	-		$	4.72		(5.03)%		$	361,342		0.82	%(f)		0.87	%(f)		3.80	%(f)		146	%
Year ended 12/31/19		4.66		0.24		0.26			0.50			(0.19	)		4.97		10.80			395,324		0.77	(g)		0.82	(g)		4.86	(h)		134
Year ended 12/31/18		5.13		0.25		(0.47	)		(0.22	)		(0.25	)		4.66		(4.40	)		346,707		0.81	(g)		0.88	(g)		5.07	(h)		68
Year ended 12/31/17		4.94		0.22		0.09			0.31			(0.12	)		5.13		6.27			393,337		0.76	(g)		0.82	(g)		4.40	(h)		74
Year ended 12/31/16		4.88		0.20		0.11			0.31			(0.25	)		4.94		6.53			401,308		0.74	(g)		0.79	(g)		4.00	(h)		80
Year ended 12/31/15		5.30		0.23		(0.34	)		(0.11	)		(0.31	)		4.88		(2.26	)		429,710		0.73	(g)		0.76	(g)		4.51	(h)		79
Series II
Six months ended 06/30/20		5.13		0.08		(0.35	)		(0.27	)		-			4.86		(5.26	)		654,681		1.07	(f)		1.12	(f)		3.55	(f)		146
Year ended 12/31/19		4.80		0.23		0.27			0.50			(0.17	)		5.13		10.61			736,339		1.02	(g)		1.08	(g)		4.60	(h)		134
Year ended 12/31/18		5.27		0.24		(0.48	)		(0.24	)		(0.23	)		4.80		(4.54	)		1,081,833		1.06	(g)		1.13	(g)		4.82	(h)		68
Year ended 12/31/17		5.07		0.22		0.08			0.30			(0.10	)		5.27		6.04			1,277,689		1.01	(g)		1.07	(g)		4.15	(h)		74
Year ended 12/31/16		5.00		0.19		0.12			0.31			(0.24	)		5.07		6.27			1,284,022		0.99	(g)		1.04	(g)		3.75	(h)		80
Year ended 12/31/15		5.42		0.23		0.35			(0.12	)		(0.30	)		5.00		(2.49	)		1,375,143		0.98	(g)		1.01	(g)		4.26	(h)		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)  Does not include indirect expenses from affiliated fund fees and expenses of 0.04%, 0.02%, 0.01%, 0.01% and 0.01% for the years ended December 31, 2019, 2018, 2017, 2016 and 2015, respectively.

^(d)  The portfolio turnover rate excludes purchase and sale transactions of To Be Announced (TBA) mortgage-related securities of $2,177,497,748 and $2,279,114,634, $2,370,164,194 and $2,399,236,376, $2,271,944,419 and $2,153,905,799, $1,798,210,272 and $1,766,445,159 and $1,225,140,927 and $1,266,426,777 for the years ended December 31, 2019, 2018, 2017, 2016 and 2015, respectively.

^(e)  Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable.

^(f)  Ratios are annualized and based on average daily net assets (000’s omitted) of $359,909 and $664,285 for Series I and Series II shares, respectively. (g) Includes the Fund’s share of the allocated expenses from Invesco Oppenheimer Master Event-Linked Bond Fund and Invesco Oppenheimer Master Loan Fund.

^(h)  Includes the Fund’s share of the allocated net investment income from Invesco Oppenheimer Master Event-Linked Bond Fund and Invesco Oppenheimer Master Loan Fund.

See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.

Invesco Oppenheimer V.I. Global Strategic Income Fund

Notes to Consolidated Financial Statements

June 30, 2020

(Unaudited)

NOTE 1—Significant Accounting Policies

Invesco Oppenheimer V.I. Global Strategic 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. Information presented in these consolidated financial statements pertains only to the Fund and the Subsidiary. Matters affecting the Fund or each class will be voted on exclusively by the shareholders of the Fund or each 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 total return.

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 Fund is an investment company and accordingly follows the investment company accounting and reporting guidance in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 946, Financial Services – Investment Companies.

The following is a summary of the significant accounting policies followed by the Fund in the preparation of its consolidated financial statements.

A. Security Valuations – Securities, including restricted securities, are valued according to the following policy.

A security listed or traded on an exchange (except convertible securities) is valued at its last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded, or lacking any sales or official closing price on a particular day, the security may be valued at the closing bid price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued by an independent pricing service they may be considered fair valued. Futures contracts are valued at the final settlement price set by an exchange on which they are principally traded. Listed options are valued at the mean between the last bid and asked 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 asked prices. For purposes of determining net asset value (“NAV”) 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, if available, provided by an independent pricing service. Evaluated quotes provided by the pricing service are valued based on a model which may include end-of-day net present values, spreads, ratings, industry, company performance and returns of referenced assets. Centrally cleared swap agreements are valued at the daily settlement price determined by the relevant exchange or clearinghouse.

Debt obligations (including convertible securities) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. Pricing services generally value debt obligations assuming orderly transactions of institutional round lot size, but a fund may hold or transact in the same securities in smaller, odd lot sizes. Odd lots often trade at lower prices than institutional round lots. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.

Foreign securities’ (including foreign exchange contracts) prices are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the NYSE. If market quotations are available and reliable for foreign exchange-traded equity securities, the securities will be valued at the market quotations. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become unreliable. If between the time trading ends on a particular security and the close of the customary trading session on the NYSE, events occur that the investment adviser determines are significant and make the closing price unreliable, the Fund may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith using procedures approved by the Board of Trustees. Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities’ prices meeting the approved degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economic upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.

Securities for which market prices are not provided by any of the above methods may be valued based upon quotes furnished by independent sources. The last bid price may be used to value equity securities. The mean between the last bid and asked prices is used to value debt obligations, including corporate loans.

Securities for which market quotations are not readily available or became unreliable are valued at fair value as determined in good faith by or under the supervision of the Trust’s officers following procedures approved by the Board of Trustees. Issuer specific events, market trends, bid/asked quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security’s fair value.

The Fund may invest in securities that are subject to interest rate risk, meaning the risk that the prices will generally fall as interest rates rise and, conversely, the prices will generally rise as interest rates fall. Specific securities differ in their sensitivity to changes in interest rates depending on their individual characteristics. Changes in interest rates may result in increased market volatility, which may affect the value and/or liquidity of certain Fund investments.

Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the issuer’s assets, general market conditions which are not specifically related to the particular issuer, such as real or perceived adverse economic conditions, changes in the general outlook for revenues or corporate earnings, changes in interest or currency rates, regional or global instability, natural or environmental disasters, widespread disease or other public health issues, war, acts of terrorism or adverse investor sentiment generally 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 (net of withholding tax, if any) is recorded on an accrual basis from settlement date. Bond premiums and discounts are amortized and/or accreted over the lives of the respective securities. Pay-in-kind interest income and non-cash

Invesco Oppenheimer V.I. Global Strategic Income Fund

dividend income received in the form of securities in-lieu of cash are recorded at the fair value of the securities received. Dividend income (net of withholding tax, if any) is recorded on the ex-dividend date.

The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements.Any proceeds received are included in the 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 the Consolidated Statement of Changes in Net Assets, or the net investment income per share and the ratios of expenses and net investment income reported in the 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 net investment income and net realized capital gain, if any, are generally declared and paid to separate accounts of participating insurance companies annually and recorded on the ex-dividend date.

E. Federal Income Taxes – The Fund intends to comply with the requirements of Subchapter M of the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”), necessary to qualify as a regulated investment company and to distribute substantially all of the Fund’s taxable earnings to shareholders. As such, the Fund will not be subject to federal income taxes on otherwise taxable income (including net realized capital gain) that is distributed to shareholders. Therefore, no provision for federal income taxes is recorded in the consolidated financial statements.

The Fund recognizes the tax benefits of uncertain tax positions only when the position is more likely than not to be sustained. Management has analyzed the Fund’s uncertain tax positions and concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions. Management is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the next 12 months.

The 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.

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 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 the 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. Treasury Inflation-Protected Securities – The Fund may invest in Treasury Inflation-Protected Securities (“TIPS”). TIPS are fixed income securities whose principal value is periodically adjusted to the rate of inflation. The principal value of TIPS will be adjusted upward or downward, and any increase or decrease in the principal amount of TIPS will be included as interest income in the Consolidated Statement of Operations, even though investors do not receive their principal until maturity.

J. Foreign Currency Translations – Foreign currency is valued at the close of the NYSE based on quotations posted by banks and major currency dealers. Portfolio securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at the date of valuation. Purchases and sales of portfolio securities (net of foreign taxes withheld on disposition) and income items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. The Fund does not separately account for the portion of the results of operations resulting from changes in foreign exchange rates on investments and the fluctuations arising from changes in market prices of securities held. The combined results of changes in foreign exchange rates and the fluctuation of market prices on investments (net of estimated foreign tax withholding) are included with the net realized and unrealized gain or loss from investments in the Consolidated Statement of Operations. Reported net realized foreign currency gains or losses arise from (1) sales of foreign currencies, (2) currency gains or losses realized between the trade and settlement dates on securities transactions, and (3) the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign currency gains and losses arise from changes in the fair values of assets and liabilities, other than investments in securities at fiscal period end, resulting from changes in exchange rates.

The Fund may invest in foreign securities, which may be subject to foreign taxes on income, gains on investments or currency repatriation, a portion of which may be recoverable. Foreign taxes, if any, are recorded based on the tax regulations and rates that exist in the foreign markets in which the Fund invests and are shown in the Consolidated Statement of Operations.

K. Forward Foreign Currency Contracts – The Fund may engage in foreign currency transactions either on a spot (i.e. for prompt delivery and settlement) basis, or through forward foreign currency contracts, to manage or minimize currency or exchange rate risk.

The Fund may also enter into forward foreign currency contracts for the purchase or sale of a security denominated in a foreign currency in order to “lock in” the U.S. dollar price of that security, or the Fund may also enter into forward foreign currency contracts that do not provide for physical settlement of the two

Invesco Oppenheimer V.I. Global Strategic Income Fund

currencies, but instead are settled by a single cash payment calculated as the difference between the agreed upon exchange rate and the spot rate at settlement based upon an agreed upon notional amount (non-deliverable forwards). The Fund will set aside liquid assets in an amount equal to the daily mark-to-market obligation for forward foreign currency contracts.

A forward foreign currency contract is an obligation between two parties (“Counterparties”) to purchase or sell a specific currency for an agreed-upon price at a future date. The use of forward foreign currency contracts 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 Consolidated Statement of Operations. The primary risks associated with forward foreign currency contracts include failure of the Counterparty to meet the terms of the contract and the value of the foreign currency changing unfavorably. These risks may be in excess of the amounts reflected in the Consolidated Statement of Assets and Liabilities.

L. Futures Contracts – The Fund may enter into futures contracts to equitize the Fund’s cash holdings or to manage exposure to interest rate, equity, commodity and market price movements and/or currency risks. A futures contract is an agreement between Counterparties to purchase or sell a specified underlying security, currency or commodity (or delivery of a cash settlement price, in the case of an index future) for a fixed price at a future date. The Fund currently invests only in exchange-traded futures and they are standardized as to maturity date and underlying financial instrument. Initial margin deposits required upon entering into futures contracts are satisfied by the segregation of specific securities or cash as collateral at the futures commission merchant (broker). During the period the futures contracts are open, changes in the value of the contracts are recognized as unrealized gains or losses by recalculating the value of the contracts on a daily basis. Subsequent or variation margin payments are received or made depending upon whether unrealized gains or losses are incurred. These amounts are reflected as receivables or payables on the 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.

M. Call Options Purchased and Written – The Fund may write covered call options and/or buy call options. A covered call option gives the purchaser of such option the right to buy, and the writer the obligation to sell, the underlying security or foreign currency at the stated exercise price during the option period. Options written by the Fund normally will have expiration dates between three and nine months from the date written. The exercise price of a call option may be below, equal to, or above the current market value of the underlying security at the time the option is written.

Additionally, the Fund may enter into an option on a swap agreement, also called a “swaption”. A swaption is an option that gives the buyer the right, but not the obligation, to enter into a swap on a future date in exchange for paying a market-based premium. A receiver swaption gives the owner the right to receive the total return of a specified asset, reference rate or index. Swaptions also include options that allow an existing swap to be terminated or extended by one of the Counterparties.

When the Fund writes a covered call option, an amount equal to the premium received by the Fund is recorded as an asset and an equivalent liability in the Consolidated Statement of Assets and Liabilities. The amount of the liability is subsequently “marked-to-market” to reflect the current market value of the option written. If a written covered call option expires on the stipulated expiration date, or if the Fund enters into a closing purchase transaction, the Fund realizes a gain (or a loss if the closing purchase transaction exceeds the premium received when the option was written) without regard to any unrealized gain or loss on the underlying security, and the liability related to such option is extinguished. If a written covered call option is exercised, the Fund realizes a gain or a loss from the sale of the underlying security and the proceeds of the sale are increased by the premium originally received. Realized and unrealized gains and losses on call options written are included in the Consolidated Statement of Operations as Net realized gain (loss) from and Change in net unrealized appreciation (depreciation) of Option contracts written. A risk in writing a covered call option is that the Fund gives up the opportunity for profit if the market price of the security increases and the option is exercised.

When the Fund buys a call option, an amount equal to the premium paid by the Fund is recorded as an investment on the Consolidated Statement of Assets and Liabilities. The amount of the investment is subsequently “marked-to-market” to reflect the current value of the option purchased. Realized and unrealized gains and losses on call options purchased are included in the Consolidated Statement of Operations as Net realized gain (loss) from and Change in net unrealized appreciation (depreciation) of Investment securities. A risk in buying an option is that the Fund pays a premium whether or not the option is exercised. In addition, there can be no assurance that a liquid secondary market will exist for any option purchased.

N. Put Options Purchased and Written – The Fund may purchase and write put options including options on securities indexes, or foreign currency and/or futures contracts. By purchasing a put option, the Fund obtains the right (but not the obligation) to sell the option’s underlying instrument at a fixed strike price. In return for this right, the Fund pays an option premium. The option’s underlying instrument may be a security, securities index, or a futures contract.

Additionally, the Fund may enter into an option on a swap agreement, also called a “swaption”. A swaption is an option that gives the buyer the right, but not the obligation, to enter into a swap on a future date in exchange for paying a market-based premium. A receiver swaption gives the owner the right to receive the total return of a specified asset, reference rate or index. Swaptions also include options that allow an existing swap to be terminated or extended by one of the Counterparties.

Put options may be used by the Fund to hedge securities it owns by locking in a minimum price at which the Fund can sell. If security prices fall, the put option could be exercised to offset all or a portion of the Fund’s resulting losses. At the same time, because the maximum the Fund has at risk is the cost of the option, purchasing put options does not eliminate the potential for the Fund to profit from an increase in the value of the underlying portfolio securities. The Fund may write put options to earn additional income in the form of option premiums if it expects the price of the underlying instrument to remain stable or rise during the option period so that the option will not be exercised. The risk in this strategy is that the price of the underlying securities may decline by an amount greater than the premium received. Put options written are reported as a liability in the Consolidated Statement of Assets and Liabilities. Realized and unrealized gains and losses on put options purchased and put options written are included in the Consolidated Statement of Operations as Net realized gain (loss) from and Change in net unrealized appreciation (depreciation) of Investment securities and Option contracts written, respectively. A risk in buying an option is that the Fund pays a premium whether or not the option is exercised. In addition, there can be no assurance that a liquid secondary market will exist for any option purchased.

O. Swap Agreements – The Fund may enter into various swap transactions, including interest rate, total return, volatility, variance, index, currency and credit default swap contracts (“CDS”) for investment purposes or to manage interest rate, equity, currency, commodity or credit risk. Such transactions are agreements between Counterparties. A swap agreement may be negotiated bilaterally and traded over-the-counter (“OTC”) between two parties (“uncleared/OTC”) or, in some instances, must be transacted through a future commission merchant (“FCM”) and cleared through a clearinghouse that serves as a central Counterparty (“centrally cleared swap”). These agreements may contain among other conditions, events of default and termination events, and various covenants and representations such as provisions that require the Fund to maintain a pre-determined level of net assets, and/or provide limits regarding the decline of the Fund’s

Invesco Oppenheimer V.I. Global Strategic Income Fund

NAV over specific periods of time. If the Fund were to trigger such provisions and have open derivative positions at that time, the Counterparty may be able to terminate such agreement and request immediate payment in an amount equal to the net liability positions, if any.

Interest rate, total return, volatility, variance, index and currency swap agreements are two-party contracts entered into primarily to exchange the returns (or differentials in rates of returns) earned or realized on particular predetermined investments or instruments. The gross returns to be exchanged or “swapped” between the parties are calculated with respect to a notional amount, i.e., the return on or increase in value of a particular dollar amount invested at a particular interest rate or return of an underlying asset, in a particular foreign currency, or in a “basket” of securities representing a particular index.

Inflation swap agreements are contracts in which one party agrees to pay the cumulative percentage increase in a price index, such as the Consumer Price Index, over the term of the swap, and the other party pays a compounded fixed rate.

In a centrally cleared swap, the Fund’s ultimate Counterparty is a central clearinghouse. The Fund will initially enter into centrally cleared swaps through an executing broker. When a fund enters into a centrally cleared swap, it must deliver to the central Counterparty (via the FCM) an amount referred to as “initial margin.” Initial margin requirements are determined by the central Counterparty, but an FCM may require additional initial margin above the amount required by the central Counterparty. Initial margin deposits required upon entering into centrally cleared swaps are satisfied by cash or securities as collateral at the FCM. Securities deposited as initial margin are designated on the Consolidated Schedule of Investments and cash deposited is recorded on the Consolidated Statement of Assets and Liabilities. During the term of a cleared swap agreement, a “variation margin” amount may be required to be paid by the Fund or may be received by the Fund, based on the daily change in price of the underlying reference instrument subject to the swap agreement and is recorded as a receivable or payable for variation margin in the Consolidated Statement of Assets and Liabilities until the centrally cleared swap is terminated, at which time a realized gain or loss is recorded.

A CDS is an agreement between Counterparties to exchange the credit risk of an issuer. A buyer of a CDS is said to buy protection by paying a fixed payment over the life of the agreement and in some situations an upfront payment to the seller of the CDS. If a defined credit event occurs (such as payment default or bankruptcy), the Fund as a protection buyer would cease paying its fixed payment, the Fund would deliver eligible bonds issued by the reference entity to the seller, and the seller would pay the full notional value, or the “par value”, of the referenced obligation to the Fund. A seller of a CDS is said to sell protection and thus would receive a fixed payment over the life of the agreement and an upfront payment, if applicable. If a credit event occurs, the Fund as a protection seller would cease to receive the fixed payment stream, the Fund would pay the buyer “par value” or the full notional value of the referenced obligation, and the Fund would receive the eligible bonds issued by the reference entity. In turn, these bonds may be sold in order to realize a recovery value. Alternatively, the seller of the CDS and its Counterparty may agree to net the notional amount and the market value of the bonds and make a cash payment equal to the difference to the buyer of protection. If no credit event occurs, the Fund receives the fixed payment over the life of the agreement. As the seller, the Fund would effectively add leverage to its portfolio because, in addition to its total net assets, the Fund would be subject to investment exposure on the notional amount of the CDS. In connection with these agreements, cash and securities may be identified as collateral in accordance with the terms of the respective swap agreements to provide assets of value and recourse in the event of default under the swap agreement or bankruptcy/insolvency of a party to the swap agreement. If a Counterparty becomes bankrupt or otherwise fails to perform its obligations due to financial difficulties, the Fund may experience significant delays in obtaining any recovery in a bankruptcy or other reorganization proceeding. The Fund may obtain only limited recovery or may obtain no recovery in such circumstances. The Fund’s maximum risk of loss from Counterparty risk, either as the protection seller or as the protection buyer, is the value of the contract. The risk may be mitigated by having a master netting arrangement between the Fund and the Counterparty and by the designation of collateral by the Counterparty to cover the Fund’s exposure to the Counterparty.

Implied credit spreads represent the current level at which protection could be bought or sold given the terms of the existing CDS contract and serve as an indicator of the current status of the payment/performance risk of the CDS. An implied spread that has widened or increased since entry into the initial contract may indicate a deteriorating credit profile and increased risk of default for the reference entity. A declining or narrowing spread may indicate an improving credit profile or decreased risk of default for the reference entity. Alternatively, credit spreads may increase or decrease reflecting the general tolerance for risk in the credit markets.

A volatility swap involves an exchange between the Fund and a Counterparty of periodic payments based on the measured volatility of an underlying security, currency, commodity, interest rate, index or other reference asset over a specified time frame. Depending on the structure of the swap, either the Fund’s or the Counterparty’s payment obligation will typically be based on the realized volatility of the reference asset as measured by changes in its price or level over a specified time period, while the other party’s payment obligation will be based on a specified rate representing expected volatility for the reference asset at the time the swap is executed, or the measured volatility of a different reference asset over a specified time period. The Fund will typically make or lose money on a volatility swap depending on the magnitude of the reference asset’s volatility, or size of the movements in its price, over a specified time period, rather than general increases or decreases in the price of the reference asset. Volatility swaps are often used to speculate on future volatility levels, to trade the spread between realized and expected volatility, or to decrease the volatility exposure of other investments held by the Fund. Variance swaps are similar to volatility swaps, except payments are based on the difference between the implied and measured volatility mathematically squared.

An interest rate swap is an agreement between Counterparties pursuant to which the parties exchange a floating rate payment for a fixed rate payment based on a specified notional amount.

Changes in the value of centrally cleared and OTC swap agreements are recognized as unrealized gains (losses) in the 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 cash or liquid securities having a value at least equal to the amount of the potential obligation of the Fund under any swap transaction. Cash held as collateral is recorded as deposits with brokers on the Consolidated Statement of Assets and Liabilities. Entering into these agreements involves, to varying degrees, lack of liquidity and elements of credit, market, and Counterparty risk in excess of amounts recognized on the 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. It is possible that developments in the swaps market, including potential government regulation, could adversely affect the Fund’s ability to terminate existing swap agreements or to realize amounts to be received under such agreements. Additionally, an International Swaps and Derivatives Association Master Agreement (“ISDA Master Agreement”) includes credit related contingent features which allow Counterparties to OTC derivatives to terminate derivative contracts prior to maturity in the event that, for example, the Fund’s net assets decline by a stated percentage or the Fund fails to meet the terms of its ISDA master agreements, which would cause the Fund to accelerate payment of any net liability owed to the Counterparty. A short position in a security poses more risk than holding the same security long. As there is no limit on how much the price of the security can increase, the Fund’s exposure is unlimited.

Notional amounts of each individual credit default swap agreement outstanding as of June 30, 2020 for which the Fund is the seller of protection are disclosed in the open swap agreements table. These potential amounts would be partially offset by any recovery values of the respective referenced obligations, upfront payments received upon entering into the agreement, or net amounts received from the settlement of buy protection credit default swap agreements entered into by the Fund for the same referenced entity or entities.

P. Dollar Rolls and Forward Commitment Transactions - The Fund may enter into dollar roll transactions to enhance the Fund’s performance. The Fund

Invesco Oppenheimer V.I. Global Strategic Income Fund

executes its dollar roll transactions in the to be announced (“TBA”) market whereby the Fund makes a forward commitment to purchase a security and, instead of accepting delivery, the position is offset by the sale of the security with a simultaneous agreement to repurchase at a future date.

The Fund accounts for dollar roll transactions as purchases and sales and realizes gains and losses on these transactions. These transactions increase the Fund’s portfolio turnover rate. The Fund will segregate liquid assets in an amount equal to its dollar roll commitments.

Dollar roll transactions involve the risk that a Counterparty to the transaction may fail to complete the transaction. If this occurs, the Fund may lose the opportunity to purchase or sell the security at the agreed upon price. Dollar roll transactions also involve the risk that the value of the securities retained by the Fund may decline below the price of the securities that the Fund has sold but is obligated to purchase under the agreement. Dollar roll transactions covered in this manner are not treated as senior securities for purposes of a Fund’s fundamental investment limitation on senior securities and borrowings.

Q. Other Risks – 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’ claim. Active trading of portfolio securities may result in added expenses, a lower return and increased tax liability.

R. Leverage Risk – Leverage exists when the Fund can lose more than it originally invests because it purchases or sells an instrument or enters into a transaction without investing an amount equal to the full economic exposure of the instrument or transaction.

S. Collateral – To the extent the Fund has designated or segregated a security as collateral and that security is subsequently sold, it is the Fund’s practice to replace such collateral no later than the next business day.

NOTE 2—Advisory Fees and Other Fees Paid to Affiliates

The Trust has entered into a master investment advisory agreement with Invesco Advisers, Inc. (the “Adviser” or “Invesco”). Under the terms of the investment advisory agreement, the Fund accrues daily and pays monthly an advisory fee to the Adviser based on the annual rate of the Fund’s average daily net assets as follows:

Average Daily Net Assets*	Rate
First $ 200 million		0.750	%
Next $200 million		0.720	%
Next $200 million		0.690	%
Next $200 million		0.660	%
Next $200 million		0.600	%
Next $4 billion		0.500	%
Over $5 billion		0.480	%

* The advisory fee paid by the Fund shall be reduced by any amounts paid by the Fund under the administrative services agreement with the Adviser.

For the six months ended June 30, 2020, the effective advisory fee rate incurred by the Fund was 0.67%.

Under the terms of a master sub-advisory agreement between the Adviser and each of Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Canada Ltd. and separate sub-advisory agreements with Invesco Capital Management LLC and Invesco Asset Management (India) Private Limited (collectively, the “Affiliated Sub-Advisers”) the Adviser, not the Fund, will pay 40% of the fees paid to the Adviser to any such Affiliated Sub-Adviser(s) that provide(s) discretionary investment management services to the Fund based on the percentage of assets allocated to such Affiliated Sub-Adviser(s).

The Adviser has contractually agreed, through at least May 31, 2021, 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 0.84% and Series II shares to 1.09% of average daily net assets (the “expense limits”). In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause the total annual fund operating expenses after fee waiver and/or expense reimbursement to exceed the numbers reflected above: (1) interest; (2) taxes; (3) dividend expense on short sales; (4) extraordinary or non-routine items, including litigation expenses; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Unless Invesco continues the fee waiver agreement, it will terminate on May 31, 2021. During its term, the fee waiver agreement cannot be terminated or amended to increase the expense limits or reduce the advisory fee waiver without approval of the Board of Trustees. To the extent that the annualized expense ratio does not exceed the expense limits, the Adviser will retain its ability to be reimbursed for such fee waivers or reimbursements prior to the end of each fiscal year. The Adviser did not waive fees and/or reimburse expenses during the period under these expense limits.

The Adviser has contractually agreed, through at least June 30, 2022, 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, 2020, the Adviser waived advisory fees of $258,056.

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 fees paid to insurance companies that have agreed to provide certain administrative services to the Fund. These administrative services provided by the insurance companies may include, among other things: maintenance of master accounts with the Fund; tracking, recording and transmitting net purchase and redemption orders for Fund shares; maintaining and preserving records related to the purchase, redemption and other account activity of variable product owners; distributing copies of Fund documents such as prospectuses, proxy materials and periodic reports, to variable product owners, and responding to inquiries from variable product owners about the Fund. Pursuant to such agreement, for the six months ended June 30, 2020, Invesco was paid $72,619 for accounting and fund administrative services and was reimbursed $760,376 for fees paid to insurance companies. Invesco has entered into a sub-administration agreement whereby State Street Bank and Trust Company (“SSB”) serves as fund accountant and provides certain administrative services to the Fund. Pursuant to a custody agreement with the Trust on behalf of the Fund, SSB also serves as the Fund’s custodian.

The Trust has entered into a 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. The fees are accrued daily and paid monthly. 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, 2020, 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 Invesco.

Invesco Oppenheimer V.I. Global Strategic Income 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, 2020. 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 consolidated financial statements may materially differ from the value received upon actual sale of those investments.

	Level 1			Level 2			Level 3		Total
Investments in Securities
U.S. Dollar Denominated Bonds & Notes	$	–		$	368,812,279		$	0	$	368,812,279
Non-U.S. Dollar Denominated Bonds & Notes		–			298,802,703			29,244		298,831,947
Asset-Backed Securities		–			119,196,262			–		119,196,262
U.S. Government Sponsored Agency Mortgage-Backed Securities		–			87,904,289			–		87,904,289
U.S. Treasury Securities		–			52,186,426			–		52,186,426
Agency Credit Risk Transfer Notes		–			28,054,970			–		28,054,970
Variable Rate Senior Loan Interests		–			3,493,763			–		3,493,763
Investment Companies		2,350,648			–			–		2,350,648
Common Stocks & Other Equity Interests		234,292			81,271			1		315,564
Preferred Stocks		–			12,425			–		12,425
Money Market Funds		57,836,662			–			–		57,836,662
Options Purchased		–			5,468,997			–		5,468,997
Total Investments in Securities		60,421,602			964,013,385			29,245		1,024,464,232
Other Investments - Assets*
Investments Matured		–			10,065			–		10,065
Futures Contracts		506,334			–			–		506,334
Forward Foreign Currency Contracts		–			34,952,120			–		34,952,120
Swap Agreements		–			15,228,269			–		15,228,269
		506,334			50,190,454			–		50,696,788
Other Investments - Liabilities*
Futures Contracts		(1,967,876	)		–			–		(1,967,876	)
Forward Foreign Currency Contracts		–			(16,279,052	)		–		(16,279,052	)
Options Written		–			(16,897,533	)		–		(16,897,533	)
Swap Agreements		–			(4,792,614	)		–		(4,792,614	)
		(1,967,876	)		(37,969,199	)		–		(39,937,075	)
Total Other Investments		(1,461,542	)		12,221,255			–		10,759,713
Total Investments	$	58,960,060		$	976,234,640		$	29,245	$	1,035,223,945

* Forward foreign currency contracts, futures contracts and swap agreements are valued at unrealized appreciation (depreciation). Investments matured and options written are shown at value.

NOTE 4—Derivative Investments

The Fund may enter into an ISDA Master Agreement under which a fund may trade OTC derivatives. An OTC transaction entered into under an ISDA Master Agreement typically involves a collateral posting arrangement, payment netting provisions and close-out netting provisions. These netting provisions allow for reduction of credit risk through netting of contractual obligations. The enforceability of the netting provisions of the ISDA Master Agreement depends on the governing law of the ISDA Master Agreement, among other factors.

Invesco Oppenheimer V.I. Global Strategic Income Fund

For financial reporting purposes, the Fund does not offset OTC derivative assets or liabilities that are subject to ISDA Master Agreements in the Consolidated Statement of Assets and Liabilities.

	Value
	Credit			Currency		Interest
Derivative Assets	Risk			Risk		Rate Risk			Total
Unrealized appreciation on futures contracts — Exchange-Traded(a)	$	-		$	-	$	506,334		$	506,334
Unrealized appreciation on swap agreements — Centrally Cleared(a)		67,690			-		13,323,415			13,391,105
Unrealized appreciation on forward foreign currency contracts outstanding		-			34,952,120		-			34,952,120
Unrealized appreciation on swap agreements — OTC		41,494			-		1,795,670			1,837,164
Options purchased, at value — OTC(b)		-			3,892,547		1,576,450			5,468,997
Total Derivative Assets		109,184			38,844,667		17,201,869			56,155,720
Derivatives not subject to master netting agreements		(67,690	)		-		(13,829,749	)		(13,897,439	)
Total Derivative Assets subject to master netting agreements	$	41,494		$	38,844,667	$	3,372,120		$	42,258,281

^(a)  The daily variation margin receivable at period-end is recorded in the Consolidated Statement of Assets and Liabilities.

^(b)  Options purchased, at value as reported in the Consolidated Schedule of Investments.

	Value
	Credit			Currency			Interest
Derivative Liabilities	Risk			Risk			Rate Risk			Total
Unrealized depreciation on futures contracts — Exchange-Traded(a)	$	-		$	-		$	(1,967,876	)	$	(1,967,876	)
Unrealized depreciation on swap agreements — Centrally Cleared(a)		(188	)		-			(3,160,330	)		(3,160,518	)
Unrealized depreciation on forward foreign currency contracts outstanding		-			(16,279,052	)		-			(16,279,052	)
Unrealized depreciation on swap agreements — OTC		(1,326,939	)		-			(305,157	)		(1,632,096	)
Options written, at value — OTC(b)		(1,075,107	)		(14,929,778	)		(892,648	)		(16,897,533	)
Total Derivative Liabilities		(2,402,234	)		(31,208,830	)		(6,326,011	)		(39,937,075	)
Derivatives not subject to master netting agreements		188			-			5,128,206			5,128,394
Total Derivative Liabilities subject to master netting agreements	$	(2,402,046	)	$	(31,208,830	)	$	(1,197,805	)	$	(34,808,681	)

^(a)  The daily variation margin receivable at period-end is recorded in the Consolidated Statement of Assets and Liabilities.

^(b)  Options purchased, at value as reported in the Consolidated Schedule of Investments.

Offsetting Assets and Liabilities

																								Collateral
	Financial Derivative Assets								Financial Derivative Liabilities															(Received/Pledged)
	Forward								Forward
	Foreign								Foreign
	Currency		Options		Swap		Total		Currency			Options			Swap			Total			Net Value of								Net
Counterparty	Contracts		Purchased		Agreements		Assets		Contracts			Written			Agreements			Liabilities			Derivatives			Non-Cash		Cash			Amount
Bank of America, N.A.	$	6,274,920	$	272,355	$	133,891	$	6,681,166	$	(1,416,700	)	$	(2,427,601	)	$	(4,830	)	$	(3,849,131	)	$	2,832,035		$	-	$	(2,770,000	)	$	62,035
Barclays PLC		-		-		12,953		12,953		-			-			-			-			12,953			-		-			12,953
Citibank N.A.		2,886,143		43,925		28,541		2,958,609		(818,034	)		(961,613	)		(23,117	)		(1,802,764	)		1,155,845			-		(860,000	)		295,845
Goldman Sachs International		5,818,667		2,942,849		1,661,779		10,423,295		(1,474,230	)		(2,200,427	)		-			(3,674,657	)		6,748,638			-		-			6,748,638
J.P. Morgan Chase Bank, N.A.		9,836,974		1,056,866		-		10,893,840		(5,550,402	)		(7,596,366	)		(1,298,992	)		(14,445,760	)		(3,551,920	)		-		-			(3,551,920	)
Morgan Stanley Capital Services LLC		-		396,790		-		396,790		-			(414,889	)		-			(414,889	)		(18,099	)		-		18,099			-
Morgan Stanley and Co. International PLC		760,674		-		-		760,674		(6,131,803	)		(2,426,417	)		-			(8,558,220	)		(7,797,546	)		-		(60,000	)		(7,857,546	)
Royal Bank of Canada		9,244,205		-		-		9,244,205		(887,883	)		-			-			(887,883	)		8,356,322			-		(590,000	)		7,766,322
Royal Bank of Scotland Securities, Inc.		9,041		-		-		9,041		-			-			-			-			9,041			-		-			9,041
Standard Charted Bank PLC		121,496		756,212		-		877,708		-			(747,184	)		(305,157	)		(1,052,341	)		(174,633	)		-		-			(174,633	)
Toronto-Dominion Bank (The)		-		-		-		-		-			(123,036	)		-			(123,036	)		(123,036	)		-		-			(123,036	)
Total	$	34,952,120	$	5,468,997	$	1,837,164	$	42,258,281	$	(16,279,052	)	$	(16,897,533	)	$	(1,632,096	)	$	(34,808,681	)	$	7,449,600		$	-	$	(4,342,035	)	$	3,107,565

Invesco Oppenheimer V.I. Global Strategic Income Fund

Effect of Derivative Investments for the six months ended June 30, 2020

The table below summarizes the gains (losses) on derivative investments, detailed by primary risk exposure, recognized in earnings during the period:

	Location of Gain (Loss) on
	Consolidated Statement of Operations
	Credit		Currency			Equity			Interest
	Risk		Risk			Risk			Rate Risk			Total
Realized Gain (Loss):
Forward foreign currency contracts	$	-	$	(3,571,663	)	$	-		$	-		$	(3,571,663	)
Futures contracts		-		-			-			13,889,931			13,889,931
Options purchased(a)		-		(4,181,744	)		-			(4,346,424	)		(8,528,168	)
Options written		-		(22,259,450	)		820,815			(54,927,535	)		(76,366,170	)
Swap agreements		8,009,686		-			-			13,606,277			21,615,963
Change in Net Unrealized Appreciation (Depreciation):
Forward foreign currency contracts		-		28,997,167			-			-			28,997,167
Futures contracts		-		-			-			(307,766	)		(307,766	)
Options purchased(a)		-		3,648,087			-			(6,036,189	)		(2,388,102	)
Options written		2,462		(11,107,840	)		(847,115	)		(770,987	)		(12,723,480	)
Swap agreements		644,693		-			-			8,462,976			9,107,669
Total	$	8,656,841	$	(8,475,443	)	$	(26,300	)	$	(30,429,717	)	$	(30,274,619	)

(a) Options purchased are included in the net realized gain (loss) from investment securities and the change in net unrealized appreciation (depreciation) of investment securities.

The table below summarizes the average notional value of derivatives held during the period.

							Foreign				Foreign
	Forward						Currency				Currency
	Foreign Currency		Futures		Swaptions		Options		Swaptions		Options		Swap
	Contracts		Contracts		Purchased		Purchased		Written		Written		Agreements
Average notional value	$	1,855,488,980	$	494,773,830	$	1,688,787,648	$	337,242,980	$	1,052,121,697	$	636,637,868	$	3,045,905,506

NOTE 5—Trustees’ and Officers’ Fees and Benefits

Trustees’ and Officers’ Fees and Benefits include amounts accrued by the Fund to pay remuneration to certain Trustees and Officers of the Fund. Trustees have the option to defer compensation payable by the Fund, and Trustees’ and Officers’ Fees and Benefits also include amounts accrued by the Fund to fund such deferred compensation amounts. Those Trustees who defer compensation have the option to select various Invesco Funds in which their deferral accounts shall be deemed to be invested. Finally, certain current Trustees were eligible to participate in a retirement plan that provided for benefits to be paid upon retirement to Trustees over a period of time based on the number of years of service. The Fund may have certain former Trustees who also participate in a retirement plan and receive benefits under such plan. Trustees’ and Officers’ Fees and Benefits include amounts accrued by the Fund to fund such retirement benefits. Obligations under the deferred compensation and retirement plans represent unsecured claims against the general assets of the Fund.

NOTE 6—Cash Balances

The Fund is permitted to temporarily carry a negative or overdrawn balance in its account with SSB, the custodian bank. Such balances, if any at period-end, are shown in the Consolidated Statement of Assets and Liabilities under the payable caption Amount due custodian. To compensate the custodian bank for such overdrafts, the overdrawn Fund may either (1) leave funds as a compensating balance in the account so the custodian bank can be compensated by earning the additional interest; or (2) compensate by paying the custodian bank at a rate agreed upon by the custodian bank and Invesco, not to exceed the contractually agreed upon rate. The Fund may not purchase additional securities when any borrowings from banks or broker-dealers exceed 5% of the Fund’s total assets, or when any borrowings from an Invesco Fund are outstanding.

NOTE 7—Tax Information

The amount and character of income and gains to be distributed are determined in accordance with income tax regulations, which may differ from GAAP. Reclassifications are made to the Fund’s capital accounts to reflect income and gains available for distribution (or available capital loss carryforward) under income tax regulations. The tax character of distributions paid during the year and the tax components of net assets will be reported at the Fund’s fiscal year-end.

Capital loss carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Fund to utilize. The ability to utilize capital loss carryforwards 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, 2019, as follows:

Capital Loss Carryforward*
Expiration	Short-Term		Long-Term		Total
Not subject to expiration	$	65,305,749	$	102,514,007	$	167,819,756

* Capital loss carryforward is reduced for limitations, if any, to the extent required by the Internal Revenue Code and may be further limited depending upon a variety of factors, including the realization of net unrealized gains or losses as of the date of any reorganization.

Invesco Oppenheimer V.I. Global Strategic Income Fund

NOTE 8—Investment Transactions

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, 2020 was $1,314,384,074 and $1,399,174,218, respectively. During the same period, purchases and sales of U.S. Treasury obligations were $70,910,716 and $19,795,454, respectively. Cost of investments, including any derivatives, on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end.

Unrealized Appreciation (Depreciation) of Investments on a Tax Basis
Aggregate unrealized appreciation of investments	$78,469,241
Aggregate unrealized (depreciation) of investments	(91,941,371	)
Net unrealized appreciation (depreciation) of investments	$(13,472,130)

    Cost of investments for tax purposes is $1,050,388,371.

NOTE 9—Share Information

	Summary of Share Activity
	Six months ended						Year ended
	June 30, 2020(a)						December 31, 2019
	Shares			Amount			Shares			Amount
Sold:
Series I		2,488,563		$	11,504,764			18,615,624		$	91,652,597
Series II		1,260,748			6,082,483			5,575,798			28,193,986
Issued as reinvestment of dividends:
Series I		-			-			3,199,572			15,389,942
Series II		-			-			7,435,359			36,879,378
Reacquired:
Series I		(5,451,875	)		(24,937,544	)		(16,669,750	)		(81,650,513	)
Series II		(10,219,601	)		(48,254,328	)		(94,815,980	)		(475,861,262	)
Net increase (decrease) in share activity		(11,922,165	)	$	(55,604,625	)		(76,659,377	)	$	(385,395,872	)

^(a)  There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 58% 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 Fund 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—Coronavirus (COVID-19) Pandemic

During the first quarter of 2020, the World Health Organization declared COVID-19 to be a public health emergency. COVID-19 has led to increased short-term market volatility and may have adverse long-term effects on U.S. and world economies and markets in general. COVID-19 may adversely impact the Fund’s ability to achieve its investment objective. Because of the uncertainties on valuation, the global economy and business operations, values reflected in these consolidated financial statements may materially differ from the value received upon actual sales of those investments.

    The extent of the impact on the performance of the Fund and its investments will depend on future developments, including the duration and spread of the COVID-19 outbreak, related restrictions and advisories, and the effects on the financial markets and economy overall, all of which are highly uncertain and cannot be predicted.

NOTE 11—Significant Event

Effective on or about April 30, 2021, the name of the Fund and all references thereto will change from Invesco Oppenheimer V.I. Global Strategic Income Fund to Invesco V.I. Global Strategic Income Fund.

Invesco Oppenheimer V.I. Global Strategic 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, 2020 through June 30, 2020.

    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.

		ACTUAL		HYPOTHETICAL (5% annual return before expenses)
	Beginning Account Value (01/01/20)	Ending Account Value (06/30/20)1	Expenses Paid During Period2	Ending Account Value (06/30/20)	Expenses Paid During Period2	Annualized Expense Ratio
Series I	$1,000.00	$951.70	$3.98	$1,020.79	$4.12	0.82%
Series II	1,000.00	949.30	5.19	1,019.54	5.37	1.07

¹  The actual ending account value is based on the actual total return of the Fund for the period January 1, 2020 through June 30, 2020, 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 182/366 to reflect the most recent fiscal half year.

Invesco Oppenheimer V.I. Global Strategic Income Fund

Approval of Investment Advisory and Sub-Advisory Contracts

At meetings held on June 3, 2020, the Board of Trustees (the Board or the Trustees) of AIM Variable Insurance Funds (Invesco Variable Insurance Funds) as a whole, and the independent Trustees, who comprise over 75% of the Board, voting separately, approved the continuance of the Invesco Oppenheimer V.I. Global Strategic Income Fund’s (the Fund) Master Investment Advisory Agreement with Invesco Advisers, Inc. (Invesco Advisers and the investment advisory agreement) and the Master Intergroup Sub-Advisory Contract for Mutual Funds with Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Canada Ltd. and separate sub-advisory contracts with Invesco Capital Management LLC and Invesco Asset Management (India) Private Limited and OppenheimerFunds, Inc. (collectively, the Affiliated Sub-Advisers and the sub-advisory contracts) for another year, effective July 1, 2020. After evaluating the factors discussed below, among others, the Board approved the renewal of the Fund’s investment advisory agreement and the sub-advisory contracts and determined that the compensation payable thereunder by the Fund to Invesco Advisers and by Invesco Advisers to the Affiliated Sub-Advisers is fair and reasonable.

The Board’s Evaluation Process

The Board’s Investments Committee has established Sub-Committees, which meet throughout the year to review the performance of funds advised by Invesco Advisers (the Invesco Funds). The Sub-Committees meet regularly with portfolio managers for their assigned Invesco Funds and other members of management to review detailed information about investment performance and portfolio attributes of these funds. The Board took into account evaluations and reports that it received from the Investments Committee and Sub-Committees, as well as the information provided to such committees and the Board throughout the year, in considering whether to approve each Invesco Fund’s investment advisory agreement and sub-advisory contracts.

As part of the contract renewal process, the Board reviews and considers information provided in response to detailed requests for information submitted to management by the independent Trustees with assistance from legal counsel to the independent Trustees. The Board receives comparative investment performance and fee data regarding the Invesco Funds prepared by Invesco Advisers and Broadridge Financial Solutions, Inc. (Broadridge), an independent mutual fund data provider, as well as information on the composition of the peer groups provided by Broadridge and its methodology for determining peer groups. The Board also receives an independent written evaluation from the Senior Officer, an officer of the Invesco Funds who reports directly to the independent Trustees. 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. In addition to meetings with Invesco Advisers and fund counsel

throughout the year, the independent Trustees also discuss the continuance of the investment advisory agreement and sub-advisory contracts in separate sessions with the Senior Officer and with independent legal counsel.

The discussion below is a summary of 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. The Trustees’ review and conclusions are based on the comprehensive consideration of all information presented to them during the course of the year and in prior years and are not the result of any single determinative factor. Moreover, one Trustee may have weighed a particular piece of information or factor differently than another Trustee. This information is current as of June 3, 2020.

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 nature, extent and quality of the advisory services provided to the Fund by Invesco Advisers under the Fund’s investment advisory agreement, and the credentials and experience of the officers and employees of Invesco Advisers who provide these services, including the Fund’s portfolio manager(s). The Board’s review included consideration of Invesco Advisers’ investment process oversight and structure, credit analysis, investment risk management and research capabilities. The Board also considered non-advisory services that Invesco Advisers and its affiliates provide to the Invesco Funds, such as various back office support functions, third party oversight, internal audit, valuation, portfolio trading and legal and compliance. The Board also received and reviewed information about Invesco Advisers’ role as administrator of the Invesco Funds’ liquidity risk management program. The Board reviewed and considered the benefits to shareholders of investing in a Fund that is part of the Invesco family of funds under the umbrella of Invesco Ltd., Invesco Advisers’ parent company, and noted Invesco Ltd.’s depth and experience in conducting an investment management business, as well as its commitment of financial and other resources to such business. The Board also reviewed and considered information regarding the benefits to the Fund resulting from Invesco Ltd.’s acquisition of OppenheimerFunds, Inc. and its subsidiaries (the Transaction) and the resources that Invesco Advisers has committed to managing the Invesco family of funds following the Transaction. The Board concluded that the nature, extent and quality of the services provided to the Fund by Invesco Advisers are appropriate and satisfactory.

The Board reviewed the services that may be 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 the Affiliated Sub-Advisers’ expertise with respect to certain asset classes and that the Affiliated Sub-Advisers have offices and personnel

that are located in financial centers around the world. As a result, the Board noted that the Affiliated Sub-Advisers can provide research and investment analysis on the markets and economies of various countries in which the Fund may invest, make recommendations regarding securities and assist with security trades. The Board concluded that the sub-advisory contracts may 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 that may be provided by the Affiliated Sub-Advisers are appropriate and satisfactory.

B. Fund Investment Performance

The Board considered Fund investment performance as a relevant factor in considering whether to approve the investment advisory agreement. The Board did not view Fund investment 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 investment performance over multiple time periods ending December 31, 2019 to the performance of funds in the Broadridge performance universe and against the Bloomberg Barclays U.S. Aggregate Bond Index. The Board noted that performance of Series I shares of the Fund was in the second quintile of its 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 above the performance of the Index for the one and five year periods and the same as the performance of the Index for the three year period. The Board considered that the Fund was created in connection with the Transaction and that the Fund’s performance prior to the closing of the Transaction after the close of business on May 24, 2019 is that of its predecessor fund. The Board noted that an underweight allocation to U.S. fixed income investments and exposure to certain foreign currencies negatively impacted Fund performance. The Board recognized that the performance data reflects a snapshot in time as of a particular date and that selecting a different performance period could produce different results. The Board also reviewed more recent Fund performance as well as other performance metrics and this review did not change their conclusions.

C. Advisory and Sub-Advisory Fees and Fund Expenses

The Board compared the Fund’s contractual management fee rate to the contractual management fee rates of funds in the Fund’s Broadridge expense group. The Board noted that the contractual management fee rate for Series I shares of the Fund was above the median contractual management fee rate of funds in its expense group. The Board noted that the term “contractual management fee” for funds in the expense group may include both advisory and certain non-portfolio management administrative services fees, but that Broadridge does not provide information on a fund by fund basis as to what is included. The Board also reviewed the methodology used by Broadridge in providing expense group

Invesco Oppenheimer V.I. Global Strategic Income Fund

information, which includes using each fund’s contractual management fee schedule (including any applicable breakpoints) as reported in the most recent prospectus or statement of additional information for each fund in the expense group. The Board also considered comparative information regarding the Fund’s total expense ratio and its various components. The Board noted that the Fund’s contractual management fees were in the fifth quintile of its expense group and discussed with management reasons for such relative contractual management fees.

The Board noted that Invesco Advisers has contractually agreed to waive fees and/or limit expenses of the Fund for the term disclosed in the Fund’s registration statement 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 Invesco Advisers and the Affiliated Sub-Advisers do not manage other similarly managed mutual funds or client accounts.

The Board also considered the services that may be provided by the Affiliated Sub-Advisers pursuant to the sub-advisory contracts, as well as the fees payable by Invesco Advisers to the Affiliated Sub-Advisers pursuant to the sub-advisory contracts.

D. Economies of Scale and Breakpoints

The Board considered the extent to which there may be economies of scale in the provision of advisory services to the Fund. The Board also considered that the Fund benefits from economies of scale through contractual breakpoints in the Fund’s advisory fee schedule, which generally operate to reduce the Fund’s expense ratio as it grows in size. The Board 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. The Board noted that the Fund may also benefit from economies of scale through initial fee setting, fee waivers and expense reimbursements. The Board also considered Invesco’s reinvestment in its business, including investments in business infrastructure, technology and cybersecurity.

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 Invesco Funds and the profitability of Invesco Advisers and its affiliates in providing these services in the aggregate and on an individual Fund-by-Fund basis. The Board considered the methodology used for calculating profitability and noted the periodic review and enhancement of such methodology. The Board noted that Invesco Advisers continues to operate at a net profit from services Invesco Advisers and its affiliates provide to the Invesco Funds in the aggregate and to certain Funds on an individual fund level. The Board did not deem the level of profits realized by Invesco Advisers and its affiliates from providing such services to be excessive given the nature, extent and quality of the services provided. The Board received information from Invesco Advisers demonstrating that Invesco Advisers and the Affiliated Sub-Advisers are financially sound and have the resources necessary to perform their obligations under the investment advisory agreement and sub-advisory contracts.

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 providing administrative, transfer agency and distribution services to the Fund. The Board considered comparative information regarding fees charged for these services, including information provided by Broadridge and other independent sources. 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; and that the services are required for the operation of the Fund.

The Board considered the benefits realized by Invesco Advisers and the Affiliated Sub-Advisers as a result of portfolio brokerage transactions executed through “soft dollar” arrangements. Invesco Advisers noted that the Fund does not execute brokerage transactions through “soft dollar” arrangements to any significant degree.

The Board considered that the Fund’s uninvested cash and cash collateral from any securities lending arrangements may be invested in registered money market funds or, with regard to securities lending cash collateral, unregistered funds that comply with Rule 2a-7 (collectively referred to as “affiliated money market funds”) advised by Invesco Advisers pursuant to procedures approved by the Board. The Board considered information regarding the returns of the affiliated money market funds relative to comparable overnight investments, as well as the costs to the Fund of such investments. 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 with respect to certain investments in the affiliated money market 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 amount of advisory fees received by Invesco Advisers from the Fund’s investment of cash collateral from any securities lending arrangements in the affiliated money market funds is fair and reasonable.

Invesco Oppenheimer V.I. Global Strategic Income Fund

	Semiannual Report to Shareholders	June 30, 2020
	Invesco Oppenheimer V.I. Government Money Fund

Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, the insurance company that offers your variable annuity or variable life insurance contract may no longer send you paper copies of the Fund’s shareholder reports by mail, unless you specifically request paper copies of the reports from the insurance company or your financial intermediary. Instead of delivering paper copies of the report, the insurance company may choose to make the reports available on a website, and will notify you by mail each time a report is posted and provide you with a website link to access the report. Instructions for requesting paper copies will be provided by your insurance company.

    If the insurance company offers electronic delivery, you may elect to receive shareholder reports and other communications about the Fund electronically by following the instructions provided by the insurance company or by contacting your financial intermediary. If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action.

    You may elect to receive all future reports in paper free of charge from the insurance company. You can inform the insurance company or your financial intermediary that you wish to continue receiving paper copies of your shareholder reports by following the instructions provided by the insurance company or by contacting your financial intermediary. Your election to receive reports in paper will apply to all portfolio companies available under your contract with the insurance company.

The Fund provides a complete list of its holdings in various monthly and quarterly regulatory filings. The Fund files a complete schedule of portfolio holdings with the Securities and Exchange Commission (SEC) monthly on Form N-MFP. For the second and fourth quarters, the list appears in the Fund’s semiannual and annual reports to shareholders. The Fund’s Form N-MFP filings are available on the SEC website, 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-MFP, 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 most recent 12-month period ended June 30 is available at invesco.com/proxysearch. The information is also available on the SEC website, sec.gov.

    Invesco Advisers, Inc. is an investment adviser; it provides investment advisory services to individual and institutional clients and does not sell securities. Invesco Distributors, Inc. is the US distributor for Invesco Ltd.’s retail mutual funds, exchange-traded funds and institutional money market funds. Both are wholly owned, indirect subsidiaries of Invesco Ltd.

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.

NOT FDC INSURED   |   MAY LOSE VALUE   |   NO BANK GUARANTEE
Invesco Distributors, Inc.	O-VIGMKT-SAR-1

About your Fund

Invesco Oppenheimer V.I. Government Money 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 at the Fund level, excluding variable product charges, is available at 800 451 4246. As mentioned above, for the most recent monthend performance including variable product charges, please contact your variable product issuer or financial adviser.

    Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information.

You could lose money by investing in the Fund. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. An investment in the Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The Fund’s sponsor has no legal obligation to provide financial support to the Fund, and you should not expect that the sponsor will provide financial support to the Fund at any time.

    The Fund is subject to certain other risks. Please see the current prospectus for more information regarding the risks associated with an investment in the Fund.

Invesco Oppenheimer V.I. Government Money Fund

Schedule of Investments

June 30, 2020

(Unaudited)

	Interest Rate			Maturity Date		Principal Amount (000)		Value
U.S. Government Sponsored Agency Securities-44.94%
Federal Farm Credit Bank (FFCB)-1.59%
Federal Farm Credit Bank(a)		0.25	%		09/01/2020	$	5,000	$	4,997,847
Federal Farm Credit Bank(a)		0.50	%		10/20/2020		15,000		14,976,875
Federal Farm Credit Bank(a)		0.40	%		12/31/2020		4,000		3,991,867
									23,966,589
Federal Home Loan Bank (FHLB)-33.20%
Federal Home Loan Bank (SOFR + 0.05%)(b)		0.14	%		07/01/2020		107,000		107,000,000
Federal Home Loan Bank(a)		0.44	%		07/13/2020		5,000		4,999,267
Federal Home Loan Bank(a)		0.26	%		07/15/2020		25,000		24,997,521
Federal Home Loan Bank (1 mo. USD LIBOR - 0.07%)(b)		0.13	%		07/16/2020		3,000		3,000,000
Federal Home Loan Bank(a)		0.12	%		07/20/2020		5,000		4,999,683
Federal Home Loan Bank (SOFR + 0.08%)(b)		0.19	%		07/24/2020		10,000		10,000,298
Federal Home Loan Bank (SOFR + 0.02%)(b)		0.13	%		08/19/2020		57,000		57,000,690
Federal Home Loan Bank(a)		1.50	%		08/19/2020		4,000		3,991,888
Federal Home Loan Bank (SOFR + 0.02%)(b)		0.13	%		08/28/2020		8,000		8,000,000
Federal Home Loan Bank(a)		0.29	%		09/04/2020		20,000		19,989,528
Federal Home Loan Bank (SOFR + 0.09%)(b)		0.20	%		09/11/2020		30,000		30,000,000
Federal Home Loan Bank (SOFR + 0.08%)(b)		0.19	%		09/22/2020		5,000		5,000,000
Federal Home Loan Bank(a)		0.29	%		09/23/2020		10,000		9,993,233
Federal Home Loan Bank (1 mo. USD LIBOR - 0.05%)(b)		0.14	%		10/15/2020		5,000		5,000,000
Federal Home Loan Bank (3 mo. USD LIBOR - 0.21%)(b)		0.97	%		10/16/2020		4,000		4,000,000
Federal Home Loan Bank (SOFR + 0.10%)(b)		0.21	%		10/19/2020		5,000		5,000,000
Federal Home Loan Bank(a)		0.52	%		11/09/2020		32,000		31,939,449
Federal Home Loan Bank(a)		0.16	%		11/13/2020		15,000		14,985,375
Federal Home Loan Bank (3 mo. USD LIBOR - 0.20%)(b)		0.19	%		11/16/2020		4,000		4,000,000
Federal Home Loan Bank(a)		0.30	%		11/16/2020		15,000		14,982,750
Federal Home Loan Bank(a)		0.34	%		11/25/2020		20,000		19,972,233
Federal Home Loan Bank (SOFR + 0.09%)(b)		0.20	%		12/04/2020		9,000		9,000,000
Federal Home Loan Bank(a)		0.27	%		12/14/2020		15,000		14,981,325
Federal Home Loan Bank (SOFR + 0.11%)(b)		0.22	%		12/18/2020		5,000		5,000,000
Federal Home Loan Bank (SOFR + 0.14%)(b)		0.25	%		01/08/2021		25,000		25,000,000
Federal Home Loan Bank		1.38	%		02/18/2021		3,000		3,016,907
Federal Home Loan Bank (SOFR + 0.04%)(b)		0.15	%		02/25/2021		4,000		4,000,000
Federal Home Loan Bank(a)		0.45	%		03/08/2021		10,000		9,968,750
Federal Home Loan Bank		0.38	%		03/11/2021		3,000		2,998,012
Federal Home Loan Bank (SOFR + 0.11%)(b)		0.22	%		03/25/2021		3,000		3,000,000
Federal Home Loan Bank (3 mo. USD LIBOR - 0.11%)(b)		1.21	%		04/09/2021		3,000		3,000,000
Federal Home Loan Bank (3 mo. USD LIBOR - 0.14%)(b)		1.00	%		04/19/2021		4,000		4,000,000
Federal Home Loan Bank (SOFR + 0.16%)(b)		0.27	%		05/07/2021		4,000		4,000,862
Federal Home Loan Bank (SOFR + 0.09%)(b)		0.20	%		09/10/2021		25,000		25,000,000
									501,817,771
Federal Home Loan Mortgage Corp. (FHLMC)-3.37%
Federal Home Loan Mortgage Corp. (SOFR + 0.04%)(b)		0.15	%		09/10/2020		26,000		26,000,000
Federal Home Loan Mortgage Corp. (SOFR + 0.12%)(b)		0.23	%		06/04/2021		10,000		10,000,000
Federal Home Loan Mortgage Corp. (SOFR + 0.18%)(b)		0.29	%		12/13/2021		15,000		15,000,000
									51,000,000
Federal National Mortgage Association (FNMA)-6.78%
Federal National Mortgage Association(a)		0.68	%		07/16/2020		8,000		7,997,733
Federal National Mortgage Association		1.50	%		07/30/2020		5,000		5,003,167
Federal National Mortgage Association (SOFR + 0.04%)(b)		0.15	%		01/29/2021		19,000		18,977,453
Federal National Mortgage Association (SOFR + 0.21%)(b)		0.32	%		07/01/2021		25,000		25,000,000
Federal National Mortgage Association (SOFR + 0.23%)(b)		0.34	%		07/06/2021		10,000		10,000,000

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco Oppenheimer V.I. Government Money Fund

	Interest Rate			Maturity Date		Principal Amount (000)		Value
Federal National Mortgage Association (FNMA)-(continued)
Federal National Mortgage Association (SOFR + 0.10%)(b)		0.21	%		12/03/2021	$	5,600	$	5,579,851
Federal National Mortgage Association (SOFR + 0.30%)(b)		0.41	%		01/07/2022		20,000		20,000,000
Federal National Mortgage Association (SOFR + 0.22%)(b)		0.33	%		03/16/2022		10,000		10,000,000
									102,558,204
Total U.S. Government Sponsored Agency Securities (Cost $679,342,564)									679,342,564
U.S. Treasury Securities-44.80%
U.S. Treasury Bills-38.03%(a)
U.S. Treasury Bills		0.13	%		07/09/2020		20,000		19,999,467
U.S. Treasury Bills		0.11	%		07/21/2020		50,000		49,997,083
U.S. Treasury Bills		0.13%-0.14	%		07/23/2020		50,000		49,996,097
U.S. Treasury Bills		0.14	%		07/28/2020		20,000		19,997,975
U.S. Treasury Bills		0.15	%		07/30/2020		10,000		9,998,792
U.S. Treasury Bills		0.11%-0.15	%		08/04/2020		35,000		34,996,151
U.S. Treasury Bills		0.12	%		08/11/2020		25,000		24,996,726
U.S. Treasury Bills		0.14	%		08/18/2020		10,000		9,998,200
U.S. Treasury Bills		1.45	%		08/27/2020		4,000		3,990,880
U.S. Treasury Bills		0.15%-1.02	%		09/03/2020		25,000		24,985,689
U.S. Treasury Bills		0.14	%		09/08/2020		20,000		19,994,633
U.S. Treasury Bills		0.15%-0.40	%		09/10/2020		30,000		29,986,392
U.S. Treasury Bills		0.14%-0.15	%		09/17/2020		120,000		119,961,867
U.S. Treasury Bills		0.17	%		09/22/2020		15,000		14,994,121
U.S. Treasury Bills		0.10%-0.17	%		10/01/2020		30,000		29,991,503
U.S. Treasury Bills		0.15	%		10/13/2020		25,000		24,989,167
U.S. Treasury Bills		0.15	%		10/27/2020		20,000		19,990,167
U.S. Treasury Bills		0.15	%		10/29/2020		15,000		14,992,315
U.S. Treasury Bills		0.17	%		11/03/2020		5,000		4,997,049
U.S. Treasury Bills		0.19	%		11/24/2020		2,000		1,998,499
U.S. Treasury Bills		0.16	%		11/27/2020		20,000		19,986,755
U.S. Treasury Bills		0.17	%		12/03/2020		5,000		4,996,340
U.S. Treasury Bills		0.18	%		12/10/2020		10,000		9,991,787
U.S. Treasury Bills		1.47	%		12/31/2020		5,000		4,995,829
U.S. Treasury Bills		0.18	%		05/20/2021		4,000		3,993,719
									574,817,203
U.S. Treasury Notes-6.77%
U.S. Treasury Floating Rate Notes (3 mo. U.S. Treasury Bill Money Market Yield Rate + 0.04%)(b)		0.19	%		07/31/2020		2,000		1,999,988
U.S. Treasury Floating Rate Notes (3 mo. U.S. Treasury Bill Money Market Yield Rate + 0.30%)(b)		0.45	%		10/31/2021		4,000		4,002,089
U.S. Treasury Floating Rate Notes (3 mo. U.S. Treasury Bill Money Market Yield Rate + 0.15%)(b)		0.30	%		01/31/2022		2,000		1,999,465
U.S. Treasury Notes		1.63	%		07/31/2020		25,000		25,023,647
U.S. Treasury Notes		1.50	%		08/15/2020		17,000		17,022,167
U.S. Treasury Notes		2.63	%		08/31/2020		8,000		8,016,280
U.S. Treasury Notes		1.38	%		09/15/2020		8,000		7,998,095
U.S. Treasury Notes		2.75	%		09/30/2020		11,000		11,034,378
U.S. Treasury Notes		1.63	%		10/15/2020		10,000		10,017,405
U.S. Treasury Notes		2.00	%		01/15/2021		10,000		10,091,541
U.S. Treasury Notes		3.63	%		02/15/2021		5,000		5,101,933
									102,306,988
Total U.S. Treasury Securities (Cost $677,124,191)									677,124,191
TOTAL INVESTMENTS IN SECURITIES (excluding Repurchase Agreements)-89.74% (Cost $1,356,466,755)									1,356,466,755

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco Oppenheimer V.I. Government Money Fund

	Interest			Maturity		Repurchase
	Rate			Date		Amount		Value
Repurchase Agreements-11.84%(c)
Credit Agricole Corporate & Investment Bank, agreement dated 06/30/2020, maturing value of $29,000,073 (collateralized by domestic agency mortgage-backed securities valued at $29,580,075; 3.00% - 3.50%; 02/01/2048 - 10/01/2048)		0.09	%		07/01/2020	$	29,000,072	$	29,000,000
TD Securities (USA) LLC, term agreement dated 06/25/2020, maturing value of $150,002,917 (collateralized by domestic agency mortgage-backed securities valued at $153,002,551; 2.50% - 4.50%; 02/01/2041 - 01/01/2059)(d)		0.10	%		07/02/2020		150,002,917		150,000,000
Total Repurchase Agreements (Cost $179,000,000)									179,000,000
TOTAL INVESTMENTS IN SECURITIES(e)-101.58% (Cost $1,535,466,755)									1,535,466,755
OTHER ASSETS LESS LIABILITIES-(1.58)%									(23,853,802	)
NET ASSETS-100.00%								$	1,511,612,953

Investment Abbreviations:

LIBOR  -London Interbank Offered Rate

SOFR -Secured Overnight Financing Rate

USD -U.S. Dollar

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)  Interest or dividend rate is redetermined periodically. Rate shown is the rate in effect on June 30, 2020.

^(c)  Principal amount equals value at period end. See Note 1I.

^(d)  The Fund may demand payment of the term repurchase agreement upon one to seven business days’ notice depending on the timing of the demand.

^(e)  Also represents cost for federal income tax purposes.

Portfolio Composition by Maturity*

In days, as of 06/30/2020

1-7	17.6	%
8-30	13.9
31-60	12.3
61-90	21.2
91-180	19.6
181+	15.4

* The number of days to maturity of each holding is determined in accordance with the provisions of Rule 2a-7 under the Investment Company Act of 1940.

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco Oppenheimer V.I. Government Money Fund

Statement of Assets and Liabilities

June 30, 2020

(Unaudited)

Assets:
Investments in securities, excluding repurchase agreements, at value and cost	$	1,356,466,755
Repurchase agreements, at value and cost		179,000,000
Cash		400,615
Receivable for:
Fund shares sold		801
Interest		828,589
Total assets		1,536,696,760
Liabilities:
Payable for:
Investments purchased		19,988,144
Fund shares reacquired		4,347,120
Dividends		182
Accrued fees to affiliates		412,624
Accrued trustees’ and officers’ fees and benefits		5,063
Accrued operating expenses		330,674
Total liabilities		25,083,807
Net assets applicable to shares outstanding	$	1,511,612,953
Net assets consist of:
Shares of beneficial interest	$	1,511,604,970
Distributable earnings		7,983
	$	1,511,612,953
Net Assets:
Series I	$	1,511,602,953
Series II	$	10,000
Shares outstanding, no par value, unlimited number of shares authorized:
Series I		1,511,565,314
Series II		10,000
Series I:
Net asset value and offering price per share	$	1.00
Series II:
Net asset value and offering price per share	$	1.00

Statement of Operations

For the six months ended June 30, 2020

(Unaudited)

Investment income:
Interest	$	3,067,113
Expenses:
Advisory fees		3,049,883
Administrative services fees		369,886
Custodian fees		38,612
Distribution fees - Series II		13
Transfer agent fees		690
Trustees’ and officers’ fees and benefits		8,804
Reports to shareholders		103,545
Professional services fees		126,405
Other		18,332
Total expenses		3,716,170
Less: Fees waived and expenses reimbursed		(1,745,466	)
Net expenses		1,970,704
Net investment income		1,096,409
Net realized gain from investment securities		1,370
Net increase in net assets resulting from operations	$	1,097,779

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco Oppenheimer V.I. Government Money Fund

Statement of Changes in Net Assets

For the six months ended June 30, 2020 and the year ended December 31, 2019

(Unaudited)

	June 30,			December 31,
	2020			2019
Operations:
Net investment income	$	1,096,409		$	21,081,559
Net realized gain		1,370			10,320
Net increase in net assets resulting from operations		1,097,779			21,091,879
Distributions to shareholders from distributable earnings:
Series I		(1,096,392	)		(21,080,865	)
Series II		(17	)		(78	)
Total distributions from distributable earnings		(1,096,409	)		(21,080,943	)
Share transactions-net:
Series I		1,141,842,221			(2,685,977,149	)
Series II		-			10,000
Net increase (decrease) in net assets resulting from share transactions		1,141,842,221			(2,685,967,149	)
Net increase (decrease) in net assets		1,141,843,591			(2,685,956,213	)
Net assets:
Beginning of period		369,769,362			3,055,725,575
End of period	$	1,511,612,953		$	369,769,362

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco Oppenheimer V.I. Government Money Fund

Financial Highlights

June 30, 2020

(Unaudited)

The following schedule presents financial highlights for a share of the Fund outstanding throughout the periods indicated.

	Net asset value, beginning of period		Net investment income(a)		Net gains (losses) on securities (realized)			Total from investment operations		Dividends from net investment income			Net asset value, end of period		Total return(b)			Net assets, end of period (000’s omitted)		Ratio of expenses to average net assets with fee waivers and/or expenses absorbed			Ratio of expenses to average net assets without fee waivers and/or  expenses absorbed(c)			Ratio of net investment income to average net assets
Series I
Six months ended 06/30/20	$	1.00	$	0.00	$	0.00		$	0.00	$	(0.00	)	$	1.00		0.22	%	$	1,511,603		0.27	%(d)		0.50	%(d)		0.14	%(d)
Year ended 12/31/19		1.00		0.02		0.00			0.02		(0.02	)		1.00		1.71			369,759		0.50			0.54			1.82
Year ended 12/31/18		1.00		0.01		0.00			0.01		(0.01	)		1.00		1.35			3,055,726		0.50			0.56			1.54
Year ended 12/31/17		1.00		0.00		(0.00	)		0.00		(0.00	)		1.00		0.39			425,604		0.50			0.59			0.39
Year ended 12/31/16		1.00		0.00		(0.00	)		0.00		(0.00	)		1.00		0.01			541,970		0.35			0.55			0.01
Year ended 12/31/15		1.00		0.00		0.00			0.00		(0.00	)		1.00		0.01			2,648,636		0.19			0.53			0.01
Series II
Six months ended 06/30/20		1.00		0.00		0.00			0.00		(0.00	)		1.00		0.17			10		0.36	(d)		0.75	(d)		0.05	(d)
Year ended 12/31/19(e)		1.00		0.01		0.00			0.01		(0.01	)		1.00		0.78			10		0.72	(f)		0.72	(f)		1.61	(f)

^(a) Calculated using average shares outstanding.

^(b) Includes adjustments in accordance with accounting principles generally accepted in the United States of America. 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) Does not include indirect expenses from affiliated fund fees and expenses of 0.00% for the years ended December 31, 2019, 2018, 2017, 2016 and 2015, respectively.

^(d) Ratios are annualized and based on average daily net assets (000’s omitted) of $1,494,620 and $10 for Series I and Series II shares, respectively.

^(e) Commencement date of May 24, 2019.

^(f) Annualized.

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco Oppenheimer V.I. Government Money Fund

Notes to Financial Statements

June 30, 2020

(Unaudited)

NOTE 1–Significant Accounting Policies

Invesco Oppenheimer V.I. Government Money 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. Information presented in these financial statements pertains only to the Fund. Matters affecting the Fund or each class will be voted on exclusively by the shareholders of the Fund or each class. 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 income consistent with stability of principal.

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 Fund is an investment company and accordingly follows the investment company accounting and reporting guidance in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 946, Financial Service – Investment Companies.

The following is a summary of the significant accounting policies followed by the Fund in the preparation of its financial statements.

A. Security Valuations - 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.

The Fund may invest in securities that are subject to interest rate risk, meaning the risk that the prices will generally fall as interest rates rise and, conversely, the prices will generally rise as interest rates fall. Specific securities differ in their sensitivity to changes in interest rates depending on their individual characteristics. Changes in interest rates may result in increased market volatility, which may affect the value and/or liquidity of certain Fund investments.

B. Securities Transactions and Investment Income - Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income (net of withholding tax, if any) is recorded on the accrual basis from settlement date. Bond premiums and discounts are amortized and/or accreted over the lives of the respective securities. Pay-in-kind interest income and non-cash dividend income received in the form of securities in-lieu of cash are recorded at the fair value of the securities received. Paydown gains and losses on mortgage and asset-backed securities are recorded as adjustments to interest income.

The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements.Any proceeds received are included in the Statement of Operations as realized gain (loss) for investments no longer held and as unrealized gain (loss) for investments still held.

Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of net realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the net realized and unrealized gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and the Statement of Changes in Net Assets, or the net investment income per share and the ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.

The Fund allocates realized and unrealized capital gains and losses to a class based on the relative net assets of each class. The Fund allocates income to a class based on the relative value of the settled shares of each class.

C. Country Determination - For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues 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 net investment income, if any, are declared daily and paid monthly to separate accounts of participating insurance companies. Distributions from net realized gain, if any, are generally declared and paid annually and recorded on the ex-dividend date.

E. Federal Income Taxes - The Fund intends to comply with the requirements of Subchapter M of the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”), necessary to qualify as a regulated investment company and to distribute substantially all of the Fund’s taxable earnings to shareholders. As such, the Fund will not be subject to federal income taxes on otherwise taxable income (including net realized capital gain) that is distributed to shareholders.

Therefore, no provision for federal income taxes is recorded in the financial statements.

The Fund recognizes the tax benefits of uncertain tax positions only when the position is more likely than not to be sustained. Management has analyzed the Fund’s uncertain tax positions and concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions. Management is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the next 12 months.

The Fund files tax returns in the U.S. Federal jurisdiction and certain other jurisdictions. Generally, the Fund is subject to examinations by such taxing authorities for up to three years after the filing of the return for the tax period.

F. Expenses - Fees provided for under the Rule 12b-1 plan of a particular class of the Fund and which are directly attributable to that class are charged to the operations of such class. All other expenses are allocated among the classes based on relative net assets.

G. Accounting Estimates - The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print.

H. Indemnifications - Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of the performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements, that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown

Invesco Oppenheimer V.I. Government Money Fund

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. 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. 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 adviser 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.

J. Other Risks - Investments in obligations issued by agencies and instrumentalities of the U.S. Government may vary in the level of support they receive from the government. The government may choose not to provide financial support to government sponsored agencies or instrumentalities if it is not legally obligated to do so. In this case, if the issuer defaulted, the Fund may not be able to recover its investment in such issuer from the U.S. Government.

NOTE 2–Advisory Fees and Other Fees Paid to Affiliates

The Trust has entered into a master investment advisory agreement with Invesco Advisers, Inc. (the “Adviser” or “Invesco”). Under the terms of the investment advisory agreement, the Fund accrues daily and pays monthly an advisory fee to the Adviser based on the annual rate of the Fund’s average daily net assets as follows:

Average Daily Net Assets*	Rate
First $ 500 million		0.450%
Next $500 million		0.425
Next $500 million		0.400
Over $1.5 billion		0.375

*The advisory fee paid by the Fund shall be reduced by any amounts paid by the Fund under the administrative services agreement with the Adviser.

For the six months ended June 30, 2020, the effective advisory fees incurred by the Fund was 0.41%.

Under the terms of a master sub-advisory agreement between the Adviser and each of Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Canada Ltd. and separate sub-advisory agreements with Invesco Capital Management LLC and Invesco Asset Management (India) Private Limited (collectively, the “Affiliated Sub-Advisers”) the Adviser, not the Fund, will pay 40% of the fees paid to the Adviser to any such Affiliated Sub-Adviser(s) that provide(s) discretionary investment management services to the Fund based on the percentage of assets allocated to such Affiliated Sub-Adviser(s).

The Adviser has contractually agreed, through at least May 31, 2021, to waive advisory fees and/or reimburse expenses to the extent necessary to limit total annual operating expenses after fee waivers and/or expense reimbursements (excluding certain items discussed below) of Series I shares to 0.50% and Series II shares to 0.75% of average daily net assets (the “expense limits”). In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause the total annual operating expenses after fee waivers and/or expense reimbursements to exceed the numbers reflected above: (1) interest; (2) taxes; (3) dividend expense on short sales; (4) extraordinary or non-routine items, including litigation expenses; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Unless Invesco continues the fee waiver agreement, it will terminate on May 31, 2021. During its term, the fee waiver agreement cannot be terminated or amended to increase the expense limits or reduce the advisory fee waiver without approval of the Board of Trustees. To the extent that the annualized expense ratio does not exceed the expense limits, the Adviser will retain its ability to be reimbursed for such fee waivers or reimbursements prior to the end of each fiscal year.

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, 2020, Invesco voluntarily waived advisory fees of $1,745,458 and reimbursed class level expenses of $8 for Series II shares in order to increase the Fund’s yield.

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 fees paid to insurance companies that have agreed to provide certain administrative services to the Fund. These administrative services provided by the insurance companies may include, among other things: maintenance of master accounts with the Fund; tracking, recording and transmitting net purchase and redemption orders for Fund shares; maintaining and preserving records related to the purchase, redemption and other account activity of variable product owners; distributing copies of Fund documents such as prospectuses, proxy materials and periodic reports, to variable product owners, and responding to inquiries from variable product owners about the Fund. Pursuant to such agreement, for the six months ended June 30, 2020, Invesco was paid $332,487 for accounting and fund administrative services and was reimbursed $37,399 for fees paid to insurance companies. Also, Invesco has entered into a sub-administration agreement whereby The Bank of New York Mellon (“BNY Mellon”) 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, 2020, 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 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. The fees are accrued daily and paid monthly. 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, 2020, 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, 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 Oppenheimer V.I. Government Money 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.

As of June 30, 2020, all of the securities in this Fund were valued based on Level 2 inputs (see the Schedule of Investments for security categories). The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

NOTE 4–Trustees’ and Officers’ Fees and Benefits

Trustees’ and Officers’ Fees and Benefits include amounts accrued by the Fund to pay remuneration to certain Trustees and Officers of the Fund. Trustees have the option to defer compensation payable by the Fund, and Trustees’ and Officers’ Fees and Benefits also include amounts accrued by the Fund to fund such deferred compensation amounts. Those Trustees who defer compensation have the option to select various Invesco Funds in which their deferral accounts shall be deemed to be invested. Finally, certain current Trustees were eligible to participate in a retirement plan that provided for benefits to be paid upon retirement to Trustees over a period of time based on the number of years of service. The Fund may have certain former Trustees who also participate in a retirement plan and receive benefits under such plan. Trustees’ and Officers’ Fees and Benefits include amounts accrued by the Fund to fund such retirement benefits. Obligations under the deferred compensation and retirement plans represent unsecured claims against the general assets of the Fund.

NOTE 5–Cash Balances

The Fund is permitted to temporarily carry a negative or overdrawn balance in its account with BNY Mellon, the custodian bank. Such balances, if any at period-end, are shown in the Statement of Assets and Liabilities under the payable caption Amount due custodian. To compensate the custodian bank for such overdrafts, the overdrawn Fund may either (1) leave funds as a compensating balance in the account so the custodian bank can be compensated by earning the additional interest; or (2) compensate by paying the custodian bank at a rate agreed upon by the custodian bank and Invesco, not to exceed the contractually agreed upon rate.

NOTE 6–Tax Information

The amount and character of income and gains to be distributed are determined in accordance with income tax regulations, which may differ from GAAP.

Reclassifications are made to the Fund’s capital accounts to reflect income and gains available for distribution (or available capital loss carryforward) under income tax regulations. The tax character of distributions paid during the year and the tax components of net assets will be reported at the Fund’s fiscal year-end.

Capital loss carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Fund to utilize. The ability to utilize capital loss carryforwards in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.

The Fund did not have any capital loss carryforward as of December 31, 2019.

NOTE 7–Share Information

	Summary of Share Activity
	Six months ended June 30, 2020(a)						Year ended December 31, 2019
	Shares			Amount			Shares			Amount
Sold:
Series I		2,199,292,029		$	2,199,292,029			2,074,144,735		$	2,074,144,735
Series II(b)		-			-			10,000			10,000
Issued as reinvestment of dividends:
Series I		1,094,861			1,094,861			23,445,418			23,445,418
Series II		-			-			-			-
Reacquired:
Series I		(1,058,544,669	)		(1,058,544,669	)		(4,783,567,302	)		(4,783,567,302	)
Series II		-			-			-			-
Net increase (decrease) in share activity		1,141,842,221		$	1,141,842,221			(2,685,967,149	)	$	(2,685,967,149	)

^(a)  There is an entity that is a record owner of more than 5% of the outstanding shares of the Fund and owns 96% of the outstanding shares of the Fund. The Fund and the Fund’s principal underwriter or adviser, are parties to participation agreements with the entity whereby the 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 the 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 Fund has no knowledge as to whether all or any portion of the shares owned of record by the entity are also owned beneficially.

^(b) Commencement date of May 24, 2019.

NOTE 8–Coronavirus (COVID-19) Pandemic

During the first quarter of 2020, the World Health Organization declared COVID-19 to be a public health emergency. COVID-19 has led to increased short-term market volatility and may have adverse long-term effects on U.S. and world economies and markets in general. COVID-19 may adversely impact the Fund’s ability to achieve its investment objective. Because of the uncertainties on valuation, the global economy and business operations, values reflected in these financial statements may materially differ from the value received upon actual sales of those investments.

The extent of the impact on the performance of the Fund and its investments will depend on future developments, including the duration and spread of the COVID-19 outbreak, related restrictions and advisories, and the effects on the financial markets and economy overall, all of which are highly uncertain and cannot be predicted.

Invesco Oppenheimer V.I. Government Money Fund

NOTE 9–Significant Event

Effective on or about April 30, 2021, the name of the Fund and all references thereto will change from Invesco Oppenheimer V.I. Government Money Fund to Invesco V.I. U.S. Government Money Portfolio.

Invesco Oppenheimer V.I. Government Money 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, 2020 through June 30, 2020.

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.

	Beginning     Account Value     (01/01/20)	ACTUAL		HYPOTHETICAL (5% annual return before  expenses)		Annualized     Expense     Ratio
Class		Ending     Account Value     (06/30/20)1	Expenses     Paid During     Period2	Ending     Account Value     (06/30/20)	Expenses     Paid During     Period2
Series I	$1,000.00	$1,002.20	$1.34	$1,023.52	$1.36	0.27%
Series II	1,000.00	1,001.70	1.79	1,023.07	1.81	0.36

¹ The actual ending account value is based on the actual total return of the Fund for the period January 1, 2020 through June 30, 2020, 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 182/366 to reflect the most recent fiscal half year.

Invesco Oppenheimer V.I. Government Money Fund

Approval of Investment Advisory and Sub-Advisory Contracts

At meetings held on June 3, 2020, the Board of Trustees (the Board or the Trustees) of AIM Variable Insurance Funds (Invesco Variable Insurance Funds) as a whole, and the independent Trustees, who comprise over 75% of the Board, voting separately, approved the continuance of the Invesco Oppenheimer V.I. Government Money Fund’s (the Fund) Master Investment Advisory Agreement with Invesco Advisers, Inc. (Invesco Advisers and the investment advisory agreement) and the Master Intergroup Sub-Advisory Contract for Mutual Funds with Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Canada Ltd. and separate sub-advisory contracts with Invesco Capital Management LLC and Invesco Asset Management (India) Private Limited and OppenheimerFunds, Inc. (collectively, the Affiliated Sub-Advisers and the sub-advisory contracts) for another year, effective July 1, 2020. After evaluating the factors discussed below, among others, the Board approved the renewal of the Fund’s investment advisory agreement and the sub-advisory contracts and determined that the compensation payable thereunder by the Fund to Invesco Advisers and by Invesco Advisers to the Affiliated Sub-Advisers is fair and reasonable.

The Board’s Evaluation Process

The Board’s Investments Committee has established Sub-Committees, which meet throughout the year to review the performance of funds advised by Invesco Advisers (the Invesco Funds). The Sub-Committees meet regularly with portfolio managers for their assigned Invesco Funds and other members of management to review detailed information about investment performance and portfolio attributes of these funds. The Board took into account evaluations and reports that it received from the Investments Committee and Sub-Committees, as well as the information provided to such committees and the Board throughout the year, in considering whether to approve each Invesco Fund’s investment advisory agreement and sub-advisory contracts.

As part of the contract renewal process, the Board reviews and considers information provided in response to detailed requests for information submitted to management by the independent Trustees with assistance from legal counsel to the independent Trustees. The Board receives comparative investment performance and fee data regarding the Invesco Funds prepared by Invesco Advisers and Broadridge Financial Solutions, Inc. (Broadridge), an independent mutual fund data provider, as well as information on the composition of the peer groups provided by Broadridge and its methodology for determining peer groups. The Board also receives an independent written evaluation from the Senior Officer, an officer of the Invesco Funds who reports directly to the independent Trustees. 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. In addition to meetings with Invesco Advisers and fund counsel

throughout the year, the independent Trustees also discuss the continuance of the investment advisory agreement and sub-advisory contracts in separate sessions with the Senior Officer and with independent legal counsel.

The discussion below is a summary of 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. The Trustees’ review and conclusions are based on the comprehensive consideration of all information presented to them during the course of the year and in prior years and are not the result of any single determinative factor. Moreover, one Trustee may have weighed a particular piece of information or factor differently than another Trustee. This information is current as of June 3, 2020.

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 nature, extent and quality of the advisory services provided to the Fund by Invesco Advisers under the Fund’s investment advisory agreement, and the credentials and experience of the officers and employees of Invesco Advisers who provide these services, including the Fund’s portfolio manager(s). The Board’s review included consideration of Invesco Advisers’ investment process oversight and structure, credit analysis, investment risk management and research capabilities. The Board also considered non-advisory services that Invesco Advisers and its affiliates provide to the Invesco Funds, such as various back office support functions, third party oversight, internal audit, valuation, portfolio trading and legal and compliance. The Board reviewed and considered the benefits to shareholders of investing in a Fund that is part of the Invesco family of funds under the umbrella of Invesco Ltd., Invesco Advisers’ parent company, and noted Invesco Ltd.’s depth and experience in conducting an investment management business, as well as its commitment of financial and other resources to such business. The Board also reviewed and considered information regarding the benefits to the Fund resulting from Invesco Ltd.’s acquisition of OppenheimerFunds, Inc. and its subsidiaries (the Transaction) and the resources that Invesco Advisers has committed to managing the Invesco family of funds following the Transaction. The Board concluded that the nature, extent and quality of the services provided to the Fund by Invesco Advisers are appropriate and satisfactory.

The Board reviewed the services that may be 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 the Affiliated Sub-Advisers’ expertise with respect to certain asset classes and that the Affiliated Sub-Advisers have offices and personnel that are located in financial centers around the world. As a result, the Board noted that the Affiliated Sub-Advisers can provide research and investment

analysis on the markets and economies of various countries in which the Fund may invest, make recommendations regarding securities and assist with security trades. The Board concluded that the sub-advisory contracts may 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 that may be provided by the Affiliated Sub-Advisers are appropriate and satisfactory.

B. Fund Investment Performance

The Board considered Fund investment performance as a relevant factor in considering whether to approve the investment advisory agreement. The Board did not view Fund investment 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 investment performance over multiple time periods ending December 31, 2019 to the performance of funds in the Broadridge performance universe and against the Lipper T-Bill 3 Month Index The Board noted that performance of Series I shares of the Fund was in the third quintile of its performance universe for the one, three and five year periods (the first quintile being the best performing funds and the fifth quintile being the worst performing funds). The Board noted that 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 considered that the Fund was created in connection with the Transaction and that the Fund’s performance prior to the closing of the Transaction after the close of business on May 24, 2019 is that of its predecessor fund. The Board recognized that the performance data reflects a snapshot in time as of a particular date and that selecting a different performance period could produce different results. The Board also reviewed more recent Fund performance as well as other performance metrics and this review did not change their conclusions.

C. Advisory and Sub-Advisory Fees and Fund Expenses

The Board compared the Fund’s contractual management fee rate to the contractual management fee rates of funds in the Fund’s Broadridge expense group. The Board noted that the contractual management fee rate for Series I shares of the Fund was above the median contractual management fee rate of funds in its expense group. The Board noted that the term “contractual management fee” for funds in the expense group may include both advisory and certain non-portfolio management administrative services fees, but that Broadridge does not provide information on a fund by fund basis as to what is included. The Board also reviewed the methodology used by Broadridge in providing expense group information, which includes using each fund’s contractual management fee schedule (including any applicable breakpoints) as reported in the most recent prospectus or statement of additional information for each fund in the expense group. The Board also considered comparative information regarding the Fund’s total expense ratio and its various components. The Board noted that the Fund’s contractual management fees was in the fourth

Invesco Oppenheimer V.I. Government Money Fund

quintile of its expense group and discussed with management reasons for such relative contractual management fees and total expenses.

The Board noted that Invesco Advisers has contractually agreed to waive fees and/or limit expenses of the Fund for the term disclosed in the Fund’s registration statement 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 fees charged by Invesco Advisers and the Affiliated Sub-Advisers to other similarly managed client accounts. Invesco Advisers reviewed with the Board differences in the scope of services it provides to the Invesco Funds relative to certain other types of client accounts, including, among others: management of cash flows as a result of redemptions and purchases; necessary infrastructure such as officers, office space, technology, legal and distribution; oversight of service providers; costs and business risks associated with launching new funds and sponsoring and maintaining the product line; and compliance with federal and state laws and regulations.

The Board also considered the services that may be provided by the Affiliated Sub-Advisers pursuant to the sub-advisory contracts, as well as the fees payable by Invesco Advisers to the Affiliated Sub-Advisers pursuant to the sub-advisory contracts.

D. Economies of Scale and Breakpoints

The Board considered the extent to which there may be economies of scale in the provision of advisory services to the Fund. The Board also considered that the Fund may benefit from economies of scale through contractual breakpoints in the Fund’s advisory fee schedule, which generally operate to reduce the Fund’s expense ratio as it grows in size. The Board 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. The Board noted that the Fund may also benefit from economies of scale through initial fee setting, fee waivers and expense reimbursements. The Board also considered Invesco’s reinvestment in its business, including investments in business infrastructure, technology and cybersecurity.

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 Invesco Funds and the profitability of Invesco Advisers and its affiliates in providing these services in the aggregate and on an individual Fund-by-Fund basis. The Board considered the methodology used for calculating profitability and noted the periodic review and enhancement of such methodology. The Board noted that Invesco Advisers continues to operate at a net profit from services Invesco

Advisers and its affiliates provide to the Invesco Funds in the aggregate and to certain Funds on an individual fund level. The Board did not deem the level of profits realized by Invesco Advisers and its affiliates from providing such services to be excessive given the nature, extent and quality of the services provided. The Board received information from Invesco Advisers demonstrating that Invesco Advisers and the Affiliated Sub-Advisers are financially sound and have the resources necessary to perform their obligations under the investment advisory agreement and sub-advisory contracts.

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 providing administrative, transfer agency and distribution services to the Fund. The Board considered comparative information regarding fees charged for these services, including information provided by Broadridge and other independent sources. 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; and that the services are required for the operation of the Fund.

Invesco Oppenheimer V.I. Government Money Fund

	Semiannual Report to Shareholders	June 30, 2020
	Invesco Oppenheimer V.I. International Growth Fund
Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, the insurance company that offers your variable annuity or variable life insurance contract may no longer send you paper copies of the Fund’s shareholder reports by mail, unless you specifically request paper copies of the reports from the insurance company or your financial intermediary. Instead of delivering paper copies of the report, the insurance company may choose to make the reports available on a website, and will notify you by mail each time a report is posted and provide you with a website link to access the report. Instructions for requesting paper copies will be provided by your insurance company.     If the insurance company offers electronic delivery, you may elect to receive shareholder reports and other communications about the Fund electronically by following the instructions provided by the insurance company or by contacting your financial intermediary. If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action.     You may elect to receive all future reports in paper free of charge from the insurance company. You can inform the insurance company or your financial intermediary that you wish to continue receiving paper copies of your shareholder reports by following the instructions provided by the insurance company or by contacting your financial intermediary. Your election to receive reports in paper will apply to all portfolio companies available under your contract with the insurance company. 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) as an exhibit to its reports on Form N-PORT. The Fund’s Form N-PORT filings are available on the SEC website, 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-PORT, 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 most recent 12-month period ended June 30 is available at invesco.com/proxysearch. The information is also available on the SEC website, sec.gov.     Invesco Advisers, Inc. is an investment adviser; it provides investment advisory services to individual and institutional clients and does not sell securities. Invesco Distributors, Inc. is the US distributor for Invesco Ltd.’s retail mutual funds, exchange-traded funds and institutional money market funds. Both are wholly owned, indirect subsidiaries of Invesco Ltd. 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.
NOT FDIC INSURED  |  MAY LOSE VALUE  |  NO BANK GUARANTEE
Invesco Distributors, Inc.                                                                                                                                                                    O-VIIGR-SAR-1

Fund Performance

Performance summary
Fund vs. Indexes
Cumulative total returns, 12/31/19 to 6/30/20, excluding variable product issuer charges. If variable product issuer charges were included, returns would be lower.
Series I Shares	-4.08%
Series II Shares	-3.91
MSCI ACWI ex USA Index▼	-11.00
Source(s): ▼RIMES Technologies Corp.
The MSCI ACWI ex USA® Index (Net) is an index considered representative of developed and emerging stock markets, excluding the U.S. The index is computed using the net return, which withholds applicable taxes for non-resident investors.     The Fund is not managed to track the performance of any particular index, including the index(es) described here, and consequently, the performance of the Fund may deviate significantly from the performance of the index(es).     A direct investment cannot be made in an index. Unless otherwise indicated, index results include reinvested dividends, and they do not reflect sales charges. Performance of the peer group, if applicable, reflects fund expenses; performance of a market index does not.

Average Annual Total Returns
As of 6/30/20
Series I Shares
Inception (5/13/92)	6.85	%
10 Years	7.70
5 Years	3.56
1 Year	4.91
Series II Shares
Inception (3/19/01)	5.59	%
10 Years	7.43
5 Years	3.29
1 Year	4.68

Effective May 24, 2019, Non-Service and Service shares of the Oppenheimer International Growth Fund/VA, (the predecessor fund) were reorganized into Series I and Series II shares, respectively, of Invesco Oppenheimer V.I. International Growth Fund. Returns shown above, prior to May 24, 2019, for Series I and Series II shares are those of the Non-Service shares and Service shares of the predecessor fund. Share class returns will differ from the predecessor fund because of different expenses.

    The performance data quoted represent past performance and cannot guarantee future results; current performance may be lower or higher. Please 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. Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares. Investment return and principal value will fluctuate so that you may have a gain or loss when you sell shares.

    Invesco Oppenheimer 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 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.

    Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information.

Invesco Oppenheimer V.I. International Growth Fund

Liquidity Risk Management Program

The Securities and Exchange Commission has adopted Rule 22e-4 under the Investment Company Act of 1940 (the “Liquidity Rule”) in order to promote effective liquidity risk management throughout the open-end investment company industry, thereby reducing the risk that funds will be unable to meet their redemption obligations and mitigating dilution of the interests of fund shareholders. The Fund has adopted and implemented a liquidity risk management program in accordance with the Liquidity Rule (the “Program”). The Program is reasonably designed to assess and manage the Fund’s liquidity risk, which is the risk that the Fund could not meet redemption requests without significant dilution of remaining investors’ interests in the Fund. The Board of Trustees of the Fund (the “Board”) has appointed Invesco Advisers, Inc. (“Invesco”), the Fund’s investment adviser, as the Program’s administrator, and Invesco has delegated oversight of the Program to the Liquidity Risk Management Committee (the “Committee”), which is composed of senior representatives from relevant business groups at Invesco.

As required by the Liquidity Rule, the Program includes policies and procedures providing for an assessment, no less frequently than annually, of the Fund’s liquidity risk that takes into account, as relevant to the Fund’s liquidity risk: (1) the Fund’s investment strategy and liquidity of portfolio investments during both normal and reasonably foreseeable stressed conditions; (2) short-term and long-term cash flow projections for the Fund during both normal and reasonably foreseeable stressed conditions; and (3) the Fund’s holdings of cash and cash equivalents and any borrowing arrangements. The Liquidity Rule also requires the classification of the Fund’s investments into categories that reflect the assessment of their relative liquidity under current market conditions. The Fund classifies its investments into one of four categories defined in the Liquidity Rule: “Highly Liquid,” “Moderately Liquid,” “Less Liquid” and “Illiquid.” Funds that are not invested primarily in “Highly Liquid Investments” that are assets (cash or investments that are reasonably expected to be convertible into cash within three business days without significantly changing the market value of the investment) are required to establish a “Highly Liquid Investment Minimum” (“HLIM”), which is the minimum percentage of net assets that must be invested in Highly Liquid Investments. Funds with HLIMs have procedures for addressing HLIM shortfalls, including reporting to the Board and the SEC (on a non-public basis) as required by the Program and the Liquidity Rule. In addition, the Fund may not acquire an investment if, immediately after the acquisition, over 15% of the Fund’s net assets would consist of “Illiquid Investments” that are assets (an investment that cannot reasonably be expected to be sold or disposed of in current market conditions in seven calendar days or less without the sale or disposition significantly changing the market value of the investment). The Liquidity Rule and the Program also require reporting to the Board and the SEC (on a non-public basis) if a Fund’s holdings of Illiquid Investments exceed 15% of the Fund’s assets.

At a meeting held on March 30-April 1, 2020, the Committee presented a report to the Board that addressed the operation of the Program and assessed the Program’s adequacy and effectiveness of implementation (the “Report”). The Report covered the period from December 1, 2018 through December 31, 2019 (the “Program Reporting Period”).

The Report stated, in relevant part, that during the Program Reporting Period:

∎ The Program, as adopted and implemented, remained reasonably designed to assess and manage the Fund’s liquidity risk and was operated effectively to achieve that goal;

∎ The Fund’s investment strategy remained appropriate for an open-end fund;

∎ The Fund was able to meet requests for redemption without significant dilution of remaining investors’ interests in the Fund;

∎ The Fund did not breach the 15% limit on Illiquid Investments; and

∎ The Fund primarily held Highly Liquid Investments and therefore has not adopted an HLIM.

Invesco Oppenheimer V.I. International Growth Fund

Schedule of Investments

June 30, 2020

(Unaudited)

	Shares		Value
Common Stocks & Other Equity Interests–96.59%
Australia–2.10%
CSL Ltd.		45,661	$	9,052,432
Belgium–0.89%
Galapagos N.V.(a)		14,205		2,788,568
Galapagos N.V.		5,321		1,046,473
				3,835,041
Canada–5.66%
Alimentation Couche-Tard, Inc., Class B		291,044		9,126,210
CAE, Inc.		135,919		2,204,579
Dollarama, Inc.		115,395		3,838,567
Saputo, Inc.		152,039		3,625,149
Shopify, Inc., Class A(a)		5,967		5,668,870
				24,463,375
China–3.55%
Alibaba Group Holding Ltd., ADR(a)		32,904		7,097,393
Tencent Holdings Ltd.		128,000		8,221,927
				15,319,320
Denmark–3.26%
Ascendis Pharma A/S, ADR(a)		15,727		2,326,024
Novo Nordisk A/S, Class B		182,001		11,777,499
				14,103,523
France–15.50%
Airbus SE		64,880		4,616,779
Dassault Systemes SE		24,625		4,243,962
Edenred		90,155		3,938,587
EssilorLuxottica S.A.(a)		22,744		2,915,083
Hermes International		14,791		12,344,905
Kering S.A.		5,950		3,231,859
L’Oreal S.A.		11,601		3,719,164
LVMH Moet Hennessy Louis Vuitton SE		19,831		8,685,953
Sartorius Stedim Biotech		13,107		3,308,388
SEB S.A.		14,996		2,475,969
SEB S.A.(a)(b)		850		140,342
SEB S.A.		39,200		6,478,458
Ubisoft Entertainment S.A.(a)		57,109		4,703,477
Worldline S.A.(a)(c)		71,172		6,149,032
				66,951,958
Germany–7.45%
Fresenius Medical Care AG & Co. KGaA		87,124		7,427,985
Infineon Technologies AG		243,258		5,685,740
SAP SE		89,538		12,463,287
Siemens Healthineers AG(c)		137,813		6,600,121
				32,177,133
Hong Kong–0.88%
WH Group Ltd.		4,410,500		3,785,027
Ireland–1.32%
Flutter Entertainment PLC(a)		43,330		5,681,932

	Shares		Value
Italy–0.90%
Davide Campari-Milano S.p.A.		460,775	$	3,877,840
Japan–9.46%
Daikin Industries Ltd.		32,400		5,210,120
Hitachi Ltd.		175,800		5,549,907
Hoya Corp.		94,893		9,087,426
Keyence Corp.		19,124		7,984,695
Nidec Corp.		59,200		3,952,600
Nihon M&A Center, Inc.		107,800		4,869,478
Nitori Holdings Co. Ltd.		21,600		4,230,475
				40,884,701
Netherlands–5.30%
Aalberts N.V.		144,506		4,730,513
Adyen N.V.(a)(c)		2,767		4,031,213
ASML Holding N.V.		37,017		13,569,627
Boskalis Westminster		28,747		566,351
				22,897,704
New Zealand–1.14%
Xero Ltd.(a)		79,303		4,938,444
Spain–2.89%
Amadeus IT Group S.A.		72,696		3,782,578
Grifols S.A.		237,027		7,190,149
Prosegur Cash S.A.(c)		1,793,106		1,509,735
				12,482,462
Sweden–5.23%
Atlas Copco AB, Class A		231,518		9,789,990
Epiroc AB, Class A		357,017		4,442,164
Swedish Match AB		118,971		8,353,525
				22,585,679
Switzerland–10.83%
Barry Callebaut AG		2,601		4,957,194
Lonza Group AG		8,848		4,665,498
Novartis AG		30,982		2,692,047
Roche Holding AG		33,489		11,594,948
Sika AG		21,863		4,202,290
STMicroelectronics N.V.		314,980		8,544,839
Temenos AG		32,565		5,049,074
VAT Group AG(c)		27,882		5,083,335
				46,789,225
Taiwan–2.38%
Taiwan Semiconductor Manufacturing Co. Ltd.		971,000		10,275,161
United Kingdom–10.40%
Blue Prism Group PLC(a)		82,095		1,155,166
boohoo Group PLC(a)		1,069,357		5,450,548
Britvic PLC		417,443		3,979,601
Compass Group PLC(a)		263,586		3,626,185
GVC Holdings PLC		349,696		3,204,067
Legal & General Group PLC		1,653,609		4,515,644
London Stock Exchange Group PLC		32,254		3,336,479

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco Oppenheimer V.I. International Growth Fund

	Shares		Value
United Kingdom–(continued)
Melrose Industries PLC		2,452,251	$	3,456,324
Next PLC		97,061		5,877,421
Ocado Group PLC(a)		203,403		5,106,230
Rightmove PLC		226,152		1,528,369
Trainline PLC(a)(c)		686,108		3,706,209
				44,942,243
United States–7.45%
Atlassian Corp. PLC, Class A(a)		22,387		4,035,704
EPAM Systems, Inc.(a)		32,145		8,100,861
Ferguson PLC		40,568		3,318,664
James Hardie Industries PLC, CDI		254,480		4,857,325
Medtronic PLC		43,251		3,966,117
ResMed, Inc.		41,048		7,881,216
				32,159,887
Total Common Stocks & Other Equity Interests (Cost $259,148,396)				417,203,087

	Shares		Value
Preferred Stocks–0.01%
India–0.01%
Zee Entertainment Enterprises Ltd., 6.00%, Pfd. (Cost $0)		599,541	$	27,713
Money Market Funds–2.90%
Invesco Government & Agency Portfolio, Institutional Class, 0.09%(d)(e) (Cost $12,549,039)		12,549,039		12,549,039
TOTAL INVESTMENTS IN SECURITIES–99.50% (Cost $271,697,435)				429,779,839
OTHER ASSETS LESS LIABILITIES–0.50%				2,172,523
NET ASSETS–100.00%			$	431,952,362

Investment Abbreviations:

ADR	- American Depositary Receipt
CDI	- CREST Depository Interest
Pfd.	- Preferred

Notes to Schedule of Investments:

^(a)  Non-income producing security.

^(b)  Security valued using significant unobservable inputs (Level 3). See Note 3.

^(c)  Security purchased or received in a transaction exempt from registration under the Securities Act of 1933, as amended (the “1933 Act”). The security may be resold pursuant to an exemption from registration under the 1933 Act, typically to qualified institutional buyers. The aggregate value of these securities at June 30, 2020 was $27,079,645, which represented 6.27% of the Fund’s Net Assets.

^(d)  Affiliated issuer. The issuer and/or the Fund is a wholly-owned subsidiary of Invesco Ltd., or is affiliated by having an investment adviser that is under common control of Invesco Ltd. The table below shows the Fund’s transactions in, and earnings from, its investments in affiliates for the six months ended June 30, 2020.

	Value December 31, 2019		Purchases at Cost		Proceeds from Sales		Change in Unrealized Appreciation		Realized Gain		Value June 30, 2020		Dividend Income
Investments in Affiliated Money Market Funds:
Invesco Government & Agency Portfolio, Institutional Class		$6,357,038		$81,903,375		$(75,711,374)		$-		$-		$12,549,039		$40,775

^(e)  The rate shown is the 7-day SEC standardized yield as of June 30, 2020.

Portfolio Composition

By sector, based on Net Assets

as of June 30, 2020

Information Technology	26.66	%
Health Care	21.16
Consumer Discretionary	19.47
Industrials	12.44
Consumer Staples	9.59
Communication Services	3.35
Materials	2.10
Other Sectors, Each Less than 2% of Net Assets	1.82
Money Market Funds Plus Other Assets Less Liabilities	3.41

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco Oppenheimer V.I. International Growth Fund

Statement of Assets and Liabilities

June 30, 2020

(Unaudited)

Assets:
Investments in securities, at value (Cost $259,148,396)	$	417,230,800
Investments in affiliated money market funds, at value (Cost $12,549,039)		12,549,039
Cash		500,000
Foreign currencies, at value (Cost $8,918)		8,432
Receivable for:
Investments sold		797,717
Fund shares sold		334,369
Dividends		2,074,293
Investment for trustee deferred compensation and retirement plans		38,347
Total assets		433,532,997
Liabilities:
Payable for:
Investments purchased		820,174
Fund shares reacquired		426,794
Accrued foreign taxes		23,338
Accrued fees to affiliates		247,754
Accrued trustees’ and officers’ fees and benefits		3,235
Accrued other operating expenses		20,994
Trustee deferred compensation and retirement plans		38,346
Total liabilities		1,580,635
Net assets applicable to shares outstanding	$	431,952,362
Net assets consist of:
Shares of beneficial interest	$	247,883,382
Distributable earnings		184,068,980
	$	431,952,362
Net Assets:
Series I	$	201,492,490
Series II	$	230,459,872
Shares outstanding, no par value, with an unlimited number of shares authorized:
Series I		85,621,008
Series II		93,784,030
Series I:
Net asset value per share	$	2.35
Series II:
Net asset value per share	$	2.46

Statement of Operations

For the six months ended June 30, 2020

(Unaudited)

Investment income:
Dividends (net of foreign withholding taxes of $402,988)	$	2,997,301
Dividends from affiliated money market funds		40,775
Total investment income		3,038,076
Expenses:
Advisory fees		1,981,521
Administrative services fees		344,412
Custodian fees		1,330
Distribution fees - Series II		278,420
Transfer agent fees		21,303
Trustees’ and officers’ fees and benefits		9,547
Reports to shareholders		764
Professional services fees		12,270
Other		149
Total expenses		2,649,716
Less: Fees waived and/or expense offset arrangement(s)		(281,504	)
Net expenses		2,368,212
Net investment income		669,864
Realized and unrealized gain (loss) from:
Net realized gain from:
Investment securities (net of foreign taxes of $124,888)		19,980,286
Foreign currencies		48,691
		20,028,977
Change in net unrealized appreciation (depreciation) of:
Investment securities (net of foreign taxes of $212,752)		(39,958,069	)
Foreign currencies		233,199
		(39,724,870	)
Net realized and unrealized gain (loss)		(19,695,893	)
Net increase (decrease) in net assets resulting from operations	$	(19,026,029	)

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco Oppenheimer V.I. International Growth Fund

Statement of Changes in Net Assets

For the six months ended June 30, 2020 and the year ended December 31, 2019

(Unaudited)

	June 30, 2020			December 31, 2019
Operations:
Net investment income	$	669,864		$	3,686,941
Net realized gain		20,028,977			7,399,457
Change in net unrealized appreciation (depreciation)		(39,724,870	)		108,124,591
Net increase (decrease) in net assets resulting from operations		(19,026,029	)		119,210,989
Distributions to shareholders from distributable earnings:
Series I		–			(13,472,374	)
Series II		–			(12,709,522	)
Total distributions from distributable earnings		–			(26,181,896	)
Share transactions–net:
Series I		(11,332,728	)		(95,274,031	)
Series II		(12,386,132	)		10,086,290
Net increase (decrease) in net assets resulting from share transactions		(23,718,860	)		(85,187,741	)
Net increase (decrease) in net assets		(42,744,889	)		7,841,352
Net assets:
Beginning of period		474,697,251			466,855,899
End of period	$	431,952,362		$	474,697,251

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco Oppenheimer V.I. International Growth Fund

Financial Highlights

(Unaudited)

The following schedule presents financial highlights for a share of the Fund outstanding throughout the periods indicated.

	Net asset value, beginning of period			Net investment income(a)			Net gains (losses) on securities (both realized and unrealized)				Total from investment operations				Dividends from net investment income				Distributions from net realized gains				Total distributions				Net asset value, end of period			Total return (b)			Net assets, end of period (000’s omitted)			Ratio of expenses to average net assets with fee waivers and/or expenses absorbed			Ratio of expenses to average net assets without fee waivers and/or expenses absorbed(c)			Ratio of net investment income to average net assets			Portfolio turnover (d)
Series I
Six months ended 06/30/20		$	2.45		$	0.01		$	(0.11	)		$	(0.10	)		$	–			$	–			$	–			$	2.35		(4.08	)%		$	201,492		1.00	%(e)		1.13	%(e)		0.45	%(e)		26	%
Year ended 12/31/19			2.03			0.02			0.54				0.56				(0.02	)			(0.12	)			(0.14	)			2.45		28.60				221,944		1.00			1.13			0.91			51
Year ended 12/31/18			2.59			0.02			(0.51	)			(0.49	)			(0.02	)			(0.05	)			(0.07	)			2.03		(19.42	)			267,220		1.00			1.10			0.83			25
Year ended 12/31/17			2.08			0.02			0.52				0.54				(0.03	)			–				(0.03	)			2.59		26.29				360,417		1.00			1.08			0.87			27
Year ended 12/31/16			2.20			0.03			(0.08	)			(0.05	)			(0.02	)			(0.05	)			(0.07	)			2.08		(2.12	)			301,559		1.00			1.09			1.24			15
Year ended 12/31/15			2.31			0.03			0.06				0.09				(0.03	)			(0.17	)			(0.20	)			2.20		3.43				317,547		1.00			1.08			1.08			24
Series II
Six months ended 06/30/20			2.56			0.00			(0.10	)			(0.10	)			–				–				–				2.46		(3.91	)			230,460		1.25	(e)		1.38	(e)		0.20	(e)		26
Year ended 12/31/19			2.12			0.02			0.56				0.58				(0.02	)			(0.12	)			(0.14	)			2.56		27.95				252,753		1.25			1.38			0.67			51
Year ended 12/31/18			2.70			0.01			(0.52	)			(0.51	)			(0.02	)			(0.05	)			(0.07	)			2.12		(19.55	)			199,636		1.25			1.35			0.58			25
Year ended 12/31/17			2.16			0.01			0.56				0.57				(0.03	)			–				(0.03	)			2.70		26.44				239,042		1.25			1.33			0.60			27
Year ended 12/31/16			2.29			0.02			(0.08	)			(0.06	)			(0.02	)			(0.05	)			(0.07	)			2.16		(2.72	)			175,633		1.25			1.34			0.99			15
Year ended 12/31/15			2.40			0.02			0.06				0.08				(0.02	)			(0.17	)			(0.19	)			2.29		3.11				169,292		1.25			1.33			0.79			24

^(a)  Calculated using average shares outstanding.

^(b)  Includes adjustments in accordance with accounting principles generally accepted in the United States of America. 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)  Does not include indirect expenses from affiliated fund fees and expenses of 0.00% for the years ended December 31, 2019, 2018, 2017, 2016 and 2015, respectively.

^(d)  Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable.

^(e)  Ratios are annualized and based on average daily net assets (000’s omitted) of $197,681 and $223,923 for Series I and Series II shares, respectively.

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco Oppenheimer V.I. International Growth Fund

Notes to Financial Statements

June 30, 2020

(Unaudited)

NOTE 1–Significant Accounting Policies

Invesco Oppenheimer 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. Information presented in these financial statements pertains only to the Fund. Matters affecting the Fund or each class will be voted on exclusively by the shareholders of the Fund or each class. 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 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 Fund is an investment company and accordingly follows the investment company accounting and reporting guidance in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 946, Financial Services - Investment Companies.

The following is a summary of the significant accounting policies followed by the Fund in the preparation of its financial statements.

A. Security Valuations – Securities, including restricted securities, are valued according to the following policy.

A security listed or traded on an exchange (except convertible securities) is valued at its last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded, or lacking any sales or official closing price on a particular day, the security may be valued at the closing bid price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued by an independent pricing service they may be considered fair valued. Futures contracts are valued at the final settlement price set by an exchange on which they are principally traded. Listed options are valued at the mean between the last bid and asked 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 asked prices. For purposes of determining net asset value (“NAV”) per share, futures and option contracts generally are valued 15 minutes after the close of the customary trading session of the New York Stock Exchange (“NYSE”).

Investments in open-end and closed-end registered investment companies that do not trade on an exchange are valued at the end-of-day net asset value per share. Investments in open-end and closed-end registered investment companies that trade on an exchange are valued at the last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded.

Debt obligations (including convertible securities) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. Pricing services generally value debt obligations assuming orderly transactions of institutional round lot size, but a fund may hold or transact in the same securities in smaller, odd lot sizes. Odd lots often trade at lower prices than institutional round lots. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.

Foreign securities’ (including foreign exchange contracts) prices are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the NYSE. If market quotations are available and reliable for foreign exchange-traded equity securities, the securities will be valued at the market quotations. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become unreliable. If between the time trading ends on a particular security and the close of the customary trading session on the NYSE, events occur that the investment adviser determines are significant and make the closing price unreliable, the Fund may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith using procedures approved by the Board of Trustees. Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities’ prices meeting the approved degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economic upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.

Securities for which market prices are not provided by any of the above methods may be valued based upon quotes furnished by independent sources. The last bid price may be used to value equity securities. The mean between the last bid and asked prices is used to value debt obligations, including corporate loans.

Securities for which market quotations are not readily available or became unreliable are valued at fair value as determined in good faith by or under the supervision of the Trust’s officers following procedures approved by the Board of Trustees. Issuer specific events, market trends, bid/asked quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security’s fair value.

The Fund may invest in securities that are subject to interest rate risk, meaning the risk that the prices will generally fall as interest rates rise and, conversely, the prices will generally rise as interest rates fall. Specific securities differ in their sensitivity to changes in interest rates depending on their individual characteristics. Changes in interest rates may result in increased market volatility, which may affect the value and/or liquidity of certain Fund investments.

Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the issuer’s assets, general market conditions which are not specifically related to the particular issuer, such as real or perceived adverse economic conditions, changes in the general outlook for revenues or corporate earnings, changes in interest or currency rates, regional or global instability, natural or environmental disasters, widespread disease or other public health issues, war, acts of terrorism or adverse investor sentiment generally and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

B. Securities Transactions and Investment Income – Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income (net of withholding tax, if any) is recorded on an accrual basis from settlement date. 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

Invesco Oppenheimer V.I. International Growth Fund

share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and the Statement of Changes in Net Assets, or the net investment income per share and the ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.

The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class.

C. Country Determination – For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues 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 net investment income and net realized capital gain, if any, are generally declared and paid to separate accounts of participating insurance companies annually and recorded on the ex-dividend date.

E. Federal Income Taxes – The Fund intends to comply with the requirements of Subchapter M of the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”), necessary to qualify as a regulated investment company and to distribute substantially all of the Fund’s taxable earnings to shareholders. As such, the Fund will not be subject to federal income taxes on otherwise taxable income (including net realized capital gain) that is distributed to shareholders. Therefore, no provision for federal income taxes is recorded in the financial statements.

The Fund recognizes the tax benefits of uncertain tax positions only when the position is more likely than not to be sustained. Management has analyzed the Fund’s uncertain tax positions and concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions. Management is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the next 12 months.

The Fund files tax returns in the U.S. Federal jurisdiction and certain other jurisdictions. Generally, the Fund is subject to examinations by such taxing authorities for up to three years after the filing of the return for the tax period.

F. Expenses – Fees provided for under the Rule 12b-1 plan of a particular class of the Fund and which are directly attributable to that class are charged to the operations of such class. All other expenses are allocated among the classes based on relative net assets.

G. Accounting Estimates – The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print.

H. Indemnifications – Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of the performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements, that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote.

I. Foreign Currency Translations – Foreign currency is valued at the close of the NYSE based on quotations posted by banks and major currency dealers. Portfolio securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at the date of valuation. Purchases and sales of portfolio securities (net of foreign taxes withheld on disposition) and income items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. The Fund does not separately account for the portion of the results of operations resulting from changes in foreign exchange rates on investments and the fluctuations arising from changes in market prices of securities held. The combined results of changes in foreign exchange rates and the fluctuation of market prices on investments (net of estimated foreign tax withholding) are included with the net realized and unrealized gain or loss from investments in the Statement of Operations. Reported net realized foreign currency gains or losses arise from (1) sales of foreign currencies, (2) currency gains or losses realized between the trade and settlement dates on securities transactions, and (3) the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign currency gains and losses arise from changes in the fair values of assets and liabilities, other than investments in securities at fiscal period end, resulting from changes in exchange rates.

The Fund may invest in foreign securities, which may be subject to foreign taxes on income, gains on investments or currency repatriation, a portion of which may be recoverable. Foreign taxes, if any, are recorded based on the tax regulations and rates that exist in the foreign markets in which the Fund invests and are shown in the Statement of Operations.

J. Forward Foreign Currency Contracts – The Fund may engage in foreign currency transactions either on a spot (i.e. for prompt delivery and settlement) basis, or through forward foreign currency contracts, to manage or minimize currency or exchange rate risk.

The Fund may also enter into forward foreign currency contracts for the purchase or sale of a security denominated in a foreign currency in order to “lock in” the U.S. dollar price of that security, or the Fund may also enter into forward foreign currency contracts that do not provide for physical settlement of the two currencies, but instead are settled by a single cash payment calculated as the difference between the agreed upon exchange rate and the spot rate at settlement based upon an agreed upon notional amount (non-deliverable forwards). The Fund will set aside liquid assets in an amount equal to the daily mark-to-market obligation for forward foreign currency contracts.

A forward foreign currency contract is an obligation between two parties (“Counterparties”) to purchase or sell a specific currency for an agreed-upon price at a future date. The use of forward foreign currency contracts does not eliminate fluctuations in the price of the underlying securities the Fund owns or intends to acquire but establishes a rate of exchange in advance. Fluctuations in the value of these contracts are measured by the difference in the contract date and reporting date exchange rates and are recorded as unrealized appreciation (depreciation) until the contracts are closed. When the contracts are closed, realized gains (losses) are recorded. Realized and unrealized gains (losses) on the contracts are included in the Statement of Operations. The primary risks associated with forward foreign currency contracts include failure of the Counterparty to meet the terms of the contract and the value of the foreign currency changing unfavorably. These risks may be in excess of the amounts reflected in the Statement of Assets and Liabilities.

Invesco Oppenheimer V.I. International Growth Fund

NOTE 2–Advisory Fees and Other Fees Paid to Affiliates

The Trust has entered into a master investment advisory agreement with Invesco Advisers, Inc. (the “Adviser” or “Invesco”). Under the terms of the investment advisory agreement, the Fund accrues daily and pays monthly an advisory fee to the Adviser based on the annual rate of the Fund’s average daily net assets as follows:

Average Daily Net Assets*	Rate
Up to $250 million		1.000%
Next $250 million		0.900%
Next $500 million		0.850%
Over $1 billion		0.820%

* The advisory fee paid by the Fund shall be reduced by any amounts paid by the Fund under the administrative services agreement with the Adviser.

For the six months ended June 30, 2020, the effective advisory fee rate incurred by the Fund was 0.95%.

Under the terms of a master sub-advisory agreement between the Adviser and each of Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Canada Ltd. and separate sub-advisory agreements with Invesco Capital Management LLC and Invesco Asset Management (India) Private Limited (collectively, the “Affiliated Sub-Advisers”) the Adviser, not the Fund, will pay 40% of the fees paid to the Adviser to any such Affiliated Sub-Adviser(s) that provide(s) discretionary investment management services to the Fund based on the percentage of assets allocated to such Affiliated Sub-Adviser(s).

The Adviser has contractually agreed, through at least May 31, 2021, 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 1.00% and Series II shares to 1.25% of average daily net assets (the “expense limits”). In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause the total annual fund operating expenses after fee waiver and/or expense reimbursement to exceed the numbers reflected above: (1) interest; (2) taxes; (3) dividend expense on short sales; (4) extraordinary or non-routine items, including litigation expenses; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Unless Invesco continues the fee waiver agreement, it will terminate on May 31, 2021. During its term, the fee waiver agreement cannot be terminated or amended to increase the expense limits or reduce the advisory fee waiver without approval of the Board of Trustees. To the extent that the annualized expense ratio does not exceed the expense limits, the Adviser will retain its ability to be reimbursed for such fee waivers or reimbursements prior to the end of each fiscal year. The Adviser did not waive fees and/or reimburse expenses during the period under these expense limits.

Further, the Adviser has contractually agreed, through at least June 30, 2022, 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, 2020, the Adviser waived advisory fees of $281,504.

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 fees paid to insurance companies that have agreed to provide certain administrative services to the Fund. These administrative services provided by the insurance companies may include, among other things: maintenance of master accounts with the Fund; tracking, recording and transmitting net purchase and redemption orders for Fund shares; maintaining and preserving records related to the purchase, redemption and other account activity of variable product owners; distributing copies of Fund documents such as prospectuses, proxy materials and periodic reports, to variable product owners, and responding to inquiries from variable product owners about the Fund. Pursuant to such agreement, for the six months ended June 30, 2020, Invesco was paid $29,895 for accounting and fund administrative services and was reimbursed $314,517 for fees paid to insurance companies. Invesco has entered into a sub-administration agreement whereby State Street Bank and Trust Company (“SSB”) serves as fund accountant and provides certain administrative services to the Fund. Pursuant to a custody agreement with the Trust on behalf of the Fund, SSB also serves as the Fund’s custodian.

The Trust has entered into a transfer agency and service agreement with Invesco Investment Services, Inc. (“IIS”) pursuant to which the Fund has agreed to pay IIS a fee for providing transfer agency and shareholder services to the Fund and reimburse IIS for certain expenses incurred by IIS in the course of providing such services. For the six months ended June 30, 2020, 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. The fees are accrued daily and paid monthly. 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, 2020, 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, 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, 2020. 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 Oppenheimer V.I. International Growth Fund

	Level 1		Level 2		Level 3		Total
Investments in Securities
Australia	$	–	$	9,052,432	$	–	$	9,052,432
Belgium		1,046,473		2,788,568		–		3,835,041
Canada		24,463,375		–		–		24,463,375
China		7,097,393		8,221,927		–		15,319,320
Denmark		2,326,024		11,777,499		–		14,103,523
France		6,478,458		60,333,158		140,342		66,951,958
Germany		–		32,177,133		–		32,177,133
Hong Kong		–		3,785,027		–		3,785,027
India		27,713		–		–		27,713
Ireland		–		5,681,932		–		5,681,932
Italy		–		3,877,840		–		3,877,840
Japan		–		40,884,701		–		40,884,701
Netherlands		–		22,897,704		–		22,897,704
New Zealand		–		4,938,444		–		4,938,444
Spain		–		12,482,462		–		12,482,462
Sweden		–		22,585,679		–		22,585,679
Switzerland		–		46,789,225		–		46,789,225
Taiwan		–		10,275,161		–		10,275,161
United Kingdom		–		44,942,243		–		44,942,243
United States		23,983,898		8,175,989		–		32,159,887
Money Market Funds		12,549,039		–		–		12,549,039
Total Investments	$	77,972,373	$	351,667,124	$	140,342	$	429,779,839

NOTE 4–Trustees’ and Officers’ Fees and Benefits

Trustees’ and Officers’ Fees and Benefits include amounts accrued by the Fund to pay remuneration to certain Trustees and Officers of the Fund. Trustees have the option to defer compensation payable by the Fund, and Trustees’ and Officers’ Fees and Benefits also include amounts accrued by the Fund to fund such deferred compensation amounts. Those Trustees who defer compensation have the option to select various Invesco Funds in which their deferral accounts shall be deemed to be invested. Finally, certain current Trustees were eligible to participate in a retirement plan that provided for benefits to be paid upon retirement to Trustees over a period of time based on the number of years of service. The Fund may have certain former Trustees who also participate in a retirement plan and receive benefits under such plan. Trustees’ and Officers’ Fees and Benefits include amounts accrued by the Fund to fund such retirement benefits. Obligations under the deferred compensation and retirement plans represent unsecured claims against the general assets of the Fund.

NOTE 5–Cash Balances

The Fund is permitted to temporarily carry a negative or overdrawn balance in its account with SSB, the custodian bank. Such balances, if any at period-end, are shown in the Statement of Assets and Liabilities under the payable caption Amount due custodian. To compensate the custodian bank for such overdrafts, the overdrawn Fund may either (1) leave funds as a compensating balance in the account so the custodian bank can be compensated by earning the additional interest; or (2) compensate by paying the custodian bank at a rate agreed upon by the custodian bank and Invesco, not to exceed the contractually agreed upon rate. The Fund may not purchase additional securities when any borrowings from banks or broker-dealers exceed 5% of the Fund’s total assets, or when any borrowings from an Invesco Fund are outstanding.

NOTE 6–Tax Information

The amount and character of income and gains to be distributed are determined in accordance with income tax regulations, which may differ from GAAP. Reclassifications are made to the Fund’s capital accounts to reflect income and gains available for distribution (or available capital loss carryforward) under income tax regulations. The tax character of distributions paid during the year and the tax components of net assets will be reported at the Fund’s fiscal year-end.

Capital loss carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Fund to utilize. The ability to utilize capital loss carryforwards in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.

The Fund did not have a capital loss carryforward as of December 31, 2019.

NOTE 7–Investment Transactions

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, 2020 was $108,517,599 and $139,022,546, respectively. Cost of investments, including any derivatives, on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end.

Unrealized Appreciation (Depreciation) of Investments on a Tax Basis
Aggregate unrealized appreciation of investments	$	164,200,621
Aggregate unrealized (depreciation) of investments		(9,936,602	)
Net unrealized appreciation of investments	$	154,264,019

Cost of investments for tax purposes is $275,515,820.

Invesco Oppenheimer V.I. International Growth Fund

NOTE 8–Share Information

	Summary of Share Activity
	Six months ended						Year ended
	June 30, 2020(a)						December 31, 2019
	Shares			Amount			Shares			Amount
Sold:
Series I		5,984,695		$	12,723,460			8,881,295		$	19,659,846
Series II		5,246,259			11,748,526			13,275,646			30,754,894
Reacquired:
Series I		(11,093,660	)		(24,056,188	)		(55,770,549	)		(128,406,251	)
Series II		(10,291,012	)		(24,134,658	)		(14,188,919	)		(33,378,126	)
Net increase (decrease) in share activity		(10,153,718	)	$	(23,718,860	)		(47,802,527	)	$	(111,369,637	)

^(a)  There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 35% 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 Fund has no knowledge as to whether all or any portion of the shares owned of record by these entities are also owned beneficially.

NOTE 9–Coronavirus (COVID-19) Pandemic

During the first quarter of 2020, the World Health Organization declared COVID-19 to be a public health emergency. COVID-19 has led to increased short-term market volatility and may have adverse long-term effects on U.S. and world economies and markets in general. COVID-19 may adversely impact the Fund’s ability to achieve its investment objective. Because of the uncertainties on valuation, the global economy and business operations, values reflected in these financial statements may materially differ from the value received upon actual sales of those investments.

The extent of the impact on the performance of the Fund and its investments will depend on future developments, including the duration and spread of the COVID-19 outbreak, related restrictions and advisories, and the effects on the financial markets and economy overall, all of which are highly uncertain and cannot be predicted.

Invesco Oppenheimer 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, 2020 through June 30, 2020.

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.

		ACTUAL		HYPOTHETICAL (5% annual return before expenses)
	Beginning   Account Value     (01/01/20)	Ending   Account Value     (06/30/20)1	Expenses       Paid During       Period2	Ending   Account Value     (06/30/20)	Expenses   Paid During     Period2	Annualized     Expense Ratio
Series I	$1,000.00	$959.20	$4.87	$1,019.89	$5.02	1.00%
Series II	1,000.00	960.90	6.09	1,018.65	6.27	1.25

¹  The actual ending account value is based on the actual total return of the Fund for the period January 1, 2020 through June 30, 2020, 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 182/366 to reflect the most recent fiscal half year.

Invesco Oppenheimer V.I. International Growth Fund

Approval of Investment Advisory and Sub-Advisory Contracts

At meetings held on June 3, 2020, the Board of Trustees (the Board or the Trustees) of AIM Variable Insurance Funds (Invesco Variable Insurance Funds) as a whole, and the independent Trustees, who comprise over 75% of the Board, voting separately, approved the continuance of the Invesco Oppenheimer V.I. International Growth Fund’s (the Fund) Master Investment Advisory Agreement with Invesco Advisers, Inc. (Invesco Advisers and the investment advisory agreement) and the Master Intergroup Sub-Advisory Contract for Mutual Funds with Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Canada Ltd. and separate sub-advisory contracts with Invesco Capital Management LLC and Invesco Asset Management (India) Private Limited and OppenheimerFunds, Inc. (collectively, the Affiliated Sub-Advisers and the sub-advisory contracts) for another year, effective July 1, 2020. After evaluating the factors discussed below, among others, the Board approved the renewal of the Fund’s investment advisory agreement and the sub-advisory contracts and determined that the compensation payable thereunder by the Fund to Invesco Advisers and by Invesco Advisers to the Affiliated Sub-Advisers is fair and reasonable.

The Board’s Evaluation Process

The Board’s Investments Committee has established Sub-Committees, which meet throughout the year to review the performance of funds advised by Invesco Advisers (the Invesco Funds). The Sub-Committees meet regularly with portfolio managers for their assigned Invesco Funds and other members of management to review detailed information about investment performance and portfolio attributes of these funds. The Board took into account evaluations and reports that it received from the Investments Committee and Sub-Committees, as well as the information provided to such committees and the Board throughout the year, in considering whether to approve each Invesco Fund’s investment advisory agreement and sub-advisory contracts.

As part of the contract renewal process, the Board reviews and considers information provided in response to detailed requests for information submitted to management by the independent Trustees with assistance from legal counsel to the independent Trustees. The Board receives comparative investment performance and fee data regarding the Invesco Funds prepared by Invesco Advisers and Broadridge Financial Solutions, Inc. (Broadridge), an independent mutual fund data provider, as well as information on the composition of the peer groups provided by Broadridge and its methodology for determining peer groups. The Board also receives an independent written evaluation from the Senior Officer, an officer of the Invesco Funds who reports directly to the independent Trustees. 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. In addition to meetings with Invesco Advisers and fund counsel

throughout the year, the independent Trustees also discuss the continuance of the investment advisory agreement and sub-advisory contracts in separate sessions with the Senior Officer and with independent legal counsel.

The discussion below is a summary of 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. The Trustees’ review and conclusions are based on the comprehensive consideration of all information presented to them during the course of the year and in prior years and are not the result of any single determinative factor. Moreover, one Trustee may have weighed a particular piece of information or factor differently than another Trustee. This information is current as of June 3, 2020.

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 nature, extent and quality of the advisory services provided to the Fund by Invesco Advisers under the Fund’s investment advisory agreement, and the credentials and experience of the officers and employees of Invesco Advisers who provide these services, including the Fund’s portfolio manager(s). The Board’s review included consideration of Invesco Advisers’ investment process oversight and structure, credit analysis, investment risk management and research capabilities. The Board also considered non-advisory services that Invesco Advisers and its affiliates provide to the Invesco Funds, such as various back office support functions, third party oversight, internal audit, valuation, portfolio trading and legal and compliance. The Board also received and reviewed information about Invesco Advisers’ role as administrator of the Invesco Funds’ liquidity risk management program. The Board reviewed and considered the benefits to shareholders of investing in a Fund that is part of the Invesco family of funds under the umbrella of Invesco Ltd., Invesco Advisers’ parent company, and noted Invesco Ltd.’s depth and experience in conducting an investment management business, as well as its commitment of financial and other resources to such business. The Board also reviewed and considered information regarding the benefits to the Fund resulting from Invesco Ltd.’s acquisition of OppenheimerFunds, Inc. and its subsidiaries (the Transaction) and the resources that Invesco Advisers has committed to managing the Invesco family of funds following the Transaction. The Board concluded that the nature, extent and quality of the services provided to the Fund by Invesco Advisers are appropriate and satisfactory.

The Board reviewed the services that may be 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 the Affiliated Sub-Advisers’ expertise with respect to certain asset classes and that the Affiliated Sub-Advisers have offices and personnel

that are located in financial centers around the world. As a result, the Board noted that the Affiliated Sub-Advisers can provide research and investment analysis on the markets and economies of various countries in which the Fund may invest, make recommendations regarding securities and assist with security trades. The Board concluded that the sub-advisory contracts may 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 that may be provided by the Affiliated Sub-Advisers are appropriate and satisfactory.

B. Fund Investment Performance

The Board considered Fund investment performance as a relevant factor in considering whether to approve the investment advisory agreement. The Board did not view Fund investment 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 investment performance over multiple time periods ending December 31, 2019 to the performance of funds in the Broadridge performance universe and against the MSCI EAFE^® Index. The Board noted that performance of Series I shares of the Fund was in the second quintile of its performance universe for the one year period, the fifth quintile for the three year period, and the fourth quintile for the five year period (the first quintile being the best performing funds and the fifth quintile being the worst performing funds). The Board noted that performance of Series I shares of the Fund was above the performance of the Index for the one year period and reasonably comparable to the performance of the Index for the three and five year periods. The Board considered that the Fund was created in connection with the Transaction and that the Fund’s performance prior to the closing of the Transaction after the close of business on May 24, 2019 is that of its predecessor fund. The Board noted that stock selection in certain sectors and regions detracted from Fund performance. The Board recognized that the performance data reflects a snapshot in time as of a particular date and that selecting a different performance period could produce different results. The Board also reviewed more recent Fund performance as well as other performance metrics and this review did not change their conclusions.

C. Advisory and Sub-Advisory Fees and Fund Expenses

The Board compared the Fund’s contractual management fee rate to the contractual management fee rates of funds in the Fund’s Broadridge expense group. The Board noted that the contractual management fee rate for Series I shares of the Fund was above the median contractual management fee rate of funds in its expense group. The Board noted that the term “contractual management fee” for funds in the expense group may include both advisory and certain non-portfolio management administrative services fees, but that Broadridge does not provide information on a fund by fund basis as to what is included. The Board also reviewed the methodology used by Broadridge in providing expense group information, which includes using each fund’s

Invesco Oppenheimer V.I. International Growth Fund

contractual management fee schedule (including any applicable breakpoints) as reported in the most recent prospectus or statement of additional information for each fund in the expense group. The Board also considered comparative information regarding the Fund’s total expense ratio and its various components. The Board noted that the Fund’s contractual management fees were in the fifth quintile of its expense group and discussed with management reasons for such relative contractual management fees.

The Board noted that Invesco Advisers has contractually agreed to waive fees and/or limit expenses of the Fund for the term disclosed in the Fund’s registration statement 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 fees charged by Invesco Advisers and the Affiliated Sub-Advisers to other similarly managed client accounts. Invesco Advisers reviewed with the Board differences in the scope of services it provides to the Invesco Funds relative to certain other types of client accounts, including, among others: management of cash flows as a result of redemptions and purchases; necessary infrastructure such as officers, office space, technology, legal and distribution; oversight of service providers; costs and business risks associated with launching new funds and sponsoring and maintaining the product line; and compliance with federal and state laws and regulations.

The Board also compared the Fund’s effective advisory fee rate (the advisory fee rate after advisory fee waivers and before other expense limitations/ waivers) to the effective advisory fee rates of other similarly managed third-party mutual funds advised or sub-advised by Invesco Advisers and its affiliates, based on asset balances as of December 31, 2019.

The Board also considered the services that may be provided by the Affiliated Sub-Advisers pursuant to the sub-advisory contracts, as well as the fees payable by Invesco Advisers to the Affiliated Sub-Advisers pursuant to the sub-advisory contracts.

D. Economies of Scale and Breakpoints

The Board considered the extent to which there may be economies of scale in the provision of advisory services to the Fund. The Board also considered that the Fund benefits from economies of scale through contractual breakpoints in the Fund’s advisory fee schedule, which generally operate to reduce the Fund’s expense ratio as it grows in size. The Board 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. The Board noted that the Fund may also benefit from economies of scale through initial fee setting, fee waivers and expense reimbursements. The Board also considered Invesco’s reinvestment in its business, including investments in business infrastructure, technology and cybersecurity.

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 Invesco Funds and the profitability of Invesco Advisers and its affiliates in providing these services in the aggregate and on an individual Fund-by-Fund basis. The Board considered the methodology used for calculating profitability and noted the periodic review and enhancement of such

methodology. The Board noted that Invesco Advisers continues to operate at a net profit from services Invesco Advisers and its affiliates provide to the Invesco Funds in the aggregate and to certain Funds on an individual fund level. The Board did not deem the level of profits realized by Invesco Advisers and its affiliates from providing such services to be excessive given the nature, extent and quality of the services provided. The Board received information from Invesco Advisers demonstrating that Invesco Advisers and the Affiliated Sub-Advisers are financially sound and have the resources necessary to perform their obligations under the investment advisory agreement and sub-advisory contracts.

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 providing administrative, transfer agency and distribution services to the Fund. The Board considered comparative information regarding fees charged for these services, including information provided by Broadridge and other independent sources. 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; and that the services are required for the operation of the Fund.

The Board considered the benefits realized by Invesco Advisers and the Affiliated Sub-Advisers as a result of portfolio brokerage transactions executed through “soft dollar” arrangements. The Board noted that soft dollar arrangements may result in the Fund bearing costs to purchase research that may be used by Invesco Advisers or the Affiliated Sub-Advisers with other clients and may reduce Invesco Advisers’ or the Affiliated Sub-Advisers’ expenses. The Board also considered that it receives periodic reports from Invesco representing that these arrangements are consistent with regulatory requirements. The Board did not deem the soft dollar arrangements to be inappropriate.

The Board considered that the Fund’s uninvested cash and cash collateral from any securities lending arrangements may be invested in registered money market funds or, with regard to securities lending cash collateral, unregistered funds that comply with Rule 2a-7 (collectively referred to as “affiliated money market funds”) advised by Invesco Advisers pursuant to procedures approved by the Board. The Board considered information regarding the returns of the affiliated money market funds relative to comparable overnight investments, as well as the costs to the Fund of such investments. 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 with respect to certain investments in the affiliated money market 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 amount of advisory fees received by Invesco Advisers from the

Fund’s investment of cash collateral from any securities lending arrangements in the affiliated money market funds is fair and reasonable.

The Board also considered that an affiliated broker may receive commissions for executing certain trades for the Fund. Invesco Advisers and the Affiliated Sub-Advisers may use the affiliated broker to, among other things, control order routing and minimize information leakage, and the Board was advised that such trades are executed in compliance with rules under the federal securities laws and consistent with best execution obligations.

Invesco Oppenheimer V.I. International Growth Fund

	Semiannual Report to Shareholders	June 30, 2020
	Invesco Oppenheimer V.I. Main Street Fund®

Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, the insurance company that offers your variable annuity or variable life insurance contract may no longer send you paper copies of the Fund’s shareholder reports by mail, unless you specifically request paper copies of the reports from the insurance company or your financial intermediary. Instead of delivering paper copies of the report, the insurance company may choose to make the reports available on a website, and will notify you by mail each time a report is posted and provide you with a website link to access the report. Instructions for requesting paper copies will be provided by your insurance company.

    If the insurance company offers electronic delivery, you may elect to receive shareholder reports and other communications about the Fund electronically by following the instructions provided by the insurance company or by contacting your financial intermediary. If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action.

    You may elect to receive all future reports in paper free of charge from the insurance company. You can inform the insurance company or your financial intermediary that you wish to continue receiving paper copies of your shareholder reports by following the instructions provided by the insurance company or by contacting your financial intermediary. Your election to receive reports in paper will apply to all portfolio companies available under your contract with the insurance company.

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) as an exhibit to its reports on Form N-PORT. The Fund’s Form N-PORT filings are available on the SEC website, 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-PORT, 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 most recent 12-month period ended June 30 is available at invesco.com/proxysearch. The information is also available on the SEC website, sec.gov.

    Invesco Advisers, Inc. is an investment adviser; it provides investment advisory services to individual and institutional clients and does not sell securities. Invesco Distributors, Inc. is the US distributor for Invesco Ltd.’s retail mutual funds, exchange-traded funds and institutional money market funds. Both are wholly owned, indirect subsidiaries of Invesco Ltd.

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.

NOT FDIC INSURED  |  MAY LOSE VALUE  |  NO BANK GUARANTEE

Invesco Distributors, Inc. O-VIMST-SAR-1                                 

Fund Performance

Performance summary

Fund vs. Indexes

Cumulative total returns, 12/31/19 to 6/30/20, excluding variable product issuer charges. If variable product issuer charges were included, returns would be lower.

Series I Shares	-5.57	%
Series II Shares	-5.68
S&P 500 Indexq	-3.08
Source(s): qRIMES Technologies Corp.

The S&P 500^® Index is an unmanaged index considered representative of the US stock market.

  The Fund is not managed to track the performance of any particular index, including the index(es) described here, and consequently, the performance of the Fund may deviate significantly from the performance of the index(es).

    A direct investment cannot be made in an index. Unless otherwise indicated, index results include reinvested dividends, and they do not reflect sales charges. Performance of the peer group, if applicable, reflects fund expenses; performance of a market index does not.

Average Annual Total Returns
As of 6/30/20
Series I Shares
Inception (7/5/95)	8.66	%
10 Years	12.68
5 Years	8.65
1 Year	2.85
Series II Shares
Inception (7/13/00)	4.96	%
10 Years	12.40
5 Years	8.38
1 Year	2.58

Effective May 24, 2019, Non-Service and Service shares of the Oppenheimer Main Street Fund/VA, (the predecessor fund) were reorganized into Series I and Series II shares, respectively, of Invesco Oppenheimer V.I. Main Street Fund^®. Returns shown above, prior to May 24, 2019, for Series I and Series II shares are those of the Non-Service shares and Service shares of the predecessor fund. Share class returns will differ from the predecessor fund because of different expenses.

    The performance data quoted represent past performance and cannot guarantee future results; current performance may be lower or higher. Please 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. Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares. Investment return and principal value will fluctuate so that you may have a gain or loss when you sell shares.

    Invesco Oppenheimer V.I. Main Street 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 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.

    Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information.

Invesco Oppenheimer V.I. Main Street Fund^®

Liquidity Risk Management Program

The Securities and Exchange Commission has adopted Rule 22e-4 under the Investment Company Act of 1940 (the “Liquidity Rule”) in order to promote effective liquidity risk management throughout the open-end investment company industry, thereby reducing the risk that funds will be unable to meet their redemption obligations and mitigating dilution of the interests of fund shareholders. The Fund has adopted and implemented a liquidity risk management program in accordance with the Liquidity Rule (the “Program”). The Program is reasonably designed to assess and manage the Fund’s liquidity risk, which is the risk that the Fund could not meet redemption requests without significant dilution of remaining investors’ interests in the Fund. The Board of Trustees of the Fund (the “Board”) has appointed Invesco Advisers, Inc. (“Invesco”), the Fund’s investment adviser, as the Program’s administrator, and Invesco has delegated oversight of the Program to the Liquidity Risk Management Committee (the “Committee”), which is composed of senior representatives from relevant business groups at Invesco.

As required by the Liquidity Rule, the Program includes policies and procedures providing for an assessment, no less frequently than annually, of the Fund’s liquidity risk that takes into account, as relevant to the Fund’s liquidity risk: (1) the Fund’s investment strategy and liquidity of portfolio investments during both normal and reasonably foreseeable stressed conditions; (2) short-term and long-term cash flow projections for the Fund during both normal and reasonably foreseeable stressed conditions; and (3) the Fund’s holdings of cash and cash equivalents and any borrowing arrangements. The Liquidity Rule also requires the classification of the Fund’s investments into categories that reflect the assessment of their relative liquidity under current market conditions. The Fund classifies its investments into one of four categories defined in the Liquidity Rule: “Highly Liquid,” “Moderately Liquid,” “Less Liquid” and “Illiquid.” Funds that are not invested primarily in “Highly Liquid Investments” that are assets (cash or investments that are reasonably expected to be convertible into cash within three business days without significantly changing the market value of the investment) are required to establish a “Highly Liquid Investment Minimum” (“HLIM”), which is the minimum percentage of net assets that must be invested in Highly Liquid Investments. Funds with HLIMs have procedures for addressing HLIM shortfalls, including reporting to the Board and the SEC (on a non-public basis) as required by the Program and the Liquidity Rule. In addition, the Fund may not acquire an investment if, immediately after the acquisition, over 15% of the Fund’s net assets would consist of “Illiquid Investments” that are assets (an investment that cannot reasonably be expected to be sold or disposed of in current market conditions in seven calendar days or less without the sale or disposition significantly changing the market value of the investment). The Liquidity Rule and the Program also require reporting to the Board and the SEC (on a non-public basis) if a Fund’s holdings of Illiquid Investments exceed 15% of the Fund’s assets.

At a meeting held on March 30-April 1, 2020, the Committee presented a report to the Board that addressed the operation of the Program and assessed the Program’s adequacy and effectiveness of implementation (the “Report”). The Report covered the period from December 1, 2018 through December 31, 2019 (the “Program Reporting Period”).

The Report stated, in relevant part, that during the Program Reporting Period:

∎ The Program, as adopted and implemented, remained reasonably designed to assess and manage the Fund’s liquidity risk and was operated effectively to achieve that goal;

∎ The Fund’s investment strategy remained appropriate for an open-end fund;

∎ The Fund was able to meet requests for redemption without significant dilution of remaining investors’ interests in the Fund;

∎ The Fund did not breach the 15% limit on Illiquid Investments; and

∎ The Fund primarily held Highly Liquid Investments and therefore has not adopted an HLIM.

Invesco Oppenheimer V.I. Main Street Fund^®

Schedule of Investments^(a)

June 30, 2020

(Unaudited)

	Shares		Value
Common Stocks & Other Equity Interests–99.41%
Aerospace & Defense–3.17%
Lockheed Martin Corp.		94,631	$      34,532,744
Air Freight & Logistics–1.53%
C.H. Robinson Worldwide, Inc.		79,331	6,271,909
United Parcel Service, Inc., Class B		93,871	10,436,578
			16,708,487
Application Software–0.63%
Adobe, Inc.(b)		15,684	6,827,402
Automobile Manufacturers–0.49%
General Motors Co.		209,263	5,294,354
Automotive Retail–0.66%
O’Reilly Automotive, Inc.(b)		17,131	7,223,629
Biotechnology–1.75%
Amgen, Inc.		30,247	7,134,058
Gilead Sciences, Inc.		88,493	6,808,651
Neurocrine Biosciences, Inc.(b)		42,402	5,173,044
			19,115,753
Commodity Chemicals–0.51%
Valvoline, Inc.		290,025	5,606,183
Communications Equipment–1.22%
Motorola Solutions, Inc.		94,977	13,309,127
Construction Materials–0.19%
Vulcan Materials Co.		17,769	2,058,539
Consumer Finance–1.59%
Capital One Financial Corp.		276,525	17,307,700
Data Processing & Outsourced Services–2.06%
Mastercard, Inc., Class A		75,849	22,428,549
Distillers & Vintners–1.01%
Constellation Brands, Inc., Class A		62,910	11,006,104
Diversified Banks–2.38%
JPMorgan Chase & Co.		275,488	25,912,401
Electric Utilities–1.27%
Duke Energy Corp.		172,759	13,801,716
Environmental & Facilities Services–1.27%
Waste Connections, Inc.		147,543	13,838,058
Financial Exchanges & Data–2.62%
Intercontinental Exchange, Inc.		244,187	22,367,529
S&P Global, Inc.		18,818	6,200,155
			28,567,684
Gas Utilities–0.10%
UGI Corp.		33,281	1,058,336
General Merchandise Stores–0.95%
Target Corp.		86,009	10,315,059

	Shares		Value
Health Care Equipment–1.17%
Zimmer Biomet Holdings, Inc.		106,655	$      12,730,341
Health Care Facilities–1.29%
HCA Healthcare, Inc.(b)		144,442	14,019,541
Health Care Services–0.36%
Laboratory Corp. of America Holdings(b)		23,834	3,959,066
Health Care Supplies–0.54%
Alcon, Inc. (Switzerland)(b)		103,069	5,907,915
Home Improvement Retail–2.41%
Home Depot, Inc. (The)		104,702	26,228,898
Homebuilding–0.61%
D.R. Horton, Inc.		119,277	6,613,910
Household Products–5.13%
Church & Dwight Co., Inc.		146,034	11,288,428
Procter & Gamble Co. (The)		334,930	40,047,580
Reckitt Benckiser Group PLC (United Kingdom)		50,541	4,651,214
			55,987,222
Industrial Conglomerates–1.01%
Honeywell International, Inc.		75,856	10,968,019
Industrial REITs–3.04%
Prologis, Inc.		355,369	33,166,589
Integrated Oil & Gas–1.00%
Suncor Energy, Inc. (Canada)		648,124	10,927,371
Integrated Telecommunication Services–2.38%
Verizon Communications, Inc.		471,054	25,969,207
Interactive Media & Services–6.32%
Alphabet, Inc., Class A(b)		14,911	21,144,543
Facebook, Inc., Class A(b)		158,023	35,882,283
Tencent Holdings Ltd., ADR (China)		185,207	11,853,248
			68,880,074
Internet & Direct Marketing Retail–8.60%
Amazon.com, Inc.(b)		27,703	76,427,591
Booking Holdings, Inc.(b)		10,913	17,377,206
			93,804,797
IT Consulting & Other Services–2.29%
Accenture PLC, Class A		77,347	16,607,948
Amdocs Ltd.		138,070	8,405,701
			25,013,649
Life Sciences Tools & Services–2.14%
Avantor, Inc.(b)		197,233	3,352,961
Thermo Fisher Scientific, Inc.		55,084	19,959,137
			23,312,098
Managed Health Care–4.66%
UnitedHealth Group, Inc.		172,433	50,859,113

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco Oppenheimer V.I. Main Street Fund^®

	Shares		Value
Movies & Entertainment–0.53%
Live Nation Entertainment, Inc.(b)		43,425	$      1,925,030
Warner Music Group Corp., Class A(b)		129,787	3,828,717
			5,753,747
Multi-Sector Holdings–2.46%
Berkshire Hathaway, Inc., Class B(b)		150,396	26,847,190
Oil & Gas Refining & Marketing–0.37%
Valero Energy Corp.		68,213	4,012,289
Oil & Gas Storage & Transportation–1.24%
Magellan Midstream Partners L.P.		312,834	13,505,044
Other Diversified Financial Services–1.66%
Equitable Holdings, Inc.		937,413	18,082,697
Packaged Foods & Meats–0.79%
a2 Milk Co. Ltd. (New Zealand)(b)		181,560	2,342,804
Mondelez International, Inc., Class A		122,970	6,287,456
			8,630,260
Pharmaceuticals–5.31%
AstraZeneca PLC, ADR (United Kingdom)		541,380	28,633,588
Merck & Co., Inc.		377,869	29,220,610
			57,854,198
Property & Casualty Insurance–1.79%
Progressive Corp. (The)		243,364	19,495,890
Railroads–1.29%
Union Pacific Corp.		83,212	14,068,653

	Shares		Value
Semiconductor Equipment–2.36%
Applied Materials, Inc.		425,592	$	25,727,036
Semiconductors–3.83%
QUALCOMM, Inc.		254,721		23,233,102
Texas Instruments, Inc.		146,381		18,585,996
				41,819,098
Soft Drinks–0.93%
PepsiCo, Inc.		77,094		10,196,452
Specialty Chemicals–0.64%
Ecolab, Inc.		35,254		7,013,783
Systems Software–9.86%
Microsoft Corp.		528,516		107,558,291
Total Common Stocks & Other Equity Interests (Cost $839,560,722)				1,083,824,263
Money Market Funds–0.61%
Invesco Government & Agency Portfolio, Institutional Class, 0.09%(c)(d)		2,330,143		2,330,143
Invesco Liquid Assets Portfolio, Institutional Class, 0.39%(c)(d)		1,661,676		1,662,839
Invesco Treasury Portfolio, Institutional Class, 0.08%(c)(d)		2,663,020		2,663,020
Total Money Market Funds (Cost $6,656,095)				6,656,002
TOTAL INVESTMENTS IN SECURITIES–100.02% (Cost $846,216,817)				1,090,480,265
OTHER ASSETS LESS LIABILITIES–(0.02)%				(177,448	)
NET ASSETS–100.00%			$	1,090,302,817

Investment Abbreviations:

ADR - American Depositary Receipt

REIT - Real Estate Investment Trust

Notes to Schedule of Investments:

^(a)  Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s.

^(b)  Non-income producing security.

^(c)  Affiliated issuer. The issuer and/or the Fund is a wholly-owned subsidiary of Invesco Ltd., or is affiliated by having an investment adviser that is under common control of Invesco Ltd. The table below shows the Fund’s transactions in, and earnings from, its investments in affiliates for the six months ended June 30, 2020.

	Value December 31, 2019			Purchases at Cost			Proceeds from Sales				Change in Unrealized Appreciation (Depreciation)			Realized Gain (Loss)			Value June 30, 2020			Dividend Income
Investments in Affiliated Money Market Funds:
Invesco Government & Agency Portfolio, Institutional Class		$	14,860,862		$	111,323,211		$	(123,853,930	)		$	-		$	-		$	2,330,143		$	42,620
Invesco Liquid Assets Portfolio, Institutional Class			-			10,945,241			(9,281,718	)			(94)			(590)			1,662,839			944
Invesco Treasury Portfolio, Institutional Class			-			17,512,386			(14,849,366	)			-			-			2,663,020			311
Total		$	14,860,862		$	139,780,838		$	(147,985,014	)		$	(94)		$	(590)		$	6,656,002		$	43,875

^(d)  The rate shown is the 7-day SEC standardized yield as of June 30, 2020.

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco Oppenheimer V.I. Main Street Fund^®

Portfolio Composition

By sector, based on Net Assets

as of June 30, 2020

Information Technology	22.26	%
Health Care	17.22
Consumer Discretionary	13.71
Financials	12.49
Communication Services	9.23
Industrials	8.27
Consumer Staples	7.87
Real Estate	3.04
Energy	2.61
Other Sectors, Each Less than 2% of Net Assets	2.71
Money Market Funds Plus Other Assets Less Liabilities	0.59

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco Oppenheimer V.I. Main Street Fund^®

Statement of Assets and Liabilities

June 30, 2020

(Unaudited)

Assets:
Investments in securities, at value (Cost $ 839,560,722)	$	1,083,824,263
Investments in affiliated money market funds, at value (Cost $ 6,656,095)		6,656,002
Cash		750,000
Receivable for:
Investments sold		1,915,102
Fund shares sold		1,184,436
Dividends		602,891
Investment for trustee deferred compensation and retirement plans		134,033
Total assets		1,095,066,727
Liabilities:
Payable for:
Investments purchased		3,324,543
Fund shares reacquired		465,970
Accrued fees to affiliates		636,977
Accrued trustees’ and officers’ fees and benefits		4,204
Accrued other operating expenses		198,183
Trustee deferred compensation and retirement plans		134,033
Total liabilities		4,763,910
Net assets applicable to shares outstanding	$	1,090,302,817
Net assets consist of:
Shares of beneficial interest	$	734,904,037
Distributable earnings		355,398,780
	$	1,090,302,817
Net Assets:
Series I	$	448,272,071
Series II	$	642,030,746
Shares outstanding, no par value, with an unlimited number of shares authorized:
Series I		16,126,021
Series II		23,434,121
Series I:
Net asset value per share	$	27.80
Series II:
Net asset value per share	$	27.40

Statement of Operations

For the six months ended June 30, 2020

(Unaudited)

Investment income:
Dividends (net of foreign withholding taxes of $71,295)	$	10,659,295
Dividends from affiliated money market funds		43,875
Total investment income		10,703,170
Expenses:
Advisory fees		3,740,242
Administrative services fees		924,578
Custodian fees		3,416
Distribution fees - Series II		802,030
Transfer agent fees		32,248
Trustees’ and officers’ fees and benefits		12,870
Reports to shareholders		55,090
Professional services fees		20,920
Other		9,765
Total expenses		5,601,159
Less: Fees waived		(247,857	)
Net expenses		5,353,302
Net investment income		5,349,868
Realized and unrealized gain (loss) from:
Net realized gain (loss) from:
Investment securities (includes net gains from securities sold to affiliates of $6,127,718)		(905,501	)
Foreign currencies		(64,602	)
		(970,103	)
Change in net unrealized appreciation (depreciation) of:
Investment securities		(79,018,962	)
Foreign currencies		(1,116	)
		(79,020,078	)
Net realized and unrealized gain (loss)		(79,990,181	)
Net increase (decrease) in net assets resulting from operations	$	(74,640,313	)

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco Oppenheimer V.I. Main Street Fund^®

Statement of Changes in Net Assets

For the six months ended June 30, 2020 and the year ended December 31, 2019

(Unaudited)

	June 30, 2020			December 31, 2019
Operations:
Net investment income	$	5,349,868		$	12,198,812
Net realized gain (loss)		(970,103	)		98,443,317
Change in net unrealized appreciation (depreciation)		(79,020,078	)		230,858,088
Net increase (decrease) in net assets resulting from operations		(74,640,313	)		341,500,217
Distributions to shareholders from distributable earnings:
Series I		–			(93,497,935	)
Series II		–			(121,555,544	)
Total distributions from distributable earnings		–			(215,053,479	)
Share transactions-net:
Series I		(89,731,713	)		30,061,913
Series II		(47,608,407	)		29,147,063
Net increase (decrease) in net assets resulting from share transactions		(137,340,120	)		59,208,976
Net increase (decrease) in net assets		(211,980,433	)		185,655,714
Net assets:
Beginning of period		1,302,283,250			1,116,627,536
End of period	$	1,090,302,817		$	1,302,283,250

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco Oppenheimer V.I. Main Street Fund^®

Financial Highlights

(Unaudited)

The following schedule presents financial highlights for a share of the Fund outstanding throughout the periods indicated.

																																				Ratio of			Ratio of
																																				expenses			expenses
							Net gains																													to average			to average net
							(losses)																													net assets			assets without			Ratio of net
	Net asset						on securities								Dividends				Distributions																	with fee waivers			fee waivers			investment
	value,			Net			(both				Total from				from net				from net								Net asset						Net assets,			and/or			and/or			income
	beginning			investment			realized and				investment				investment				realized				Total				value, end			Total			end of period			expenses			expenses			to average			Portfolio
	of period			income(a)			unrealized)				operations				income				gains				distributions				of period			return (b)			(000’s omitted)			absorbed			absorbed(c)			net assets			turnover (d)
Series I
Six months ended 06/30/20		$	29.44		$	0.15		$	(1.79	)		$	(1.64	)		$	–			$	–			$	–			$	27.80		(5.57	)%		$	448,272		0.80	%(e)		0.84	%(e)		1.08	%(e)		23	%
Year ended 12/31/19			26.82			0.32			7.73				8.05				(0.34	)			(5.09	)			(5.43	)			29.44		32.03				570,821		0.80			0.82			1.11			43
Year ended 12/31/18			32.25			0.32			(2.55	)			(2.23	)			(0.38	)			(2.82	)			(3.20	)			26.82		(7.89	)			485,230		0.80			0.80			1.03			65
Year ended 12/31/17			28.41			0.34			4.41				4.75				(0.39	)			(0.52	)			(0.91	)			32.25		16.91				561,555		0.78			0.78			1.12			35
Year ended 12/31/16			29.24			0.33			2.76				3.09				(0.34	)			(3.58	)			(3.92	)			28.41		11.62				485,196		0.79			0.79			1.16			33
Year ended 12/31/15			33.61			0.33			0.80				1.13				(0.32	)			(5.18	)			(5.50	)			29.24		3.33				518,456		0.78			0.78			1.05			44
Series II
Six months ended 06/30/20			29.05			0.11			(1.76	)			(1.65	)			-				-				-				27.40		(5.68	)			642,031		1.05	(e)		1.09	(e)		0.83	(e)		23
Year ended 12/31/19			26.51			0.25			7.64				7.89				(0.26	)			(5.09	)			(5.35	)			29.05		31.74				731,463		1.05			1.07			0.86			43
Year ended 12/31/18			31.91			0.24			(2.53	)			(2.29	)			(0.29	)			(2.82	)			(3.11	)			26.51		(8.10	)			631,398		1.05			1.05			0.78			65
Year ended 12/31/17			28.12			0.26			4.37				4.63				(0.32	)			(0.52	)			(0.84	)			31.91		16.63				785,379		1.03			1.03			0.87			35
Year ended 12/31/16			28.98			0.26			2.72				2.98				(0.26	)			(3.58	)			(3.84	)			28.12		11.30				772,594		1.04			1.04			0.94			33
Year ended 12/31/15			33.33			0.25			0.80				1.05				(0.22	)			(5.18	)			(5.40	)			28.98		3.11				715,328		1.03			1.03			0.80			44

^(a)  Calculated using average shares outstanding.

^(b)  Includes adjustments in accordance with accounting principles generally accepted in the United States of America. 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)  Does not include indirect expenses from affiliated fund fees and expenses of 0.00% for the years ended December 31, 2019, 2018, 2017, 2016 and 2015, respectively.

^(d)  Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable.

^(e)  Ratios are annualized and based on average daily net assets (000’s omitted) of $500,488 and $645,149 for Series I and Series II shares, respectively.

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco Oppenheimer V.I. Main Street Fund^®

Notes to Financial Statements

June 30, 2020

(Unaudited)

NOTE 1–Significant Accounting Policies

Invesco Oppenheimer V.I. Main Street 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. Information presented in these financial statements pertains only to the Fund. Matters affecting the Fund or each class will be voted on exclusively by the shareholders of the Fund or each class. 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 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 Fund is an investment company and accordingly follows the investment company accounting and reporting guidance in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 946, Financial Services - Investment Companies.

The following is a summary of the significant accounting policies followed by the Fund in the preparation of its financial statements.

A. Security Valuations – Securities, including restricted securities, are valued according to the following policy.

A security listed or traded on an exchange (except convertible securities) is valued at its last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded, or lacking any sales or official closing price on a particular day, the security may be valued at the closing bid price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued by an independent pricing service they may be considered fair valued. Futures contracts are valued at the final settlement price set by an exchange on which they are principally traded. Listed options are valued at the mean between the last bid and asked 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 asked prices. For purposes of determining net asset value (“NAV”) per share, futures and option contracts generally are valued 15 minutes after the close of the customary trading session of the New York Stock Exchange (“NYSE”).

Investments in open-end and closed-end registered investment companies that do not trade on an exchange are valued at the end-of-day net asset value per share. Investments in open-end and closed-end registered investment companies that trade on an exchange are valued at the last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded.

Debt obligations (including convertible securities) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. Pricing services generally value debt obligations assuming orderly transactions of institutional round lot size, but a fund may hold or transact in the same securities in smaller, odd lot sizes. Odd lots often trade at lower prices than institutional round lots. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.

Foreign securities’ (including foreign exchange contracts) prices are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the NYSE. If market quotations are available and reliable for foreign exchange-traded equity securities, the securities will be valued at the market quotations. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become unreliable. If between the time trading ends on a particular security and the close of the customary trading session on the NYSE, events occur that the investment adviser determines are significant and make the closing price unreliable, the Fund may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith using procedures approved by the Board of Trustees. Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities’ prices meeting the approved degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economic upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.

Securities for which market prices are not provided by any of the above methods may be valued based upon quotes furnished by independent sources. The last bid price may be used to value equity securities. The mean between the last bid and asked prices is used to value debt obligations, including corporate loans.

Securities for which market quotations are not readily available or became unreliable are valued at fair value as determined in good faith by or under the supervision of the Trust’s officers following procedures approved by the Board of Trustees. Issuer specific events, market trends, bid/asked quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security’s fair value.

The Fund may invest in securities that are subject to interest rate risk, meaning the risk that the prices will generally fall as interest rates rise and, conversely, the prices will generally rise as interest rates fall. Specific securities differ in their sensitivity to changes in interest rates depending on their individual characteristics. Changes in interest rates may result in increased market volatility, which may affect the value and/or liquidity of certain Fund investments.

Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the issuer’s assets, general market conditions which are not specifically related to the particular issuer, such as real or perceived adverse economic conditions, changes in the general outlook for revenues or corporate earnings, changes in interest or currency rates, regional or global instability, natural or environmental disasters, widespread disease or other public health issues, war, acts of terrorism or adverse investor sentiment generally and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

B. Securities Transactions and Investment Income – Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income (net of withholding tax, if any) is recorded on an accrual basis from settlement date. 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

Invesco Oppenheimer V.I. Main Street Fund^®

share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and the Statement of Changes in Net Assets, or the net investment income per share and the ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.

The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class.

C. Country Determination – For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues 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 net investment income and net realized capital gain, if any, are generally declared and paid to separate accounts of participating insurance companies annually and recorded on the ex-dividend date.

E. Master Limited Partnerships – The Fund invests in Master Limited Partnerships (“MLPs”). MLPs are publicly traded partnerships and limited liability companies taxed as partnerships under the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”). The Fund invests in MLPs engaged in, among other things, the transportation, storage, processing, refining, marketing, exploration, production and mining of minerals and natural resources. The Fund is a partner in each MLP; accordingly, the Fund is required to take into account the Fund’s allocable share of income, gains, losses, deductions, expenses, and tax credits recognized by each MLP.

MLP’s may be less liquid and subject to more abrupt or erratic price movements than conventional publicly traded securities.

F. Return of Capital – Distributions received from the Fund’s investments in MLPs generally are comprised of income and return of capital. The Fund records investment income and return of capital based on estimates made at the time such distributions are received. The return of capital portion of the distribution is a reduction to investment income that results in an equivalent reduction in the cost basis of the associated investments and increases net realized gains (losses) and change in unrealized appreciation (depreciation). Such estimates are based on historical information available from each MLP and other industry sources. These estimates will subsequently be revised and may materially differ primarily based on information received from the MLPs after their tax reporting periods are concluded.

G. Federal Income Taxes – The Fund intends to comply with the requirements of Subchapter M of the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”), necessary to qualify as a regulated investment company and to distribute substantially all of the Fund’s taxable earnings to shareholders. As such, the Fund will not be subject to federal income taxes on otherwise taxable income (including net realized capital gain) that is distributed to shareholders. Therefore, no provision for federal income taxes is recorded in the financial statements.

The Fund recognizes the tax benefits of uncertain tax positions only when the position is more likely than not to be sustained. Management has analyzed the Fund’s uncertain tax positions and concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions. Management is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the next 12 months.

The Fund files tax returns in the U.S. Federal jurisdiction and certain other jurisdictions. Generally, the Fund is subject to examinations by such taxing authorities for up to three years after the filing of the return for the tax period.

H. 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.

I. 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.

J. Indemnifications – Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of the performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements, that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote.

K. Foreign Currency Translations – Foreign currency is valued at the close of the NYSE based on quotations posted by banks and major currency dealers. Portfolio securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at the date of valuation. Purchases and sales of portfolio securities (net of foreign taxes withheld on disposition) and income items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. The Fund does not separately account for the portion of the results of operations resulting from changes in foreign exchange rates on investments and the fluctuations arising from changes in market prices of securities held. The combined results of changes in foreign exchange rates and the fluctuation of market prices on investments (net of estimated foreign tax withholding) are included with the net realized and unrealized gain or loss from investments in the Statement of Operations. Reported net realized foreign currency gains or losses arise from (1) sales of foreign currencies, (2) currency gains or losses realized between the trade and settlement dates on securities transactions, and (3) the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign currency gains and losses arise from changes in the fair values of assets and liabilities, other than investments in securities at fiscal period end, resulting from changes in exchange rates.

The Fund may invest in foreign securities, which may be subject to foreign taxes on income, gains on investments or currency repatriation, a portion of which may be recoverable. Foreign taxes, if any, are recorded based on the tax regulations and rates that exist in the foreign markets in which the Fund invests and are shown in the Statement of Operations.

L. Forward Foreign Currency Contracts – The Fund may engage in foreign currency transactions either on a spot (i.e. for prompt delivery and settlement) basis, or through forward foreign currency contracts, to manage or minimize currency or exchange rate risk.

The Fund may also enter into forward foreign currency contracts for the purchase or sale of a security denominated in a foreign currency in order to “lock in” the U.S. dollar price of that security, or the Fund may also enter into forward foreign currency contracts that do not provide for physical settlement of the two currencies, but instead are settled by a single cash payment calculated as the difference between the agreed upon exchange rate and the spot rate at settlement based upon an agreed upon notional amount (non-deliverable forwards). The Fund will set aside liquid assets in an amount equal to the daily mark-to-market obligation for forward foreign currency contracts.

A forward foreign currency contract is an obligation between two parties (“Counterparties”) to purchase or sell a specific currency for an agreed-upon price at a future date. The use of forward foreign currency contracts 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

Invesco Oppenheimer V.I. Main Street Fund^®

gains (losses) are recorded. Realized and unrealized gains (losses) on the contracts are included in the Statement of Operations. The primary risks associated with forward foreign currency contracts include failure of the Counterparty to meet the terms of the contract and the value of the foreign currency changing unfavorably. These risks may be in excess of the amounts reflected in the Statement of Assets and Liabilities.

NOTE 2–Advisory Fees and Other Fees Paid to Affiliates

The Trust has entered into a master investment advisory agreement with Invesco Advisers, Inc. (the “Adviser” or “Invesco”). Under the terms of the investment advisory agreement, the Fund accrues daily and pays monthly an advisory fee to the Adviser based on the annual rate of the Fund’s average daily net assets as follows:

Average Daily Net Assets*	Rate
Up to $200 million		0.750%
Next $200 million		0.720%
Next $200 million		0.690%
Next $200 million		0.660%
Next $200 million		0.600%
Next $4 billion		0.580%
Over $5 billion		0.560%

* The advisory fee paid by the Fund shall be reduced by any amounts paid by the Fund under the administrative services agreement with the Adviser.

For the six months ended June 30, 2020, the effective advisory fee rate incurred by the Fund was 0.66%.

Under the terms of a master sub-advisory agreement between the Adviser and each of Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Canada Ltd. and separate sub-advisory agreements with Invesco Capital Management LLC and Invesco Asset Management (India) Private Limited (collectively, the “Affiliated Sub-Advisers”) the Adviser, not the Fund, will pay 40% of the fees paid to the Adviser to any such Affiliated Sub-Adviser(s) that provide(s) discretionary investment management services to the Fund based on the percentage of assets allocated to such Affiliated Sub-Adviser(s). Invesco has also entered into a Sub-Advisory Agreement with OppenheimerFunds, Inc. to provide discretionary management services to the Funds.

The Adviser has contractually agreed, through at least May 31, 2021, 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 (the “expense limits”). In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause the total annual fund operating expenses after fee waiver and/or expense reimbursement to exceed the numbers reflected above: (1) interest; (2) taxes; (3) dividend expense on short sales; (4) extraordinary or non-routine items, including litigation expenses; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Unless Invesco continues the fee waiver agreement, it will terminate on May 31, 2021. During its term, the fee waiver agreement cannot be terminated or amended to increase the expense limits or reduce the advisory fee waiver without approval of the Board of Trustees. To the extent that the annualized expense ratio does not exceed the expense limits, the Adviser will retain its ability to be reimbursed for such fee waivers or reimbursements prior to the end of each fiscal year.

Further, the Adviser has contractually agreed, through at least June 30, 2022, 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, 2020, the Adviser waived advisory fees of $247,857.

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 fees paid to insurance companies that have agreed to provide certain administrative services to the Fund. These administrative services provided by the insurance companies may include, among other things: maintenance of master accounts with the Fund; tracking, recording and transmitting net purchase and redemption orders for Fund shares; maintaining and preserving records related to the purchase, redemption and other account activity of variable product owners; distributing copies of Fund documents such as prospectuses, proxy materials and periodic reports, to variable product owners, and responding to inquiries from variable product owners about the Fund. Pursuant to such agreement, for the six months ended June 30, 2020, Invesco was paid $81,109 for accounting and fund administrative services and was reimbursed $843,469 for fees paid to insurance companies. Invesco has entered into a sub-administration agreement whereby State Street Bank and Trust Company (“SSB”) serves as fund accountant and provides certain administrative services to the Fund. Pursuant to a custody agreement with the Trust on behalf of the Fund, SSB also serves as the Fund’s custodian.

The Trust has entered into a transfer agency and service agreement with Invesco Investment Services, Inc. (“IIS”) pursuant to which the Fund has agreed to pay IIS a fee for providing transfer agency and shareholder services to the Fund and reimburse IIS for certain expenses incurred by IIS in the course of providing such services. For the six months ended June 30, 2020, 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. The fees are accrued daily and paid monthly. 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, 2020, 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, 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

Invesco Oppenheimer V.I. Main Street Fund^®

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, 2020. The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

	Level 1		Level 2		Level 3		Total
Investments in Securities
Common Stocks & Other Equity Interests	$	1,076,830,245	$	6,994,018		$–	$	1,083,824,263
Money Market Funds		6,656,002		–		–		6,656,002
Total Investments	$	1,083,486,247	$	6,994,018		$–	$	1,090,480,265

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, 2020, the Fund engaged in securities purchases of $4,472,836 and securities sales of $45,966,645, which resulted in net realized gains of $6,127,718.

NOTE 5–Trustees’ and Officers’ Fees and Benefits

Trustees’ and Officers’ Fees and Benefits include amounts accrued by the Fund to pay remuneration to certain Trustees and Officers of the Fund. Trustees have the option to defer compensation payable by the Fund, and Trustees’ and Officers’ Fees and Benefits also include amounts accrued by the Fund to fund such deferred compensation amounts. Those Trustees who defer compensation have the option to select various Invesco Funds in which their deferral accounts shall be deemed to be invested. Finally, certain current Trustees were eligible to participate in a retirement plan that provided for benefits to be paid upon retirement to Trustees over a period of time based on the number of years of service. The Fund may have certain former Trustees who also participate in a retirement plan and receive benefits under such plan. Trustees’ and Officers’ Fees and Benefits include amounts accrued by the Fund to fund such retirement benefits. Obligations under the deferred compensation and retirement plans represent unsecured claims against the general assets of the Fund.

NOTE 6–Cash Balances

The Fund is permitted to temporarily carry a negative or overdrawn balance in its account with SSB, the custodian bank. Such balances, if any at period-end, are shown in the Statement of Assets and Liabilities under the payable caption Amount due custodian. To compensate the custodian bank for such overdrafts, the overdrawn Fund may either (1) leave funds as a compensating balance in the account so the custodian bank can be compensated by earning the additional interest; or (2) compensate by paying the custodian bank at a rate agreed upon by the custodian bank and Invesco, not to exceed the contractually agreed upon rate. The Fund may not purchase additional securities when any borrowings from banks or broker-dealers exceed 5% of the Fund’s total assets, or when any borrowings from an Invesco Fund are outstanding.

NOTE 7–Tax Information

The amount and character of income and gains to be distributed are determined in accordance with income tax regulations, which may differ from GAAP. Reclassifications are made to the Fund’s capital accounts to reflect income and gains available for distribution (or available capital loss carryforward) under income tax regulations. The tax character of distributions paid during the year and the tax components of net assets will be reported at the Fund’s fiscal year-end.

    Capital loss carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Fund to utilize. The ability to utilize capital loss carryforwards in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.

    The Fund did not have a capital loss carryforward as of December 31, 2019.

NOTE 8–Investment Transactions

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, 2020 was $261,361,928 and $382,603,210, respectively. Cost of investments, including any derivatives, on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end.

Unrealized Appreciation (Depreciation) of Investments on a Tax Basis
Aggregate unrealized appreciation of investments	$	278,256,644
Aggregate unrealized (depreciation) of investments		(38,942,385	)
Net unrealized appreciation of investments	$	239,314,259

    Cost of investments for tax purposes is $851,166,006.

NOTE 9–Share Information

	Summary of Share Activity
	Six months ended				Year ended
	June 30, 2020(a)				December 31, 2019
	Shares		Amount		Shares		Amount
Sold:
Series I		267,707	$	7,190,022		673,942	$	19,609,116
Series II		1,320,378		32,890,400		1,630,045		46,915,384

Invesco Oppenheimer V.I. Main Street Fund^®

	Summary of Share Activity
	Six months ended						Year ended
	June 30, 2020(a)						December 31, 2019
	Shares			Amount			Shares			Amount
Issued as reinvestment of dividends:
Series I		-		$	-			3,495,250		$	93,497,935
Series II		-			-			4,599,150			121,555,544
Reacquired:
Series I		(3,530,806	)		(96,921,735	)		(2,875,474	)		(83,045,138	)
Series II		(3,064,329	)		(80,498,807	)		(4,866,048	)		(139,323,865	)
Net increase (decrease) in share activity		(5,007,050	)	$	(137,340,120	)		2,656,865		$	59,208,976

^(a)  There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 52% 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 Fund 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–Coronavirus (COVID-19) Pandemic

During the first quarter of 2020, the World Health Organization declared COVID-19 to be a public health emergency. COVID-19 has led to increased short-term market volatility and may have adverse long-term effects on U.S. and world economies and markets in general. COVID-19 may adversely impact the Fund’s ability to achieve its investment objective. Because of the uncertainties on valuation, the global economy and business operations, values reflected in these financial statements may materially differ from the value received upon actual sales of those investments.

    The extent of the impact on the performance of the Fund and its investments will depend on future developments, including the duration and spread of the COVID-19 outbreak, related restrictions and advisories, and the effects on the financial markets and economy overall, all of which are highly uncertain and cannot be predicted.

NOTE 11–Significant Event

Effective on or about April 30, 2021, the name of the Fund and all references thereto will change from Invesco Oppenheimer V.I. Main Street Fund^® to Invesco V.I. Main Street Fund^®.

Invesco Oppenheimer V.I. Main Street 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, 2020 through June 30, 2020.

    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.

		ACTUAL		HYPOTHETICAL (5% annual return before expenses)		Annualized   Expense Ratio
	Beginning   Account Value   (01/01/20)	Ending   Account Value   (06/30/20)1	Expenses   Paid During   Period2	Ending   Account Value   (06/30/20)	Expenses   Paid During   Period2
Series I	$1,000.00	$944.30	$3.87	$1,020.89	$4.02	0.80%
Series II	1,000.00	943.20	5.07	1,019.64	5.27	1.05

¹  The actual ending account value is based on the actual total return of the Fund for the period January 1, 2020 through June 30, 2020, 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 182/366 to reflect the most recent fiscal half year.

Invesco Oppenheimer V.I. Main Street Fund^®

Approval of Investment Advisory and Sub-Advisory Contracts

At meetings held on June 3, 2020, the Board of Trustees (the Board or the Trustees) of AIM Variable Insurance Funds (Invesco Variable Insurance Funds) as a whole, and the independent Trustees, who comprise over 75% of the Board, voting separately, approved the continuance of the Invesco Oppenheimer V.I. Main Street Fund’s (the Fund) Master Investment Advisory Agreement with Invesco Advisers, Inc. (Invesco Advisers and the investment advisory agreement) and the Master Intergroup Sub-Advisory Contract for Mutual Funds with Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Canada Ltd. and separate sub-advisory contracts with Invesco Capital Management LLC and Invesco Asset Management (India) Private Limited and OppenheimerFunds, Inc. (collectively, the Affiliated Sub-Advisers and the sub-advisory contracts) for another year, effective July 1, 2020. After evaluating the factors discussed below, among others, the Board approved the renewal of the Fund’s investment advisory agreement and the sub-advisory contracts and determined that the compensation payable thereunder by the Fund to Invesco Advisers and by Invesco Advisers to the Affiliated Sub-Advisers is fair and reasonable.

The Board’s Evaluation Process

The Board’s Investments Committee has established Sub-Committees, which meet throughout the year to review the performance of funds advised by Invesco Advisers (the Invesco Funds). The Sub-Committees meet regularly with portfolio managers for their assigned Invesco Funds and other members of management to review detailed information about investment performance and portfolio attributes of these funds. The Board took into account evaluations and reports that it received from the Investments Committee and Sub-Committees, as well as the information provided to such committees and the Board throughout the year, in considering whether to approve each Invesco Fund’s investment advisory agreement and sub-advisory contracts.

    As part of the contract renewal process, the Board reviews and considers information provided in response to detailed requests for information submitted to management by the independent Trustees with assistance from legal counsel to the independent Trustees. The Board receives comparative investment performance and fee data regarding the Invesco Funds prepared by Invesco Advisers and Broadridge Financial Solutions, Inc. (Broadridge), an independent mutual fund data provider, as well as information on the composition of the peer groups provided by Broadridge and its methodology for determining peer groups. The Board also receives an independent written evaluation from the Senior Officer, an officer of the Invesco Funds who reports directly to the independent Trustees. 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. In addition to meetings with Invesco Advisers and fund counsel

throughout the year, the independent Trustees also discuss the continuance of the investment advisory agreement and sub-advisory contracts in separate sessions with the Senior Officer and with independent legal counsel.

    The discussion below is a summary of 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. The Trustees’ review and conclusions are based on the comprehensive consideration of all information presented to them during the course of the year and in prior years and are not the result of any single determinative factor. Moreover, one Trustee may have weighed a particular piece of information or factor differently than another Trustee. This information is current as of June 3, 2020.

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 nature, extent and quality of the advisory services provided to the Fund by Invesco Advisers under the Fund’s investment advisory agreement, and the credentials and experience of the officers and employees of Invesco Advisers who provide these services, including the Fund’s portfolio manager(s). The Board’s review included consideration of Invesco Advisers’ investment process oversight and structure, credit analysis, investment risk management and research capabilities. The Board also considered non-advisory services that Invesco Advisers and its affiliates provide to the Invesco Funds, such as various back office support functions, third party oversight, internal audit, valuation, portfolio trading and legal and compliance. The Board also received and reviewed information about Invesco Advisers’ role as administrator of the Invesco Funds’ liquidity risk management program. The Board reviewed and considered the benefits to shareholders of investing in a Fund that is part of the Invesco family of funds under the umbrella of Invesco Ltd., Invesco Advisers’ parent company, and noted Invesco Ltd.’s depth and experience in conducting an investment management business, as well as its commitment of financial and other resources to such business. The Board also reviewed and considered information regarding the benefits to the Fund resulting from Invesco Ltd.’s acquisition of OppenheimerFunds, Inc. and its subsidiaries (the Transaction) and the resources that Invesco Advisers has committed to managing the Invesco family of funds following the Transaction. The Board concluded that the nature, extent and quality of the services provided to the Fund by Invesco Advisers are appropriate and satisfactory.

    The Board reviewed the services that may be 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 the Affiliated Sub-Advisers’ expertise with respect to certain asset classes and that the Affiliated Sub-Advisers have offices and personnel

that are located in financial centers around the world. As a result, the Board noted that the Affiliated Sub-Advisers can provide research and investment analysis on the markets and economies of various countries in which the Fund may invest, make recommendations regarding securities and assist with security trades. The Board concluded that the sub-advisory contracts may 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 that may be provided by the Affiliated Sub-Advisers are appropriate and satisfactory.

B. Fund Investment Performance

The Board considered Fund investment performance as a relevant factor in considering whether to approve the investment advisory agreement. The Board did not view Fund investment 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 investment performance over multiple time periods ending December 31, 2019 to the performance of funds in the Broadridge performance universe and against the S&P 500^® Index. The Board noted that performance of Series I shares of the Fund was in the first quintile of its 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 reasonably comparable to the performance of the Index for the one year period and below the performance of the Index for the three and five year periods. The Board considered that the Fund was created in connection with the Transaction and that the Fund’s performance prior to the closing of the Transaction after the close of business on May 24, 2019 is that of its predecessor fund. The Board noted that underweight exposure to certain sectors and companies had detracted from Fund performance. The Board recognized that the performance data reflects a snapshot in time as of a particular date and that selecting a different performance period could produce different results. The Board also reviewed more recent Fund performance as well as other performance metrics and this review did not change their conclusions.

C. Advisory and Sub-Advisory Fees and Fund Expenses

The Board compared the Fund’s contractual management fee rate to the contractual management fee rates of funds in the Fund’s Broadridge expense group. The Board noted that the contractual management fee rate for Series I shares of the Fund was the same as the median contractual management fee rate of funds in its expense group. The Board noted that the term “contractual management fee” for funds in the expense group may include both advisory and certain non-portfolio management administrative services fees, but that Broadridge does not provide information on a fund by fund basis as to what is included. The Board also reviewed the methodology used by Broadridge in providing expense group information, which includes using

Invesco Oppenheimer V.I. Main Street Fund^®

each fund’s contractual management fee schedule (including any applicable breakpoints) as reported in the most recent prospectus or statement of additional information for each fund in the expense group. The Board also considered comparative information regarding the Fund’s total expense ratio and its various components.

    The Board noted that Invesco Advisers has contractually agreed to waive fees and/or limit expenses of the Fund for the term disclosed in the Fund’s registration statement 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 fees charged by Invesco Advisers and the Affiliated Sub-Advisers to other similarly managed client accounts. Invesco Advisers reviewed with the Board differences in the scope of services it provides to the Invesco Funds relative to certain other types of client accounts, including, among others: management of cash flows as a result of redemptions and purchases; necessary infrastructure such as officers, office space, technology, legal and distribution; oversight of service providers; costs and business risks associated with launching new funds and sponsoring and maintaining the product line; and compliance with federal and state laws and regulations.

    The Board also compared the Fund’s effective advisory fee rate (the advisory fee rate after advisory fee waivers and before other expense limitations/ waivers) to the effective advisory fee rates of other similarly managed third-party mutual funds advised or sub-advised by Invesco Advisers and its affiliates, based on asset balances as of December 31, 2019.

    The Board also considered the services that may be provided by the Affiliated Sub-Advisers pursuant to the sub-advisory contracts, as well as the fees payable by Invesco Advisers to the Affiliated Sub-Advisers pursuant to the sub-advisory contracts.

D. Economies of Scale and Breakpoints

The Board considered the extent to which there may be economies of scale in the provision of advisory services to the Fund. The Board also considered that the Fund benefits from economies of scale through contractual breakpoints in the Fund’s advisory fee schedule, which generally operate to reduce the Fund’s expense ratio as it grows in size. The Board 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. The Board noted that the Fund may also benefit from economies of scale through initial fee setting, fee waivers and expense reimbursements. The Board also considered Invesco’s reinvestment in its business, including investments in business infrastructure, technology and cybersecurity.

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 Invesco Funds and the profitability of Invesco Advisers and its affiliates in providing these services in the aggregate and on an individual Fund-by-Fund basis. The Board considered the methodology used for calculating profitability and noted the periodic review and enhancement of such methodology. The Board noted that Invesco Advisers continues to operate at a net profit from services Invesco Advisers and its affiliates provide to the Invesco Funds in the aggregate and to certain Funds

on an individual fund level. The Board did not deem the level of profits realized by Invesco Advisers and its affiliates from providing such services to be excessive given the nature, extent and quality of the services provided. The Board received information from Invesco Advisers demonstrating that Invesco Advisers and the Affiliated Sub-Advisers are financially sound and have the resources necessary to perform their obligations under the investment advisory agreement and sub-advisory contracts.

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 providing administrative, transfer agency and distribution services to the Fund. The Board considered comparative information regarding fees charged for these services, including information provided by Broadridge and other independent sources. 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; and that the services are required for the operation of the Fund.

    The Board considered the benefits realized by Invesco Advisers and the Affiliated Sub-Advisers as a result of portfolio brokerage transactions executed through “soft dollar” arrangements. The Board noted that soft dollar arrangements may result in the Fund bearing costs to purchase research that may be used by Invesco Advisers or the Affiliated Sub-Advisers with other clients and may reduce Invesco Advisers’ or the Affiliated Sub-Advisers’ expenses. The Board also considered that it receives periodic reports from Invesco representing that these arrangements are consistent with regulatory requirements. The Board did not deem the soft dollar arrangements to be inappropriate.

    The Board considered that the Fund’s uninvested cash and cash collateral from any securities lending arrangements may be invested in registered money market funds or, with regard to securities lending cash collateral, unregistered funds that comply with Rule 2a-7 (collectively referred to as “affiliated money market funds”) advised by Invesco Advisers pursuant to procedures approved by the Board. The Board considered information regarding the returns of the affiliated money market funds relative to comparable overnight investments, as well as the costs to the Fund of such investments. 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 with respect to certain investments in the affiliated money market 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 amount of advisory fees received by Invesco Advisers from the Fund’s investment of cash collateral from any securities lending arrangements in the affiliated money market funds is fair and reasonable.

    The Board also considered that an affiliated broker may receive commissions for executing certain trades for the Fund. Invesco Advisers and the Affiliated Sub-Advisers may use the affiliated broker to, among other things, control order routing and minimize information leakage, and the Board was advised that such trades are executed in compliance with rules under the federal securities laws and consistent with best execution obligations.

Invesco Oppenheimer V.I. Main Street Fund^®

	Semiannual Report to Shareholders	June 30, 2020
	Invesco Oppenheimer V.I. Main Street Small
	Cap Fund®

Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, the insurance company that offers your variable annuity or variable life insurance contract may no longer send you paper copies of the Fund’s shareholder reports by mail, unless you specifically request paper copies of the reports from the insurance company or your financial intermediary. Instead of delivering paper copies of the report, the insurance company may choose to make the reports available on a website, and will notify you by mail each time a report is posted and provide you with a website link to access the report. Instructions for requesting paper copies will be provided by your insurance company.

    If the insurance company offers electronic delivery, you may elect to receive shareholder reports and other communications about the Fund electronically by following the instructions provided by the insurance company or by contacting your financial intermediary. If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action.

    You may elect to receive all future reports in paper free of charge from the insurance company. You can inform the insurance company or your financial intermediary that you wish to continue receiving paper copies of your shareholder reports by following the instructions provided by the insurance company or by contacting your financial intermediary. Your election to receive reports in paper will apply to all portfolio companies available under your contract with the insurance company.

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) as an exhibit to its reports on Form N-PORT. The Fund’s Form N-PORT filings are available on the SEC website, 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-PORT, 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 most recent 12-month period ended June 30 is available at invesco.com/proxysearch. The information is also available on the SEC website, sec.gov.

    Invesco Advisers, Inc. is an investment adviser; it provides investment advisory services to individual and institutional clients and does not sell securities. Invesco Distributors, Inc. is the US distributor for Invesco Ltd.’s retail mutual funds, exchange-traded funds and institutional money market funds. Both are wholly owned, indirect subsidiaries of Invesco Ltd.

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.

NOT FDIC INSURED  |  MAY LOSE VALUE  |  NO BANK GUARANTEE

Invesco Distributors, Inc. O-VIMSS-SAR-1                                

Fund Performance

Performance summary
Fund vs. Indexes
Cumulative total returns, 12/31/19 to 6/30/20, excluding variable product issuer charges. If variable product issuer charges were included, returns would be lower.
Series I Shares	-11.36	%
Series II Shares	-11.45
Russell 2000 Indexq	-12.98
Source(s): qRIMES Technologies Corp.
The Russell 2000® Index is an unmanaged index considered representative of small-cap stocks. The Russell 2000 Index is a trademark/service mark of the Frank Russell Co. Russell® is a trademark of the Frank Russell Co.
The Fund is not managed to track the performance of any particular index, including the index(es) described here, and consequently, the performance of the Fund may deviate significantly from the performance of the index(es).
A direct investment cannot be made in an index. Unless otherwise indicated, index results include reinvested dividends, and they do not reflect sales charges. Performance of the peer group, if applicable, reflects fund expenses; performance of a market index does not.

Average Annual Total Returns
As of 6/30/20
Series I Shares
Inception (5/1/98)	7.60	%
10 Years	11.25
5 Years	4.26
1 Year	-3.23
Series II Shares
Inception (7/16/01)	8.16	%
10 Years	10.97
5 Years	4.00
1 Year	-3.43

Effective May 24, 2019, Non-Service and Service shares of the Oppenheimer Main Street Small Cap Fund/VA, (the predecessor fund) were reorganized into Series I and Series II shares, respectively, of Invesco Oppenheimer V.I. Main Street Small Cap Fund^®. Returns shown above, prior to May 24, 2019, for Series I and Series II shares are those of the Non-Service shares and Service shares of the predecessor fund. Share class returns will differ from the predecessor fund because of different expenses.

    The performance data quoted represent past performance and cannot guarantee future results; current performance may be lower or higher. Please 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. Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares. Investment return and principal value will fluctuate so that you may have a gain or loss when you sell shares.

    Invesco Oppenheimer V.I. Main Street Small Cap 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 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.

    Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information.

Invesco Oppenheimer V.I. Main Street Small Cap Fund®

Liquidity Risk Management Program

The Securities and Exchange Commission has adopted Rule 22e-4 under the Investment Company Act of 1940 (the “Liquidity Rule”) in order to promote effective liquidity risk management throughout the open-end investment company industry, thereby reducing the risk that funds will be unable to meet their redemption obligations and mitigating dilution of the interests of fund shareholders. The Fund has adopted and implemented a liquidity risk management program in accordance with the Liquidity Rule (the “Program”). The Program is reasonably designed to assess and manage the Fund’s liquidity risk, which is the risk that the Fund could not meet redemption requests without significant dilution of remaining investors’ interests in the Fund. The Board of Trustees of the Fund (the “Board”) has appointed Invesco Advisers, Inc. (“Invesco”), the Fund’s investment adviser, as the Program’s administrator, and Invesco has delegated oversight of the Program to the Liquidity Risk Management Committee (the “Committee”), which is composed of senior representatives from relevant business groups at Invesco.

As required by the Liquidity Rule, the Program includes policies and procedures providing for an assessment, no less frequently than annually, of the Fund’s liquidity risk that takes into account, as relevant to the Fund’s liquidity risk: (1) the Fund’s investment strategy and liquidity of portfolio investments during both normal and reasonably foreseeable stressed conditions; (2) short-term and long-term cash flow projections for the Fund during both normal and reasonably foreseeable stressed conditions; and (3) the Fund’s holdings of cash and cash equivalents and any borrowing arrangements. The Liquidity Rule also requires the classification of the Fund’s investments into categories that reflect the assessment of their relative liquidity under current market conditions. The Fund classifies its investments into one of four categories defined in the Liquidity Rule: “Highly Liquid,” “Moderately Liquid,” “Less Liquid” and “Illiquid.” Funds that are not invested primarily in “Highly Liquid Investments” that are assets (cash or investments that are reasonably expected to be convertible into cash within three business days without significantly changing the market value of the investment) are required to establish a “Highly Liquid Investment Minimum” (“HLIM”), which is the minimum percentage of net assets that must be invested in Highly Liquid Investments. Funds with HLIMs have procedures for addressing HLIM shortfalls, including reporting to the Board and the SEC (on a non-public basis) as required by the Program and the Liquidity Rule. In addition, the Fund may not acquire an investment if, immediately after the acquisition, over 15% of the Fund’s net assets would consist of “Illiquid Investments” that are assets (an investment that cannot reasonably be expected to be sold or disposed of in current market conditions in seven calendar days or less without the sale or disposition significantly changing the market value of the investment). The Liquidity Rule and the Program also require reporting to the Board and the SEC (on a non-public basis) if a Fund’s holdings of Illiquid Investments exceed 15% of the Fund’s assets.

At a meeting held on March 30-April 1, 2020, the Committee presented a report to the Board that addressed the operation of the Program and assessed the Program’s adequacy and effectiveness of implementation (the “Report”). The Report covered the period from December 1, 2018 through December 31, 2019 (the “Program Reporting Period”).

The Report stated, in relevant part, that during the Program Reporting Period:

∎ The Program, as adopted and implemented, remained reasonably designed to assess and manage the Fund’s liquidity risk and was operated effectively to achieve that goal;

∎ The Fund’s investment strategy remained appropriate for an open-end fund;

∎ The Fund was able to meet requests for redemption without significant dilution of remaining investors’ interests in the Fund;

∎ The Fund did not breach the 15% limit on Illiquid Investments; and

∎ The Fund primarily held Highly Liquid Investments and therefore has not adopted an HLIM.

Invesco Oppenheimer V.I. Main Street Small Cap Fund®

Schedule of Investments^(a)

June 30, 2020

(Unaudited)

	Shares		Value
Common Stocks & Other Equity Interests–99.23%
Air Freight & Logistics–0.59%
Hub Group, Inc., Class A(b)		76,888	$	3,679,860
Aluminum–1.03%
Kaiser Aluminum Corp.		87,172		6,417,603
Application Software–6.48%
Bottomline Technologies (DE), Inc.(b)		211,644		10,745,166
Envestnet, Inc.(b)		64,796		4,765,098
j2 Global, Inc.(b)		142,673		9,018,360
Paylocity Holding Corp.(b)		49,301		7,192,523
Q2 Holdings, Inc.(b)		99,534		8,539,022
				40,260,169
Asset Management & Custody Banks–1.40%
Federated Hermes, Inc., Class B		128,899		3,054,906
Focus Financial Partners, Inc., Class A(b)		170,844		5,646,394
				8,701,300
Auto Parts & Equipment–2.71%
Dorman Products, Inc.(b)		108,131		7,252,346
Visteon Corp.(b)		139,589		9,561,847
				16,814,193
Automotive Retail–2.77%
AutoNation, Inc.(b)		236,880		8,901,950
Monro, Inc.		151,467		8,321,597
				17,223,547
Biotechnology–3.65%
Emergent BioSolutions, Inc.(b)		150,571		11,907,155
G1 Therapeutics, Inc.(b)		82,216		1,994,560
Twist Bioscience Corp.(b)		80,737		3,657,386
uniQure N.V. (Netherlands)(b)		63,894		2,879,064
Zai Lab Ltd., ADR (China)(b)		27,093		2,225,148
				22,663,313
Building Products–1.20%
Masonite International Corp.(b)		95,546		7,431,568
Construction & Engineering–0.95%
Comfort Systems USA, Inc.		69,083		2,815,132
Valmont Industries, Inc.		27,263		3,097,622
				5,912,754
Construction Materials–1.21%
Summit Materials, Inc., Class A(b)		465,111		7,478,985
Diversified Banks–1.00%
Bank of NT Butterfield & Son Ltd. (The) (Bermuda)		254,911		6,217,279
Diversified Metals & Mining–1.05%
Compass Minerals International, Inc.		133,420		6,504,225
Electrical Components & Equipment–2.80%
Atkore International Group, Inc.(b)		199,400		5,453,590
EnerSys		80,852		5,205,252

	Shares		Value
Electrical Components & Equipment–(continued)
Generac Holdings, Inc.(b)		54,947	$	6,699,687
				17,358,529
Environmental & Facilities Services–0.45%
US Ecology, Inc.(b)		82,580		2,797,810
Gas Utilities–3.43%
National Fuel Gas Co.		112,532		4,718,467
South Jersey Industries, Inc.		356,543		8,910,009
Suburban Propane Partners L.P.		538,033		7,693,872
				21,322,348
General Merchandise Stores–0.66%
Ollie’s Bargain Outlet Holdings, Inc.(b)		42,235		4,124,248
Health Care Equipment–3.42%
AtriCure, Inc.(b)		140,463		6,313,812
CryoPort, Inc.(b)		142,248		4,303,002
Tandem Diabetes Care, Inc.(b)		107,037		10,588,100
				21,204,914
Health Care Facilities–0.51%
Tenet Healthcare Corp.(b)		176,315		3,193,065
Health Care Services–4.72%
1Life Healthcare, Inc.(b)		85,992		3,123,229
Addus HomeCare Corp.(b)		96,269		8,910,659
LHC Group, Inc.(b)		99,212		17,294,636
				29,328,524
Health Care Supplies–1.83%
OraSure Technologies, Inc.(b)		181,555		2,111,484
Quidel Corp.(b)		41,243		9,227,709
				11,339,193
Health Care Technology–1.51%
Inspire Medical Systems, Inc.(b)		107,937		9,392,678
Homebuilding–1.04%
TopBuild Corp.(b)		56,673		6,447,687
Hotel & Resort REITs–1.01%
DiamondRock Hospitality Co.(b)		1,131,951		6,259,689
Household Products–1.23%
Energizer Holdings, Inc.		161,271		7,658,760
Human Resource & Employment Services–3.58%
ASGN, Inc.(b)		191,109		12,743,148
Korn Ferry		307,959		9,463,580
				22,206,728
Hypermarkets & Super Centers–2.12%
BJ’s Wholesale Club Holdings, Inc.(b)		353,442		13,172,783
Industrial Machinery–4.43%
Chart Industries, Inc.(b)		88,700		4,301,063
EnPro Industries, Inc.		101,204		4,988,345
Evoqua Water Technologies Corp.(b)		313,753		5,835,806

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco Oppenheimer V.I. Main Street Small Cap Fund®

	Shares		Value
Industrial Machinery–(continued)
Mayville Engineering Co., Inc.(b)		211,875	$	1,673,813
Rexnord Corp.		367,721		10,719,067
				27,518,094
Insurance Brokers–0.44%
Selectquote, Inc.(b)		108,460		2,747,292
Interactive Home Entertainment–2.07%
Zynga, Inc., Class A(b)		1,344,150		12,823,191
Investment Banking & Brokerage–1.08%
Stifel Financial Corp.		140,803		6,678,286
IT Consulting & Other Services–4.17%
CACI International, Inc., Class A(b)		38,974		8,452,681
KBR, Inc.		411,201		9,272,583
Perspecta, Inc.		351,779		8,171,826
				25,897,090
Leisure Facilities–0.30%
Cedar Fair L.P.(b)		68,292		1,878,030
Life Sciences Tools & Services–2.50%
Adaptive Biotechnologies Corp.(b)		85,797		4,150,859
NeoGenomics, Inc.(b)		151,437		4,691,518
Repligen Corp.(b)		54,024		6,677,907
				15,520,284
Multi-Utilities–0.97%
Avista Corp.		165,352		6,017,159
Office REITs–1.18%
Brandywine Realty Trust		671,652		7,314,290
Office Services & Supplies–1.46%
ACCO Brands Corp.		1,279,268		9,082,803
Oil & Gas Refining & Marketing–1.32%
Renewable Energy Group, Inc.(b)		331,173		8,206,467
Oil & Gas Storage & Transportation–0.47%
Noble Midstream Partners L.P.		341,399		2,888,236
Packaged Foods & Meats–0.83%
Simply Good Foods Co. (The)(b)		276,606		5,139,339
Paper Products–0.61%
Schweitzer-Mauduit International, Inc., Class A		112,565		3,760,797
Personal Products–0.88%
BellRing Brands, Inc., Class A(b)		273,614		5,455,863
Pharmaceuticals–1.28%
Axsome Therapeutics, Inc.(b)		31,690		2,607,453
Collegium Pharmaceutical, Inc.(b)		175,080		3,063,900
Intersect ENT, Inc.(b)		169,029		2,288,653
				7,960,006

Investment Abbreviations:

ADR – American Depositary Receipt

REIT – Real Estate Investment Trust

	Shares		Value
Property & Casualty Insurance–0.37%
ProSight Global, Inc.(b)		257,375	$	2,290,638
Regional Banks–7.36%
BankUnited, Inc.		263,487		5,335,612
Berkshire Hills Bancorp, Inc.		232,002		2,556,662
Cathay General Bancorp		159,286		4,189,222
CIT Group, Inc.		186,422		3,864,528
Heritage Financial Corp.		273,322		5,466,440
IBERIABANK Corp.		134,932		6,144,803
OceanFirst Financial Corp.		274,841		4,845,447
Pacific Premier Bancorp, Inc.		277,751		6,021,642
Signature Bank		28,641		3,062,296
Sterling Bancorp		360,277		4,222,446
				45,709,098
Restaurants–3.96%
Jack in the Box, Inc.(b)		107,614		7,973,121
Texas Roadhouse, Inc.(b)		165,566		8,703,805
Wendy’s Co. (The)		362,384		7,892,723
				24,569,649
Semiconductor Equipment–4.05%
Brooks Automation, Inc.		254,870		11,275,449
MKS Instruments, Inc.		122,601		13,883,337
				25,158,786
Semiconductors–1.67%
Semtech Corp.(b)		198,160		10,347,915
Specialized REITs–3.76%
EPR Properties(b)		216,516		7,173,175
Four Corners Property Trust, Inc.		428,488		10,455,107
National Storage Affiliates Trust		199,374		5,714,059
				23,342,341
Thrifts & Mortgage Finance–1.72%
WSFS Financial Corp.		372,561		10,692,501
Total Common Stocks & Other Equity Interests
(Cost $539,794,206)				616,109,907
Money Market Funds–0.59%
Invesco Government & Agency Portfolio, Institutional Class, 0.09%(c)(d)		1,275,583		1,275,583
Invesco Liquid Assets Portfolio, Institutional Class, 0.39%(c)(d)		910,456		911,094
Invesco Treasury Portfolio, Institutional Class, 0.08%(c)(d)		1,457,809		1,457,809
Total Money Market Funds (Cost $3,644,486)				3,644,486
TOTAL INVESTMENTS IN SECURITIES–99.82% (Cost $543,438,692)				619,754,393
OTHER ASSETS LESS LIABILITIES–0.18%				1,147,602
NET ASSETS–100.00%			$	620,901,995

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco Oppenheimer V.I. Main Street Small Cap 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)  Affiliated issuer. The issuer and/or the Fund is a wholly-owned subsidiary of Invesco Ltd., or is affiliated by having an investment adviser that is under common control of Invesco Ltd. The table below shows the Fund’s transactions in, and earnings from, its investments in affiliates for the six months ended June 30, 2020.

	Value December 31, 2019			Purchases at Cost			Proceeds from Sales				Change in Unrealized Appreciation			Realized Gain (Loss)				Value June 30, 2020			Dividend Income
Investments in Affiliated Money Market Funds:
Invesco Government & Agency Portfolio, Institutional Class		$	1,914,336		$	90,505,941		$	(91,144,694	)		$	-		$	-			$	1,275,583		$	19,034
Invesco Liquid Assets Portfolio, Institutional Class			-			6,822,650			(5,911,108	)			-			(448	)			911,094			303
Invesco Treasury Portfolio, Institutional Class			-			10,916,239			(9,458,430	)			-			-				1,457,809			93
Total		$	1,914,336		$	108,244,830		$	(106,514,232	)		$	-		$	(448	)		$	3,644,486		$	19,430

^(d)  The rate shown is the 7-day SEC standardized yield as of June 30, 2020.

Portfolio Composition

By sector, based on Net Assets

as of June 30, 2020

Health Care	19.42	%
Information Technology	16.37
Industrials	15.46
Financials	13.37
Consumer Discretionary	11.45
Real Estate	5.95
Consumer Staples	5.06
Utilities	4.40
Materials	3.89
Communication Services	2.07
Energy	1.79
Money Market Funds Plus Other Assets Less Liabilities	0.77

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco Oppenheimer V.I. Main Street Small Cap Fund®

Statement of Assets and Liabilities

June 30, 2020

(Unaudited)

Assets:
Investments in securities, at value (Cost $539,794,206)	$	616,109,907
Investments in affiliated money market funds, at value (Cost $3,644,486)		3,644,486
Cash		1,000,000
Receivable for:
Investments sold		1,119,358
Fund shares sold		164,244
Dividends		422,002
Investment for trustee deferred compensation and retirement plans		71,301
Total assets		622,531,298
Liabilities:
Payable for:
Fund shares reacquired		899,167
Accrued fees to affiliates		405,725
Accrued trustees’ and officers’ fees and         benefits		4,891
Accrued other operating expenses		248,219
Trustee deferred compensation and retirement plans		71,301
Total liabilities		1,629,303
Net assets applicable to shares outstanding	$	620,901,995
Net assets consist of:
Shares of beneficial interest	$	536,460,069
Distributable earnings		84,441,926
	$	620,901,995
Net Assets:
Series I	$	89,861,763
Series II	$	531,040,232
Shares outstanding, no par value, with an unlimited number of shares authorized:
Series I		4,346,747
Series II		26,198,622
Series I:
Net asset value per share	$	20.67
Series II:
Net asset value per share	$	20.27

Statement of Operations

For the six months ended June 30, 2020

(Unaudited)

Investment income:
Dividends	$	4,392,405
Dividends from affiliated money market funds		19,430
Total investment income		4,411,835
Expenses:
Advisory fees		2,123,685
Administrative services fees		493,740
Custodian fees		2,573
Distribution fees - Series II		641,487
Transfer agent fees		21,103
Trustees’ and officers’ fees and benefits		11,508
Reports to shareholders		71,198
Professional services fees		19,932
Other		7,704
Total expenses		3,392,930
Less: Fees waived and/or expenses reimbursed		(345,904	)
Net expenses		3,047,026
Net investment income		1,364,809
Realized and unrealized gain (loss) from:
Net realized gain from investment securities (includes net gains from securities sold to affiliates of $2,084,886)		3,569
Change in net unrealized appreciation (depreciation) of investment securities		(75,836,751	)
Net realized and unrealized gain (loss)		(75,833,182	)
Net increase (decrease) in net assets resulting from operations	$	(74,468,373	)

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco Oppenheimer V.I. Main Street Small Cap Fund®

Statement of Changes in Net Assets

For the six months ended June 30, 2020 and the year ended December 31, 2019

(Unaudited)

	June 30,			December 31,
	2020			2019
Operations:
Net investment income	$	1,364,809		$	2,495,743
Net realized gain		3,569			69,732,405
Change in net unrealized appreciation (depreciation)		(75,836,751	)		122,277,503
Net increase (decrease) in net assets resulting from operations		(74,468,373	)		194,505,651
Distributions to shareholders from distributable earnings:
Series I		–			(10,160,591	)
Series II		–			(77,152,079	)
Total distributions from distributable earnings		–			(87,312,670	)
Share transactions–net:
Series I		(7,839,950	)		(31,945,204	)
Series II		(11,812,118	)		(220,156,704	)
Net increase (decrease) in net assets resulting from share transactions		(19,652,068	)		(252,101,908	)
Net increase (decrease) in net assets		(94,120,441	)		(144,908,927	)
Net assets:
Beginning of period		715,022,436			859,931,363
End of period	$	620,901,995		$	715,022,436

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco Oppenheimer V.I. Main Street Small Cap Fund®

Financial Highlights

(Unaudited)

The following schedule presents financial highlights for a share of the Fund outstanding throughout the periods indicated.

	Net asset value, beginning of period			Net investment income(a)			Net gains (losses) on securities (both realized and unrealized)				Total from investment operations				Dividends from net investment income				Distributions from net realized gains				Total distributions				Net asset value, end of period			Total return (b)			Net assets, end of period (000’s omitted)			Ratio of expenses to average net assets with fee waivers and/or expenses absorbed			Ratio of expenses to average net assets without fee waivers and/or expenses absorbed(c)			Ratio of net investment income to average net assets			Portfolio turnover (d)
Series I
Six months ended 06/30/20		$	23.32		$	0.07		$	(2.72	)		$	(2.65	)		$	–			$	–			$	–			$	20.67		(11.36	)%		$	89,862		0.80	%(e)		0.91	%(e)		0.67	%(e)		21	%
Year ended 12/31/19			20.36			0.11			5.06				5.17				(0.05	)			(2.16	)			(2.21	)			23.32		26.47				109,695		0.80			0.86			0.49			36
Year ended 12/31/18			25.79			0.07			(2.07	)			(2.00	)			(0.08	)			(3.35	)			(3.43	)			20.36		(10.32	)			123,962		0.80			0.83			0.28			45
Year ended 12/31/17			24.08			0.07			3.22				3.29				(0.22	)			(1.36	)			(1.58	)			25.79		14.15				152,617		0.80			0.80			0.28			42
Year ended 12/31/16			21.32			0.16			3.55				3.71				(0.11	)			(0.84	)			(0.95	)			24.08		18.05				145,428		0.80			0.81			0.74			65
Year ended 12/31/15			26.56			0.12			(1.28	)			(1.16	)			(0.23	)			(3.85	)			(4.08	)			21.32		(5.90	)			129,104		0.80			0.80			0.49			43
Series II
Six months ended 06/30/20			22.89			0.04			(2.66	)			(2.62	)			–				–				–				20.27		(11.45	)			531,040		1.05	(e)		1.16	(e)		0.42	(e)		21
Year ended 12/31/19			20.03			0.05			4.97				5.02				0.00				(2.16	)			(2.16	)			22.89		26.13				605,327		1.05			1.11			0.25			36
Year ended 12/31/18			25.42			0.01			(2.03	)			(2.02	)			(0.02	)			(3.35	)			(3.37	)			20.03		(10.54	)			735,969		1.05			1.08			0.03			45
Year ended 12/31/17			23.75			0.01			3.18				3.19				(0.16	)			(1.36	)			(1.52	)			25.42		13.91				935,793		1.05			1.05			0.03			42
Year ended 12/31/16			21.05			0.10			3.49				3.59				(0.05	)			(0.84	)			(0.89	)			23.75		17.67				922,037		1.05			1.06			0.49			65
Year ended 12/31/15			26.26			0.06			(1.25	)			(1.19	)			(0.17	)			(3.85	)			(4.02	)			21.05		(6.09	)			856,719		1.05			1.05			0.24			43

^(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)  Does not include indirect expenses from affiliated fund fees and expenses of 0.00% for the years ended December 31, 2019, 2018, 2017, 2016 and 2015, respectively.

^(d)  Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable.

^(e)  Ratios are annualized and based on average daily net assets (000’s omitted) of $89,578 and $516,009 for Series I and Series II shares, respectively.

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco Oppenheimer V.I. Main Street Small Cap Fund®

Notes to Financial Statements

June 30, 2020

(Unaudited)

NOTE 1—Significant Accounting Policies

Invesco Oppenheimer V.I. Main Street Small Cap 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. Information presented in these financial statements pertains only to the Fund. Matters affecting the Fund or each class will be voted on exclusively by the shareholders of the Fund or each class. 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 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 Fund is an investment company and accordingly follows the investment company accounting and reporting guidance in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 946, Financial Services – Investment Companies.

The following is a summary of the significant accounting policies followed by the Fund in the preparation of its financial statements.

A. Security Valuations – Securities, including restricted securities, are valued according to the following policy.

A security listed or traded on an exchange (except convertible securities) is valued at its last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded, or lacking any sales or official closing price on a particular day, the security may be valued at the closing bid price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued by an independent pricing service they may be considered fair valued. Futures contracts are valued at the final settlement price set by an exchange on which they are principally traded. Listed options are valued at the mean between the last bid and asked 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 asked prices. For purposes of determining net asset value (“NAV”) per share, futures and option contracts generally are valued 15 minutes after the close of the customary trading session of the New York Stock Exchange (“NYSE”).

Investments in open-end and closed-end registered investment companies that do not trade on an exchange are valued at the end-of-day net asset value per share. Investments in open-end and closed-end registered investment companies that trade on an exchange are valued at the last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded.

Debt obligations (including convertible securities) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. Pricing services generally value debt obligations assuming orderly transactions of institutional round lot size, but a fund may hold or transact in the same securities in smaller, odd lot sizes. Odd lots often trade at lower prices than institutional round lots. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.

Foreign securities’ (including foreign exchange contracts) prices are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the NYSE. If market quotations are available and reliable for foreign exchange-traded equity securities, the securities will be valued at the market quotations. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become unreliable. If between the time trading ends on a particular security and the close of the customary trading session on the NYSE, events occur that the investment adviser determines are significant and make the closing price unreliable, the Fund may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith using procedures approved by the Board of Trustees. Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities’ prices meeting the approved degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economic upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.

Securities for which market prices are not provided by any of the above methods may be valued based upon quotes furnished by independent sources. The last bid price may be used to value equity securities. The mean between the last bid and asked prices is used to value debt obligations, including corporate loans.

Securities for which market quotations are not readily available or became unreliable are valued at fair value as determined in good faith by or under the supervision of the Trust’s officers following procedures approved by the Board of Trustees. Issuer specific events, market trends, bid/asked quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security’s fair value.

The Fund may invest in securities that are subject to interest rate risk, meaning the risk that the prices will generally fall as interest rates rise and, conversely, the prices will generally rise as interest rates fall. Specific securities differ in their sensitivity to changes in interest rates depending on their individual characteristics. Changes in interest rates may result in increased market volatility, which may affect the value and/or liquidity of certain Fund investments.

Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the issuer’s assets, general market conditions which are not specifically related to the particular issuer, such as real or perceived adverse economic conditions, changes in the general outlook for revenues or corporate earnings, changes in interest or currency rates, regional or global instability, natural or environmental disasters, widespread disease or other public health issues, war, acts of terrorism or adverse investor sentiment generally and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

B. Securities Transactions and Investment Income – Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income (net of withholding tax, if any) is recorded on an accrual basis from settlement date. 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

Invesco Oppenheimer V.I. Main Street Small Cap Fund®

share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and the Statement of Changes in Net Assets, or the net investment income per share and the ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.

The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class.

The Fund recharacterizes distributions received from REIT investments based on information provided by the REIT into the following categories: ordinary income, long-term and short-term capital gains, and return of capital. If information is not available on a timely basis from the REIT, the recharacterization will be based on available information which may include the previous year’s allocation. If new or additional information becomes available from the REIT at a later date, a recharacterization will be made in the following year. The Fund records as dividend income the amount recharacterized as ordinary income and as realized gain the amount recharacterized as capital gain in the Statement of Operations, and the amount recharacterized as return of capital as a reduction of the cost of the related investment. These recharacterizations are reflected in the accompanying financial statements.

C. Country Determination – For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues 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 net investment income and net realized capital gain, if any, are generally declared and paid to separate accounts of participating insurance companies annually and recorded on the ex-dividend date.

E. Federal Income Taxes – The Fund intends to comply with the requirements of Subchapter M of the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”), necessary to qualify as a regulated investment company and to distribute substantially all of the Fund’s taxable earnings to shareholders. As such, the Fund will not be subject to federal income taxes on otherwise taxable income (including net realized capital gain) that is distributed to shareholders. Therefore, no provision for federal income taxes is recorded in the financial statements.

The Fund recognizes the tax benefits of uncertain tax positions only when the position is more likely than not to be sustained. Management has analyzed the Fund’s uncertain tax positions and concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions. Management is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the next 12 months.

The Fund files tax returns in the U.S. Federal jurisdiction and certain other jurisdictions. Generally, the Fund is subject to examinations by such taxing authorities for up to three years after the filing of the return for the tax period.

F. Expenses – Fees provided for under the Rule 12b-1 plan of a particular class of the Fund and which are directly attributable to that class are charged to the operations of such class. All other expenses are allocated among the classes based on relative net assets.

G. Accounting Estimates – The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print.

H. Indemnifications – Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of the performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements, that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote.

NOTE 2—Advisory Fees and Other Fees Paid to Affiliates

The Trust has entered into a master investment advisory agreement with Invesco Advisers, Inc. (the “Adviser” or “Invesco”). Under the terms of the investment advisory agreement, the Fund accrues daily and pays monthly an advisory fee to the Adviser based on the annual rate of the Fund’s average daily net assets as follows:

Average Daily Net Assets*	Rate
Up to $ 200 million		0.750%
Next $ 200 million		0.720%
Next $ 200 million		0.690%
Next $ 200 million		0.660%
Next $ 200 million		0.600%
Next $ 4 billion		0.580%
Over $5 billion		0.560%

* The advisory fee payable by the Fund shall be reduced by any amounts paid by the Fund under the administrative services agreement with Invesco.

For the six months ended June 30, 2020, the effective advisory fee rate incurred by the Fund was 0.71%.

Under the terms of a master sub-advisory agreement between the Adviser and each of Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Canada Ltd. and separate sub-advisory agreements with Invesco Capital Management LLC and Invesco Asset Management (India) Private Limited (collectively, the “Affiliated Sub-Advisers”) the Adviser, not the Fund, will pay 40% of the fees paid to the Adviser to any such Affiliated Sub-Adviser(s) that provide(s) discretionary investment management services to the Fund based on the percentage of assets allocated to such Affiliated Sub-Adviser(s). Invesco has also entered into a Sub-Advisory Agreement with OppenheimerFunds, Inc. to provide discretionary management services to the Funds.

The Adviser has contractually agreed, through at least May 31, 2021, 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 (the “expense limits”). In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause the total annual fund operating expenses after fee waiver and/or expense reimbursement to exceed the numbers reflected above: (1) interest; (2) taxes; (3) dividend expense on short sales; (4) extraordinary or non-routine items, including litigation expenses; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Unless Invesco continues the fee waiver agreement, it will

Invesco Oppenheimer V.I. Main Street Small Cap Fund®

terminate on May 31, 2021. During its term, the fee waiver agreement cannot be terminated or amended to increase the expense limits or reduce the advisory fee waiver without approval of the Board of Trustees. To the extent that the annualized expense ratio does not exceed the expense limits, the Adviser will retain its ability to be reimbursed for such fee waivers or reimbursements prior to the end of each fiscal year.

Further, the Adviser has contractually agreed, through at least June 30, 2022, 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, 2020, the Adviser waived advisory fees of $345,904.

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 fees paid to insurance companies that have agreed to provide certain administrative services to the Fund. These administrative services provided by the insurance companies may include, among other things: maintenance of master accounts with the Fund; tracking, recording and transmitting net purchase and redemption orders for Fund shares; maintaining and preserving records related to the purchase, redemption and other account activity of variable product owners; distributing copies of Fund documents such as prospectuses, proxy materials and periodic reports, to variable product owners, and responding to inquiries from variable product owners about the Fund. Pursuant to such agreement, for the six months ended June 30, 2020, Invesco was paid $42,848 for accounting and fund administrative services and was reimbursed $408,044 for fees paid to insurance companies. Invesco has entered into a sub-administration agreement whereby State Street Bank and Trust Company (“SSB”) serves as fund accountant and provides certain administrative services to the Fund. Pursuant to a custody agreement with the Trust on behalf of the Fund, SSB also serves as the Fund’s custodian.

The Trust has entered into a transfer agency and service agreement with Invesco Investment Services, Inc. (“IIS”) pursuant to which the Fund has agreed to pay IIS a fee for providing transfer agency and shareholder services to the Fund and reimburse IIS for certain expenses incurred by IIS in the course of providing such services. For the six months ended June 30, 2020, 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. The fees are accrued daily and paid monthly. 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, 2020, 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, 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.

As of June 30, 2020, all of the securities in this Fund were valued based on Level 1 inputs (see the Schedule of Investments for security categories). The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

NOTE 4—Security Transactions with Affiliated Funds

The Fund is permitted to purchase 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, 2020, the Fund engaged in securities purchases of $4,083,915 and securities sales of $3,978,288, which resulted in net realized gains of $2,084,886.

NOTE 5—Trustees’ and Officers’ Fees and Benefits

Trustees’ and Officers’ Fees and Benefits include amounts accrued by the Fund to pay remuneration to certain Trustees and Officers of the Fund. Trustees have the option to defer compensation payable by the Fund, and Trustees’ and Officers’ Fees and Benefits also include amounts accrued by the Fund to fund such deferred compensation amounts. Those Trustees who defer compensation have the option to select various Invesco Funds in which their deferral accounts shall be deemed to be invested. Finally, certain current Trustees were eligible to participate in a retirement plan that provided for benefits to be paid upon retirement to Trustees over a period of time based on the number of years of service. The Fund may have certain former Trustees who also participate in a retirement plan and receive benefits under such plan. Trustees’ and Officers’ Fees and Benefits include amounts accrued by the Fund to fund such retirement benefits. Obligations under the deferred compensation and retirement plans represent unsecured claims against the general assets of the Fund.

NOTE 6—Cash Balances

The Fund is permitted to temporarily carry a negative or overdrawn balance in its account with SSB, the custodian bank. Such balances, if any at period-end, are shown in the Statement of Assets and Liabilities under the payable caption Amount due custodian. To compensate the custodian bank for such overdrafts, the overdrawn Fund may either (1) leave funds as a compensating balance in the account so the custodian bank can be compensated by earning the additional interest; or (2) compensate by paying the custodian bank at a rate agreed upon by the custodian bank and Invesco, not to exceed the contractually agreed upon rate. The Fund may not purchase additional securities when any borrowings from banks or broker-dealers exceed 5% of the Fund’s total assets, or when any borrowings from an Invesco Fund are outstanding.

Invesco Oppenheimer V.I. Main Street Small Cap Fund®

NOTE 7—Tax Information

The amount and character of income and gains to be distributed are determined in accordance with income tax regulations, which may differ from GAAP. Reclassifications are made to the Fund’s capital accounts to reflect income and gains available for distribution (or available capital loss carryforward) under income tax regulations. The tax character of distributions paid during the year and the tax components of net assets will be reported at the Fund’s fiscal year-end.

Capital loss carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Fund to utilize. The ability to utilize capital loss carryforwards in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.

The Fund did not have a capital loss carryforward as of December 31, 2019.

NOTE 8—Investment Transactions

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, 2020 was $129,123,782 and $150,338,394, respectively. Cost of investments, including any derivatives, on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end.

Unrealized Appreciation (Depreciation) of Investments on a Tax Basis

Aggregate unrealized appreciation of investments	$	153,032,433
Aggregate unrealized (depreciation) of investments		(83,415,030	)
Net unrealized appreciation of investments	$	69,617,403

Cost of investments for tax purposes is $550,136,990.

NOTE 9—Share Information

	Summary of Share Activity
	Six months ended						Year ended
	June 30, 2020(a)						December 31, 2019
	Shares			Amount			Shares			Amount
Sold:
Series I		398,623		$	7,699,270			483,827		$	10,802,190
Series II		2,161,029			36,576,840			2,432,799			52,170,452
Issued as reinvestment of dividends:
Series I		-			-			480,179			10,160,591
Series II		-			-			3,709,234			77,152,079
Reacquired:
Series I		(755,463	)		(15,539,220	)		(2,347,530	)		(52,907,985	)
Series II		(2,402,109	)		(48,388,958	)		(16,441,278	)		(349,479,235	)
Net increase (decrease) in share activity		(597,920	)	$	(19,652,068	)		(11,682,769	)	$	(252,101,908	)

^(a)  There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 58% 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 Fund 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—Coronavirus (COVID-19) Pandemic

During the first quarter of 2020, the World Health Organization declared COVID-19 to be a public health emergency. COVID-19 has led to increased short-term market volatility and may have adverse long-term effects on U.S. and world economies and markets in general. COVID-19 may adversely impact the Fund’s ability to achieve its investment objective. Because of the uncertainties on valuation, the global economy and business operations, values reflected in these financial statements may materially differ from the value received upon actual sales of those investments.

The extent of the impact on the performance of the Fund and its investments will depend on future developments, including the duration and spread of the COVID-19 outbreak, related restrictions and advisories, and the effects on the financial markets and economy overall, all of which are highly uncertain and cannot be predicted.

NOTE 11—Significant Event

Effective on or about April 30, 2021, the name of the Fund and all references thereto will change from Invesco Oppenheimer V.I. Main Street Small Cap Fund^® to Invesco V.I. Main Street Small Cap Fund^®.

Invesco Oppenheimer V.I. Main Street Small Cap 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, 2020 through June 30, 2020.

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.

		ACTUAL		HYPOTHETICAL (5% annual return before expenses)		Annualized   Expense Ratio
	Beginning   Account Value   (01/01/20)	Ending   Account Value   (06/30/20)1	Expenses   Paid During   Period2	Ending   Account Value   (06/30/20)	Expenses   Paid During   Period2
Series I	$1,000.00	$886.40	$3.75	$1,020.89	$4.02	0.80%
Series II	1,000.00	885.50	4.92	1,019.64	5.27	1.05

¹  The actual ending account value is based on the actual total return of the Fund for the period January 1, 2020 through June 30, 2020, 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 182/366 to reflect the most recent fiscal half year.

Invesco Oppenheimer V.I. Main Street Small Cap Fund®

Approval of Investment Advisory and Sub-Advisory Contracts

At meetings held on June 3, 2020, the Board of Trustees (the Board or the Trustees) of AIM Variable Insurance Funds (Invesco Variable Insurance Funds) as a whole, and the independent Trustees, who comprise over 75% of the Board, voting separately, approved the continuance of the Invesco Oppenheimer V.I. Main Street Small Cap Fund’s (the Fund) Master Investment Advisory Agreement with Invesco Advisers, Inc. (Invesco Advisers and the investment advisory agreement) and the Master Intergroup Sub-Advisory Contract for Mutual Funds with Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Canada Ltd. and separate sub-advisory contracts with Invesco Capital Management LLC and Invesco Asset Management (India) Private Limited and OppenheimerFunds, Inc. (collectively, the Affiliated Sub-Advisers and the sub-advisory contracts) for another year, effective July 1, 2020. After evaluating the factors discussed below, among others, the Board approved the renewal of the Fund’s investment advisory agreement and the sub-advisory contracts and determined that the compensation payable thereunder by the Fund to Invesco Advisers and by Invesco Advisers to the Affiliated Sub-Advisers is fair and reasonable.

The Board’s Evaluation Process

The Board’s Investments Committee has established Sub-Committees, which meet throughout the year to review the performance of funds advised by Invesco Advisers (the Invesco Funds). The Sub-Committees meet regularly with portfolio managers for their assigned Invesco Funds and other members of management to review detailed information about investment performance and portfolio attributes of these funds. The Board took into account evaluations and reports that it received from the Investments Committee and Sub-Committees, as well as the information provided to such committees and the Board throughout the year, in considering whether to approve each Invesco Fund’s investment advisory agreement and sub-advisory contracts.

As part of the contract renewal process, the Board reviews and considers information provided in response to detailed requests for information submitted to management by the independent Trustees with assistance from legal counsel to the independent Trustees. The Board receives comparative investment performance and fee data regarding the Invesco Funds prepared by Invesco Advisers and Broadridge Financial Solutions, Inc. (Broadridge), an independent mutual fund data provider, as well as information on the composition of the peer groups provided by Broadridge and its methodology for determining peer groups. The Board also receives an independent written evaluation from the Senior Officer, an officer of the Invesco Funds who reports directly to the independent Trustees. 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. In addition to meetings with Invesco Advisers and fund counsel

throughout the year, the independent Trustees also discuss the continuance of the investment advisory agreement and sub-advisory contracts in separate sessions with the Senior Officer and with independent legal counsel.

The discussion below is a summary of 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. The Trustees’ review and conclusions are based on the comprehensive consideration of all information presented to them during the course of the year and in prior years and are not the result of any single determinative factor. Moreover, one Trustee may have weighed a particular piece of information or factor differently than another Trustee. This information is current as of June 3, 2020.

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 nature, extent and quality of the advisory services provided to the Fund by Invesco Advisers under the Fund’s investment advisory agreement, and the credentials and experience of the officers and employees of Invesco Advisers who provide these services, including the Fund’s portfolio manager(s). The Board’s review included consideration of Invesco Advisers’ investment process oversight and structure, credit analysis, investment risk management and research capabilities. The Board also considered non-advisory services that Invesco Advisers and its affiliates provide to the Invesco Funds, such as various back office support functions, third party oversight, internal audit, valuation, portfolio trading and legal and compliance. The Board also received and reviewed information about Invesco Advisers’ role as administrator of the Invesco Funds’ liquidity risk management program. The Board reviewed and considered the benefits to shareholders of investing in a Fund that is part of the Invesco family of funds under the umbrella of Invesco Ltd., Invesco Advisers’ parent company, and noted Invesco Ltd.’s depth and experience in conducting an investment management business, as well as its commitment of financial and other resources to such business. The Board also reviewed and considered information regarding the benefits to the Fund resulting from Invesco Ltd.’s acquisition of OppenheimerFunds, Inc. and its subsidiaries (the Transaction) and the resources that Invesco Advisers has committed to managing the Invesco family of funds following the Transaction. The Board concluded that the nature, extent and quality of the services provided to the Fund by Invesco Advisers are appropriate and satisfactory.

The Board reviewed the services that may be 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 the Affiliated Sub-Advisers’ expertise with respect to certain asset classes and that the Affiliated Sub-Advisers have offices and personnel

that are located in financial centers around the world. As a result, the Board noted that the Affiliated Sub-Advisers can provide research and investment analysis on the markets and economies of various countries in which the Fund may invest, make recommendations regarding securities and assist with security trades. The Board concluded that the sub-advisory contracts may 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 that may be provided by the Affiliated Sub-Advisers are appropriate and satisfactory.

B. Fund Investment Performance

The Board considered Fund investment performance as a relevant factor in considering whether to approve the investment advisory agreement. The Board did not view Fund investment 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 investment performance over multiple time periods ending December 31, 2019 to the performance of funds in the Broadridge performance universe and against the Russell 2000^® Index. The Board noted that performance of Series I shares of the Fund was in the first quintile of its performance universe for the one and three year periods 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 reasonably comparable to the performance of the Index for the one and three year periods and below the performance of the Index for the five year period. The Board considered that the Fund was created in connection with the Transaction and that the Fund’s performance prior to the closing of the Transaction after the close of business on May 24, 2019 is that of its predecessor fund. The Board recognized that the performance data reflects a snapshot in time as of a particular date and that selecting a different performance period could produce different results. The Board also reviewed more recent Fund performance as well as other performance metrics and this review did not change their conclusions.

C. Advisory and Sub-Advisory Fees and Fund Expenses

The Board compared the Fund’s contractual management fee rate to the contractual management fee rates of funds in the Fund’s Broadridge expense group. The Board noted that the contractual management fee rate for Series I shares of the Fund was below the median contractual management fee rate of funds in its expense group. The Board noted that the term “contractual management fee” for funds in the expense group may include both advisory and certain non-portfolio management administrative services fees, but that Broadridge does not provide information on a fund by fund basis as to what is included. The Board also reviewed the methodology used by Broadridge in providing expense group information, which includes using each fund’s contractual management fee schedule (including any applicable breakpoints) as reported in the most recent prospectus or statement of additional

Invesco Oppenheimer V.I. Main Street Small Cap Fund®

information for each fund in the expense group. The Board also considered comparative information regarding the Fund’s total expense ratio and its various components.

The Board noted that Invesco Advisers has contractually agreed to waive fees and/or limit expenses of the Fund for the term disclosed in the Fund’s registration statement 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 fees charged by Invesco Advisers and the Affiliated Sub-Advisers to other similarly managed client accounts. Invesco Advisers reviewed with the Board differences in the scope of services it provides to the Invesco Funds relative to certain other types of client accounts, including, among others: management of cash flows as a result of redemptions and purchases; necessary infrastructure such as officers, office space, technology, legal and distribution; oversight of service providers; costs and business risks associated with launching new funds and sponsoring and maintaining the product line; and compliance with federal and state laws and regulations.

The Board also compared the Fund’s effective advisory fee rate (the advisory fee rate after advisory fee waivers and before other expense limitations/ waivers) to the effective advisory fee rates of other similarly managed third-party mutual funds advised or sub-advised by Invesco Advisers and its affiliates, based on asset balances as of December 31, 2019.

The Board also considered the services that may be provided by the Affiliated Sub-Advisers pursuant to the sub-advisory contracts, as well as the fees payable by Invesco Advisers to the Affiliated Sub-Advisers pursuant to the sub-advisory contracts.

D. Economies of Scale and Breakpoints

The Board considered the extent to which there may be economies of scale in the provision of advisory services to the Fund. The Board also considered that the Fund benefits from economies of scale through contractual breakpoints in the Fund’s advisory fee schedule, which generally operate to reduce the Fund’s expense ratio as it grows in size. The Board 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. The Board noted that the Fund may also benefit from economies of scale through initial fee setting, fee waivers and expense reimbursements. The Board also considered Invesco’s reinvestment in its business, including investments in business infrastructure, technology and cybersecurity.

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 Invesco Funds and the profitability of Invesco Advisers and its affiliates in providing these services in the aggregate and on an individual Fund-by-Fund basis. The Board considered the methodology used for calculating profitability and noted the periodic review and enhancement of such methodology. The Board noted that Invesco Advisers continues to operate at a net profit from services Invesco Advisers and its affiliates provide to the Invesco Funds in the aggregate and to certain Funds on an individual fund level. The Board did not deem the level of profits realized by Invesco Advisers and its affiliates from providing such services to be

excessive given the nature, extent and quality of the services provided. The Board received information from Invesco Advisers demonstrating that Invesco Advisers and the Affiliated Sub-Advisers are financially sound and have the resources necessary to perform their obligations under the investment advisory agreement and sub-advisory contracts.

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 providing administrative, transfer agency and distribution services to the Fund. The Board considered comparative information regarding fees charged for these services, including information provided by Broadridge and other independent sources. 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; and that the services are required for the operation of the Fund.

The Board considered the benefits realized by Invesco Advisers and the Affiliated Sub-Advisers as a result of portfolio brokerage transactions executed through “soft dollar” arrangements. The Board noted that soft dollar arrangements may result in the Fund bearing costs to purchase research that may be used by Invesco Advisers or the Affiliated Sub-Advisers with other clients and may reduce Invesco Advisers’ or the Affiliated Sub-Advisers’ expenses. The Board also considered that it receives periodic reports from Invesco representing that these arrangements are consistent with regulatory requirements. The Board did not deem the soft dollar arrangements to be inappropriate.

The Board considered that the Fund’s uninvested cash and cash collateral from any securities lending arrangements may be invested in registered money market funds or, with regard to securities lending cash collateral, unregistered funds that comply with Rule 2a-7 (collectively referred to as “affiliated money market funds”) advised by Invesco Advisers pursuant to procedures approved by the Board. The Board considered information regarding the returns of the affiliated money market funds relative to comparable overnight investments, as well as the costs to the Fund of such investments. 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 with respect to certain investments in the affiliated money market 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 amount of advisory fees received by Invesco Advisers from the Fund’s investment of cash collateral from any securities lending arrangements in the affiliated money market funds is fair and reasonable.

The Board also considered that an affiliated broker may receive commissions for executing certain trades for the Fund. Invesco Advisers and the Affiliated Sub-Advisers may use the affiliated broker to, among

other things, control order routing and minimize information leakage, and the Board was advised that such trades are executed in compliance with rules under the federal securities laws and consistent with best execution obligations.

Invesco Oppenheimer V.I. Main Street Small Cap Fund®

	Semiannual Report to Shareholders	June 30, 2020
	Invesco Oppenheimer V.I. Total Return Bond Fund

Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, the insurance company that offers your variable annuity or variable life insurance contract may no longer send you paper copies of the Fund’s shareholder reports by mail, unless you specifically request paper copies of the reports from the insurance company or your financial intermediary. Instead of delivering paper copies of the report, the insurance company may choose to make the reports available on a website, and will notify you by mail each time a report is posted and provide you with a website link to access the report. Instructions for requesting paper copies will be provided by your insurance company.

If the insurance company offers electronic delivery, you may elect to receive shareholder reports and other communications about the Fund electronically by following the instructions provided by the insurance company or by contacting your financial intermediary. If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action.

You may elect to receive all future reports in paper free of charge from the insurance company. You can inform the insurance company or your financial intermediary that you wish to continue receiving paper copies of your shareholder reports by following the instructions provided by the insurance company or by contacting your financial intermediary. Your election to receive reports in paper will apply to all portfolio companies available under your contract with the insurance company.

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) as an exhibit to its reports on Form N-PORT. The Fund’s Form N-PORT filings are available on the SEC website, 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-PORT, 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 most recent 12-month period ended June 30 is available at invesco.com/proxysearch. The information is also available on the SEC website, sec.gov.

Invesco Advisers, Inc. is an investment adviser; it provides investment advisory services to individual and institutional clients and does not sell securities. Invesco Distributors, Inc. is the US distributor for Invesco Ltd.’s retail mutual funds, exchange-traded funds and institutional money market funds. Both are wholly owned, indirect subsidiaries of Invesco Ltd.

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.

NOT FDIC INSURED |   |  MAY LOSE VALUE  |  NO BANK GUARANTEE

Invesco Distributors, Inc. O-VITRB-SAR-1                                 

Fund Performance

Performance summary

Fund vs. Indexes

Cumulative total returns, 12/31/19 to 6/30/20, excluding variable product issuer charges. If variable product issuer charges were included, returns would be lower.

Series I Shares	6.94	%
Series II Shares	6.78
Bloomberg Barclays U.S. Aggregate Bond Indexq	6.14
Bloomberg Barclays U.S. Credit Indexq	4.82
FTSE Broad Investment Grade Bond Indexq	6.25
Source(s) qRIMES Technologies Corp.
The Bloomberg Barclays U.S. Aggregate Bond Index is an unmanaged index considered representative of the US investment-grade, fixed-rate bond market.   The Bloomberg Barclays 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 FTSE Broad Investment Grade Bond Index is a multi-asset, multi-currency benchmark that provides a broad-based measure of the global fixed income markets.   The Fund is not managed to track the performance of any particular index, including the index(es) described here, and consequently, the performance of the Fund may deviate significantly from the performance of the index(es).   A direct investment cannot be made in an index. Unless otherwise indicated, index results include reinvested dividends, and they do not reflect sales charges. Performance of the peer group, if applicable, reflects fund expenses; performance of a market index does not.

Average Annual Total Returns
As of 6/30/20
Series I Shares
Inception (4/3/85)	5.53	%
10 Years	5.34
5 Years	4.71
1 Year	9.56
Series II Shares
Inception (5/1/02)	2.55	%
10 Years	5.07
5 Years	4.42
1 Year	9.29

Effective May 24, 2019, Non-Service and Service shares of the Oppenheimer Total Return Bond Fund/VA, (the predecessor fund) were reorganized into Series I and Series II shares, respectively, of Invesco Oppenheimer V.I. Total Return Bond Fund. Returns shown above, prior to May 24, 2019, for Series I and Series II shares are those of the Non-Service shares and Service shares of the predecessor fund. Share class returns will differ from the predecessor fund because of different expenses.

    The performance data quoted represent past performance and cannot guarantee future results; current performance may be lower or higher. Please 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. Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares. Investment return and principal value will fluctuate so that you may have a gain or loss when you sell shares.

    Invesco Oppenheimer V.I. Total Return Bond 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 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.

    Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information.

Invesco Oppenheimer V.I. Total Return Bond Fund

Liquidity Risk Management Program

The Securities and Exchange Commission has adopted Rule 22e-4 under the Investment Company Act of 1940 (the “Liquidity Rule”) in order to promote effective liquidity risk management throughout the open-end investment company industry, thereby reducing the risk that funds will be unable to meet their redemption obligations and mitigating dilution of the interests of fund shareholders. The Fund has adopted and implemented a liquidity risk management program in accordance with the Liquidity Rule (the “Program”). The Program is reasonably designed to assess and manage the Fund’s liquidity risk, which is the risk that the Fund could not meet redemption requests without significant dilution of remaining investors’ interests in the Fund. The Board of Trustees of the Fund (the “Board”) has appointed Invesco Advisers, Inc. (“Invesco”), the Fund’s investment adviser, as the Program’s administrator, and Invesco has delegated oversight of the Program to the Liquidity Risk Management Committee (the “Committee”), which is composed of senior representatives from relevant business groups at Invesco.

As required by the Liquidity Rule, the Program includes policies and procedures providing for an assessment, no less frequently than annually, of the Fund’s liquidity risk that takes into account, as relevant to the Fund’s liquidity risk: (1) the Fund’s investment strategy and liquidity of portfolio investments during both normal and reasonably foreseeable stressed conditions; (2) short-term and long-term cash flow projections for the Fund during both normal and reasonably foreseeable stressed conditions; and (3) the Fund’s holdings of cash and cash equivalents and any borrowing arrangements. The Liquidity Rule also requires the classification of the Fund’s investments into categories that reflect the assessment of their relative liquidity under current market conditions. The Fund classifies its investments into one of four categories defined in the Liquidity Rule: “Highly Liquid,” “Moderately Liquid,” “Less Liquid” and “Illiquid.” Funds that are not invested primarily in “Highly Liquid Investments” that are assets (cash or investments that are reasonably expected to be convertible into cash within three business days without significantly changing the market value of the investment) are required to establish a “Highly Liquid Investment Minimum” (“HLIM”), which is the minimum percentage of net assets that must be invested in Highly Liquid Investments. Funds with HLIMs have procedures for addressing HLIM shortfalls, including reporting to the Board and the SEC (on a non-public basis) as required by the Program and the Liquidity Rule. In addition, the Fund may not acquire an investment if, immediately after the acquisition, over 15% of the Fund’s net assets would consist of “Illiquid Investments” that are assets (an investment that cannot reasonably be expected to be sold or disposed of in current market conditions in seven calendar days or less without the sale or disposition significantly changing the market value of the investment). The Liquidity Rule and the Program also require reporting to the Board and the SEC (on a non-public basis) if a Fund’s holdings of Illiquid Investments exceed 15% of the Fund’s assets.

At a meeting held on March 30-April 1, 2020, the Committee presented a report to the Board that addressed the operation of the Program and assessed the Program’s adequacy and effectiveness of implementation (the “Report”). The Report covered the period from December 1, 2018 through December 31, 2019 (the “Program Reporting Period”).

The Report stated, in relevant part, that during the Program Reporting Period:

∎ The Program, as adopted and implemented, remained reasonably designed to assess and manage the Fund’s liquidity risk and was operated effectively to achieve that goal;

∎ The Fund’s investment strategy remained appropriate for an open-end fund;

∎ The Fund was able to meet requests for redemption without significant dilution of remaining investors’ interests in the Fund;

∎ The Fund did not breach the 15% limit on Illiquid Investments; and

∎ The Fund primarily held Highly Liquid Investments and therefore has not adopted an HLIM.

Invesco Oppenheimer V.I. Total Return Bond Fund

Schedule of Investments^(a)

June 30, 2020

(Unaudited)

	Principal Amount		Value
U.S. Dollar Denominated Bonds & Notes–47.76%
Advertising–0.67%
Interpublic Group of Cos., Inc. (The),
3.75%, 10/01/2021	$	251,000	$	260,347
4.20%, 04/15/2024		242,000		264,513
WPP Finance 2010 (United Kingdom), 3.75%, 09/19/2024		249,000		268,916
				793,776
Aerospace & Defense–0.70%
BAE Systems Holdings, Inc. (United Kingdom), 3.85%, 12/15/2025(b)		191,000		211,692
L3Harris Technologies, Inc., 3.85%, 06/15/2023		246,000		267,647
Northrop Grumman Corp., 4.75%, 06/01/2043		136,000		177,459
Raytheon Technologies Corp., 3.95%, 08/16/2025		149,000		170,241
				827,039
Agricultural & Farm Machinery–0.05%
Deere & Co., 3.10%, 04/15/2030		56,000		63,553
Agricultural Products–0.27%
Bunge Ltd. Finance Corp., 3.50%, 11/24/2020		313,000		315,987
Airlines–0.38%
Delta Air Lines Pass Through Trust, Series 2020-1, Class AA, 2.00%, 06/10/2028		280,000		268,013
Southwest Airlines Co., 4.75%, 05/04/2023		77,000		79,560
United Airlines Pass Through Trust, Series 2019-2, Class AA, 2.70%, 05/01/2032		116,000		105,315
				452,888
Apparel Retail–0.51%
Ross Stores, Inc.,
3.38%, 09/15/2024		251,000		269,604
4.60%, 04/15/2025		293,000		336,881
				606,485
Application Software–0.07%
Autodesk, Inc., 4.38%, 06/15/2025		76,000		86,761
Asset Management & Custody Banks–1.29%
Ameriprise Financial, Inc., 3.00%, 04/02/2025		225,000		244,644
Apollo Management Holdings L.P., 2.65%, 06/05/2030(b)		306,000		304,691
4.95%, 01/14/2050(b)		183,000		164,671
Bank of New York Mellon Corp. (The), Series G, 4.70%(c)		256,000		266,880
Blackstone Holdings Finance Co. LLC, 3.15%, 10/02/2027(b)		94,000		102,166
Brookfield Asset Management, Inc. (Canada), 4.00%, 01/15/2025		195,000		214,974

	Principal Amount		Value
Asset Management & Custody Banks–(continued)
Carlyle Finance Subsidiary LLC, 3.50%, 09/19/2029(b)	$	124,000	$	128,716
Northern Trust Corp., 3.38% (3 mo. USD LIBOR + 1.13%), 05/08/2032(d)		92,000		98,655
				1,525,397
Auto Parts & Equipment–0.13%
Magna International, Inc. (Canada), 2.45%, 06/15/2030		155,000		158,840
Automobile Manufacturers–2.08%
Daimler Finance North America LLC (Germany), 2.55%, 08/15/2022(b)		319,000		327,472
General Motors Co., 6.25%, 10/02/2043		61,000		64,885
General Motors Financial Co., Inc.,
4.20%, 11/06/2021		250,000		256,431
4.15%, 06/19/2023		241,000		252,003
Harley-Davidson Financial Services, Inc., 2.55%, 06/09/2022(b)		246,000		246,998
Hyundai Capital America,
5.75%, 04/06/2023(b)		302,000		329,976
4.13%, 06/08/2023(b)		245,000		258,723
Nissan Motor Acceptance Corp., 3.65%, 09/21/2021(b)		310,000		310,881
Toyota Motor Credit Corp., 2.15%, 02/13/2030		98,000		103,184
Volkswagen Group of America Finance LLC (Germany), 4.00%, 11/12/2021(b)		298,000		310,372
				2,460,925
Automotive Retail–0.26%
Advance Auto Parts, Inc., 3.90%, 04/15/2030(b)		288,000		308,651
Biotechnology–0.88%
AbbVie, Inc.,
3.85%, 06/15/2024(b)		302,000		331,910
2.95%, 11/21/2026(b)		88,000		96,374
3.20%, 11/21/2029(b)		296,000		330,500
4.05%, 11/21/2039(b)		99,000		114,977
Amgen, Inc., 3.15%, 02/21/2040		151,000		161,088
				1,034,849
Brewers–0.66%
Anheuser-Busch InBev Worldwide, Inc. (Belgium),
8.20%, 01/15/2039		145,000		230,553
4.35%, 06/01/2040		146,000		166,824
4.50%, 06/01/2050		161,000		192,813
Bacardi Ltd. (Bermuda), 4.70%, 05/15/2028(b)		163,000		184,568
				774,758
Broadcasting–0.14%
Fox Corp., 3.05%, 04/07/2025		80,000		86,664

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco Oppenheimer V.I. Total Return Bond Fund

	Principal Amount		Value
Broadcasting–(continued)
ViacomCBS, Inc., 4.38%, 03/15/2043	$	78,000	$	81,655
				168,319
Building Products–0.41%
Carrier Global Corp.,
2.24%, 02/15/2025(b)		334,000		342,812
2.49%, 02/15/2027(b)		136,000		138,725
				481,537
Cable & Satellite–0.48%
Charter Communications Operating LLC/ Charter Communications Operating Capital Corp., 5.13%, 07/01/2049		68,000		78,629
Comcast Corp.,
2.65%, 02/01/2030		69,000		75,104
4.00%, 03/01/2048		82,000		100,857
2.80%, 01/15/2051		218,000		223,937
Time Warner Cable LLC, 4.50%, 09/15/2042		82,000		88,191
				566,718
Construction Machinery & Heavy Trucks–0.04%
Wabtec Corp., 3.20%, 06/15/2025		51,000		52,123
Consumer Finance–0.75%
American Express Co.,
3.13%, 05/20/2026		147,000		163,328
Series C, 3.60% (3 mo. USD LIBOR + 3.29%)(c)(d)		246,000		209,956
Capital One Financial Corp., 3.80%, 01/31/2028		70,000		77,983
Discover Bank, 4.65%, 09/13/2028		116,000		133,379
Discover Financial Services, 3.75%, 03/04/2025		87,000		93,760
Synchrony Financial, 4.25%, 08/15/2024		195,000		204,885
				883,291
Data Processing & Outsourced Services–0.11%
Global Payments, Inc., 3.20%, 08/15/2029		119,000		127,696
Distillers & Vintners–0.28%
Pernod Ricard S.A. (France), 4.25%, 07/15/2022(b)		307,000		327,781
Diversified Banks–7.41%
Bank of America Corp.,
3.82%, (3 mo. USD LIBOR + 1.58%), 01/20/2028(d)		144,000		163,868
4.27%, (3 mo. USD LIBOR + 1.31%), 07/23/2029(d)		196,000		230,850
2.59%, 04/29/2031		188,000		199,290
7.75%, 05/14/2038		232,000		379,936
2.68%, 06/19/2041		357,000		368,020
Bank of Montreal (Canada), Series E, 3.30%, 02/05/2024		191,000		207,376
BBVA USA, 2.50%, 08/27/2024		255,000		259,176
BPCE S.A. (France), 4.50%, 03/15/2025(b)		185,000		202,245

	Principal Amount		Value
Diversified Banks–(continued)
Citigroup, Inc.,
3.11%, 04/08/2026	$	257,000	$	276,034
4.08%, (3 mo. USD LIBOR + 1.19%), 04/23/2029(d)		199,000		227,144
4.41%, 03/31/2031		217,000		256,955
2.57%, 06/03/2031		379,000		392,202
Series U, 5.00%(c)		249,000		234,834
Series V, 4.70%(c)		165,000		146,590
Credit Agricole S.A. (France), 4.38%, 03/17/2025(b)		310,000		343,329
Danske Bank A/S (Denmark), 3.24% (3 mo. USD LIBOR + 1.59%), 12/20/2025(b)(d)		200,000		208,185
HSBC Holdings PLC (United Kingdom), 3.95% (3 mo. USD LIBOR + 0.99%), 05/18/2024(d)		103,000		110,740
JPMorgan Chase & Co.,
3.80%, (3 mo. USD LIBOR + 0.89%), 07/23/2024(d)		245,000		265,764
2.08%, 04/22/2026		336,000		349,010
3.78%, 02/01/2028		262,000		297,028
3.54%, 05/01/2028		201,000		224,569
2.96%, 05/13/2031		209,000		222,723
3.11%, 04/22/2041		208,000		224,746
Lloyds Banking Group PLC (United Kingdom), 6.66%(b)(c)		304,000		343,686
Mitsubishi UFJ Financial Group, Inc. (Japan), 3.74%, 03/07/2029		152,000		173,300
National Australia Bank Ltd. (Australia), 3.93%, 08/02/2034(b)		153,000		167,032
Royal Bank of Canada (Canada), 3.70%, 10/05/2023		211,000		230,676
Sumitomo Mitsui Financial Group, Inc. (Japan),
1.47%, 07/08/2025		200,000		200,204
2.13%, 07/08/2030		387,000		388,690
Truist Bank,
4.05%, 11/03/2025		105,000		121,072
2.64%, (5 yr. U.S. Treasury Yield Curve Rate + 1.15%), 09/17/2029(d)		390,000		391,518
U.S. Bancorp, Series W, 3.10%, 04/27/2026		158,000		175,571
Wells Fargo & Co.,
2.19%, 04/30/2026		98,000		101,445
3.58%, (3 mo. USD LIBOR + 1.31%), 05/22/2028(d)		200,000		222,101
3.07%, 04/30/2041		139,000		145,174
4.75%, 12/07/2046		124,000		158,769
Westpac Banking Corp. (Australia), 2.89%, 02/04/2030		149,000		151,635
				8,761,487
Diversified Capital Markets–1.00%
Credit Suisse AG (Switzerland), 3.63%, 09/09/2024		189,000		208,868
Credit Suisse Group AG (Switzerland),
4.19%, 04/01/2031(b)		250,000		285,876
5.10%(b)(c)		201,000		190,699
Credit Suisse Group Funding Guernsey Ltd. (Switzerland), 4.55%, 04/17/2026		147,000		169,160

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco Oppenheimer V.I. Total Return Bond Fund

	Principal Amount		Value
Diversified Capital Markets–(continued)
UBS Group AG (Switzerland),
4.13%, 04/15/2026(b)	$	153,000	$	174,387
4.25%, 03/23/2028(b)		135,000		153,268
				1,182,258
Diversified Chemicals–0.26%
Dow Chemical Co. (The), 3.63%, 05/15/2026		161,000		177,542
Eastman Chemical Co., 3.50%, 12/01/2021		126,000		130,101
				307,643
Diversified Metals & Mining–0.54%
Anglo American Capital PLC (South Africa),
3.63%, 09/11/2024(b)		83,000		87,192
5.38%, 04/01/2025(b)		231,000		261,174
5.63%, 04/01/2030(b)		240,000		290,389
				638,755
Diversified REITs–0.18%
Brixmor Operating Partnership L.P.,
4.13%, 05/15/2029		126,000		131,036
4.05%, 07/01/2030		78,000		79,832
				210,868
Drug Retail–0.41%
Walgreen Co., 3.10%, 09/15/2022		235,000		246,376
Walgreens Boots Alliance, Inc., 4.10%, 04/15/2050		234,000		237,295
				483,671
Education Services–0.15%
Northeastern University, 2.89%, 10/01/2050		90,000		91,441
Northwestern University, 2.64%, 12/01/2050		80,000		84,428
				175,869
Electric Utilities–1.25%
AEP Texas, Inc., 3.95%, 06/01/2028(b)		162,000		184,464
Consolidated Edison Co. of New York, Inc., Series 20A, 3.35%, 04/01/2030		32,000		36,491
EDP Finance B.V. (Portugal), 3.63%, 07/15/2024(b)		219,000		236,250
Emera US Finance L.P. (Canada), 2.70%, 06/15/2021		168,000		171,100
Enel Finance International N.V. (Italy), 2.88%, 05/25/2022(b)		309,000		319,773
FirstEnergy Corp.,
Series A, 1.60%, 01/15/2026		35,000		35,355
Series B, 3.90%, 07/15/2027		136,000		154,058
2.25%, 09/01/2030		94,000		94,398
Fortis, Inc. (Canada), 3.06%, 10/04/2026		98,000		105,886
Mid-Atlantic Interstate Transmission LLC, 4.10%, 05/15/2028(b)		126,000		143,799
				1,481,574
Electronic Components–0.07%
Corning, Inc., 5.45%, 11/15/2079		66,000		78,938

	Principal Amount		Value
Electronic Equipment & Instruments–0.27%
FLIR Systems, Inc., 3.13%, 06/15/2021	$	308,000	$	313,454
Fertilizers & Agricultural Chemicals–0.09%
Nutrien Ltd. (Canada), 1.90%, 05/13/2023		102,000		105,333
Financial Exchanges & Data–0.07%
Moody’s Corp., 3.25%, 05/20/2050		77,000		82,941
Forest Products–0.39%
Georgia-Pacific LLC,
1.75%, 09/30/2025(b)		189,000		195,123
2.10%, 04/30/2027(b)		250,000		259,817
				454,940
Gas Utilities–0.06%
East Ohio Gas Co. (The), 1.30%, 06/15/2025(b)		72,000		72,480
Gold–0.10%
Newmont Corp., 2.25%, 10/01/2030		121,000		122,872
Health Care Equipment–0.31%
Becton, Dickinson and Co.,
3.70%, 06/06/2027		128,000		143,292
3.79%, 05/20/2050		129,000		143,969
Children’s Hospital Corp. (The), 2.59%, 02/01/2050		77,000		78,113
				365,374
Health Care REITs–0.56%
Healthcare Trust of America Holdings L.P., 3.50%, 08/01/2026		170,000		183,909
Healthpeak Properties, Inc.,
3.00%, 01/15/2030		230,000		240,797
2.88%, 01/15/2031		124,000		127,582
Welltower, Inc., 2.70%, 02/15/2027		108,000		112,317
				664,605
Health Care Services–0.39%
Cigna Corp., 4.13%, 11/15/2025		191,000		219,664
Fresenius Medical Care US Finance II, Inc. (Germany), 5.88%, 01/31/2022(b)		229,000		243,173
				462,837
Home Improvement Retail–0.18%
Lowe’s Cos., Inc., 4.50%, 04/15/2030		174,000		213,839
Homebuilding–0.28%
D.R. Horton, Inc., 4.75%, 02/15/2023		224,000		242,068
NVR, Inc., 3.00%, 05/15/2030		90,000		94,161
				336,229
Industrial Conglomerates–0.18%
GE Capital International Funding Co. Unlimited Co., 3.37%, 11/15/2025		163,000		171,157
Roper Technologies, Inc., 2.00%, 06/30/2030		45,000		45,082
				216,239
Insurance Brokers–0.09%
Marsh & McLennan Cos., Inc., 4.35%, 01/30/2047		82,000		103,044

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco Oppenheimer V.I. Total Return Bond Fund

	Principal Amount		Value
Integrated Oil & Gas–0.72%
BP Capital Markets PLC (United Kingdom), 4.38% (5 yr. U.S. Treasury Yield Curve Rate + 4.04%)(c)	$	69,000	$	70,208
Occidental Petroleum Corp., Series 1, 4.10%, 02/01/2021		310,000		312,790
4.85%, 03/15/2021		201,000		200,372
2.90%, 08/15/2024		267,000		228,816
4.50%, 07/15/2044		49,000		34,024
				846,210
Integrated Telecommunication Services–0.88%
AT&T, Inc., 4.30%, 02/15/2030		185,000		216,307
4.35%, 06/15/2045		98,000		110,414
4.50%, 03/09/2048		105,000		123,417
British Telecommunications PLC (United Kingdom), 4.50%, 12/04/2023		201,000		222,655
Deutsche Telekom International Finance B.V. (Germany), 4.38%, 06/21/2028(b)		149,000		176,820
Verizon Communications, Inc., 4.52%, 09/15/2048		143,000		189,302
				1,038,915
Internet & Direct Marketing Retail–0.21%
Amazon.com, Inc., 0.80%, 06/03/2025		252,000		253,741
Internet Services & Infrastructure–0.26%
VeriSign, Inc., 5.25%, 04/01/2025		99,000		109,900
4.75%, 07/15/2027		190,000		200,033
				309,933
Investment Banking & Brokerage–1.76%
Charles Schwab Corp. (The), Series G, 5.38%(c)		364,000		389,779
Goldman Sachs Group, Inc. (The), 3.50%, 04/01/2025		228,000		250,275
3.75%, 02/25/2026		132,000		147,328
3.50%, 11/16/2026		133,000		146,376
Morgan Stanley, 5.00%, 11/24/2025		205,000		239,730
2.19%, 04/28/2026		169,000		175,963
4.43%, (3 mo. USD LIBOR + 1.63%), 01/23/2030(d)		185,000		220,529
3.62%, 04/01/2031		217,000		248,358
Raymond James Financial, Inc., 3.63%, 09/15/2026		122,000		135,669
4.65%, 04/01/2030		108,000		129,367
				2,083,374
Life & Health Insurance–1.40%
Athene Global Funding, 2.95%, 11/12/2026(b)		342,000		343,669
Athene Holding Ltd., 6.15%, 04/03/2030		237,000		273,443
Brighthouse Financial, Inc., 4.70%, 06/22/2047		257,000		235,499
Lincoln National Corp., 3.80%, 03/01/2028		149,000		165,423

	Principal Amount		Value
Life & Health Insurance–(continued)
Manulife Financial Corp. (Canada), 4.06% (5 yr. USD ICE Swap Rate + 1.65%), 02/24/2032(d)	$	149,000	$	158,132
Prudential Financial, Inc., 5.20%, 03/15/2044		243,000		248,235
Reliance Standard Life Global Funding II, 2.75%, 01/21/2027(b)		233,000		228,508
				1,652,909
Managed Health Care–0.22%
Anthem, Inc., 3.13%, 05/15/2022		245,000		256,724
Multi-line Insurance–0.10%
Massachusetts Mutual Life Insurance Co., 3.38%, 04/15/2050(b)		113,000		116,579
Multi-Utilities–1.10%
Ameren Corp., 2.50%, 09/15/2024		162,000		171,873
3.50%, 01/15/2031		110,000		123,232
CenterPoint Energy, Inc., 4.25%, 11/01/2028		114,000		132,617
Dominion Energy, Inc., 2.72%, 08/15/2021(e)		203,000		207,558
Series C, 3.38%, 04/01/2030		183,000		202,856
Sempra Energy, 3.40%, 02/01/2028		134,000		147,416
4.88%, (5 yr. U.S. Treasury Yield Curve Rate + 4.55%)(c)		312,000		312,780
				1,298,332
Oil & Gas Equipment & Services–0.13%
Schlumberger Holdings Corp., 4.00%, 12/21/2025(b)		143,000		157,369
Oil & Gas Exploration & Production–0.67%
Canadian Natural Resources Ltd. (Canada), 2.05%, 07/15/2025		429,000		430,361
2.95%, 07/15/2030		199,000		197,876
EQT Corp., 3.00%, 10/01/2022		177,000		165,163
				793,400
Oil & Gas Storage & Transportation–1.86%
Energy Transfer Operating L.P., 4.25%, 03/15/2023		190,000		200,797
5.30%, 04/15/2047		73,000		70,699
Enterprise Products Operating LLC, 4.20%, 01/31/2050		90,000		100,014
Kinder Morgan Energy Partners L.P., 5.80%, 03/01/2021		124,000		128,065
Kinder Morgan, Inc., 5.20%, 03/01/2048		103,000		124,259
MPLX L.P., 1.41%, (3 mo. USD LIBOR + 1.10%), 09/09/2022(d)		149,000		146,588
4.25%, 12/01/2027		151,000		163,934
ONEOK, Inc., 5.85%, 01/15/2026		84,000		96,034
4.35%, 03/15/2029		125,000		131,568
6.35%, 01/15/2031		322,000		377,582
Plains All American Pipeline L.P./PAA Finance Corp., 3.80%, 09/15/2030		111,000		109,534
Sabine Pass Liquefaction LLC, 4.20%, 03/15/2028		128,000		137,362

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco Oppenheimer V.I. Total Return Bond Fund

	Principal Amount		Value
Oil & Gas Storage & Transportation–(continued)
Sunoco Logistics Partners Operations L.P., 4.00%, 10/01/2027	$	150,000	$	153,765
Williams Cos., Inc. (The), 3.70%, 01/15/2023		246,000		260,190
				2,200,391
Other Diversified Financial Services–0.12%
Equitable Holdings, Inc., 4.35%, 04/20/2028		128,000		143,435
Packaged Foods & Meats–1.01%
Conagra Brands, Inc., 3.80%, 10/22/2021		240,000		249,529
4.60%, 11/01/2025		234,000		270,033
Mondelez International Holdings Netherlands B.V., 2.00%, 10/28/2021(b)		319,000		324,720
Smithfield Foods, Inc., 3.35%, 02/01/2022(b)		135,000		134,038
Tyson Foods, Inc., 3.90%, 09/28/2023		198,000		216,676
				1,194,996
Paper Packaging–0.38%
Bemis Co., Inc., 2.63%, 06/19/2030		54,000		55,423
Packaging Corp. of America, 3.65%, 09/15/2024		212,000		231,521
WRKCo, Inc., 3.90%, 06/01/2028		148,000		163,943
				450,887
Pharmaceuticals–1.99%
Bayer US Finance II LLC (Germany), 3.88%, 12/15/2023(b)		313,000		343,596
Elanco Animal Health, Inc., 5.65%, 08/28/2028		137,000		152,505
Merck & Co., Inc.,
0.75%, 02/24/2026		166,000		166,000
1.45%, 06/24/2030		88,000		88,297
2.35%, 06/24/2040		161,000		164,190
2.45%, 06/24/2050		107,000		107,724
Mylan, Inc., 3.13%, 01/15/2023(b)		240,000		252,452
Takeda Pharmaceutical Co. Ltd. (Japan),
2.05%, 03/31/2030		205,000		203,352
3.03%, 07/09/2040		202,000		204,289
3.18%, 07/09/2050		200,000		201,738
3.38%, 07/09/2060		206,000		207,139
Upjohn, Inc., 2.70%, 06/22/2030(b)		250,000		257,402
				2,348,684
Property & Casualty Insurance–0.68%
Arch Capital Group Ltd., 3.64%, 06/30/2050		239,000		251,239
CNA Financial Corp., 3.45%, 08/15/2027		186,000		198,674
Fidelity National Financial, Inc., 3.40%, 06/15/2030		168,000		175,215
W.R. Berkley Corp., 4.00%, 05/12/2050		157,000		175,325
				800,453

	Principal Amount		Value
Railroads–0.36%
Union Pacific Corp.,
2.15%, 02/05/2027	$	177,000	$	187,379
2.40%, 02/05/2030		221,000		236,712
				424,091
Regional Banks–2.06%
Citizens Financial Group, Inc.,
2.50%, 02/06/2030		170,000		172,531
3.25%, 04/30/2030		105,000		113,686
Fifth Third Bancorp, 2.55%, 05/05/2027		142,000		152,042
Fifth Third Bank N.A., 3.85%, 03/15/2026		168,000		188,575
Huntington Bancshares, Inc., 4.00%, 05/15/2025		246,000		278,968
KeyCorp,
4.15%, 10/29/2025		78,000		89,539
2.25%, 04/06/2027		247,000		258,566
PNC Financial Services Group, Inc. (The), 3.15%, 05/19/2027		183,000		204,817
Santander Holdings USA, Inc., 3.50%, 06/07/2024		199,000		209,434
Synovus Financial Corp., 3.13%, 11/01/2022		140,000		142,061
Truist Financial Corp., Series Q, 5.10% (10 yr. U.S. Treasury Yield Curve Rate +4.35%)(c)		369,000		381,952
Zions Bancorporation N.A., 3.25%, 10/29/2029		250,000		246,806
				2,438,977
Residential REITs–0.36%
Camden Property Trust, 2.80%, 05/15/2030		94,000		101,762
Essex Portfolio L.P., 3.00%, 01/15/2030		115,000		125,556
Spirit Realty L.P., 3.20%, 01/15/2027		162,000		154,961
VEREIT Operating Partnership L.P., 3.40%, 01/15/2028		47,000		47,361
				429,640
Restaurants–0.03%
McDonald’s Corp., 3.30%, 07/01/2025		34,000		37,815
Retail REITs–0.37%
Kite Realty Group L.P., 4.00%, 10/01/2026		166,000		154,644
Realty Income Corp., 3.25%, 01/15/2031		101,000		109,485
Regency Centers L.P., 2.95%, 09/15/2029		175,000		177,729
				441,858
Semiconductor Equipment–0.20%
NXP B.V./NXP Funding LLC/NXP USA, Inc. (Netherlands),
2.70%, 05/01/2025(b)		60,000		63,125
3.88%, 06/18/2026(b)		158,000		177,068
				240,193
Semiconductors–1.98%
Analog Devices, Inc., 2.95%, 04/01/2025		95,000		103,044

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco Oppenheimer V.I. Total Return Bond Fund

	Principal Amount		Value
Semiconductors–(continued)
Broadcom, Inc.,
2.25%, 11/15/2023(b)	$	191,000	$	197,504
4.70%, 04/15/2025(b)		235,000		264,864
3.15%, 11/15/2025(b)		196,000		208,348
4.15%, 11/15/2030(b)		198,000		215,882
4.30%, 11/15/2032(b)		114,000		126,148
Microchip Technology, Inc., 3.92%, 06/01/2021		316,000		322,231
NXP B.V./NXP Funding LLC (Netherlands), 4.13%, 06/01/2021(b)		292,000		300,779
QUALCOMM, Inc.,
2.15%, 05/20/2030		286,000		298,456
3.25%, 05/20/2050		279,000		306,520
				2,343,776
Soft Drinks–0.22%
Keurig Dr Pepper, Inc., 4.06%, 05/25/2023		236,000		257,578
Specialized REITs–0.56%
American Tower Corp.,
3.00%, 06/15/2023		204,000		217,612
4.00%, 06/01/2025		130,000		146,444
1.30%, 09/15/2025		149,000		149,658
Crown Castle International Corp.,
3.30%, 07/01/2030		80,000		87,528
4.15%, 07/01/2050		55,000		63,501
				664,743
Specialty Chemicals–0.23%
RPM International, Inc., 3.45%, 11/15/2022		260,000		268,557
Steel–0.05%
Steel Dynamics, Inc., 3.25%, 01/15/2031		52,000		52,962
Technology Distributors–0.16%
Arrow Electronics, Inc., 3.88%, 01/12/2028		180,000		188,719
Technology Hardware, Storage & Peripherals–0.64%
Apple, Inc.,
4.38%, 05/13/2045		146,000		193,694
2.65%, 05/11/2050		281,000		291,178
Dell International LLC/EMC Corp., 5.30%, 10/01/2029(b)		246,000		272,530
				757,402
Thrifts & Mortgage Finance–0.14%
Nationwide Building Society (United Kingdom), 3.96% (3 mo. USD LIBOR + 1.86%), 07/18/2030(b)(d)		150,000		169,030
Tobacco–0.93%
Altria Group, Inc., 3.49%, 02/14/2022		162,000		169,084
BAT International Finance PLC (United Kingdom), 3.25%, 06/07/2022(b)		244,000		254,281
Imperial Brands Finance PLC (United Kingdom),
2.95%, 07/21/2020(b)		233,000		233,229
3.75%, 07/21/2022(b)		308,000		321,697

	Principal Amount		Value
Tobacco–(continued)
Philip Morris International, Inc., 1.50%, 05/01/2025	$	115,000	$	117,974
				1,096,265
Trading Companies & Distributors–0.40%
AerCap Ireland Capital DAC/AerCap Global Aviation Trust (Ireland),
3.50%, 05/26/2022		295,000		291,959
4.50%, 09/15/2023		176,000		176,150
				468,109
Trucking–0.87%
Penske Truck Leasing Co. L.P./PTL Finance Corp.,
3.65%, 07/29/2021(b)		110,000		112,636
4.00%, 07/15/2025(b)		193,000		211,238
3.40%, 11/15/2026(b)		214,000		226,049
Ryder System, Inc.,
2.50%, 09/01/2024		124,000		128,046
4.63%, 06/01/2025		232,000		258,960
3.35%, 09/01/2025		84,000		89,561
				1,026,490
Wireless Telecommunication Services–0.31%
T-Mobile USA, Inc.,
3.50%, 04/15/2025(b)		235,000		256,596
2.55%, 02/15/2031(b)		108,000		108,650
				365,246
Total U.S. Dollar Denominated Bonds & Notes (Cost $52,873,793)				56,470,407
Asset-Backed Securities–22.26%
American Credit Acceptance Receivables Trust,
Series 2017-4, Class C, 2.94%, 01/10/2024(b)		2,253		2,255
Series 2017-4, Class D, 3.57%, 01/10/2024(b)		227,000		229,488
Series 2018-2, Class C, 3.70%, 07/10/2024(b)		167,701		169,060
Series 2018-3, Class D, 4.14%, 10/15/2024(b)		25,000		25,489
Series 2018-4, Class C, 3.97%, 01/13/2025(b)		180,000		182,849
Series 2019-3, Class C, 2.76%, 09/12/2025(b)		160,000		162,240
AmeriCredit Automobile Receivables Trust,
Series 2017-2, Class D, 3.42%, 04/18/2023		300,000		308,015
Series 2017-4, Class D, 3.08%, 12/18/2023		190,000		194,419
Series 2018-3, Class C, 3.74%, 10/18/2024		260,000		273,609
Series 2019-2, Class C, 2.74%, 04/18/2025		100,000		103,036
Series 2019-2, Class D, 2.99%, 06/18/2025		280,000		282,244
Series 2019-3, Class D, 2.58%, 09/18/2025		135,000		134,306
Angel Oak Mortgage Trust,
Series 2020-1, Class A1, 2.47%, 12/25/2059(b)(f)		161,384		162,768
Series 2020-3, Class A1, 1.69%, 04/25/2065(b)(f)		455,000		454,998

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco Oppenheimer V.I. Total Return Bond Fund

	Principal Amount		Value
Banc of America Funding Trust,
Series 2007-1, Class 1A3, 6.00%, 01/25/2037	$	58,431	$	56,717
Series 2007-C, Class 1A4, 4.04%, 05/20/2036(f)		20,330		19,418
Banc of America Mortgage Trust,
Series 2007-1, Class 1A24, 6.00%, 03/25/2037		40,241		39,630
Bank, Series 2019-BNK16, Class XA, 1.13%, 02/15/2052(f)		1,573,667		102,722
Bear Stearns Adjustable Rate Mortgage Trust,
Series 2005-9, Class A1, 4.27% (1 yr. U.S. Treasury Yield Curve Rate + 2.30%), 10/25/2035(d)		53,961		53,331
Series 2006-1, Class A1, 3.84% (1 yr. U.S. Treasury Yield Curve Rate + 2.25%), 02/25/2036(d)		68,256		67,658
Benchmark Mortgage Trust,
Series 2018-B1, Class XA, 0.66%, 01/15/2051(f)		1,774,730		53,395
Capital Auto Receivables Asset Trust,
Series 2017-1, Class D, 3.15%, 02/20/2025(b)		40,000		40,643
Series 2018-2, Class B, 3.48%, 10/20/2023(b)		120,000		122,073
Series 2018-2, Class C, 3.69%, 12/20/2023(b)		115,000		117,906
Capital Lease Funding Securitization L.P.,
Series 1997-CTL1, Class IO, 1.48%, 06/22/2024(b)(f)		72,520		1,060
CarMax Auto Owner Trust,
Series 2017-1, Class D, 3.43%, 07/17/2023		230,000		233,013
Series 2017-4, Class D, 3.30%, 05/15/2024		100,000		101,352
CCG Receivables Trust,
Series 2018-1, Class B, 3.09%, 06/16/2025(b)		85,000		85,672
Series 2018-2, Class C, 3.87%, 12/15/2025(b)		60,000		62,138
Series 2019-2, Class B, 2.55%, 03/15/2027(b)		105,000		105,903
Series 2019-2, Class C, 2.89%, 03/15/2027(b)		100,000		100,714
CD Mortgage Trust, Series 2017-CD6,
Class XA, 1.10%, 11/13/2050(f)		736,385		31,503
Chase Home Lending Mortgage Trust,
Series 2019-ATR1, Class A15, 4.00%, 04/25/2049(b)(f)		41,436		42,334
Chase Mortgage Finance Trust,
Series 2005-A2, Class 1A3, 3.90%, 01/25/2036(f)		59,239		55,547
CHL Mortgage Pass-Through Trust,
Series 2005-17, Class 1A8, 5.50%, 09/25/2035		6,416		6,334
Series 2005-26, Class 1A8, 5.50%, 11/25/2035		50,829		45,116
Series 2005-JA, Class A7, 5.50%, 11/25/2035		6,009		5,920

	Principal Amount		Value
Citigroup Commercial Mortgage Trust,
Series 2013-GC17, Class XA, 1.18%, 11/10/2046(f)	$	382,146	$	10,979
Series 2014-GC21, Class AAB, 3.48%, 05/10/2047		75,098		78,156
Series 2017-C4, Class XA, 1.25%, 10/12/2050(f)		2,045,188		116,323
Citigroup Mortgage Loan Trust, Inc.,
Series 2006-AR1, Class 1A1, 3.88% (1 yr. U.S. Treasury Yield Curve Rate + 2.40%), 10/25/2035(d)		159,333		155,893
CNH Equipment Trust,
Series 2017-C, Class B, 2.54%, 05/15/2025		65,000		65,678
Series 2019-A, Class A4, 3.22%, 01/15/2026		125,000		132,024
COLT Mortgage Loan Trust,
Series 2020-1, Class A1, 2.49%, 02/25/2050(b)(f)		357,193		361,994
Series 2020-2, Class A1, 1.85%, 03/25/2065(b)(f)		270,000		270,951
COMM Mortgage Trust,
Series 2013-CR6, Class AM, 3.15%, 03/10/2046(b)		245,000		249,573
Series 2014-CR21, Class AM, 3.99%, 12/10/2047		715,000		760,301
Series 2014-LC15, Class AM, 4.20%, 04/10/2047		170,000		181,174
Commercial Mortgage Trust,
Series 2012-CR5, Class XA, 1.66%, 12/10/2045(f)		1,906,841		54,973
Series 2014-CR20, Class ASB, 3.31%, 11/10/2047		56,811		58,972
Series 2014-UBS6, Class AM, 4.05%, 12/10/2047		475,000		510,048
CPS Auto Receivables Trust,
Series 2018-A, Class B, 2.77%, 04/18/2022(b)		2,143		2,144
Series 2018-B, Class B, 3.23%, 07/15/2022(b)		53,303		53,411
Credit Suisse Mortgage Trust,
Series 2006-6, Class 1A4, 6.00%, 07/25/2036		120,321		96,689
CSAIL Commercial Mortgage Trust,
Series 2020-C19, Class A3, 2.56%, 03/15/2053		637,000		679,629
Dell Equipment Finance Trust,
Series 2017-2, Class B, 2.47%, 10/24/2022(b)		37,821		37,884
Series 2018-1, Class B, 3.34%, 06/22/2023(b)		80,000		81,479
Series 2019-1, Class C, 3.14%, 03/22/2024(b)		325,000		328,454
Series 2019-2, Class D, 2.48%, 04/22/2025(b)		115,000		114,995

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco Oppenheimer V.I. Total Return Bond Fund

	Principal Amount		Value
Drive Auto Receivables Trust,
Series 2016-CA, Class D, 4.18%, 03/15/2024(b)	$	108,078	$	109,608
Series 2017-1, Class D, 3.84%, 03/15/2023		234,795		238,358
Series 2018-1, Class D, 3.81%, 05/15/2024		180,000		182,196
Series 2018-2, Class D, 4.14%, 08/15/2024		215,000		220,643
Series 2018-3, Class D, 4.30%, 09/16/2024		200,000		206,087
Series 2018-5, Class C, 3.99%, 01/15/2025		210,000		214,417
Series 2019-1, Class C, 3.78%, 04/15/2025		345,000		349,322
DT Auto Owner Trust,
Series 2017-1A, Class D, 3.55%, 11/15/2022(b)		44,634		44,883
Series 2017-2A, Class D, 3.89%, 01/15/2023(b)		79,695		80,314
Series 2017-3A, Class D, 3.58%, 05/15/2023(b)		50,011		50,517
Series 2017-3A, Class E, 5.60%, 08/15/2024(b)		195,000		201,455
Series 2017-4A, Class D, 3.47%, 07/17/2023(b)		109,802		110,649
Series 2018-3A, Class B, 3.56%, 09/15/2022(b)		250,000		251,810
Series 2018-3A, Class C, 3.79%, 07/15/2024(b)		100,000		101,883
Element Rail Leasing I LLC,
Series 2014-1A, Class A1, 2.30%, 04/19/2044(b)		44,487		44,645
Ellington Financial Mortgage Trust,
Series 2020-1, Class A1, 2.01%, 06/25/2065(b)(f)		115,000		115,569
Exeter Automobile Receivables Trust,
Series 2018-4A, Class B, 3.64%, 11/15/2022(b)		89,430		89,816
Series 2019-2A, Class C, 3.30%, 03/15/2024(b)		317,000		322,281
Series 2019-4A, Class D, 2.58%, 09/15/2025(b)		240,000		239,731
First Horizon Alternative Mortgage
Securities Trust, Series 2005-FA8, Class 1A6, 0.83% (1 mo. USD LIBOR + 0.65%), 11/25/2035(d)		90,605		43,997
Flagship Credit Auto Trust,
Series 2016-1, Class C, 6.22%, 06/15/2022(b)		270,686		274,774
Ford Credit Floorplan Master Owner Trust,
Series 2019-3, Class A2, 0.78% (1 mo. USD LIBOR + 0.60%), 09/15/2024(d)		560,000		551,330
FREMF Mortgage Trust,
Series 2013-K25, Class C, 3.74%, 11/25/2045(b)(f)		90,000		92,105
Series 2013-K26, Class C, 3.72%, 12/25/2045(b)(f)		60,000		61,425
Series 2013-K27, Class C, 3.62%, 01/25/2046(b)(f)		95,000		97,181
Series 2013-K28, Class C, 3.61%, 06/25/2046(b)(f)		285,000		291,966
Series 2014-K715, Class C, 4.27%, 02/25/2046(b)(f)		190,000		191,106

	Principal Amount		Value
GLS Auto Receivables Trust,
Series 2018-1A, Class A, 2.82%, 07/15/2022(b)	$	49,808	$	49,965
GM Financial Automobile Leasing Trust,
Series 2018-2, Class C, 3.50%, 04/20/2022		135,000		136,272
GS Mortgage Securities Trust,
Series 2012-GC6, Class A3, 3.48%, 01/10/2045		59,774		61,079
Series 2013-GC16, Class AS, 4.65%, 11/10/2046		45,000		48,147
Series 2013-GCJ12, Class AAB, 2.68%, 06/10/2046		19,762		20,021
Series 2014-GC18, Class AAB, 3.65%, 01/10/2047		61,427		63,618
Series 2020-GC47, Class A5, 2.38%, 05/12/2053		245,000		259,936
GSR Mortgage Loan Trust,
Series 2005-AR, Class 6A1, 3.34%, 07/25/2035(f)		29,848		29,383
HomeBanc Mortgage Trust,
Series 2005-3, Class A2, 0.79% (1 mo. USD LIBOR + 0.31%), 07/25/2035(d)		8,355		8,346
JP Morgan Chase Commercial Mortgage Securities Trust,
Series 2013-C10, Class AS, 3.37%, 12/15/2047		315,000		322,542
Series 2013-C16, Class AS, 4.52%, 12/15/2046		300,000		320,780
Series 2013-LC11, Class AS, 3.22%, 04/15/2046		40,000		40,852
Series 2014-C20, Class AS, 4.04%, 07/15/2047		220,000		232,909
Series 2016-JP3, Class A2, 2.43%, 08/15/2049		135,337		136,645
JP Morgan Mortgage Trust,
Series 2007-A1, Class 5A1, 3.97%, 07/25/2035(f)		33,829		32,830
Series 2018-8, Class A17, 4.00%, 01/25/2049(b)(f)		50,000		50,571
JPMBB Commercial Mortgage Securities Trust,
Series 2014-C24, Class B, 4.12%, 11/15/2047(f)		245,000		228,358
Series 2014-C25, Class AS, 4.07%, 11/15/2047		200,000		212,965
Series 2015-C27, Class XA, 1.31%, 02/15/2048(f)		2,133,660		93,761
LB Commercial Conduit Mortgage Trust,
Series 1998-C1, Class IO, 1.11%, 02/18/2030(f)		47,482		1
Lehman Structured Securities Corp.,
Series 2002-GE1, Class A, 0.00%, 07/26/2024(b)(f)		18,473		11,929
MASTR Asset Backed Securities Trust,
Series 2006-WMC3, Class A3, 0.28% (1 mo. USD LIBOR + 0.10%), 08/25/2036(d)		43,213		18,918
Morgan Stanley BAML Trust,
Series 2013-C9, Class AS, 3.46%, 05/15/2046		225,000		231,824
Series 2014-C19, Class AS, 3.83%, 12/15/2047		595,000		629,509

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco Oppenheimer V.I. Total Return Bond Fund

	Principal Amount		Value
Morgan Stanley Capital I Trust,
Series 2011-C2, Class A4, 4.66%, 06/15/2044(b)	$	71,475	$	73,391
Series 2017-HR2, Class XA, 0.93%, 12/15/2050(f)		677,158		30,968
Morgan Stanley ReRemic Trust,
Series 2012-R3, Class 1B, 3.27%, 11/26/2036(b)(f)		358,805		331,759
Mortgage-Linked Amortizing Notes,
Series 2012-1, Class A10, 2.06%, 01/15/2022		171,197		174,777
Navistar Financial Dealer Note Master Owner Trust II,
Series 2018-1, Class A, 0.81% (1 mo. USD LIBOR + 0.63%), 09/25/2023(b)(d)		110,000		109,615
Series 2018-1, Class B, 0.98% (1 mo. USD LIBOR + 0.80%), 09/25/2023(b)(d)		125,000		124,316
Neuberger Berman Loan Advisers CLO 24
Ltd., Series 2017-24A, Class AR, 2.16% (3 mo. USD LIBOR + 1.02%), 04/19/2030(b)(d)		293,000		288,032
OHA Loan Funding Ltd., Series 2016-1A,
Class AR, 2.40% (3 mo. USD LIBOR + 1.26%), 01/20/2033(b)(d)		287,936		281,629
Prestige Auto Receivables Trust,
Series 2019-1A, Class C, 2.70%, 10/15/2024(b)		115,000		116,626
Progress Residential Trust,
Series 2020-SFR1, Class A, 1.73%, 04/17/2037(b)		395,000		399,090
RALI Trust, Series 2006-QS13,
Class 1A8, 6.00%, 09/25/2036		500		458
RBSSP Resecuritization Trust,
Series 2010-1, Class 2A1, 4.22% (Acquired 02/25/2015; Cost $4,746), 07/26/2045(b)(f)		2,587		2,608
Residential Accredit Loans, Inc. Trust,
Series 2007-QS6, Class A28, 5.75%, 04/25/2037		6,075		5,651
Residential Mortgage Loan Trust,
Series 2020-1, Class A1, 2.38%, 02/25/2024(b)(f)		147,909		150,181
Santander Drive Auto Receivables Trust,
Series 2017-1, Class E, 5.05%, 07/15/2024(b)		355,000		363,245
Series 2017-2, Class D, 3.49%, 07/17/2023		70,000		71,209
Series 2017-3, Class D, 3.20%, 11/15/2023		280,000		284,478
Series 2018-1, Class D, 3.32%, 03/15/2024		100,000		102,499
Series 2018-2, Class D, 3.88%, 02/15/2024		165,000		168,368
Series 2018-5, Class C, 3.81%, 12/16/2024		215,000		218,732
Series 2019-2, Class D, 3.22%, 07/15/2025		195,000		200,289
Series 2019-3, Class D, 2.68%, 10/15/2025		165,000		164,854

	Principal Amount		Value
Santander Retail Auto Lease Trust,
Series 2019-A, Class C, 3.30%, 05/22/2023(b)	$	315,000	$	320,016
Series 2019-B, Class C, 2.77%, 08/21/2023(b)		115,000		115,017
Series 2019-C, Class C, 2.39%, 11/20/2023(b)		210,000		208,279
Starwood Mortgage Residential Trust,
Series 2020-1, Class A1, 2.28%, 02/25/2050(b)(f)		207,078		209,076
Symphony CLO XXII Ltd., Series 2020-22A, Class A1A, 2.60% (3 mo. USD LIBOR + 1.29%), 04/18/2033(b)(d)		250,000		245,777
TICP CLO XV Ltd., Series 2020-15A,
Class A, 2.92% (3 mo. USD LIBOR + 1.28%), 04/20/2033(b)(d)		271,000		264,817
UBS Commercial Mortgage Trust,
Series 2017-C5, Class XA, 1.15%, 11/15/2050(f)		1,236,534		63,488
United Auto Credit Securitization Trust,
Series 2019-1, Class C, 3.16%, 08/12/2024(b)		150,000		151,876
Verus Securitization Trust,
Series 2020-1, Class A1, 2.42%, 01/25/2060(b)(f)		447,380		454,119
Series 2020-1, Class A2, 2.64%, 01/25/2060(b)(f)		99,729		100,187
Series 2020-INV1, Class A1, 1.98%, 04/25/2060(b)(f)		97,594		97,507
WaMu Mortgage Pass-Through Ctfs. Trust,
Series 2003-AR10, Class A7, 4.19%, 10/25/2033(f)		43,172		42,283
Series 2005-AR14, Class 1A4, 3.83%, 12/25/2035(f)		88,558		85,594
Series 2005-AR16, Class 1A1, 3.75%, 12/25/2035(f)		41,687		40,098
Wells Fargo Commercial Mortgage Trust,
Series 2015-NXS1, Class ASB, 2.93%, 05/15/2048		283,711		291,722
Series 2017-C42, Class XA, 1.03%, 12/15/2050(f)		889,648		46,693
Wells Fargo Mortgage Backed Securities Trust,
Series 2019-1, Class A7, 4.00%, 11/25/2048(b)(f)		19,610		19,709
Westlake Automobile Receivables Trust,
Series 2017-2A, Class E, 4.63%, 07/15/2024(b)		305,000		309,173
Series 2018-1A, Class D, 3.41%, 05/15/2023(b)		160,000		162,111
Series 2018-3A, Class B, 3.32%, 10/16/2023(b)		245,000		246,585
Series 2019-3A, Class C, 2.49%, 10/15/2024(b)		260,000		262,750
WFRBS Commercial Mortgage Trust,
Series 2013-C14, Class AS, 3.49%, 06/15/2046		150,000		154,407
Series 2014-C20, Class AS, 4.18%, 05/15/2047		130,000		138,100
Series 2014-LC14, Class AS, 4.35%, 03/15/2047(f)		145,000		155,473

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco Oppenheimer V.I. Total Return Bond Fund

	Principal Amount		Value
World Financial Network Credit Card Master Trust,
Series 2018-A, Class A, 3.07%, 12/16/2024	$	495,000	$      501,595
Series 2018-B, Class A, 3.46%, 07/15/2025		230,000	236,950
Series 2018-C, Class A, 3.55%, 08/15/2025		470,000	485,738
Series 2019-A, Class A, 3.14%, 12/15/2025		75,000	77,465
Series 2019-B, Class A, 2.49%, 04/15/2026		270,000	276,311
Series 2019-C, Class A, 2.21%, 07/15/2026		235,000	239,899
Total Asset-Backed Securities (Cost $26,653,506)			26,321,418
U.S. Government Sponsored Agency Mortgage-Backed Securities–20.12%
Collateralized Mortgage Obligations–2.28%
Fannie Mae Interest STRIPS,
IO, 7.50%, 05/25/2023 to 11/25/2029		80,351	9,334
7.00%, 06/25/2023 to 04/25/2032		173,175	27,471
6.50%, 04/25/2029 to 02/25/2033		371,815	79,323
6.00%, 02/25/2033 to 03/25/2036		296,229	59,867
5.50%, 09/25/2033 to 06/25/2035		446,660	83,978
Fannie Mae REMICs,
3.00%, 12/25/2020 to 11/25/2027		126,302	7,679
5.50%, 04/25/2023 to 07/25/2046		215,748	143,331
6.50%, 06/25/2023 to 10/25/2031		155,591	174,073
4.00%, 08/25/2026 to 08/25/2047		338,563	21,201
6.00%, 11/25/2028 to 12/25/2031		99,997	115,321
0.43% (1 mo. USD LIBOR + 0.25%), 08/25/2035(d)		1,220	1,216
23.89% (24.57% - (3.67 x 1 mo. USD LIBOR)), 03/25/2036(d)		50,383	85,236
23.52% (24.20% - (3.67 x 1 mo. USD LIBOR)), 06/25/2036(d)		37,773	61,143
23.52% (24.20% - (3.67 x 1 mo. USD LIBOR)), 06/25/2036(d)		30,610	50,782
1.12% (1 mo. USD LIBOR + 0.94%), 06/25/2037(d)		16,763	17,093
1.50%, 01/25/2040		120,658	121,336
PO, 0.00%, 09/25/2023(g)		20,780	20,475
IO, 6.52%, 02/25/2024 to 05/25/2035		153,136	29,618
6.92% (7.10% - 1 mo. USD LIBOR), 11/25/2030(d)		60,256	11,258
7.71%, 11/18/2031 to 12/18/2031		3,978	871
7.72%, 11/25/2031		77,281	15,702
7.07% (1 mo. USD LIBOR + 7.25%), 01/25/2032(d)		4,324	906

	Principal Amount		Value
Collateralized Mortgage Obligations–(continued)
7.77% (1 mo. USD LIBOR + 7.95%), 01/25/2032(d)	$	21,061	$      4,470
7.81%, 03/18/2032 to 12/18/2032		7,543	1,776
7.92%, 03/25/2032 to 04/25/2032		6,130	1,459
6.82%, 04/25/2032 to 08/25/2032		16,208	3,261
7.62% (7.80% - 1 mo. USD LIBOR), 04/25/2032(d)		701	156
7.82%, 04/25/2032 to 12/25/2032		307,617	69,996
6.83% (1 mo. USD LIBOR + 7.00%), 09/25/2032(d)		3,510	723
7.91%, 12/18/2032		32,333	5,812
8.07%, 02/25/2033 to 05/25/2033		118,080	28,677
7.00%, 04/25/2033		3,209	756
5.87%, 03/25/2035 to 07/25/2038		54,287	10,400
6.57%, 03/25/2035 to 05/25/2035		22,775	3,944
6.42% (1 mo. USD LIBOR + 6.60%), 05/25/2035(d)		40,534	6,896
3.50%, 08/25/2035		338,610	41,520
5.92% (1 mo. USD LIBOR + 6.10%), 10/25/2035(d)		116,695	23,337
6.37% (6.55% - 1 mo. USD LIBOR), 10/25/2041(d)		38,061	8,000
5.97% (6.15% - 1 mo. USD LIBOR), 12/25/2042(d)		106,591	22,016
5.00% (5.90% - 1 mo. USD LIBOR), 09/25/2047(d)		769,079	103,729
Freddie Mac Multifamily Structured Pass Through Ctfs.,
Series KC02, Class X1, 0.50%, 03/25/2024(f)		4,560,797	58,376
Series KC03, Class X1, 0.63%, 11/25/2024(f)		2,754,493	52,073
Series K734, Class X1, 0.79%, 02/25/2026(f)		2,047,768	63,632
Series K735, Class X1, 1.10%, 05/25/2026(f)		2,158,088	105,792
Series K093, Class X1, 1.09%, 05/25/2029(f)		1,691,978	121,532
Freddie Mac REMICs,
3.00%, 12/15/2020 to 05/15/2040		423,173	27,733
1.50%, 07/15/2023		28,430	28,559
6.75%, 02/15/2024		3,640	3,892
6.50%, 02/15/2028 to 06/15/2032		430,659	491,170
8.00%, 03/15/2030		693	838
1.18% (1 mo. USD LIBOR + 1.00%), 02/15/2032(d)		832	847
3.50%, 05/15/2032		15,221	16,341
24.07% (24.75% - (3.67 x 1 mo. USD LIBOR)), 08/15/2035(d)		8,595	14,576
0.58% (1 mo. USD LIBOR + 0.40%), 09/15/2035(d)		1,339	1,341
4.00%, 04/15/2040 to 03/15/2045		145,017	15,192
5.00%, 06/15/2040		190	191

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco Oppenheimer V.I. Total Return Bond Fund

	Principal Amount		Value
Collateralized Mortgage Obligations–(continued)
IO, 7.47%, 07/15/2026 to 03/15/2029	$	103,930	$      15,468
2.50%, 05/15/2028		80,245	4,419
8.51%, 07/17/2028		1,258	134
7.92% (8.10% - 1 mo. USD LIBOR), 06/15/2029(d)		1,391	283
6.52% (6.70% - 1 mo. USD LIBOR), 01/15/2035(d)		295,609	60,140
6.57% (6.75% - 1 mo. USD LIBOR), 02/15/2035(d)		35,727	7,192
6.54% (6.72% - 1 mo. USD LIBOR), 05/15/2035(d)		40,163	6,814
5.97% (6.15% - 1 mo. USD LIBOR), 07/15/2035(d)		12,518	1,848
6.82% (7.00% - 1 mo. USD LIBOR), 12/15/2037(d)		6,679	1,571
5.82% (1 mo. USD LIBOR + 6.00%), 04/15/2038(d)		4,827	887
5.89% (6.07% - 1 mo. USD LIBOR), 05/15/2038(d)		199,876	41,731
6.07% (1 mo. USD LIBOR + 6.25%), 12/15/2039(d)		48,082	9,569
5.92% (6.10% - 1 mo. USD LIBOR), 01/15/2044(d)		126,162	18,227
Freddie Mac STRIPS,
PO, 0.00%, 06/01/2026(g)		14,049	13,642
IO, 3.00%, 12/15/2027		183,030	12,518
3.27%, 12/15/2027(f)		47,364	2,693
7.00%, 09/01/2029		2,928	545
7.50%, 12/15/2029		54,326	10,806
6.00%, 12/15/2032		33,514	5,675
			2,690,389
Federal Home Loan Mortgage Corp. (FHLMC)–0.43%
9.00%, 08/01/2022 to 05/01/2025		2,125	2,312
6.00%, 10/01/2022 to 10/01/2029		154,760	173,465
6.50%, 07/01/2028 to 04/01/2034		69,519	78,904
7.00%, 10/01/2031 to 10/01/2037		59,875	69,742
5.00%, 12/01/2034		2,729	3,052
5.50%, 09/01/2039		159,414	181,525
			509,000

	Principal Amount		Value
Federal National Mortgage Association (FNMA)–13.47%
5.00%, 03/01/2021 to 07/01/2022	$	299	$      314
7.00%, 01/01/2030 to 12/01/2032		10,061	11,759
8.50%, 07/01/2032		2,341	2,356
7.50%, 01/01/2033		2,175	2,578
6.50%, 01/01/2034		4,369	4,961
5.50%, 02/01/2035 to 05/01/2036		73,658	84,553
TBA, 2.50%, 07/01/2035(h)		1,465,000	1,533,500
3.00%, 07/01/2035 to 07/01/2050(h)		8,145,000	8,573,833
3.50%, 07/01/2050(h)		5,435,000	5,716,092
			15,929,946
Government National Mortgage Association (GNMA)–3.94%
7.00%, 12/15/2023 to 03/15/2026		2,102	2,227
IO, 7.30% (7.50% - 1 mo. USD LIBOR), 02/16/2032(d)		77,354	251
6.35% (6.55% - 1 mo. USD LIBOR), 04/16/2037(d)		42,739	8,731
6.45% (6.65% - 1 mo. USD LIBOR), 04/16/2041(d)		275,121	50,404
4.50%, 09/16/2047		256,472	38,569
6.00% (6.20% - 1 mo. USD LIBOR), 10/16/2047(d)		288,119	51,892
TBA, 3.50%, 07/01/2050(h)		4,265,000	4,500,908
			4,652,982
Total U.S. Government Sponsored Agency Mortgage-Backed Securities (Cost $24,473,131)			23,782,317
U.S. Treasury Securities–5.91%
U.S. Treasury Bonds–1.47%
1.13%, 05/15/2040		14,200	14,070
2.00%, 02/15/2050		1,505,800	1,724,082
			1,738,152
U.S. Treasury Notes–4.44%
0.13%, 05/15/2023		168,000	167,770
0.25%, 06/15/2023		325,000	325,711
0.25%, 06/30/2025		1,500,000	1,497,217
0.50%, 06/30/2027		466,800	467,146
0.63%, 05/15/2030		2,800,800	2,792,704
			5,250,548
Total U.S. Treasury Securities (Cost $6,898,103)			6,988,700

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco Oppenheimer V.I. Total Return Bond Fund

	Principal Amount		Value
Agency Credit Risk Transfer Notes–2.30%
Fannie Mae Connecticut Avenue Securities
Series 2014-C02, Class M2, 4.58% (1 mo. USD LIBOR + 4.40%), 01/25/2024(d)	$	206,998	$      185,164
Series 2014-C02, Class 1M2, 2.78% (1 mo. USD LIBOR + 2.60%), 05/25/2024(d)		142,532	125,892
Series 2014-C03, Class 2M2, 3.08% (1 mo. USD LIBOR + 2.90%), 07/25/2024(d)		38,747	35,858
Series 2014-C03, Class 1M2, 3.18% (1 mo. USD LIBOR + 3.00%), 07/25/2024(d)		229,346	202,868
Series 2014-C04, Class 2M2, 5.18% (1 mo. USD LIBOR + 5.00%), 11/25/2024(d)		218,667	226,330
Series 2016-C01, Class 1M2, 6.93% (1 mo. USD LIBOR + 6.75%), 08/25/2028(d)		115,898	122,370
Series 2016-C02, Class 1M2, 6.18% (1 mo. USD LIBOR + 6.00%), 09/25/2028(d)		209,508	218,886
Series 2016-C06, Class 1M2, 4.43% (1 mo. USD LIBOR + 4.25%), 04/25/2029(d)		259,875	273,787
Series 2017-C01, Class 1M2, 3.73% (1 mo. USD LIBOR + 3.55%), 07/25/2029(d)		162,326	166,440
Series 2017-C03, Class 1M1, 1.13% (1 mo. USD LIBOR + 0.95%), 10/25/2029(d)		70,345	70,334
Freddie Mac
Series 2014-DN1, Class M2, STACR® , 2.38% (1 mo. USD LIBOR + 2.20%), 02/25/2024(d)		13,943	13,991
Series 2014-DN3, Class M3, STACR® , 4.17% (1 mo. USD LIBOR + 4.00%), 08/25/2024(d)		136,225	139,350
Series 2014-HQ2, Class M3, STACR® , 3.93% (1 mo. USD LIBOR + 3.75%), 09/25/2024(d)		335,000	345,388
Series 2016-DNA2, Class M3, STACR® , 4.82% (1 mo. USD LIBOR + 4.65%), 10/25/2028(d)		189,297	198,753
Series 2016-DNA4, Class M2, STACR® , 1.48% (1 mo. USD LIBOR + 1.30%), 03/25/2029(d)		18,140	18,126
Series 2018-HQA1, Class M2, STACR® , 2.48% (1 mo. USD LIBOR + 2.30%), 09/25/2030(d)		88,165	87,680
Series 2018-DNA2, Class M1, STACR® , 0.98% (1 mo. USD LIBOR + 0.80%), 12/25/2030(b)(d)		42,214	42,134
Series 2018-HRP2, Class M2, STACR® , 1.43% (1 mo. USD LIBOR + 1.25%), 02/25/2047(b)(d)		164,282	162,128
Series 2018-DNA3, Class M1, STACR® , 0.93% (1 mo. USD LIBOR + 0.75%), 09/25/2048(b)(d)		165	165

	Principal Amount		Value
Series 2018-HQA2, Class M1, STACR® , 0.93% (1 mo. USD LIBOR + 0.75%), 10/25/2048(b)(d)	$	27,110	$      27,078
Series 2019-HRP1, Class M2, STACR® , 1.57% (1 mo. USD LIBOR + 1.40%), 02/25/2049(b)(d)		60,000	57,532
Total Agency Credit Risk Transfer Notes (Cost $2,876,814)			2,720,254
Municipal Obligations–0.64%
Grand Parkway Transportation Corp., Series 2020, Ref. RB, 3.24%, 10/01/2052		265,000	276,591
Massachusetts (Commonwealth of), Series 2020 C, Ref. GO Bonds, 2.51%, 07/01/2041		110,000	110,605
Texas (State of) Transportation Commission, Series 2020, Ref. GO Bonds, 2.56%, 04/01/2042		100,000	101,687
Texas (State of) Transportation Commission (Central Texas Turnpike System), Series 2020 C, Ref. RB, 3.03%, 08/15/2041		280,000	267,728
Total Municipal Obligations (Cost $755,000)			756,611

Non-U.S. Dollar Denominated Bonds & Notes–0.27%(i)
Integrated Telecommunication Services–0.27%
AT&T, Inc., Series B, 2.88% (Cost $326,250)(c)	EUR	300,000	320,761

	Shares
Money Market Funds–16.79%
Invesco Government & Agency Portfolio, Institutional Class, 0.09%(j)(k)		6,948,001	6,948,001
Invesco Liquid Assets Portfolio, Institutional Class, 0.39%(j)(k)		4,958,046	4,961,517
Invesco Treasury Portfolio, Institutional Class, 0.08%(j)(k)		7,940,573	7,940,573
Total Money Market Funds (Cost $19,850,848)			19,850,091
TOTAL INVESTMENTS IN SECURITIES–116.05% (Cost $134,707,445)			137,210,559
OTHER ASSETS LESS LIABILITIES—(16.05)%			(18,975,415)
NET ASSETS–100.00%			$118,235,144

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco Oppenheimer V.I. Total Return Bond Fund

Investment Abbreviations:

CLO	– Collateralized Loan Obligation
Ctfs.	– Certificates
EUR	– Euro
GO	– General Obligation
ICE	– Intercontinental Exchange
IO	– Interest Only
LIBOR	– London Interbank Offered Rate
PO	– Principal only
RB	– Revenue Bonds
Ref.	– Refunding
REIT	– Real Estate Investment Trust
REMICs	– Real Estate Mortgage Investment Conduits
STACR®	– Structured Agency Credit Risk
STRIPS	– Separately Traded Registered Interest and Principal Security
TBA	– To Be Announced
USD	– U.S. Dollar

Notes to Schedule of Investments:

^(a)  Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s.

^(b)  Security purchased or received in a transaction exempt from registration under the Securities Act of 1933, as amended (the “1933 Act”). The security may be resold pursuant to an exemption from registration under the 1933 Act, typically to qualified institutional buyers. The aggregate value of these securities at June 30, 2020 was $27,438,990, which represented 23.21% of the Fund’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, 2020.

^(e)  Step coupon bond. The interest rate represents the coupon rate at which the bond will accrue at a specified future date.

^(f)  Interest rate is redetermined periodically based on the cash flows generated by the pool of assets backing the security, less any applicable fees. The rate shown is the rate in effect on June 30, 2020.

^(g)  Zero coupon bond issued at a discount. The interest rate shown represents the yield to maturity at issue.

^(h)  Security purchased on a forward commitment basis. This security is subject to dollar roll transactions. See Note 1N. (i) Foreign denominated security. Principal amount is denominated in the currency indicated.

^(j)  Affiliated issuer. The issuer and/or the Fund is a wholly-owned subsidiary of Invesco Ltd., or is affiliated by having an investment adviser that is under common control of Invesco Ltd. The table below shows the Fund’s transactions in, and earnings from, its investments in affiliates for the six months ended June 30, 2020.

	Value December 31, 2019		Purchases at Cost		Proceeds from Sales		Change in Unrealized Appreciation		Realized Gain		Value June 30, 2020		Dividend Income
Investments in Affiliated Money Market Funds:
Invesco Government & Agency Portfolio, Institutional Class		$                -		$11,119,295		$(4,171,294)		$        -		$        -		$  6,948,001		$ 10,645
Invesco Liquid Assets Portfolio, Institutional Class		21,539,049		37,333,810		(53,925,703)		5,705		8,656		4,961,517		104,749
Invesco Treasury Portfolio, Institutional Class		-		12,707,766		(4,767,193)		-		-		7,940,573		654
Total		$21,539,049		$61,160,871		$(62,864,190)		$5,705		$8,656		$19,850,091		$116,048

^(k)  The rate shown is the 7-day SEC standardized yield as of June 30, 2020.

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco Oppenheimer V.I. Total Return Bond Fund

Portfolio Composition

By sector, based on Net Assets

as of June 30, 2020

Collateralized Mortgage Obligations	22.42	%
Asset-Backed Securities	22.26
Financials	17.28
U.S. Treasury Securities	5.91
Consumer Discretionary	3.85
Health Care	3.78
Consumer Staples	3.77
Information Technology	3.76
Industrials	3.39
Energy	3.38
Communication Services	2.75
Utilities	2.41
Real Estate	2.04
Materials	2.03
Municipal Obligations	0.23
Money Market Funds Plus Other Assets Less Liabilities	0.74

Open Futures Contracts

Long Futures Contracts	Number of Contracts		Expiration Month		Notional Value			Value			Unrealized Appreciation (Depreciation)
Interest Rate Risk
U.S. Treasury 2 Year Notes		140		September-2020		$30,915,938			$   9,624			$  9,624
U.S. Treasury 5 Year Notes		25		September-2020		3,143,555			3,478			3,478
U.S. Treasury Ultra Bonds		46		September-2020		10,035,187			26,868			26,868
Subtotal–Long Futures Contracts									39,970			39,970
Short Futures Contracts
Interest Rate Risk
U.S. Treasury 10 Year Notes		63		September-2020		(8,767,828	)		(20,805	)		(20,805	)
U.S. Treasury 10 Year Ultra Bonds		3		September-2020		(472,453	)		884			884
U.S. Treasury Long Bonds		14		September-2020		(2,499,875	)		(6,587	)		(6,587	)
Subtotal–Short Futures Contracts									(26,508	)		(26,508	)
Total Futures Contracts									$ 13,462			$13,462

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco Oppenheimer V.I. Total Return Bond Fund

Statement of Assets and Liabilities

June 30, 2020

(Unaudited)

Assets:
Investments in securities, at value (Cost $ 114,856,597)	$	117,360,468
Investments in affiliated money market funds, at value (Cost $ 19,850,848)		19,850,091
Other investments:
Variation margin receivable – futures contracts		732,455
Cash		663,647
Receivable for:
Investments sold		3,272,228
Fund shares sold		600,831
Dividends		13,194
Interest		473,958
Principal paydowns		70,235
Investment for trustee deferred compensation and retirement plans		41,048
Total assets		143,078,155
Liabilities:
Payable for:
Investments purchased		24,494,603
Fund shares reacquired		131,066
Accrued fees to affiliates		60,730
Accrued trustees’ and officers’ fees and benefits		2,845
Accrued other operating expenses		112,719
Trustee deferred compensation and retirement plans		41,048
Total liabilities		24,843,011
Net assets applicable to shares outstanding	$	118,235,144
Net assets consist of:
Shares of beneficial interest	$	107,591,286
Distributable earnings		10,643,858
	$	118,235,144
Net Assets:
Series I	$	76,997,470
Series II	$	41,237,674
Shares outstanding, no par value, with an unlimited number of shares authorized:
Series I		9,076,233
Series II		4,936,983
Series I:
Net asset value per share	$	8.48
Series II:
Net asset value per share	$	8.35

Statement of Operations

For the six months ended June 30, 2020

(Unaudited)

Investment income:
Interest (net of foreign withholding taxes of $ 11)	$	1,724,667
Dividends from affiliated money market funds		116,048
Total investment income		1,840,715
Expenses:
Advisory fees		357,584
Administrative services fees		98,869
Custodian fees		27,371
Distribution fees - Series II		59,580
Transfer agent fees		9,620
Trustees’ and officers’ fees and benefits		8,313
Reports to shareholders		20,062
Professional services fees		26,652
Other		4,020
Total expenses		612,071
Less: Fees waived		(95,279	)
Net expenses		516,792
Net investment income		1,323,923
Realized and unrealized gain from:
Net realized gain from:
Investment securities		3,900,399
Foreign currencies		969
Futures contracts		1,962,199
		5,863,567
Change in net unrealized appreciation of:
Investment securities		532,359
Foreign currencies		71
Futures contracts		431,712
		964,142
Net realized and unrealized gain		6,827,709
Net increase in net assets resulting from operations	$	8,151,632

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco Oppenheimer V.I. Total Return Bond Fund

Statement of Changes in Net Assets

For the six months ended June 30, 2020 and the year ended December 31, 2019

(Unaudited)

	June 30, 2020			December 31, 2019
Operations:
Net investment income	$	1,323,923		$	3,626,205
Net realized gain		5,863,567			4,087,528
Change in net unrealized appreciation		964,142			3,532,308
Net increase in net assets resulting from operations		8,151,632			11,246,041
Distributions to shareholders from distributable earnings:
Series I		–			(2,462,939	)
Series II		–			(1,702,386	)
Total distributions from distributable earnings		–			(4,165,325	)
Share transactions-net:
Series I		(1,211,704	)		(6,004,640	)
Series II		(9,103,515	)		(1,997,752	)
Net increase (decrease) in net assets resulting from share transactions		(10,315,219	)		(8,002,392	)
Net increase (decrease) in net assets		(2,163,587	)		(921,676	)
Net assets:
Beginning of period		120,398,731			121,320,407
End of period	$	118,235,144		$	120,398,731

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco Oppenheimer V.I. Total Return Bond Fund

Financial Highlights

(Unaudited)

The following schedule presents financial highlights for a share of the Fund outstanding throughout the periods indicated.

																												Ratio of			Ratio of
																												expenses			expenses
							Net gains																					to average			to average net
							(losses)																					net assets			assets without			Ratio of net
	Net asset						on securities								Dividends													with fee waivers			fee waivers			investment
	value,			Net			(both				Total from				from net				Net asset						Net assets,			and/or			and/or			income
	beginning			investment			realized and				investment				investment				value, end			Total			end of period			expenses			expenses			to average			Portfolio
	of period			income(a)			unrealized)				operations				income				of period			return (b)			(000’s omitted)			absorbed			absorbed(c)			net assets			turnover (d)
Series I
Six months ended 06/30/20		$	7.93		$	0.09		$	0.46			$	0.55			$	–			$	8.48		6.94	%		$	76,997		0.75	%(e)		0.90	%(e)		2.26	%(e)		233	%
Year ended 12/31/19			7.49			0.23			0.48				0.71				(0.27	)			7.93		9.53				73,160		0.75			0.89			2.99			93	(f)
Year ended 12/31/18			7.83			0.25			(0.33	)			(0.08	)			(0.26	)			7.49		(1.02	)			74,929		0.75			0.87			3.35			64	(f)
Year ended 12/31/17			7.67			0.19			0.16				0.35				(0.19	)			7.83		4.59				81,481		0.75			0.85			2.38			86	(f)
Year ended 12/31/16			7.71			0.23			0.02				0.25				(0.29	)			7.67		3.27				83,405		0.75			0.84			2.96			79	(f)
Year ended 12/31/15			7.96			0.27			(0.19	)			0.08				(0.33	)			7.71		0.96				85,160		0.75			0.82			3.46			73	(f)
Series II
Six months ended 06/30/20			7.82			0.08			0.45				0.53				–				8.35		6.78				41,238		1.00	(e)		1.15	(e)		2.01	(e)		233
Year ended 12/31/19			7.39			0.21			0.47				0.68				(0.25	)			7.82		9.25				47,239		1.00			1.14			2.75			93	(f)
Year ended 12/31/18			7.73			0.23			(0.33	)			(0.10	)			(0.24	)			7.39		(1.31	)			46,391		1.00			1.12			3.10			64	(f)
Year ended 12/31/17			7.57			0.16			0.17				0.33				(0.17	)			7.73		4.38				51,030		1.00			1.10			2.13			86	(f)
Year ended 12/31/16			7.61			0.21			0.02				0.23				(0.27	)			7.57		3.05				53,350		1.00			1.09			2.70			79	(f)
Year ended 12/31/15			7.86			0.25			(0.19	)			0.06				(0.31	)			7.61		0.70				52,519		1.00			1.07			3.21			73	(f)

^(a) Calculated using average shares outstanding.

^(b)  Includes adjustments in accordance with accounting principles generally accepted in the United States of America. 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) Does not include indirect expenses from affiliated fund fees and expenses of 0.01%, 0.00%, 0.00%, 0.01% and 0.01% for the years ended December 31, 2019, 2018, 2017, 2016 and 2015, respectively.

^(d) Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable.

^(e) Ratios are annualized and based on average daily net assets (000’s omitted) of $74,855 and $47,926 for Series I and Series II shares, respectively.

^(f)  The portfolio turnover rate excludes purchase and sale transactions of To Be Announced (TBA) mortgage-related securities of $488,722,598 and $507,909,671, $641,318,699 and $653,537,737, $679,964,368 and $662,714,451, $672,031,328 and $673,808,454 and $697,962,198 and $709,720,690 for the years ended December 31, 2019, 2018, 2017, 2016 and 2015, respectively.

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco Oppenheimer V.I. Total Return Bond Fund

Notes to Financial Statements

June 30, 2020

(Unaudited)

NOTE 1–Significant Accounting Policies

Invesco Oppenheimer V.I. Total Return Bond 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. Information presented in these financial statements pertains only to the Fund. Matters affecting the Fund or each class will be voted on exclusively by the shareholders of the Fund or each class. 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 total return.

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 Fund is an investment company and accordingly follows the investment company accounting and reporting guidance in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 946, Financial Services – Investment Companies.

The following is a summary of the significant accounting policies followed by the Fund in the preparation of its financial statements. A. Security Valuations – Securities, including restricted securities, are valued according to the following policy.

Debt obligations (including convertible securities) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. Pricing services generally value debt obligations assuming orderly transactions of institutional round lot size, but a fund may hold or transact in the same securities in smaller, odd lot sizes. Odd lots often trade at lower prices than institutional round lots. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.

A security listed or traded on an exchange (except convertible securities) is valued at its last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded, or lacking any sales or official closing price on a particular day, the security may be valued at the closing bid price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued by an independent pricing service they may be considered fair valued. Futures contracts are valued at the final settlement price set by an exchange on which they are principally traded. Listed options are valued at the mean between the last bid and asked 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 asked prices. For purposes of determining net asset value (“NAV”) 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, if available, provided by an independent pricing service. Evaluated quotes provided by the pricing service are valued based on a model which may include end-of-day net present values, spreads, ratings, industry, company performance and returns of referenced assets. Centrally cleared swap agreements are valued at the daily settlement price determined by the relevant exchange or clearinghouse.

Foreign securities’ (including foreign exchange contracts) prices are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the NYSE. If market quotations are available and reliable for foreign exchange-traded equity securities, the securities will be valued at the market quotations. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become unreliable. If between the time trading ends on a particular security and the close of the customary trading session on the NYSE, events occur that the investment adviser determines are significant and make the closing price unreliable, the Fund may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith using procedures approved by the Board of Trustees. Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities’ prices meeting the approved degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economic upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.

Securities for which market prices are not provided by any of the above methods may be valued based upon quotes furnished by independent sources. The last bid price may be used to value equity securities. The mean between the last bid and asked prices is used to value debt obligations, including corporate loans.

Securities for which market quotations are not readily available or became unreliable are valued at fair value as determined in good faith by or under the supervision of the Trust’s officers following procedures approved by the Board of Trustees. Issuer specific events, market trends, bid/asked quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security’s fair value.

The Fund may invest in securities that are subject to interest rate risk, meaning the risk that the prices will generally fall as interest rates rise and, conversely, the prices will generally rise as interest rates fall. Specific securities differ in their sensitivity to changes in interest rates depending on their individual characteristics. Changes in interest rates may result in increased market volatility, which may affect the value and/or liquidity of certain Fund investments.

Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the issuer’s assets, general market conditions which are not specifically related to the particular issuer, such as real or perceived adverse economic conditions, changes in the general outlook for revenues or corporate earnings, changes in interest or currency rates, regional or global instability, natural or environmental disasters, widespread disease or other public health issues, war, acts of terrorism or adverse investor sentiment generally and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

B. Securities Transactions and Investment Income – Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income (net of withholding tax, if any) is recorded on an accrual basis from settlement date. Bond premiums and discounts are amortized and/or accreted over the lives of the respective securities. Pay-in-kind interest income and non-cash

Invesco Oppenheimer V.I. Total Return Bond Fund

dividend income received in the form of securities in-lieu of cash are recorded at the fair value of the securities received. Paydown gains and losses on mortgage and asset-backed securities are recorded as adjustments to interest income. Dividend income (net of withholding tax, if any) is recorded on the ex-dividend date.

The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Statement of Operations as realized gain (loss) for investments no longer held and as unrealized gain (loss) for investments still held.

Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of net realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the net realized and unrealized gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and the Statement of Changes in Net Assets, or the net investment income per share and the ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.

The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class.

C. Country Determination – For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues 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 net investment income and net realized capital gain, if any, are generally declared and paid to separate accounts of participating insurance companies annually and recorded on the ex-dividend date.

E. Securities Purchased on a When-Issued and Delayed Delivery Basis – The Fund may purchase and sell interests in corporate loans and corporate debt securities and other portfolio securities on a when-issued and delayed delivery basis, with payment and delivery scheduled for a future date. No income accrues to the Fund on such interests or securities in connection with such transactions prior to the date the Fund actually takes delivery of such interests or securities. These transactions are subject to market fluctuations and are subject to the risk that the value at delivery may be more or less than the trade date purchase price. Although the Fund will generally purchase these securities with the intention of acquiring such securities, they may sell such securities prior to the settlement date.

F. Federal Income Taxes - The Fund intends to comply with the requirements of Subchapter M of the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”), necessary to qualify as a regulated investment company and to distribute substantially all of the Fund’s taxable earnings to shareholders. As such, the Fund will not be subject to federal income taxes on otherwise taxable income (including net realized capital gain) that is distributed to shareholders. Therefore, no provision for federal income taxes is recorded in the financial statements.

The Fund recognizes the tax benefits of uncertain tax positions only when the position is more likely than not to be sustained. Management has analyzed the Fund’s uncertain tax positions and concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions. Management is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the next 12 months.

The Fund files tax returns in the U.S. Federal jurisdiction and certain other jurisdictions. Generally, the Fund is subject to examinations by such taxing authorities for up to three years after the filing of the return for the tax period.

G. 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.

H. Accounting Estimates - The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print.

I. Indemnifications - Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of the performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements, that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote.

J. 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.

K. Foreign Currency Translations – Foreign currency is valued at the close of the NYSE based on quotations posted by banks and major currency dealers. Portfolio securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at the date of valuation. Purchases and sales of portfolio securities (net of foreign taxes withheld on disposition) and income items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. The Fund does not separately account for the portion of the results of operations resulting from changes in foreign exchange rates on investments and the fluctuations arising from changes in market prices of securities held. The combined results of changes in foreign exchange rates and the fluctuation of market prices on investments (net of estimated foreign tax withholding) are included with the net realized and unrealized gain or loss from investments in the Statement of Operations. Reported net realized foreign currency gains or losses arise from (1) sales of foreign currencies, (2) currency gains or losses realized between the trade and settlement dates on securities transactions, and (3) the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign currency gains and losses arise from changes in the fair values of assets and liabilities, other than investments in securities at fiscal period end, resulting from changes in exchange rates.

The Fund may invest in foreign securities, which may be subject to foreign taxes on income, gains on investments or currency repatriation, a portion of which may be recoverable. Foreign taxes, if any, are recorded based on the tax regulations and rates that exist in the foreign markets in which the Fund invests and are shown in the Statement of Operations.

L. Forward Foreign Currency Contracts – The Fund may engage in foreign currency transactions either on a spot (i.e. for prompt delivery and settlement) basis, or through forward foreign currency contracts, to manage or minimize currency or exchange rate risk.

The Fund may also enter into forward foreign currency contracts for the purchase or sale of a security denominated in a foreign currency in order to “lock in” the U.S. dollar price of that security, or the Fund may also enter into forward foreign currency contracts that do not provide for physical settlement of the two currencies, but instead are settled by a single cash payment calculated as the difference between the agreed upon exchange rate and the spot rate at settlement

Invesco Oppenheimer V.I. Total Return Bond Fund

based upon an agreed upon notional amount (non-deliverable forwards). The Fund will set aside liquid assets in an amount equal to the daily mark-to-market obligation for forward foreign currency contracts.

A forward foreign currency contract is an obligation between two parties (“Counterparties”) to purchase or sell a specific currency for an agreed-upon price at a future date. The use of forward foreign currency contracts does not eliminate fluctuations in the price of the underlying securities the Fund owns or intends to acquire but establishes a rate of exchange in advance. Fluctuations in the value of these contracts are measured by the difference in the contract date and reporting date exchange rates and are recorded as unrealized appreciation (depreciation) until the contracts are closed. When the contracts are closed, realized gains (losses) are recorded. Realized and unrealized gains (losses) on the contracts are included in the Statement of Operations. The primary risks associated with forward foreign currency contracts include failure of the Counterparty to meet the terms of the contract and the value of the foreign currency changing unfavorably. These risks may be in excess of the amounts reflected in the Statement of Assets and Liabilities.

M. Futures Contracts – The Fund may enter into futures contracts to manage exposure to interest rate, equity and market price movements and/or currency risks. A futures contract is an agreement between Counterparties to purchase or sell a specified underlying security, currency or commodity (or delivery of a cash settlement price, in the case of an index future) for a fixed price at a future date. The Fund currently invests only in exchange-traded futures and they are standardized as to maturity date and underlying financial instrument. Initial margin deposits required upon entering into futures contracts are satisfied by the segregation of specific securities or cash as collateral at the futures commission merchant (broker). During the period the futures contracts are open, changes in the value of the contracts are recognized as unrealized gains or losses by recalculating the value of the contracts on a daily basis. Subsequent or variation margin payments are received or made depending upon whether unrealized gains or losses are incurred. These amounts are reflected as receivables or payables on the Statement of Assets and Liabilities. When the contracts are closed or expire, the Fund recognizes a realized gain or loss equal to the difference between the proceeds from, or cost of, the closing transaction and the Fund’s basis in the contract. The net realized gain (loss) and the change in unrealized gain (loss) on futures contracts held during the period is included on the Statement of Operations. The primary risks associated with futures contracts are market risk and the absence of a liquid secondary market. If the Fund were unable to liquidate a futures contract and/or enter into an offsetting closing transaction, the Fund would continue to be subject to market risk with respect to the value of the contracts and continue to be required to maintain the margin deposits on the futures contracts. Futures contracts have minimal Counterparty risk since the exchange’s clearinghouse, as Counterparty to all exchange-traded futures, guarantees the futures against default. Risks may exceed amounts recognized in the Statement of Assets and Liabilities.

N. Dollar Rolls and Forward Commitment Transactions – The Fund may enter into dollar roll transactions to enhance the Fund’s performance. The Fund executes its dollar roll transactions in the to be announced (“TBA”) market whereby the Fund makes a forward commitment to purchase a security and, instead of accepting delivery, the position is offset by the sale of the security with a simultaneous agreement to repurchase at a future date.

The Fund accounts for dollar roll transactions as purchases and sales and realizes gains and losses on these transactions. These transactions increase the Fund’s portfolio turnover rate. The Fund will segregate liquid assets in an amount equal to its dollar roll commitments.

Dollar roll transactions involve the risk that a Counterparty to the transaction may fail to complete the transaction. If this occurs, the Fund may lose the opportunity to purchase or sell the security at the agreed upon price. Dollar roll transactions also involve the risk that the value of the securities retained by the Fund may decline below the price of the securities that the Fund has sold but is obligated to purchase under the agreement. Dollar roll transactions covered in this manner are not treated as senior securities for purposes of a Fund’s fundamental investment limitation on senior securities and borrowings.

O. Other Risks – Active trading of portfolio securities may result in added expenses, a lower return and increased tax liability. Mortgage- and asset-backed securities, including collateralized debt obligations and collateralized mortgage obligations, are subject to prepayment or call risk, which is the risk that a borrower’s payments may be received earlier or later than expected due to changes in prepayment rates on underlying loans. This could result in the Fund reinvesting these early payments at lower interest rates, thereby reducing the Fund’s income. Mortgage- and asset-backed securities also are subject to extension risk, which is the risk that an unexpected rise in interest rates could reduce the rate of prepayments, causing the price of the mortgage- and asset-backed securities and the Fund’s share price to fall. An unexpectedly high rate of defaults on the mortgages held by a mortgage pool may adversely affect the value of mortgage-backed securities and could result in losses to the Fund. Privately-issued mortgage-backed securities and asset-backed securities may be less liquid than other types of securities and the Fund may be unable to sell these securities at the time or price it desires.

P. Leverage Risk – Leverage exists when the Fund can lose more than it originally invests because it purchases or sells an instrument or enters into a transaction without investing an amount equal to the full economic exposure of the instrument or transaction.

Q. Collateral – To the extent the Fund has designated or segregated a security as collateral and that security is subsequently sold, it is the Fund’s practice to replace such collateral no later than the next business day.

NOTE 2–Advisory Fees and Other Fees Paid to Affiliates

The Trust has entered into a master investment advisory agreement with Invesco Advisers, Inc. (the “Adviser” or “Invesco”). Under the terms of the investment advisory agreement, the Fund accrues daily and pays monthly an advisory fee to the Adviser based on the annual rate of the Fund’s average daily net assets as follows:

Average Daily Net Assets*	Rate
Up to $1 billion	0.600%
Over $1 billion	0.500%

* The advisory fee paid by the Fund shall be reduced by any amounts paid by the Fund under the administrative services agreement with the Adviser.

For the six months ended June 30, 2020, the effective advisory fee rate incurred by the Fund was 0.59%.

Under the terms of a master sub-advisory agreement between the Adviser and each of Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Canada Ltd. and separate sub-advisory agreements with Invesco Capital Management LLC and Invesco Asset Management (India) Private Limited (collectively, the “Affiliated Sub-Advisers”) the Adviser, not the Fund, will pay 40% of the fees paid to the Adviser to any such Affiliated Sub-Adviser(s) that provide(s) discretionary investment management services to the Fund based on the percentage of assets allocated to such Affiliated Sub-Adviser(s). Invesco has also entered into a Sub-Advisory Agreement with OppenheimerFunds, Inc. to provide discretionary management services to the Funds.

The Adviser has contractually agreed, through at least May 31, 2021, 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 (the “expense limits”). In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause the total annual fund operating expenses after fee waiver and/or expense reimbursement to exceed the numbers reflected above: (1) interest; (2) taxes; (3) dividend expense on short sales; (4) extraordinary or non-routine items, including litigation expenses; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Unless Invesco continues the fee waiver agreement, it will terminate on May 31, 2021. During its term, the fee waiver agreement cannot be terminated or amended to increase the expense limits or reduce the advisory fee waiver without approval of the Board of Trustees. To the extent that the annualized expense ratio does not exceed the expense limits, the Adviser will retain its ability to be reimbursed for such fee waivers or reimbursements piror to the end of each fiscal year.

Invesco Oppenheimer V.I. Total Return Bond Fund

Further, the Adviser has contractually agreed, through at least June 30, 2022, 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, 2020, the Adviser waived advisory fees of $95,279.

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 fees paid to insurance companies that have agreed to provide certain administrative services to the Fund. These administrative services provided by the insurance companies may include, among other things: maintenance of master accounts with the Fund; tracking, recording and transmitting net purchase and redemption orders for Fund shares; maintaining and preserving records related to the purchase, redemption and other account activity of variable product owners; distributing copies of Fund documents such as prospectuses, proxy materials and periodic reports, to variable product owners, and responding to inquiries from variable product owners about the Fund. Pursuant to such agreement, for the six months ended June 30, 2020, Invesco was paid $8,746 for accounting and fund administrative services and was reimbursed $90,123 for fees paid to insurance companies. Invesco has entered into a sub-administration agreement whereby State Street Bank and Trust Company (“SSB”) serves as fund accountant and provides certain administrative services to the Fund. Pursuant to a custody agreement with the Trust on behalf of the Fund, SSB also serves as the Fund’s custodian.

The Trust has entered into a transfer agency and service agreement with Invesco Investment Services, Inc. (“IIS”) pursuant to which the Fund has agreed to pay IIS a fee for providing transfer agency and shareholder services to the Fund and reimburse IIS for certain expenses incurred by IIS in the course of providing such services. For the six months ended June 30, 2020, 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. The fees are accrued daily and paid monthly. 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, 2020, 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, 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, 2020. The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

	Level 1			Level 2		Level 3		Total
Investments in Securities
U.S. Dollar Denominated Bonds & Notes	$	–		$	56,470,407		$–	$	56,470,407
Asset-Backed Securities		–			26,321,418		–		26,321,418
U.S. Government Sponsored Agency Mortgage-Backed Securities		–			23,782,317		–		23,782,317
U.S. Treasury Securities		–			6,988,700		–		6,988,700
Agency Credit Risk Transfer Notes		–			2,720,254		–		2,720,254
Municipal Obligations		–			756,611		–		756,611
Non-U.S. Dollar Denominated Bonds & Notes		–			320,761		–		320,761
Money Market Funds		19,850,091			–		–		19,850,091
Total Investments in Securities		19,850,091			117,360,468		–		137,210,559
Other Investments - Assets*
Futures Contracts		40,854			–		–		40,854
Other Investments - Liabilities*
Futures Contracts		(27,392	)		–		–		(27,392	)
Total Other Investments		13,462			–		–		13,462
Total Investments	$	19,863,553		$	117,360,468		$–	$	137,224,021

* Unrealized appreciation (depreciation).

NOTE 4–Derivative Investments

The Fund may enter into an International Swaps and Derivatives Association Master Agreement (“ISDA Master Agreement”) under which a fund may trade OTC derivatives. An OTC transaction entered into under an ISDA Master Agreement typically involves a collateral posting arrangement, payment netting provisions and close-out netting provisions. These netting provisions allow for reduction of credit risk through netting of contractual obligations. The enforceability of the netting provisions of the ISDA Master Agreement depends on the governing law of the ISDA Master Agreement, among other factors.

Invesco Oppenheimer V.I. Total Return Bond Fund

For financial reporting purposes, the Fund does not offset OTC derivative assets or liabilities that are subject to ISDA Master Agreements in the Statement of Assets and Liabilities.

Value of Derivative Investments at Period-End

The table below summarizes the value of the Fund’s derivative investments, detailed by primary risk exposure, held as of June 30, 2020:

	Value
Derivative Assets	Interest Rate Risk
Unrealized appreciation on futures contracts – Exchange-Traded(a)	$	40,854
Derivatives not subject to master netting agreements		(40,854	)
Total Derivative Assets subject to master netting agreements	$	-

^(a)  The daily variation margin receivable (payable) at period-end is recorded in the Statement of Assets and Liabilities.

	Value
Derivative Liabilities	Interest Rate Risk
Unrealized depreciation on futures contracts – Exchange-Traded(a)	$	(27,392	)
Derivatives not subject to master netting agreements		27,392
Total Derivative Liabilities subject to master netting agreements	$	-

^(a)  The daily variation margin receivable (payable) at period-end is recorded in the Statement of Assets and Liabilities.

Effect of Derivative Investments for the six months ended June 30, 2020

The table below summarizes the gains (losses) on derivative investments, detailed by primary risk exposure, recognized in earnings during the period:

	Location of Gain on Statement of Operations
	Interest
	Rate Risk
Realized Gain:
Futures contracts		$1,962,199
Change in Net Unrealized Appreciation:
Futures contracts		431,712
Total		$2,393,911

The table below summarizes the average notional value of derivatives held during the period.

	Futures Contracts
Average notional value	$	38,694,915

NOTE 5–Trustees’ and Officers’ Fees and Benefits

Trustees’ and Officers’ Fees and Benefits include amounts accrued by the Fund to pay remuneration to certain Trustees and Officers of the Fund. Trustees have the option to defer compensation payable by the Fund, and Trustees’ and Officers’ Fees and Benefits also include amounts accrued by the Fund to fund such deferred compensation amounts. Those Trustees who defer compensation have the option to select various Invesco Funds in which their deferral accounts shall be deemed to be invested. Finally, certain current Trustees were eligible to participate in a retirement plan that provided for benefits to be paid upon retirement to Trustees over a period of time based on the number of years of service. The Fund may have certain former Trustees who also participate in a retirement plan and receive benefits under such plan. Trustees’ and Officers’ Fees and Benefits include amounts accrued by the Fund to fund such retirement benefits. Obligations under the deferred compensation and retirement plans represent unsecured claims against the general assets of the Fund.

NOTE 6–Cash Balances

The Fund may borrow for leveraging in an amount up to 5% of the Fund’s total assets (excluding the amount borrowed) at the time the borrowing is made. In doing so, the Fund is permitted to temporarily carry a negative or overdrawn balance in its account with SSB, the custodian bank. Such balances, if any at period end, are shown in the Statement of Assets and Liabilities under the payable caption Amount due custodian. To compensate the custodian bank for such overdrafts, the overdrawn Fund may either (1) leave funds as a compensating balance in the account so the custodian bank can be compensated by earning the additional interest; or (2) compensate by paying the custodian bank at a rate agreed upon by the custodian bank and Invesco, not to exceed the contractually agreed upon rate. The Fund may not purchase additional securities when any borrowings from banks or broker-dealers exceed 5% of the Fund’s total assets, or when any borrowings from an Invesco Fund are outstanding.

NOTE 7–Tax Information

The amount and character of income and gains to be distributed are determined in accordance with income tax regulations, which may differ from GAAP. Reclassifications are made to the Fund’s capital accounts to reflect income and gains available for distribution (or available capital loss carryforward) under income tax regulations. The tax character of distributions paid during the year and the tax components of net assets will be reported at the Fund’s fiscal year-end.

Capital loss carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Fund to utilize. The ability to utilize capital loss carryforwards in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.

Invesco Oppenheimer V.I. Total Return Bond Fund

    The Fund had a capital loss carryforward as of December 31, 2019, as follows:

Capital Loss Carryforward*
Expiration		Short-Term		Long-Term		Total
Not subject to expiration	$	1,188,047	$	1,962,738	$	3,150,785

* Capital loss carryforward is reduced for limitations, if any, to the extent required by the Internal Revenue Code and may be further limited depending upon a variety of factors, including the realization of net unrealized gains or losses as of the date of any reorganization.

NOTE 8–Investment Transactions

The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Fund during the six months ended June 30, 2020 was $193,591,101 and $199,132,112, respectively. During the same period, purchases and sales of U.S. Treasury obligations were $77,594,152 and $76,174,331, respectively. Cost of investments, including any derivatives, on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end.

Unrealized Appreciation (Depreciation) of Investments on a Tax Basis
Aggregate unrealized appreciation of investments	$	5,539,366
Aggregate unrealized (depreciation) of investments		(2,604,947	)
Net unrealized appreciation of investments	$	2,934,419

    Cost of investments for tax purposes is $134,289,602.

NOTE 9–Share Information

	Summary of Share Activity
	Six months ended June 30, 2020(a)						Year ended December 31, 2019
	Shares			Amount			Shares			Amount
Sold:
Series I		586,317		$	4,832,576			778,748		$	6,072,746
Series II		1,473,216			11,900,102			2,278,654			17,388,336
Issued as reinvestment of dividends:
Series I		-			-			320,278			2,462,939
Series II		-			-			224,293			1,702,386
Reacquired:
Series I		(737,870	)		(6,044,280	)		(1,874,852	)		(14,540,325	)
Series II		(2,579,901	)		(21,003,617	)		(2,738,590	)		(21,088,474	)
Net increase (decrease) in share activity		(1,258,238	)	$	(10,315,219	)		(1,011,469	)	$	(8,002,392	)

^(a)  There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 58% 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 Fund 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–Coronavirus (COVID-19) Pandemic

During the first quarter of 2020, the World Health Organization declared COVID-19 to be a public health emergency. COVID-19 has led to increased short-term market volatility and may have adverse long-term effects on U.S. and world economies and markets in general. COVID-19 may adversely impact the Fund’s ability to achieve its investment objective. Because of the uncertainties on valuation, the global economy and business operations, values reflected in these financial statements may materially differ from the value received upon actual sales of those investments.

The extent of the impact on the performance of the Fund and its investments will depend on future developments, including the duration and spread of the COVID-19 outbreak, related restrictions and advisories, and the effects on the financial markets and economy overall, all of which are highly uncertain and cannot be predicted.

NOTE 11–Significant Event

Effective on or about April 30, 2021, the name of the Fund and all references thereto will change from Invesco Oppenheimer V.I. Total Return Bond Fund to Invesco V.I. Core Bond Fund.

Invesco Oppenheimer V.I. Total Return Bond 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, 2020 through June 30, 2020.

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.

		ACTUAL		HYPOTHETICAL (5% annual return before expenses)
	Beginning   Account Value   (01/01/20)	Ending     Account Value   (06/30/20)1	Expenses     Paid During   Period2	Ending     Account Value   (06/30/20)	Expenses     Paid During   Period2	Annualized   Expense Ratio
Series I	$1,000.00	$1,069.40	$3.86	$1,021.13	$3.77	0.75%
Series II	1,000.00	1,067.80	5.14	1,019.89	5.02	1.00

¹  The actual ending account value is based on the actual total return of the Fund for the period January 1, 2020 through June 30, 2020, 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 182/366 to reflect the most recent fiscal half year.

Invesco Oppenheimer V.I. Total Return Bond Fund

Approval of Investment Advisory and Sub-Advisory Contracts

At meetings held on June 3, 2020, the Board of Trustees (the Board or the Trustees) of AIM Variable Insurance Funds (Invesco Variable Insurance Funds) as a whole, and the independent Trustees, who comprise over 75% of the Board, voting separately, approved the continuance of the Invesco Oppenheimer V.I. Total Return Bond Fund’s (the Fund) Master Investment Advisory Agreement with Invesco Advisers, Inc. (Invesco Advisers and the investment advisory agreement) and the Master Intergroup Sub-Advisory Contract for Mutual Funds with Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Canada Ltd. and separate sub-advisory contracts with Invesco Capital Management LLC and Invesco Asset Management (India) Private Limited and OppenheimerFunds, Inc. (collectively, the Affiliated Sub-Advisers and the sub-advisory contracts) for another year, effective July 1, 2020. After evaluating the factors discussed below, among others, the Board approved the renewal of the Fund’s investment advisory agreement and the sub-advisory contracts and determined that the compensation payable thereunder by the Fund to Invesco Advisers and by Invesco Advisers to the Affiliated Sub-Advisers is fair and reasonable.

The Board’s Evaluation Process

The Board’s Investments Committee has established Sub-Committees, which meet throughout the year to review the performance of funds advised by Invesco Advisers (the Invesco Funds). The Sub-Committees meet regularly with portfolio managers for their assigned Invesco Funds and other members of management to review detailed information about investment performance and portfolio attributes of these funds. The Board took into account evaluations and reports that it received from the Investments Committee and Sub-Committees, as well as the information provided to such committees and the Board throughout the year, in considering whether to approve each Invesco Fund’s investment advisory agreement and sub-advisory contracts.

    As part of the contract renewal process, the Board reviews and considers information provided in response to detailed requests for information submitted to management by the independent Trustees with assistance from legal counsel to the independent Trustees. The Board receives comparative investment performance and fee data regarding the Invesco Funds prepared by Invesco Advisers and Broadridge Financial Solutions, Inc. (Broadridge), an independent mutual fund data provider, as well as information on the composition of the peer groups provided by Broadridge and its methodology for determining peer groups. The Board also receives an independent written evaluation from the Senior Officer, an officer of the Invesco Funds who reports directly to the independent Trustees. 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. In addition to meetings with Invesco Advisers and fund counsel

throughout the year, the independent Trustees also discuss the continuance of the investment advisory agreement and sub-advisory contracts in separate sessions with the Senior Officer and with independent legal counsel.

    The discussion below is a summary of 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. The Trustees’ review and conclusions are based on the comprehensive consideration of all information presented to them during the course of the year and in prior years and are not the result of any single determinative factor. Moreover, one Trustee may have weighed a particular piece of information or factor differently than another Trustee. This information is current as of June 3, 2020.

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 nature, extent and quality of the advisory services provided to the Fund by Invesco Advisers under the Fund’s investment advisory agreement, and the credentials and experience of the officers and employees of Invesco Advisers who provide these services, including the Fund’s portfolio manager(s). The Board’s review included consideration of Invesco Advisers’ investment process oversight and structure, credit analysis, investment risk management and research capabilities. The Board also considered non-advisory services that Invesco Advisers and its affiliates provide to the Invesco Funds, such as various back office support functions, third party oversight, internal audit, valuation, portfolio trading and legal and compliance. The Board also received and reviewed information about Invesco Advisers’ role as administrator of the Invesco Funds’ liquidity risk management program. The Board reviewed and considered the benefits to shareholders of investing in a Fund that is part of the Invesco family of funds under the umbrella of Invesco Ltd., Invesco Advisers’ parent company, and noted Invesco Ltd.’s depth and experience in conducting an investment management business, as well as its commitment of financial and other resources to such business. The Board also reviewed and considered information regarding the benefits to the Fund resulting from Invesco Ltd.’s acquisition of OppenheimerFunds, Inc. and its subsidiaries (the Transaction) and the resources that Invesco Advisers has committed to managing the Invesco family of funds following the Transaction. The Board concluded that the nature, extent and quality of the services provided to the Fund by Invesco Advisers are appropriate and satisfactory.

    The Board reviewed the services that may be 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 the Affiliated Sub-Advisers’ expertise with respect to certain asset classes and that the Affiliated Sub-Advisers have offices and personnel

that are located in financial centers around the world. As a result, the Board noted that the Affiliated Sub-Advisers can provide research and investment analysis on the markets and economies of various countries in which the Fund may invest, make recommendations regarding securities and assist with security trades. The Board concluded that the sub-advisory contracts may 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 that may be provided by the Affiliated Sub-Advisers are appropriate and satisfactory.

B. Fund Investment Performance

The Board considered Fund investment performance as a relevant factor in considering whether to approve the investment advisory agreement. The Board did not view Fund investment 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 investment performance over multiple time periods ending December 31, 2019 to the performance of funds in the Broadridge performance universe and against the Bloomberg Barclays U.S. Aggregate Bond Index. The Board noted that performance of Series I shares of the Fund was in the second quintile of its performance universe for the one and three year periods and the first quintile for the five year period (the first quintile being the best performing funds and the fifth quintile being the worst performing funds). The Board noted that performance of Series I shares of the Fund was above the performance of the Index for the one, three and five year periods. The Board considered that the Fund was created in connection with the Transaction and that the Fund’s performance prior to the closing of the Transaction after the close of business on May 24, 2019 is that of its predecessor fund. The Board recognized that the performance data reflects a snapshot in time as of a particular date and that selecting a different performance period could produce different results. The Board also reviewed more recent Fund performance as well as other performance metrics and this review did not change their conclusions.

C. Advisory and Sub-Advisory Fees and Fund Expenses

The Board compared the Fund’s contractual management fee rate to the contractual management fee rates of funds in the Fund’s Broadridge expense group. The Board noted that the contractual management fee rate for Series I shares of the Fund was the same as the median contractual management fee rate of funds in its expense group. The Board noted that the term “contractual management fee” for funds in the expense group may include both advisory and certain non-portfolio management administrative services fees, but that Broadridge does not provide information on a fund by fund basis as to what is included. The Board also reviewed the methodology used by Broadridge in providing expense group information, which includes using each fund’s contractual management fee schedule (including any applicable breakpoints) as reported in the most recent prospectus or statement of additional information for each fund in the expense

Invesco Oppenheimer V.I. Total Return Bond Fund

group. The Board also considered comparative information regarding the Fund’s total expense ratio and its various components.

    The Board noted that Invesco Advisers has contractually agreed to waive fees and/or limit expenses of the Fund for the term disclosed in the Fund’s registration statement 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 Invesco Advisers and the Affiliated Sub-Advisers do not manage other similarly managed mutual funds or client accounts.

    The Board also considered the services that may be provided by the Affiliated Sub-Advisers pursuant to the sub-advisory contracts, as well as the fees payable by Invesco Advisers to the Affiliated Sub-Advisers pursuant to the sub-advisory contracts.

D. Economies of Scale and Breakpoints

The Board considered the extent to which there may be economies of scale in the provision of advisory services to the Fund. The Board also considered that the Fund may benefit from economies of scale through contractual breakpoints in the Fund’s advisory fee schedule, which generally operate to reduce the Fund’s expense ratio as it grows in size. The Board 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. The Board noted that the Fund may also benefit from economies of scale through initial fee setting, fee waivers and expense reimbursements. The Board also considered Invesco’s reinvestment in its business, including investments in business infrastructure, technology and cybersecurity.

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 Invesco Funds and the profitability of Invesco Advisers and its affiliates in providing these services in the aggregate and on an individual Fund-by-Fund basis. The Board considered the methodology used for calculating profitability and noted the periodic review and enhancement of such methodology. The Board noted that Invesco Advisers continues to operate at a net profit from services Invesco Advisers and its affiliates provide to the Invesco Funds in the aggregate and to certain Funds on an individual fund level. The Board did not deem the level of profits realized by Invesco Advisers and its affiliates from providing such services to be excessive given the nature, extent and quality of the services provided. The Board received information from Invesco Advisers demonstrating that Invesco Advisers and the Affiliated Sub-Advisers are financially sound and have the resources necessary to perform their obligations under the investment advisory agreement and sub-advisory contracts.

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 providing administrative, transfer agency and distribution services to the Fund. The Board considered comparative information regarding fees charged for these services, including information provided by Broadridge and other independent sources. 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; and that the services are required for the operation of the Fund.

    The Board considered the benefits realized by Invesco Advisers and the Affiliated Sub-Advisers as a result of portfolio brokerage transactions executed through “soft dollar” arrangements. Invesco Advisers noted that the Fund does not execute brokerage transactions through “soft dollar” arrangements to any significant degree.

    The Board considered that the Fund’s uninvested cash and cash collateral from any securities lending arrangements may be invested in registered money market funds or, with regard to securities lending cash collateral, unregistered funds that comply with Rule 2a-7 (collectively referred to as “affiliated money market funds”) advised by Invesco Advisers pursuant to procedures approved by the Board. The Board considered information regarding the returns of the affiliated money market funds relative to comparable overnight investments, as well as the costs to the Fund of such investments. 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 with respect to certain investments in the affiliated money market 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 amount of advisory fees received by Invesco Advisers from the Fund’s investment of cash collateral from any securities lending arrangements in the affiliated money market funds is fair and reasonable.

Invesco Oppenheimer V.I. Total Return Bond Fund

ITEM 2. CODE OF ETHICS.

Not applicable for a semi-annual report.

ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.

Not applicable.

ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.

Not applicable.

ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.

Not applicable.

ITEM 6. SCHEDULE OF INVESTMENTS.

Investments in securities of unaffiliated issuers is included as part of the reports to stockholders filed under Item 1 of this Form.

ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.

Not applicable.

ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT 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 August 12, 2020, an evaluation was performed under the supervision and with the participation of the officers of the Registrant, including the PEO and PFO, to assess the effectiveness of the Registrant’s disclosure controls and procedures, as that term is defined in Rule 30a-3(c) under the Investment Company Act of 1940 (the “Act”), as amended. Based on that evaluation, the Registrant’s officers, including the PEO and PFO, concluded that, as of August 12, 2020, the Registrant’s disclosure controls and procedures were reasonably designed to ensure: (1) that information required to be disclosed by the Registrant on Form N-CSR is recorded, processed, summarized and reported within the time periods specified by the rules and forms of the Securities and Exchange Commission; and (2) that material information relating to the Registrant is made known to the PEO and PFO as appropriate to allow timely decisions regarding required disclosure.

(b) There have been no changes in the Registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Act) that occurred during the period covered by this report that have materially affected, or are reasonably likely to materially affect, the Registrant’s internal control over financial reporting.

ITEM 12. DISCLOSURE OF SECURITIES LENDING ACTIVITIES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.

Not applicable

ITEM 13. EXHIBITS.

13(a) (1)	Not applicable.
13(a) (2)	Certifications of principal executive officer and principal financial officer as required by Rule 30a-2(a) under the Investment Company Act of 1940 and Section 302 of the Sarbanes-Oxley Act of 2002.
13(a) (3)	Not applicable.
13(a) (4)	Not applicable.
13(b)	Certifications of principal executive officer and principal financial officer as required by Rule 30a-2(b) under the Investment Company Act of 1940 and Section 906 of the Sarbanes-Oxley Act of 2002.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Registrant:    AIM Variable Insurance Funds (Invesco Variable Insurance Funds)

By:	/s/ Sheri Morris
	Sheri Morris
	Principal Executive Officer
Date:	August 24, 2020

Pursuant to the requirements of the Securities and Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.

By:	/s/ Sheri Morris
	Sheri Morris
	Principal Executive Officer
Date:	August 24, 2020

By:	/s/ Kelli Gallegos
	Kelli Gallegos
	Principal Financial Officer
Date:	August 24, 2020