NPORT-EX 1 IVZ_Exchange.htm
Invesco Exchange Fund
Quarterly Schedule of Portfolio Holdings
March 31, 2019
invesco.com/us
VK-EXCH-QTR-1   03/19
Invesco Advisers, Inc.
Schedule of Investments(a)
March 31, 2019
(Unaudited)
Shares
Value
Common Stocks & Other Equity Interests–98.58%
Auto Parts & Equipment–0.03%
Garrett Motion Inc. (Switzerland)
1,059
  $15,599
Building Products–0.06%
Resideo Technologies Inc.
1,763
  34,008
Commodity Chemicals–0.02%
AdvanSix, Inc.
430
  12,285
Construction & Engineering–1.32%
Fluor Corp.
21,652
  796,794
Diversified Banks–0.65%
HSBC Holdings PLC, ADR (United
Kingdom)
9,724
  394,600
Forest Products–0.88%
Louisiana-Pacific Corp.
21,912
  534,214
Health Care Distributors–0.13%
Cardinal Health, Inc.
1,584
  76,270
Health Care Equipment–1.13%
Baxter International Inc.
8,444
  686,582
Health Care Services–0.54%
Cigna Corp.
2,023
  325,339
Industrial Conglomerates–2.78%
Honeywell International Inc.
10,576
1,680,738
Industrial Gases–12.06%
Air Products and Chemicals, Inc.
38,227
7,299,828
Industrial Machinery–1.27%
SPX Corp. (b)
11,522
  400,850
SPX FLOW, Inc.
11,522
  367,552
768,402
Integrated Oil & Gas–5.99%
BP PLC, ADR (United Kingdom)
28,575
1,249,299
Exxon Mobil Corp.
29,407
2,376,086
3,625,385
IT Consulting & Other Services–2.95%
International Business Machines Corp.
12,671
1,787,878
Multi-line Insurance–0.13%
American International Group, Inc.
1,766
  76,044
Oil & Gas Drilling–0.03%
Transocean Ltd.
1,845
  16,070
Shares
Value
Oil & Gas Equipment & Services–5.03%
Baker Hughes, a GE Co., Class A
12,991
  $360,111
Halliburton Co.
51,154
1,498,812
Schlumberger Ltd.
27,134
1,182,228
3,041,151
Oil & Gas Exploration & Production–5.34%
Apache Corp.
22,228
  770,422
Hess Corp.
40,817
2,458,408
3,228,830
Packaged Foods & Meats–16.04%
McCormick & Co, Inc.
64,419
9,703,434
Pharmaceuticals–15.82%
Johnson & Johnson
22,889
3,199,653
Merck & Co., Inc.
41,809
3,477,255
Pfizer Inc.
65,139
2,766,453
Takeda Pharmaceutical Co. Ltd., ADR (Japan)
6,339
  129,125
9,572,486
Semiconductor Equipment–1.59%
Versum Materials, Inc.
19,118
  961,826
Semiconductors–14.36%
Intel Corp.
161,848
8,691,238
Specialized REITs–1.50%
Weyerhaeuser Co.
34,558
  910,258
Specialty Chemicals–8.93%
International Flavors & Fragrances, Inc.
41,937
5,401,066
Total Common Stocks & Other Equity Interests
(Cost $1,457,186)
59,640,325
Money Market Funds–1.27%
Invesco Government & Agency Portfolio-
Institutional Class, 2.33%(c)
269,553
  269,553
Invesco Liquid Assets Portfolio-Institutional Class,
2.48%(c)
192,504
  192,562
Invesco Treasury Portfolio-Institutional Class,
2.31%(c)
308,061
  308,061
Total Money Market Funds (Cost $770,136)
770,176
TOTAL INVESTMENTS IN SECURITIES–99.85%
(Cost $2,227,322)
60,410,501
OTHER ASSETS LESS LIABILITIES–0.15%
91,778
NET ASSETS–100.00%
$60,502,279
Investment Abbreviations:
ADR
– American Depositary Receipt
REIT
– Real Estate Investment Trust
See accompanying notes which are an integral part of this schedule.
Invesco Exchange Fund
Notes to Schedule of Investments:
(a)
Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the
exclusive property and a service mark of MSCI Inc. and Standard & Poor’s.
(b)
Non-income producing security.
(c)
The money market fund and the Fund are affiliated by having the same investment adviser. The rate shown is the 7-day SEC standardized yield as of March 31,
2019.
See accompanying notes which are an integral part of this schedule.
Invesco Exchange Fund
Notes to Quarterly Schedule of Portfolio Holdings
March 31, 2019
(Unaudited)
NOTE 1—Significant Accounting Policies
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 economic conditions, interest rates, investor perceptions and market liquidity. Because of the inherent uncertainties of valuation, the
values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
B.
Securities Transactions and Investment Income — Securities transactions are accounted for on a trade date basis. Realized gains or
losses on sales are computed on the basis of specific identification of the securities sold. Interest income (net of withholding tax, if any) is
recorded on the accrual basis from settlement date. Dividend income (net of withholding tax, if any) is recorded on the ex-dividend date.
The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation
settlements. Any proceeds received are included in the Statement of Operations as realized gain (loss) for investments no longer held and as
unrealized gain (loss) for investments still held.
Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities
purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of net realized and
unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the net
realized and unrealized gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the
Invesco Exchange Fund
B.
Securities Transactions and Investment Income — (continued)
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.
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.
NOTE 2—Additional Valuation Information
Generally Accepted Accounting Principles ("GAAP") defines fair value as the price that would be received to sell an asset or paid to transfer a liability in
an orderly transaction between market participants at the measurement date, under current market conditions. GAAP establishes a hierarchy that
prioritizes the inputs to valuation methods, giving the highest priority to readily available unadjusted quoted prices in an active market for identical
assets (Level 1) and the lowest priority to significant unobservable inputs (Level 3), generally when market prices are not readily available or are
unreliable. Based on the valuation inputs, the securities or other investments are tiered into one of three levels. Changes in valuation methods may
result in transfers in or out of an investment’s assigned level:
Level 1 – Prices are determined using quoted prices in an active market for identical assets.
Level 2 – Prices are determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in
pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk, yield curves, loss
severities, default rates, discount rates, volatilities and others.
Level 3 – Prices are determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for
example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used.
Unobservable inputs reflect the Fund’s own assumptions about the factors market participants would use in determining fair value of the
securities or instruments and would be based on the best available information.
As of March 31, 2019, 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.
Invesco Exchange Fund