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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED

MANAGEMENT INVESTMENT COMPANY

 

Investment Company Act file number  

  811-03826

AIM Sector Funds (Invesco Sector Funds)

(Exact name of registrant as specified in charter)

11 Greenway Plaza, Suite 1000     Houston, Texas  77046

(Address of principal executive offices)        (Zip code)

Philip A. Taylor      11 Greenway Plaza, Suite 1000 Houston, Texas  77046

(Name and address of agent for service)

 

Registrant’s telephone number, including area code:  

  (713) 626-1919        

  

 

Date of fiscal year end:     04/30                      
Date of reporting period:     07/31/14                 


Item 1. Schedule of Investments.


    

 

 

Invesco American Value Fund

Quarterly Schedule of Portfolio Holdings

July 31, 2014

 

 

 

 

 

LOGO

 

invesco.com/us   VK-AMVA-QTR-1      7/14    Invesco Advisers, Inc.
 


Schedule of Investments (a)

July 31, 2014

(Unaudited)

 

      Shares          Value      

Common Stocks–94.58%

  

Aerospace & Defense–2.14%

     

Textron Inc.

     1,211,342       $ 44,056,509   

Air Freight & Logistics–1.04%

     

UTi Worldwide, Inc. (b)

     2,260,173         21,381,237   

Alternative Carriers–2.52%

     

tw telecom inc. (b)

     1,274,886         51,938,856   

Apparel Retail–3.70%

     

Ascena Retail Group, Inc. (b)

     3,295,109         52,919,451   

Express, Inc. (b)

     1,506,568         23,442,198   
                76,361,649   

Application Software–6.21%

     

Cadence Design Systems, Inc. (b)

     3,535,525         59,502,886   

Citrix Systems, Inc. (b)

     1,011,034         68,477,333   
                127,980,219   

Asset Management & Custody Banks–3.24%

  

American Capital Ltd. (b)

     1,330,671         20,172,973   

Northern Trust Corp.

     697,897         46,682,330   
                66,855,303   

Auto Parts & Equipment–5.03%

     

Dana Holding Corp.

     1,922,160         43,017,941   

Johnson Controls, Inc.

     1,284,514         60,680,441   
                103,698,382   

Automotive Retail–1.79%

     

Advance Auto Parts, Inc.

     305,058         36,945,574   

Building Products–2.23%

     

Owens Corning Inc.

     1,347,238         45,873,454   

Communications Equipment–2.10%

     

Ciena Corp. (b)

     2,213,094         43,221,726   

Diversified Banks–2.67%

     

Comerica Inc.

     1,096,671         55,118,684   

Diversified Chemicals–2.33%

     

Eastman Chemical Co.

     610,042         48,059,109   

Electric Utilities–1.92%

     

Edison International

     722,568         39,596,726   

Health Care Equipment–2.01%

     

CareFusion Corp. (b)

     948,472         41,533,589   

Health Care Facilities–7.48%

     

Brookdale Senior Living Inc. (b)

     1,238,483         42,913,436   
      Shares          Value      

Health Care Facilities–(continued)

     

HealthSouth Corp.

     1,389,678       $ 53,266,358   

Universal Health Services, Inc. -Class B

     544,516         58,045,405   
                154,225,199   

Heavy Electrical Equipment–2.09%

     

Babcock & Wilcox Co. (The)

     1,386,563         43,038,915   

Human Resource & Employment Services–2.32%

  

Robert Half International, Inc.

     982,329         47,790,306   

Industrial Machinery–6.17%

  

Ingersoll-Rand PLC

     804,213         47,279,682   

Pentair PLC (United Kingdom)

     421,518         27,006,658   

Snap-on Inc.

     439,772         52,860,595   
                127,146,935   

Insurance Brokers–4.50%

  

Arthur J. Gallagher & Co.

     463,341         20,850,345   

Marsh & McLennan Cos., Inc.

     818,223         41,541,182   

Willis Group Holdings PLC

     747,376         30,455,572   
                92,847,099   

Investment Banking & Brokerage–2.17%

  

Stifel Financial Corp. (b)

     978,209         44,792,190   

IT Consulting & Other Services–2.63%

  

Teradata Corp. (b)

     1,285,698         54,205,028   

Life Sciences Tools & Services–1.56%

  

PerkinElmer, Inc.

     695,957         32,167,133   

Multi-Sector Holdings–0.31%

     

FNFV Group (b)

     394,949         6,461,373   

Multi-Utilities–0.96%

     

CenterPoint Energy, Inc.

     810,048         19,700,367   

Oil & Gas Equipment & Services–1.88%

  

AMEC PLC (United Kingdom)

     2,024,593         38,700,687   

Oil & Gas Exploration & Production–1.95%

  

Newfield Exploration Co. (b)

     995,799         40,130,700   

Oil & Gas Storage & Transportation–2.77%

  

ONEOK, Inc.

     243,975         15,719,309   

Williams Cos., Inc. (The)

     728,983         41,282,307   
                57,001,616   

Packaged Foods & Meats–3.09%

  

ConAgra Foods, Inc.

     2,111,245         63,611,812   

Paper Packaging–1.03%

  

Sealed Air Corp.

     659,553         21,184,842   

 

 

 

See accompanying notes which are an integral part of this schedule.

 

Invesco American Value Fund


      Shares      Value      

Personal Products–0.18%

     

Avon Products, Inc.

     279,209       $ 3,685,559   

Property & Casualty Insurance–3.75%

  

ACE Ltd.

     403,675         40,407,868   

FNF Group

     1,361,748         36,916,988   
                77,324,856   

Real Estate Operating Companies–2.50%

  

Forest City Enterprises, Inc. -Class A (b)

     2,683,796         51,448,369   

Regional Banks–5.82%

  

BB&T Corp.

     1,267,540         46,924,331   

Wintrust Financial Corp.

     957,266         44,350,133   

Zions Bancorp.

     993,229         28,624,860   
                119,899,324   

Specialty Chemicals–1.93%

  

W.R. Grace & Co. (b)

     436,148         39,689,468   

Technology Hardware, Storage & Peripherals–0.56%

  

Diebold, Inc.

     308,339         11,618,213   

Total Common Stocks
(Cost $1,599,162,116)

              1,949,291,008   

Money Market Funds–6.08%

  

Liquid Assets Portfolio –Institutional Class (c)

     62,665,065         62,665,065   

Premier Portfolio –Institutional Class (c)

     62,665,065         62,665,065   

Total Money Market Funds
(Cost $125,330,130)

              125,330,130   

TOTAL INVESTMENTS–100.66%
(Cost $1,724,492,246)

              2,074,621,138   

OTHER ASSETS LESS LIABILITIES–(0.66)%

  

     (13,525,489)   

NET ASSETS–100.00%

            $ 2,061,095,649   

Notes to Schedule of Investments:

 

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

 

(b)  Non-income producing security.

 

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

 

See accompanying notes which are an integral part of this schedule.

 

Invesco American Value Fund


Notes to Quarterly Schedule of Portfolio Holdings

July 31, 2014

(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 ask prices from the exchange on which they are principally traded. Options not listed on an exchange are valued by an independent source at the mean between the last bid and ask prices. For purposes of determining net asset value per share, futures and option contracts generally are valued 15 minutes after the close of the customary trading session of the New York Stock Exchange (“NYSE”).

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

Debt obligations (including convertible securities) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.

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

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

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

 

Invesco American Value Fund


A. Security Valuations (continued)

 

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

Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the issuer’s assets, general economic conditions, interest rates, investor perceptions and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

B. Securities Transactions and Investment Income – Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income (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 Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and Statement of Changes in Net Assets, or the net investment income per share and ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.

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

C. Country Determination – For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues and the country that has the primary market for the issuer’s securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted.
D. Foreign Currency Translations – Foreign currency is valued at the close of the NYSE based on quotations posted by banks and major currency dealers. Portfolio securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at date of valuation. Purchases and sales of portfolio securities (net of foreign taxes withheld on disposition) and income items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. The Fund does not separately account for the portion of the results of operations resulting from changes in foreign exchange rates on investments and the fluctuations arising from changes in market prices of securities held. The combined results of changes in foreign exchange rates and the fluctuation of market prices on investments (net of estimated foreign tax withholding) are included with the net realized and unrealized gain or loss from investments in the Statement of Operations. Reported net realized foreign currency gains or losses arise from (1) sales of foreign currencies, (2) currency gains or losses realized between the trade and settlement dates on securities transactions, and (3) the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign currency gains and losses arise from changes in the fair values of assets and liabilities, other than investments in securities at fiscal period end, resulting from changes in exchange rates.

The Fund may invest in foreign securities which may be subject to foreign taxes on income, gains on investments or currency repatriation, a portion of which may be recoverable.

 

Invesco American Value Fund


E. Forward Foreign Currency Contracts – The Fund may engage in foreign currency transactions either on a spot (i.e. for prompt delivery and settlement) basis at the rate prevailing in the currency exchange market at the time 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 daily mark-to-market obligation for forward foreign currency contracts.

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

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.

The following is a summary of the tiered valuation input levels, as of July 31, 2014. The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

 

      Level 1      Level 2        Level 3      Total  

  Equity Securities

   $     2,035,920,451       $     38,700,687       $              —       $     2,074,621,138   

  Forward Foreign Currency Contracts*

             276,068                 276,068   

Total Investments

   $ 2,035,920,451       $ 38,976,755       $       $ 2,074,897,206   

* Unrealized appreciation.

 

Invesco American Value Fund


NOTE 3 — Derivative Investments

 

     Open Forward Foreign Currency Contracts at Period-End                      

  Settlement

      Date

       Contract to      Notional     

Unrealized

Appreciation

     
  Counterparty    Deliver      Receive      Value        

    8/29/2014

  State Street Bank & Trust Co.    GBP      9,144,961       USD      15,573,549       $     15,435,270       $        138,279             

    8/29/2014

  Bank of New York Co., Inc. (The)    GBP      9,091560       USD      15,482,926         15,345,137                 137,789           

 

      Total forward foreign currency contracts - Currency Risk

 

                     $        276,068             

Currency Abbreviations:

GBP — British Pound Sterling

USD — U.S. Dollar

NOTE 4 — Investment Securities

The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Fund during the three months ended July 31, 2014 was $306,684,131 and $204,092,858, respectively. Cost of investments on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end.

 

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

 

  

Aggregate unrealized appreciation of investment securities

 

   $

 

            386,395,713

 

  

 

Aggregate unrealized (depreciation) of investment securities

 

    

 

(36,967,696)

 

  

 

Net unrealized appreciation of investment securities

 

   $

 

349,428,017

 

  

 

Cost of investments for tax purposes is $1,725,193,121.

  

 

Invesco American Value Fund


    

 

 

Invesco Comstock Fund

Quarterly Schedule of Portfolio Holdings

July 31, 2014

 

 

 

 

 

LOGO

 

invesco.com/us   VK-COM-QTR-1       7/14    Invesco Advisers, Inc.
 


Schedule of Investments(a)

July 31, 2014

(Unaudited)

 

      Shares          Value      

Common Stocks & Other Equity Interests–96.87%

  

Aerospace & Defense–1.76%

  

Honeywell International Inc.

     982,924       $ 90,261,911   

Textron Inc.

     3,783,165         137,593,711   
                227,855,622   

Aluminum–1.13%

  

Alcoa Inc.

     8,917,965         146,165,446   

Application Software–1.64%

  

Autodesk, Inc. (b)

     1,383,859         73,828,877   

Citrix Systems, Inc. (b)

     2,032,216         137,641,990   
                211,470,867   

Asset Management & Custody Banks–3.50%

  

Bank of New York Mellon Corp. (The)

     7,123,847         278,114,987   

State Street Corp.

     2,470,908         174,050,759   
                452,165,746   

Auto Parts & Equipment–1.20%

  

Johnson Controls, Inc.

     3,284,195         155,145,372   

Automobile Manufacturers–1.77%

  

General Motors Co.

     6,753,231         228,394,272   

Cable & Satellite–2.70%

  

Comcast Corp. -Class A

     3,418,417         183,671,545   

Time Warner Cable Inc.

     1,140,848         165,537,045   
                349,208,590   

Communications Equipment–1.83%

  

Cisco Systems, Inc.

     9,385,815         236,804,113   

Department Stores–1.06%

  

Kohl’s Corp.

     2,566,892         137,431,398   

Diversified Banks–11.16%

  

Bank of America Corp.

     13,312,167         203,010,547   

Citigroup Inc.

     10,662,151         521,485,806   

JPMorgan Chase & Co.

     6,753,299         389,462,753   

U.S. Bancorp

     1,194,277         50,195,462   

Wells Fargo & Co.

     5,466,256         278,232,430   
                1,442,386,998   

Drug Retail–1.55%

  

CVS Caremark Corp.

     2,620,345         200,089,544   

Electric Utilities–1.49%

  

FirstEnergy Corp.

     1,690,018         52,745,462   

PPL Corp.

     4,242,484         139,959,547   
                192,705,009   

 

      Shares          Value      

Electrical Components & Equipment–1.02%

  

Emerson Electric Co.

     2,076,487       $ 132,168,398   

Electronic Components–0.88%

  

Corning Inc.

     5,812,049         114,206,763   

General Merchandise Stores–0.76%

  

Target Corp.

     1,648,783         98,250,979   

Health Care Distributors–0.47%

  

Cardinal Health, Inc.

     855,617         61,304,958   

Health Care Services–0.69%

  

Express Scripts Holding Co. (b)

     1,273,074         88,669,604   

Hotels, Resorts & Cruise Lines–1.75%

  

Carnival Corp.

     6,249,592         226,360,222   

Housewares & Specialties–0.65%

  

Newell Rubbermaid Inc.

     2,603,468         84,560,641   

Industrial Conglomerates–2.01%

  

General Electric Co.

     10,303,127         259,123,644   

Industrial Machinery–1.25%

  

Ingersoll-Rand PLC

     2,739,410         161,049,914   

Integrated Oil & Gas–9.25%

  

BP PLC -ADR (United Kingdom)

     5,235,585         256,386,597   

Chevron Corp.

     1,400,140         180,954,094   

Occidental Petroleum Corp.

     1,595,478         155,894,155   

Royal Dutch Shell PLC -ADR
(United Kingdom)

     3,606,308         295,104,184   

Suncor Energy, Inc. (Canada)

     7,459,059         306,343,553   
                1,194,682,583   

Integrated Telecommunication Services–1.81%

  

AT&T Inc.

     1,262,581         44,935,258   

Verizon Communications Inc.

     2,676,961         134,972,374   

Vivendi S.A. (France)

     2,173,158         54,514,459   
                234,422,091   

Internet Software & Services–2.12%

  

eBay Inc. (b)

     3,808,132         201,069,370   

Yahoo! Inc. (b)

     2,039,124         73,021,030   
                274,090,400   

Investment Banking & Brokerage–2.37%

  

Goldman Sachs Group, Inc. (The)

     669,883         115,802,674   

Morgan Stanley

     5,868,383         189,783,506   
                305,586,180   
 

 

See accompanying notes which are an integral part of this schedule.

Invesco Comstock Fund


      Shares          Value      

Life & Health Insurance–2.01%

  

Aflac, Inc.

     1,278,557       $ 76,380,995   

MetLife, Inc.

     3,478,970         182,993,822   
                259,374,817   

Managed Health Care–2.98%

  

UnitedHealth Group Inc.

     2,939,796         238,270,466   

WellPoint, Inc.

     1,336,852         146,799,718   
                385,070,184   

Movies & Entertainment–4.02%

  

Time Warner Inc.

     1,175,599         97,598,229   

Twenty-First Century Fox, Inc. -Class B

     4,860,975         153,898,469   

Viacom Inc. -Class B

     3,232,420         267,224,161   
                518,720,859   

Multi-Utilities–0.69%

  

PG&E Corp.

     1,992,586         89,008,817   

Oil & Gas Drilling–0.41%

  

Noble Corp. PLC

     1,675,180         52,550,397   

Oil & Gas Equipment & Services–5.05%

  

Halliburton Co.

     3,375,804         232,896,718   

Weatherford International PLC (b)

     18,750,135         419,440,520   
                652,337,238   

Oil & Gas Exploration & Production–2.50%

  

Murphy Oil Corp.

     2,717,226         168,821,252   

QEP Resources Inc.

     4,648,041         153,617,755   
                322,439,007   

Packaged Foods & Meats–2.89%

  

ConAgra Foods, Inc.

     6,097,653         183,722,285   

Mondelez International Inc. -Class A

     2,630,585         94,701,060   

Unilever N.V. -New York Shares (Netherlands)

     2,295,017         94,394,049   
                372,817,394   

Paper Products–0.93%

  

International Paper Co.

     2,536,240         120,471,400   

Pharmaceuticals–9.02%

  

Bristol-Myers Squibb Co.

     2,941,877         148,917,814   

GlaxoSmithKline PLC –ADR
(United Kingdom)

     1,173,612         56,767,612   

Merck & Co., Inc.

     4,723,802         268,028,525   

Novartis AG (Switzerland)

     2,373,655         207,183,508   

Pfizer Inc.

     6,356,920         182,443,604   

Roche Holding AG -ADR (Switzerland)

     3,022,160         109,970,056   

Sanofi -ADR (France)

     3,685,736         192,653,421   
                1,165,964,540   

Property & Casualty Insurance–2.11%

  

Allstate Corp. (The)

     3,922,690         229,281,230   

Travelers Cos., Inc. (The)

     478,287         42,835,384   
                272,116,614   
      Shares          Value      

Regional Banks–2.49%

  

Fifth Third Bancorp

     6,697,101       $ 137,156,629   

PNC Financial Services Group, Inc. (The)

     2,227,534         183,905,207   
                321,061,836   

Semiconductors–1.16%

  

Intel Corp.

     4,435,249         150,310,589   

Systems Software–2.93%

  

Microsoft Corp.

     5,377,580         232,096,353   

Symantec Corp.

     6,178,913         146,193,081   
                378,289,434   

Technology Hardware, Storage & Peripherals–1.86%

  

Hewlett-Packard Co.

     6,755,869         240,576,495   

Total Common Stocks & Other Equity Interests
(Cost $9,265,188,734)

   

     12,515,408,975   

Money Market Funds–3.22%

  

Liquid Assets Portfolio – Institutional Class (c)

     208,437,559         208,437,559   

Premier Portfolio –Institutional Class (c)

     208,437,559         208,437,559   

Total Money Market Funds
(Cost $416,875,118)

   

     416,875,118   

TOTAL INVESTMENTS–100.09%
(Cost $9,682,063,852)

   

     12,932,284,093   

OTHER ASSETS LESS LIABILITIES–(0.09)%

  

     (12,137,752)   

NET ASSETS–100.00%

            $   12,920,146,341   

Investment Abbreviations:

 

ADR —American Depositary Receipt

Notes to Schedule of Investments:

 

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

 

(b)  Non-income producing security.

 

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

 

See accompanying notes which are an integral part of this schedule.

Invesco Comstock Fund


Notes to Quarterly Schedule of Portfolio Holdings

July 31, 2014

(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 ask prices from the exchange on which they are principally traded. Options not listed on an exchange are valued by an independent source at the mean between the last bid and ask prices. For purposes of determining net asset value per share, futures and option contracts generally are valued 15 minutes after the close of the customary trading session of the New York Stock Exchange (“NYSE”).

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

Debt obligations (including convertible securities) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.

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

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

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

The Fund may invest in securities that are subject to interest rate risk, meaning the risk that the prices will generally fall as interest rates rise and, conversely, the prices will generally rise as interest rates fall. Specific securities differ in their sensitivity to changes in interest rates depending on their individual characteristics. Changes in interest rates may result in increased market

 

Invesco Comstock Fund


A. Security Valuations – (continued)

 

volatility, which may affect the value and/or liquidity of certain of the Fund’s investments.

Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the issuer’s assets, general economic conditions, interest rates, investor perceptions and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

B. Securities Transactions and Investment Income – Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income (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 Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and Statement of Changes in Net Assets, or the net investment income per share and ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.

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

C. Country Determination – For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues and the country that has the primary market for the issuer’s securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted.
D. Foreign Currency Translations – Foreign currency is valued at the close of the NYSE based on quotations posted by banks and major currency dealers. Portfolio securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at date of valuation. Purchases and sales of portfolio securities (net of foreign taxes withheld on disposition) and income items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. The Fund does not separately account for the portion of the results of operations resulting from changes in foreign exchange rates on investments and the fluctuations arising from changes in market prices of securities held. The combined results of changes in foreign exchange rates and the fluctuation of market prices on investments (net of estimated foreign tax withholding) are included with the net realized and unrealized gain or loss from investments in the Statement of Operations. Reported net realized foreign currency gains or losses arise from (1) sales of foreign currencies, (2) currency gains or losses realized between the trade and settlement dates on securities transactions, and (3) the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign currency gains and losses arise from changes in the fair values of assets and liabilities, other than investments in securities at fiscal period end, resulting from changes in exchange rates.

The Fund may invest in foreign securities which may be subject to foreign taxes on income, gains on investments or currency repatriation, a portion of which may be recoverable.

E. Forward Foreign Currency Contracts – The Fund may engage in foreign currency transactions either on a spot (i.e. for prompt delivery and settlement) basis at the rate prevailing in the currency exchange market at the time 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 daily mark-to- market obligation for forward foreign currency contracts.

 

Invesco Comstock Fund


E. Forward Foreign Currency Contracts – (continued)

 

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

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.

The following is a summary of the tiered valuation input levels, as of July 31, 2014. The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

 

      Level 1      Level 2      Level 3      Total  

Equity Securities

   $   12,560,616,070       $ 371,668,023       $       $ 12,932,284,093   

Forward Foreign Currency Contracts*

             16,593,474                 16,593,474   

Total Investments

   $ 12,560,616,070       $   388,261,497       $       $   12,948,877,567   

* Unrealized appreciation.

           

 

 

Invesco Comstock Fund


NOTE 3 — Derivative Investments

 

Open Forward Foreign Currency Contracts at Period-End   
Settlement       Contract to         Notional         Unrealized   
Date    Counterparty          Deliver            Receive      Value      Appreciation  

08/15/2014

   Barclays Capital Inc.    CAD      68,020,875       USD      63,167,994       $ 62,362,650       $ 805,344   

08/15/2014

   CIBC World Markets Corp.    CAD      68,020,874       USD      63,138,383         62,362,649         775,734   

08/15/2014

   Deutsche Bank AG    CAD      68,020,875       USD      63,195,459         62,362,649         832,810   

08/15/2014

   Goldman Sachs & Co.    CAD      70,762,966       USD      65,706,826         64,876,643         830,183   

08/15/2014

   Barclays Capital Inc.    CHF      62,355,182       USD      69,467,470         68,617,904         849,566   

08/15/2014

   CIBC World Markets Corp.    CHF      62,355,185       USD      69,450,606         68,617,907         832,699   

08/15/2014

   Deutsche Bank AG    CHF      62,020,290       USD      69,085,298         68,249,376         835,922   

08/15/2014

   Goldman Sachs & Co.    CHF      62,355,182       USD      69,450,990         68,617,904         833,086   

08/15/2014

   Barclays Capital Inc.    EUR      79,562,833       USD      107,716,141         106,533,758         1,182,383   

08/15/2014

   CIBC World Markets Corp.    EUR      79,277,847       USD      107,314,458         106,152,165         1,162,293   

08/15/2014

   Deutsche Bank AG    EUR      79,562,832       USD      107,706,115         106,533,757         1,172,358   

08/15/2014

   Goldman Sachs & Co.    EUR      79,562,832       USD      107,699,432         106,533,757         1,165,675   

08/15/2014

   RBC Capital Markets Corp.    EUR      79,562,832       USD      107,716,140         106,533,757         1,182,383   

08/15/2014

   Barclays Capital Inc.    GBP      40,767,520       USD      69,860,608         68,816,226         1,044,382   

08/15/2014

   CIBC World Markets Corp.    GBP      39,894,289       USD      68,383,998         67,342,198         1,041,800   

08/15/2014

   Deutsche Bank AG    GBP      39,894,289       USD      68,363,612         67,342,198         1,021,414   

08/15/2014

   Goldman Sachs & Co.    GBP      39,894,291       USD      68,367,644         67,342,202         1,025,442   

  Total open forward foreign currency contracts – Currency Risk

  

            $ 16,593,474   

 

Currency Abbreviations:   
CAD — Canadian Dollar    GBP — British Pound Sterling
CHF — Swiss Franc    USD — U.S. Dollar
EUR — Euro   

NOTE 4 — Investment Securities

The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Fund during the three months ended July 31, 2014 was $644,749,628 and $192,551,878 respectively. Cost of investments on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end.

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

Aggregate unrealized appreciation of investment securities

   $  3,504,235,726   

Aggregate unrealized (depreciation) of investment securities

     (263,836,696)   

Net unrealized appreciation of investment securities

   $ 3,240,399,030   

Cost of investments for tax purposes is $ 9,691,885,063.

  

 

 

Invesco Comstock Fund


    

 

 

Invesco Dividend Income Fund

Quarterly Schedule of Portfolio Holdings

July 31, 2014

 

 

 

 

 

LOGO

 

invesco.com/us   I-DIVI-QTR-1       7/14    Invesco Advisers, Inc.
 


Schedule of Investments(a)

July 31, 2014

(Unaudited)

 

      Shares          Value      

Common Stocks–90.73%

     

Aerospace & Defense–5.76%

     

General Dynamics Corp.

     81,989       $ 9,573,855   

Lockheed Martin Corp.

     129,773         21,668,198   
                31,242,053   

Air Freight & Logistics–1.02%

     

United Parcel Service, Inc. -Class B

     56,927         5,527,042   

Asset Management & Custody Banks–2.45%

  

  

Federated Investors, Inc. -Class B

     470,858         13,287,613   

Auto Parts & Equipment–0.92%

     

Johnson Controls, Inc.

     105,543         4,985,851   

Drug Retail–1.61%

     

Walgreen Co.

     126,916         8,728,013   

Electric Utilities–12.01%

     

American Electric Power Co., Inc.

     87,326         4,540,079   

Duke Energy Corp.

     192,528         13,887,045   

Exelon Corp.

     162,892         5,062,683   

Pepco Holdings, Inc.

     657,477         17,653,257   

Pinnacle West Capital Corp.

     219,020         11,715,380   

Portland General Electric Co.

     209,056         6,675,158   

Xcel Energy, Inc.

     184,078         5,669,602   
                65,203,204   

Food Distributors–2.08%

     

Sysco Corp.

     315,745         11,268,939   

Gas Utilities–3.67%

     

AGL Resources Inc.

     244,143         12,607,545   

WGL Holdings Inc.

     186,875         7,284,387   
                19,891,932   

General Merchandise Stores–1.69%

     

Target Corp.

     153,629         9,154,752   

Heavy Electrical Equipment–1.07%

     

ABB Ltd. (Switzerland)

     253,024         5,821,350   

Household Products–3.02%

     

Kimberly-Clark Corp.

     71,990         7,477,601   

Procter & Gamble Co. (The)

     115,477         8,928,682   
                16,406,283   

Integrated Oil & Gas–5.00%

     

Exxon Mobil Corp.

     46,223         4,573,303   

Royal Dutch Shell PLC -Class B (United Kingdom)

     247,789         10,674,964   

Total S.A. (France)

     184,097         11,874,042   
                27,122,309   
      Shares          Value      

Integrated Telecommunication Services–7.21%

  

  

AT&T Inc.

     317,576       $ 11,302,531   

CenturyLink Inc.

     304,868         11,963,020   

Deutsche Telekom AG (Germany)

     282,278         4,571,643   

Verizon Communications Inc.

     223,904         11,289,240   
                39,126,434   

Life & Health Insurance–0.79%

     

Prudential Financial, Inc.

     49,458         4,301,362   

Multi-Utilities–9.61%

     

CMS Energy Corp.

     281,099         8,132,194   

Dominion Resources, Inc.

     112,237         7,591,711   

DTE Energy Co.

     92,274         6,811,667   

National Grid PLC (United Kingdom)

     533,109         7,677,972   

Public Service Enterprise Group Inc.

     259,968         9,143,074   

Sempra Energy

     49,600         4,945,616   

TECO Energy, Inc.

     450,191         7,860,335   
                52,162,569   

Packaged Foods & Meats–7.79%

     

Campbell Soup Co.

     327,243         13,610,036   

General Mills, Inc.

     260,396         13,058,860   

Kraft Foods Group, Inc.

     291,130         15,600,201   
                42,269,097   

Paper Packaging–2.39%

     

Avery Dennison Corp.

     75,459         3,562,420   

Sonoco Products Co.

     240,809         9,425,264   
                12,987,684   

Pharmaceuticals–7.27%

     

Bristol-Myers Squibb Co.

     129,585         6,559,593   

Eli Lilly and Co.

     201,335         12,293,515   

Johnson & Johnson

     124,339         12,445,091   

Merck & Co., Inc.

     144,175         8,180,489   
                39,478,688   

Property & Casualty Insurance–0.83%

     

Travelers Cos., Inc. (The)

     50,182         4,494,300   

Regional Banks–3.38%

     

Cullen/Frost Bankers, Inc.

     112,931         8,805,230   

M&T Bank Corp.

     78,412         9,527,058   
                18,332,288   

Restaurants–1.54%

     

Darden Restaurants, Inc.

     178,517         8,345,670   

Semiconductors–3.13%

     

Linear Technology Corp.

     179,546         7,924,263   

Microchip Technology Inc.

     200,989         9,048,525   
                16,972,788   
 

 

See accompanying notes which are an integral part of this schedule.

 

Invesco Dividend Income Fund


      Shares          Value      

Soft Drinks–2.04%

     

Coca-Cola Co. (The)

     282,420       $ 11,096,282   

Tobacco–4.45%

     

Altria Group, Inc.

     362,579         14,720,707   

Philip Morris International Inc.

     114,774         9,412,616   
                24,133,323   

Total Common Stocks
(Cost $397,238,368)

              492,339,826   

Money Market Funds–9.37%

     

Liquid Assets Portfolio –Institutional Class (b)

     25,426,096         25,426,096   

Premier Portfolio –Institutional Class (b)

     25,426,096         25,426,096   

Total Money Market Funds
(Cost $50,852,192)

              50,852,192   

TOTAL INVESTMENTS–100.10%
(Cost $448,090,560)

              543,192,018   

OTHER ASSETS LESS LIABILITIES–(0.10)%

  

     (536,381)   

NET ASSETS–100.00%

            $ 542,655,637   

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

    

 

 

See accompanying notes which are an integral part of this schedule.

 

Invesco Dividend Income Fund


Notes to Quarterly Schedule of Portfolio Holdings

July 31, 2014

(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 ask prices from the exchange on which they are principally traded. Options not listed on an exchange are valued by an independent source at the mean between the last bid and ask prices. For purposes of determining net asset value per share, futures and option contracts generally are valued 15 minutes after the close of the customary trading session of the New York Stock Exchange (“NYSE”).

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

Debt obligations (including convertible securities) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.

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

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

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

The Fund may invest in securities that are subject to interest rate risk, meaning the risk that the prices will generally fall as interest rates rise and, conversely, the prices will generally rise as interest rates fall. Specific securities differ in their sensitivity to

 

Invesco Dividend Income Fund


A. Security Valuations (continued)

 

changes in interest rates depending on their individual characteristics. Changes in interest rates may result in increased market volatility, which may affect the value and/or liquidity of certain of the Fund’s investments.

Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the issuer’s assets, general economic conditions, interest rates, investor perceptions and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

B. Securities Transactions and Investment Income – Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income (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 Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and Statement of Changes in Net Assets, or the net investment income per share and ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.

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

C. Country Determination – For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues and the country that has the primary market for the issuer’s securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted.
D. Foreign Currency Translations – Foreign currency is valued at the close of the NYSE based on quotations posted by banks and major currency dealers. Portfolio securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at date of valuation. Purchases and sales of portfolio securities (net of foreign taxes withheld on disposition) and income items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. The Fund does not separately account for the portion of the results of operations resulting from changes in foreign exchange rates on investments and the fluctuations arising from changes in market prices of securities held. The combined results of changes in foreign exchange rates and the fluctuation of market prices on investments (net of estimated foreign tax withholding) are included with the net realized and unrealized gain or loss from investments in the Statement of Operations. Reported net realized foreign currency gains or losses arise from (1) sales of foreign currencies, (2) currency gains or losses realized between the trade and settlement dates on securities transactions, and (3) the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign currency gains and losses arise from changes in the fair values of assets and liabilities, other than investments in securities at fiscal period end, resulting from changes in exchange rates.

The Fund may invest in foreign securities which may be subject to foreign taxes on income, gains on investments or currency repatriation, a portion of which may be recoverable.

E. Forward Foreign Currency Contracts – The Fund may engage in foreign currency transactions either on a spot (i.e. for prompt delivery and settlement) basis at the rate prevailing in the currency exchange market at the time or through forward foreign currency enter into forward foreign currency contracts to manage or minimize currency or exchange rate risk.

The Fund may also enter into forward foreign currency contracts for the purchase or sale of a security denominated in a foreign currency in order to “lock in” the U.S. dollar price of that security, 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

 

Invesco Dividend Income Fund


E. Forward Foreign Currency Contracts (continued)

 

upon notional amount (non-deliverable forwards). The Fund will set aside liquid assets in an amount equal to daily mark-to-market obligation for forward foreign currency contracts.

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

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.

The following is a summary of the tiered valuation input levels, as of July 31, 2014. The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

 

      Level 1      Level 2        Level 3      Total  

  Equity Securities

   $     502,572,047       $ 40,619,971       $              —       $     543,192,018   

  Forward Foreign Currency Contracts*

             98,344                 98,344   

Total Investments

   $ 502,572,047       $ 40,718,315       $       $ 543,290,362   

* Unrealized appreciation.

NOTE 3 — Derivative Investments

 

Open Forward Foreign Currency Contracts at Period-End  
Settlement
Date
        Contract to        
 
Notional
Value
  
  
   
 
Unrealized
Appreciation
  
  
   Counterparty      Deliver                     Receive                    

    09/16/2014

   Citigroup Global Markets Inc.    EUR 3,388,976       USD 4,587,199       $     4,538,370      $         48,829   

    09/16/2014

   Deutsche Bank AG.    EUR 3,387,927       USD 4,586,481         4,536,966        49,515   

Total open forward foreign currency contracts - Currency Risk

  

  $ 98,344   

Currency Abbreviations:

EUR – Euro

USD — U.S. Dollar

 

Invesco Dividend Income Fund


NOTE 4 — Investment Securities

The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Fund during the three months ended July 31, 2014 was $29,546,754 and $4,357,658, respectively. Cost of investments on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end.

 

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

 

  

Aggregate unrealized appreciation of investment securities

 

   $

 

            97,931,169

 

  

 

Aggregate unrealized (depreciation) of investment securities

 

    

 

(2,832,821)

 

  

 

Net unrealized appreciation of investment securities

 

   $

 

95,098,348

 

  

 

Cost of investments for tax purposes is $448,093,670.

  

 

Invesco Dividend Income Fund


    

 

 

Invesco Energy Fund

Quarterly Schedule of Portfolio Holdings

July 31, 2014

 

 

 

 

 

LOGO

 

invesco.com/us   I-ENE-QTR-1       7/14    Invesco Advisers, Inc.
 


Schedule of Investments(a)

July 31, 2014

(Unaudited)

 

      Shares          Value      

Common Stocks & Other Equity Interests–93.41%

  

Diversified Chemicals–1.23%

  

Dow Chemical Co. (The)

     341,607       $ 17,445,870   

Integrated Oil & Gas–26.53%

  

BG Group PLC (United Kingdom)

     1,489,507         29,384,919   

BP PLC -ADR (United Kingdom)

     737,834         36,131,731   

Cenovus Energy Inc. (Canada)

     1,184,257         36,376,013   

Chevron Corp.

     449,114         58,043,493   

Exxon Mobil Corp.

     534,842         52,917,268   

Galp Energia, SGPS, S.A. (Portugal)

     630,663         11,170,921   

Occidental Petroleum Corp.

     499,389         48,795,299   

Royal Dutch Shell PLC -ADR

(United Kingdom)

     611,270         50,020,224   

Suncor Energy, Inc. (Canada)

     1,283,479         52,702,334   
                375,542,202   

Oil & Gas Drilling–4.22%

  

Ensco PLC -Class A (b)

     677,769         34,329,000   

Helmerich & Payne, Inc.

     238,843         25,379,457   
                59,708,457   

Oil & Gas Equipment & Services–16.64%

  

Cameron International Corp. (c)

     506,272         35,899,748   

Halliburton Co.

     662,382         45,697,734   

National Oilwell Varco Inc.

     245,674         19,909,421   

Oceaneering International, Inc.

     81,788         5,554,223   

Schlumberger Ltd.

     439,166         47,601,203   

Superior Energy Services, Inc.

     404,500         13,591,200   

Tidewater Inc.

     619,801         29,297,993   

Weatherford International PLC (c)

     1,696,562         37,952,092   
                235,503,614   

Oil & Gas Exploration & Production–40.32%

  

Anadarko Petroleum Corp.

     483,848         51,699,159   

Apache Corp.

     732,997         75,249,472   

Cabot Oil & Gas Corp.

     475,009         15,651,546   

Canadian Natural Resources Ltd. (Canada)

     1,257,179         54,804,841   

Cobalt International Energy, Inc. (c)

     969,845         15,536,917   

Concho Resources Inc. (c)

     251,861         35,462,029   

Devon Energy Corp.

     792,511         59,834,580   

EOG Resources, Inc.

     380,746         41,668,842   

EQT Corp.

     124,200         11,652,444   

Marathon Oil Corp.

     735,083         28,484,466   

Noble Energy, Inc.

     421,548         28,028,726   

Range Resources Corp.

     170,096         12,857,557   

Rosetta Resources, Inc. (c)

     205,729         10,506,580   

Southwestern Energy Co. (c)

     925,210         37,545,022   

Tullow Oil PLC (United Kingdom)

     1,235,976         15,140,487   

Ultra Petroleum Corp. (b)(c)

     1,342,889         30,779,016   

Whiting Petroleum Corp. (c)

     519,365         45,958,609   
                570,860,293   
      Shares          Value      

Oil & Gas Refining & Marketing–4.33%

  

Marathon Petroleum Corp.

     311,334       $ 25,990,162   

Phillips 66

     434,996         35,282,526   
                61,272,688   

Trading Companies & Distributors–0.14%

  

NOW Inc. (b)(c)

     61,418         1,977,045   

Total Common Stocks & Other
Equity Interests (Cost $906,103,620)

   

     1,322,310,169   

Money Market Funds–6.97%

  

Liquid Assets Portfolio –Institutional Class (d)

     49,364,297         49,364,297   

Premier Portfolio –Institutional Class (d)

     49,364,297         49,364,297   

Total Money Market Funds

(Cost $98,728,594)

              98,728,594   

TOTAL INVESTMENTS (excluding investments purchased with cash collateral from securities on loan)–100.38% (Cost $1,004,832,214)

    

     1,421,038,763   

Investments Purchased with Cash Collateral from Securities on Loan

   

Money Market Funds–1.82%

     

Liquid Assets Portfolio - Institutional Class (Cost $25,779,674)(d)(e)

     25,779,674         25,779,674   

TOTAL INVESTMENTS–102.20%
(Cost $1,030,611,888)

   

     1,446,818,437   

OTHER ASSETS LESS LIABILITIES–(2.20)%

  

     (31,134,204)   

NET ASSETS–100%

            $   1,415,684,233   
 

 

See accompanying notes which are an integral part of this schedule.

Invesco Energy Fund


Investment Abbreviations:

 

ADR —  American Depositary Receipt

Notes to Schedule of Investments:

 

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

 

(b)  All or a portion of this security was out on loan at July 31, 2014.

 

(c)  Non-income producing security.

 

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

 

(e)  The security has been segregated to satisfy the commitment to return the cash collateral received in securities lending transactions upon the borrower’s return of the securities loaned. See Note 1D. The following table presents the Fund’s gross and net amount of assets available for offset by the Fund as of July 31, 2014.

 

Counterparty   

  Gross Amount of  

Securities on

Loan at Value

  

Cash Collateral

Received for

  Securities Loaned*  

     Net Amount  

State Street Bank and Trust Co.

   $23,948,481    $(23,948,481)    $ —

 *Amount does not include excess collateral received.

  

 

 

 

See accompanying notes which are an integral part of this schedule.

Invesco Energy Fund


Notes to Quarterly Schedule of Portfolio Holdings

July 31, 2014

(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 ask prices from the exchange on which they are principally traded. Options not listed on an exchange are valued by an independent source at the mean between the last bid and ask prices. For purposes of determining net asset value per share, futures and option contracts generally are valued 15 minutes after the close of the customary trading session of the New York Stock Exchange (“NYSE”).

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

Debt obligations (including convertible securities) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.

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

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

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

The Fund may invest in securities that are subject to interest rate risk, meaning the risk that the prices will generally fall as interest rates rise and, conversely, the prices will generally rise as interest rates fall. Specific securities differ in their sensitivity to

 

Invesco Energy Fund


A. Security Valuations – (continued)

 

changes in interest rates depending on their individual characteristics. Changes in interest rates may result in increased market volatility, which may affect the value and/or liquidity of certain of the Fund’s investments.

Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the issuer’s assets, general economic conditions, interest rates, investor perceptions and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

B. Securities Transactions and Investment Income – Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income (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 Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and Statement of Changes in Net Assets, or the net investment income per share and ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.

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

C. Country Determination – For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues and the country that has the primary market for the issuer’s securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted.
D. Securities Lending – The Fund may lend portfolio securities having a market value up to one-third of the Fund’s total assets. Such loans are secured by collateral equal to no less than the market value of the loaned securities determined daily by the securities lending provider. Such collateral will be cash or debt securities issued or guaranteed by the U.S. Government or any of its sponsored agencies. Cash collateral received in connection with these loans is invested in short-term money market instruments or affiliated money market funds and is shown as such on the Schedule of Investments. It is the Fund’s policy to obtain additional collateral from or return excess collateral to the borrower by the end of the next business day, following the valuation date of the securities loaned. Therefore, the value of the collateral held may be temporarily less than the value of the securities on loan. Lending securities entails a risk of loss to the Fund if, and to the extent that, the market value of the securities loaned were to increase and the borrower did not increase the collateral accordingly, and the borrower failed to return the securities. Upon the failure of the borrower to return the securities, collateral may be liquidated and the securities may be purchased on the open market to replace the loaned securities. The Fund could experience delays and costs in gaining access to the collateral. The Fund bears the risk of any deficiency in the amount of the collateral available for return to the borrower due to any loss on the collateral invested. Dividends received on cash collateral investments for securities lending transactions, which are net of compensation to counterparties, is included in Dividends from affiliated money market funds on the Statement of Operations. The aggregate value of securities out on loan is shown as a footnote on the Statement of Assets and Liabilities, if any.
E.

Foreign Currency Translations – Foreign currency is valued at the close of the NYSE based on quotations posted by banks and major currency dealers. Portfolio securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at date of valuation. Purchases and sales of portfolio securities (net of foreign taxes withheld on disposition) and income items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. The Fund does not separately account for the portion of the results of operations resulting from changes in foreign

 

Invesco Energy Fund


E. Foreign Currency Translations – (continued)

 

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.

F. Forward Foreign Currency Contracts – The Fund may engage in foreign currency transactions either on a spot (i.e. for prompt delivery and settlement) basis at the rate prevailing in the currency exchange market at the time 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 daily mark-to-market obligation for forward foreign currency contracts.

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

G. Other Risks - The Fund’s investments are concentrated in a comparatively narrow segment of the economy, which may make the Fund more volatile.

The businesses in which the Fund invests may be adversely affected by foreign, federal or state regulations governing energy production, distribution and sale. Although individual security selection drives the performance of the Fund, short-term fluctuations in commodity prices may cause price fluctuations in its shares.

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.

 

Invesco Energy Fund


The following is a summary of the tiered valuation input levels, as of July 31, 2014. The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

 

      Level 1      Level 2      Level 3      Total  

    Equity Securities

   $     1,391,122,110       $     55,696,327       $     —       $     1,446,818,437   

NOTE 3 — Investment Securities

The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Fund during the three months ended July 31, 2014 was $71,957,927 and $82,329,669, respectively. Cost of investments on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end.

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

Aggregate unrealized appreciation of investment securities

   $                  419,719,245   

Aggregate unrealized (depreciation) of investment securities

     (7,491,155)   

Net unrealized appreciation of investment securities

   $ 412,228,090   

Cost of investments for tax purposes is $1,034,590,347.

  

 

 

Invesco Energy Fund


 

 

Invesco Gold & Precious Metals Fund

Quarterly Schedule of Portfolio Holdings

July 31, 2014

 

 

 

 

 

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Schedule of Investments

July 31, 2014

(Unaudited)

 

      Shares      Value  

Common Stocks & Other Equity Interests–95.28%

  

Brazil–4.84%

     

Yamana Gold Inc.

     2,113,911       $ 18,010,522   

Canada–66.90%

     

Agnico Eagle Mines Ltd. (a)

     487,038         18,112,943   

Alamos Gold Inc.

     1,014,893         9,029,132   

B2Gold Corp. (a)(b)

     3,589,564         9,284,207   

Barrick Gold Corp.

     669,158         12,098,377   

Continental Gold Ltd. (b)

     2,027,373         7,177,529   

Detour Gold Corp. (b)

     1,283,230         14,464,731   

Eldorado Gold Corp.

     2,374,858         17,621,390   

Franco-Nevada Corp. (a)

     362,312         20,499,887   

Goldcorp, Inc.

     622,239         17,049,349   

Ivanhoe Mines Ltd. -Class A (a)(b)

     2,313,181         3,203,617   

Ivanhoe Mines Ltd. -Wts. expiring
12/10/15(b)

     2,088,713         421,459   

Kinross Gold Corp. (b)

     2,660,557         10,639,300   

Lydian International, Ltd. (a)(b)

     4,687,150         5,072,766   

New Gold Inc. (b)

     2,388,907         14,701,977   

Orezone Gold Corp. (b)

     167,000         127,130   

Osisko Gold Royalties Ltd. (b)

     136,774         1,950,689   

Pan American Silver Corp. (a)

     576,713         8,466,147   

Platinum Group Metals Ltd. (a)(b)

     3,381,162         3,628,322   

Pretium Resources Inc. (a)(b)

     386,156         2,642,139   

Rubicon Minerals Corp. (b)

     6,213,359         9,175,005   

Sandstorm Gold Ltd. (a)(b)

     595,220         4,007,076   

SEMAFO Inc. (b)

     1,828,301         7,898,099   

Silver Wheaton Corp. (b)

     620,863         16,210,733   

Torex Gold Resources Inc. (b)

     13,560,357         18,904,652   

Torex Gold Resources Inc. -Wts.
expiring 08/12/14(b)

     1,977,500         36,274   

Turquoise Hill Resources Ltd. (a)(b)

     4,705,348         16,356,295   
                248,779,225   

Mali–4.03%

     

Randgold Resources Ltd. -ADR

     173,875         14,977,593   

Mexico–2.97%

     

Fresnillo PLC

     705,368         11,041,769   

South Africa–0.58%

     

Gold Fields Ltd. -ADR

     543,894         2,142,942   

United States–15.96%

     

Boart Longyear Ltd. (a)(b)

     9,575,359         1,622,651   

iShares® Gold Trust - ETF (b)

     890,700         11,062,494   

Newmont Mining Corp.

     485,838         12,102,225   

SPDR® Gold Trust - ETF (b)

     122,500         15,115,275   

Stillwater Mining Co. (b)

     486,761         8,713,022   
      Shares      Value  

United States–(continued)

     

Tahoe Resources Inc. (b)

     405,529       $ 10,745,421   
                59,361,088   

Total Common Stocks & Other Equity Interests
(Cost $389,401,034)

              354,313,139   

Money Market Funds–5.05%

     

Liquid Assets Portfolio –Institutional Class (c)

     9,394,932         9,394,932   

Premier Portfolio –Institutional Class (c)

     9,394,933         9,394,933   

Total Money Market Funds
(Cost $18,789,865)

        18,789,865   

TOTAL INVESTMENTS (excluding investments purchased with cash collateral from securities on
loan)–100.33% (Cost $408,190,899)

              373,103,004   

Investments Purchased with Cash
Collateral from Securities on Loan

   

  

Money Market Funds–7.18%

     

Liquid Assets Portfolio - Institutional Class (Cost $26,690,241)(c)(d)

     26,690,241         26,690,241   

TOTAL INVESTMENTS–107.51%
(Cost $434,881,140)

              399,793,245   

OTHER ASSETS LESS LIABILITIES–(7.51)%

  

     (27,913,197)   

NET ASSETS–100.00%

            $   371,880,048   

Investment Abbreviations:

 

ADR

 

  

—American Depositary Receipt

 

ETF

 

  

—Exchange-Traded Fund

 

SPDR

 

  

—Standard & Poor’s Depositary Receipt

 

Wts.

   —Warrants

Notes to Schedule of Investments:

 

(a)  All or a portion of this security was out on loan at July 31, 2014.

 

(b)  Non-income producing security.

 

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

 

(d)  The security has been segregated to satisfy the commitment to return the cash collateral received in securities lending transactions upon the borrower’s return of the securities loaned. See Note 1D. The following table presents the Fund’s gross and net amount of assets available for offset by the Fund as of July 31, 2014.

 

Counterparty   

Gross

Amount of
Securities on
Loan at Value 

   Cash
Collateral
Received for
Securities
Loaned*
  Net
Amount

Brown Brothers

Harriman

   $ 24,597,529    $(24,597,529)    $ —

*Amount does not include excess collateral received.

 

 

See accompanying notes which are an integral part of this schedule.

 

Invesco Gold & Precious Metals Fund


Notes to Quarterly Schedule of Portfolio Holdings

July 31, 2014

(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 ask prices from the exchange on which they are principally traded. Options not listed on an exchange are valued by an independent source at the mean between the last bid and ask prices. For purposes of determining net asset value per share, futures and option contracts generally are valued 15 minutes after the close of the customary trading session of the New York Stock Exchange (“NYSE”).

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

Debt obligations (including convertible securities) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.

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

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

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

The Fund may invest in securities that are subject to interest rate risk, meaning the risk that the prices will generally fall as interest rates rise and, conversely, the prices will generally rise as interest rates fall. Specific securities differ in their sensitivity to

 

Invesco Gold & Precious Metals Fund


A. Security Valuations(continued)

 

changes in interest rates depending on their individual characteristics. Changes in interest rates may result in increased market volatility, which may affect the value and/or liquidity of certain of the Fund’s investments.

Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the issuer’s assets, general economic conditions, interest rates, investor perceptions and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

B. Securities Transactions and Investment Income – Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income (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 Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and Statement of Changes in Net Assets, or the net investment income per share and ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.

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

C. Country Determination – For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues and the country that has the primary market for the issuer’s securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted.
D. Securities Lending – The Fund may lend portfolio securities having a market value up to one-third of the Fund’s total assets. Such loans are secured by collateral equal to no less than the market value of the loaned securities determined daily by the securities lending provider. Such collateral will be cash or debt securities issued or guaranteed by the U.S. Government or any of its sponsored agencies. Cash collateral received in connection with these loans is invested in short-term money market instruments or affiliated money market funds and is shown as such on the Schedule of Investments. It is the Fund’s policy to obtain additional collateral from or return excess collateral to the borrower by the end of the next business day, following the valuation date of the securities loaned. Therefore, the value of the collateral held may be temporarily less than the value of the securities on loan. Lending securities entails a risk of loss to the Fund if, and to the extent that, the market value of the securities loaned were to increase and the borrower did not increase the collateral accordingly, and the borrower failed to return the securities. Upon the failure of the borrower to return the securities, collateral may be liquidated and the securities may be purchased on the open market to replace the loaned securities. The Fund could experience delays and costs in gaining access to the collateral. The Fund bears the risk of any deficiency in the amount of the collateral available for return to the borrower due to any loss on the collateral invested. Dividends received on cash collateral investments for securities lending transactions, which are net of compensation to counterparties, is included in Dividends from affiliated money market funds on the Statement of Operations. The aggregate value of securities out on loan is shown as a footnote on the Statement of Assets and Liabilities, if any.
E. Foreign Currency Translations – Foreign currency is valued at the close of the NYSE based on quotations posted by banks and major currency dealers. Portfolio securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at date of valuation. Purchases and sales of portfolio securities (net of foreign taxes withheld on disposition) and income items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. The Fund does not separately account for the portion of the results of operations resulting from changes in foreign

 

Invesco Gold & Precious Metals Fund


E. Foreign Currency Translations (continued)

 

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.

F. Forward Foreign Currency Contracts – The Fund may engage in foreign currency transactions either on a spot (i.e. for prompt delivery and settlement) basis at the rate prevailing in the currency exchange market at the time 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 daily mark-to-market obligation for forward foreign currency contracts.

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

G. Other Risks - The Fund’s investments are concentrated in a comparatively narrow segment of the economy, which may make the Fund more volatile.

The Fund may invest a large percentage of its assets in a limited number of securities or other instruments, which could negatively affect the value of the Fund.

Fluctuations in the price of gold and precious metals may affect the profitability of companies in the gold and precious metals sector. Changes in the political or economic conditions of countries where companies in the gold and precious metals sector are located may have a direct effect on the price of gold and precious metals.

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.

 

Invesco Gold & Precious Metals Fund


The following is a summary of the tiered valuation input levels, as of July 31, 2014. The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

 

      Level 1      Level 2          Level 3          Total  

Brazil

   $ 18,010,522       $       $       $ 18,010,522   

Canada

     248,779,225                         248,779,225   

Mali

     14,977,593                         14,977,593   

Mexico

             11,041,769                 11,041,769   

South Africa

     2,142,942                         2,142,942   

United States

     103,218,543         1,622,651                 104,841,194   

Total Investments

   $   387,128,825       $   12,664,420       $       $     399,793,245   

NOTE 3 — Investment Securities

The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Fund during the three months ended July 31, 2014 was $38,925,029 and $20,917,348, respectively. Cost of investments on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end.

 

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

Aggregate unrealized appreciation of investment securities

   $             43,536,105   

Aggregate unrealized (depreciation) of investment securities

     (110,903,904)   

Net unrealized appreciation (depreciation) of investment securities

   $ (67,367,799)   

Cost of investments for tax purposes is $467,161,044.

  

 

Invesco Gold & Precious Metals Fund


    

 

 

Invesco Mid Cap Growth Fund

Quarterly Schedule of Portfolio Holdings

July 31, 2014

 

 

 

 

 

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Schedule of Investments(a)

July 31, 2014

(Unaudited)

 

      Shares          Value      

Common Stocks & Other Equity Interests–97.59%

  

Aerospace & Defense–1.92%

     

B/E Aerospace, Inc. (b)

     413,087       $ 35,170,227   

DigitalGlobe Inc. (b)(c)

     755,551         19,757,659   
                54,927,886   

Airlines–1.54%

     

Delta Air Lines, Inc.

     1,175,217         44,023,629   

Apparel, Accessories & Luxury Goods–2.27%

  

  

Michael Kors Holdings Ltd. (b)

     272,815         22,228,966   

Under Armour, Inc. -Class A (b)(c)

     639,150         42,663,263   
                64,892,229   

Application Software–1.92%

     

Aspen Technology, Inc. (b)

     742,733         32,264,322   

Cadence Design Systems, Inc. (b)

     1,344,581         22,629,298   
                54,893,620   

Asset Management & Custody Banks–2.65%

  

Affiliated Managers Group, Inc. (b)

     145,065         28,904,201   

Ameriprise Financial, Inc.

     391,812         46,860,715   
                75,764,916   

Auto Parts & Equipment–0.72%

     

Gentherm Inc. (b)

     489,822         20,499,051   

Automobile Manufacturers–1.08%

     

Tesla Motors, Inc. (b)

     138,899         31,016,147   

Automotive Retail–1.75%

     

O’Reilly Automotive, Inc. (b)

     334,492         50,173,800   

Biotechnology–4.10%

     

Alexion Pharmaceuticals, Inc. (b)

     284,722         45,267,951   

Medivation Inc. (b)

     689,661         51,193,536   

Synageva BioPharma Corp. (b)(c)

     303,792         20,782,410   
                117,243,897   

Building Products–3.36%

     

A.O. Smith Corp.

     727,363         33,967,852   

Lennox International Inc.

     490,148         41,819,427   

Owens Corning Inc.

     594,974         20,258,865   
                96,046,144   

Casinos & Gaming–2.01%

     

Wynn Resorts Ltd.

     269,230         57,399,836   
      Shares          Value      

Commodity Chemicals–1.10%

     

LyondellBasell Industries N.V. -Class A

     296,680       $ 31,522,250   

Communications Equipment–1.27%

     

Palo Alto Networks, Inc. (b)

     447,491         36,184,122   

Computer & Electronics Retail–0.60%

     

Best Buy Co., Inc.

     574,162         17,069,836   

Construction & Engineering–2.28%

     

Foster Wheeler AG (Switzerland)

     1,153,644         38,024,106   

MasTec Inc. (b)

     997,108         27,111,367   
         65,135,473   

Construction Machinery & Heavy Trucks–0.45%

  

Manitowoc Co., Inc. (The)

     483,733         12,847,948   

Consumer Electronics–1.88%

     

Harman International Industries, Inc.

     496,101         53,851,764   

Consumer Finance–1.67%

     

Discover Financial Services

     782,398         47,773,222   

Data Processing & Outsourced Services–1.40%

  

Alliance Data Systems Corp. (b)

     152,138         39,904,276   

Distillers & Vintners–1.68%

     

Constellation Brands, Inc. -Class A (b)

     578,336         48,152,255   

Distributors–1.48%

     

LKQ Corp. (b)

     1,618,737         42,338,066   

Diversified Support Services–0.88%

     

KAR Auction Services Inc.

     861,367         25,246,667   

Electrical Components & Equipment–1.73%

  

  

AMETEK, Inc.

     569,638         27,735,674   

Rockwell Automation, Inc.

     194,833         21,755,053   
                49,490,727   

Electronic Components–1.96%

     

Amphenol Corp. -Class A

     582,502         56,019,217   

Electronic Equipment & Instruments–1.41%

  

  

Cognex Corp. (b)

     980,719         40,189,865   

Food Retail–0.80%

     

Kroger Co. (The)

     468,557         22,949,922   

Health Care Facilities–1.98%

     

Universal Health Services, Inc. -Class B

     531,002         56,604,813   
 

 

See accompanying notes which are an integral part of this schedule.

 

Invesco Mid Cap Growth Fund


      Shares          Value      

Health Care Services–2.68%

     

Omnicare, Inc.

     527,847       $ 32,990,438   

Team Health Holdings, Inc. (b)

     771,862         43,648,796   
                76,639,234   

Homebuilding–0.91%

     

Lennar Corp. -Class A

     720,845         26,116,214   

Household Appliances–0.72%

     

Whirlpool Corp.

     144,309         20,584,236   

Household Products–0.46%

     

Church & Dwight Co., Inc.

     204,450         13,121,601   

Housewares & Specialties–1.36%

     

Jarden Corp. (b)

     695,372         38,871,295   

Industrial Conglomerates–1.19%

     

Carlisle Cos. Inc.

     426,704         34,144,854   

Industrial Machinery–3.05%

     

Flowserve Corp.

     644,047         47,685,240   

ITT Corp.

     858,283         39,455,269   
                87,140,509   

Internet Retail–0.68%

     

Netflix Inc. (b)

     46,017         19,452,306   

Internet Software & Services–3.22%

     

Cornerstone OnDemand, Inc. (b)

     575,340         24,072,226   

Pandora Media Inc. (b)

     1,253,981         31,500,003   

Yelp Inc. (b)

     542,971         36,465,932   
                92,038,161   

Investment Banking & Brokerage–0.80%

  

  

Lazard Ltd. -Class A

     438,010         22,907,923   

IT Consulting & Other Services–0.93%

  

  

Gartner, Inc. (b)

     388,500         26,581,170   

Leisure Products–1.18%

     

Brunswick Corp.

     837,743         33,786,175   

Life Sciences Tools & Services–1.69%

  

  

Illumina, Inc. (b)

     301,393         48,195,755   

Movies & Entertainment–1.51%

     

Cinemark Holdings, Inc.

     1,313,336         43,077,421   

Oil & Gas Equipment & Services–2.61%

  

  

Baker Hughes Inc.

     610,179         41,962,010   

Superior Energy Services, Inc.

     968,209         32,531,822   
                74,493,832   

Oil & Gas Exploration & Production–2.95%

  

  

Cimarex Energy Co.

     198,704         27,623,830   

EQT Corp.

     312,126         29,283,661   

Stone Energy Corp. (b)

     721,028         27,435,116   
         84,342,607   
      Shares          Value      

Packaged Foods & Meats–1.56%

  

  

Mead Johnson Nutrition Co.

     486,274       $ 44,464,895   

Pharmaceuticals–4.97%

     

Actavis PLC (b)

     295,954         63,411,104   

Pacira Pharmaceuticals, Inc. (b)(c)

     372,874         34,304,408   

Shire PLC -ADR (Ireland)

     180,049         44,382,079   
                142,097,591   

Railroads–0.54%

     

Kansas City Southern

     142,792         15,572,895   

Regional Banks–1.34%

     

SVB Financial Group (b)

     351,703         38,342,661   

Semiconductor Equipment–1.18%

  

  

Applied Materials, Inc.

     1,606,686         33,676,139   

Semiconductors–4.51%

     

Atmel Corp. (b)

     2,283,337         18,723,363   

Cavium Inc. (b)

     505,161         23,565,761   

Integrated Device Technology, Inc. (b)

     1,945,716         27,940,482   

NXP Semiconductors N.V. (Netherlands)(b)

     943,830         58,847,800   
         129,077,406   

Specialized Finance–1.95%

     

Intercontinental Exchange, Inc.

     289,856         55,716,120   

Specialty Chemicals–2.59%

     

PPG Industries, Inc.

     266,268         52,816,921   

Valspar Corp. (The)

     282,124         21,173,406   
                73,990,327   

Specialty Stores–2.03%

     

Signet Jewelers Ltd.

     195,963         19,947,074   

Tractor Supply Co.

     614,261         38,188,606   
                58,135,680   

Systems Software–1.42%

     

ServiceNow, Inc. (b)

     691,827         40,679,428   

Trading Companies & Distributors–0.76%

  

United Rentals, Inc. (b)

     204,085         21,612,601   

Trucking–0.99%

     

J.B. Hunt Transport Services, Inc.

     367,909         28,424,649   

Wireless Telecommunication Services–1.92%

  

SBA Communications Corp. -
Class A (b)

     514,497         55,015,164   

Total Common Stocks & Other Equity Interests
(Cost $2,174,594,966)

   

     2,790,460,427   

Money Market Funds–0.92%

     

Liquid Assets Portfolio –Institutional Class (d)

     13,174,076         13,174,076   

Premier Portfolio –Institutional Class (d)

     13,174,076         13,174,076   

Total Money Market Funds
(Cost $26,348,152)

   

     26,348,152   
 

 

See accompanying notes which are an integral part of this schedule.

 

Invesco Mid Cap Growth Fund


      Shares          Value      

TOTAL INVESTMENTS (excluding
investments purchased with cash collateral from securities on loan)–98.51%
(Cost $2,200,943,118)

            $ 2,816,808,579   

Investments Purchased with Cash Collateral from
Securities on Loan

   

Money Market Funds–1.17%

     

Liquid Assets Portfolio - Institutional Class
(Cost $33,315,470)(d)(e)

     33,315,470         33,315,470   

TOTAL INVESTMENTS–99.68%
(Cost $2,234,258,588)

              2,850,124,049   

OTHER ASSETS LESS LIABILITIES–0.32%

  

     9,247,253   

NET ASSETS–100.00%

            $ 2,859,371,302   

    

 

 

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 July 31, 2014.

 

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

 

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

 

  The following table presents the Fund’s gross and net amount of assets available for offset by the Fund as of July 31, 2014.

 

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

Brown Brothers Harriman

     $33,014,101       $ (33,014,101   $  —   

*Amount does not include excess collateral received.

See accompanying notes which are an integral part of this schedule.

 

Invesco Mid Cap Growth Fund


Notes to Quarterly Schedule of Portfolio Holdings

July 31, 2014

(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 ask prices from the exchange on which they are principally traded. Options not listed on an exchange are valued by an independent source at the mean between the last bid and ask prices. For purposes of determining net asset value per share, futures and option contracts generally are valued 15 minutes after the close of the customary trading session of the New York Stock Exchange (“NYSE”).

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

Debt obligations (including convertible securities) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.

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

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

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

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

 

Invesco Mid Cap Growth Fund


A. Security Valuations(continued)

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

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

C.

Country Determination – For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues and the country that has the primary market for the issuer’s securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted.

D.

Securities Lending – The Fund may lend portfolio securities having a market value up to one-third of the Fund’s total assets. Such loans are secured by collateral equal to no less than the market value of the loaned securities determined daily by the securities lending provider. Such collateral will be cash or debt securities issued or guaranteed by the U.S. Government or any of its sponsored agencies. Cash collateral received in connection with these loans is invested in short-term money market instruments or affiliated money market funds and is shown as such on the Schedule of Investments. It is the Fund’s policy to obtain additional collateral from or return excess collateral to the borrower by the end of the next business day, following the valuation date of the securities loaned. Therefore, the value of the collateral held may be temporarily less than the value of the securities on loan. Lending securities entails a risk of loss to the Fund if, and to the extent that, the market value of the securities loaned were to increase and the borrower did not increase the collateral accordingly, and the borrower failed to return the securities. Upon the failure of the borrower to return the securities, collateral may be liquidated and the securities may be purchased on the open market to replace the loaned securities. The Fund could experience delays and costs in gaining access to the collateral. The Fund bears the risk of any deficiency in the amount of the collateral available for return to the borrower due to any loss on the collateral invested. Dividends received on cash collateral investments for securities lending transactions, which are net of compensation to counterparties, is included in Dividends from affiliated money market funds on the Statement of Operations. The aggregate value of securities out on loan is shown as a footnote on the Statement of Assets and Liabilities, if any.

E.

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

 

Invesco Mid Cap Growth Fund


E. Foreign Currency Translations (continued)

 

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.

F.

Forward Foreign Currency Contracts – The Fund may engage in foreign currency transactions either on a spot (i.e. for prompt delivery and settlement) basis at the rate prevailing in the currency exchange market at the time 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 daily mark-to-market obligation for forward foreign currency contracts.

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

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 July 31, 2014, 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 Mid Cap Growth Fund


NOTE 3 — Investment Securities

The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Fund during the three months ended July 31, 2014 was $495,360,876 and $644,182,615, respectively. Cost of investments on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end.

 

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

  

Aggregate unrealized appreciation of investment securities

   $     673,187,371   

Aggregate unrealized (depreciation) of investment securities

     (58,640,335)   

Net unrealized appreciation of investment securities

   $ 614,547,036   

Cost of investments for tax purposes is $2,235,577,013.

  

 

Invesco Mid Cap Growth Fund


 

 

Invesco Small Cap Value Fund

Quarterly Schedule of Portfolio Holdings

July 31, 2014

 

 

 

 

 

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invesco.com/us   VK-SCV-QTR-1       7/14    Invesco Advisers, Inc.
 


Schedule of Investments(a)

January 31, 2014

(Unaudited)

 

      Shares          Value      

Common Stocks–96.53%

  

Air Freight & Logistics–1.01%

     

UTi Worldwide, Inc. (b)

     3,683,600       $ 34,846,856   

Apparel Retail–6.61%

     

Abercrombie & Fitch Co. -Class A (c)

     3,683,074         144,892,131   

Guess?, Inc.

     3,195,666         83,119,273   
                228,011,404   

Apparel, Accessories & Luxury
Goods–1.66%

     

Quiksilver, Inc. (b)(c)

     19,123,908         57,180,485   

Asset Management & Custody
Banks–1.10%

     

Waddell & Reed Financial, Inc. -Class A

     717,100         37,855,709   

Auto Parts & Equipment–3.20%

     

Dana Holding Corp.

     1,640,235         36,708,459   

Faurecia (France)

     1,547,200         54,480,092   

Modine Manufacturing Co. (b)

     1,395,547         19,216,682   
                110,405,233   

Building Products–1.31%

     

Owens Corning Inc.

     862,000         29,351,100   

Ply Gem Holdings Inc. (b)

     1,893,367         15,771,747   
                45,122,847   

Construction & Engineering–1.44%

     

Aegion Corp. (b)(c)

     2,172,486         49,771,654   

Construction Machinery & Heavy
Trucks–2.28%

     

Terex Corp.

     747,100         25,782,421   

WABCO Holdings Inc. (b)

     541,500         52,785,420   
                78,567,841   

Consumer Electronics–1.73%

     

Harman International Industries, Inc.

     549,859         59,687,194   

Data Processing & Outsourced
Services–1.48%

     

Broadridge Financial Solutions Inc.

     1,266,700         51,136,679   

Electronic Components–2.58%

     

Belden Inc.

     1,308,853         88,871,119   

Electronic Manufacturing Services–4.99%

  

  

Flextronics International Ltd. (b)

     7,308,500         75,935,315   

Jabil Circuit, Inc.

     876,414         17,493,223   

KEMET Corp. (b)(c)

     3,744,102         18,458,423   

Methode Electronics, Inc.

     228,589         7,310,276   
      Shares          Value      

Electronic Manufacturing Services–(continued)

  

  

Sanmina Corp. (b)

     2,265,382       $ 52,760,747   
                171,957,984   

Environmental & Facilities Services–1.39%

  

  

Clean Harbors, Inc. (b)

     832,320         47,966,602   

Health Care Equipment–0.96%

     

Integra LifeSciences Holdings Corp. (b)

     700,400         33,212,968   

Health Care Facilities–2.16%

     

Brookdale Senior Living Inc. (b)

     2,154,700         74,660,355   

Health Care Services–1.93%

     

AMN Healthcare Services, Inc. (b)

     318,424         4,171,354   

Chemed Corp.

     611,800         62,311,830   
                66,483,184   

Health Care Supplies–3.35%

     

Alere, Inc. (b)

     2,886,823         115,472,920   

Homebuilding–0.28%

     

Installed Building Products Inc. (b)

     866,450         9,600,266   

Human Resource & Employment Services–3.73%

  

  

Insperity, Inc.

     1,123,700         35,857,267   

Manpowergroup Inc.

     1,192,873         92,912,878   
                128,770,145   

Industrial Machinery–2.57%

     

Briggs & Stratton Corp.

     1,584,700         29,047,551   

ESCO Technologies Inc.

     319,695         10,725,767   

Kennametal Inc.

     1,152,300         48,719,244   
                88,492,562   

Internet Software & Services–1.48%

     

Conversant, Inc. (b)

     2,186,100         51,089,157   

Investment Banking & Brokerage–7.31%

     

E*TRADE Financial Corp. (b)

     5,461,200         114,794,424   

FXCM, Inc. -Class A

     2,261,500         30,801,630   

LPL Financial Holdings, Inc.

     2,239,753         106,343,472   
                251,939,526   

IT Consulting & Other Services–2.48%

     

CIBER, Inc. (b)(c)

     6,751,300         23,562,037   

iGATE Corp. (b)

     1,732,830         61,827,374   
                85,389,411   

Leisure Products–1.55%

     

Callaway Golf Co. (c)

     5,061,038         38,463,889   

JAKKS Pacific, Inc. (b)(c)

     2,423,100         15,120,144   
                53,584,033   
 

 

See accompanying notes which are an integral part of this schedule.

 

Invesco Small Cap Value Fund


      Shares      Value  

Life & Health Insurance–1.97%

  

CNO Financial Group, Inc.

     4,201,888       $ 67,986,548   

Life Sciences Tools & Services–1.39%

  

PerkinElmer, Inc.

     1,039,400         48,041,068   

Movies & Entertainment–0.50%

  

SFX Entertainment, Inc. (b)

     2,498,895         17,117,431   

Office Services & Supplies–0.97%

  

ACCO Brands Corp. (b)

     5,042,712         33,382,753   

Oil & Gas Equipment & Services–1.72%

  

ION Geophysical Corp. (b)

     6,114,743         22,930,286   

McDermott International, Inc. (b)

     4,990,900         36,433,570   
                59,363,856   

Oil & Gas Exploration & Production–1.60%

  

Goodrich Petroleum Corp. (b)(c)

     2,859,106         55,066,382   

Paper Packaging–2.25%

  

Sealed Air Corp.

     2,417,273         77,642,809   

Personal Products–1.45%

  

Elizabeth Arden, Inc. (b)(c)

     2,432,717         50,186,952   

Property & Casualty Insurance–2.70%

  

AmTrust Financial Services, Inc.

     2,185,200         93,176,928   

Regional Banks–6.02%

  

First Horizon National Corp.

     6,639,467         78,212,922   

First Niagara Financial Group, Inc.

     5,906,512         50,796,003   

Zions Bancorp.

     2,724,000         78,505,680   
                207,514,605   

Reinsurance–2.36%

  

Reinsurance Group of America, Inc.

     412,494         33,106,768   

Validus Holdings, Ltd.

     1,320,400         48,234,212   
                81,340,980   

Research & Consulting Services–2.72%

  

Dun & Bradstreet Corp. (The)

     160,400         17,648,812   

FTI Consulting, Inc. (b)

     578,318         21,374,633   

Resources Connection Inc. (c)

     3,627,670         54,777,817   
                93,801,262   

Semiconductor Equipment–1.79%

  

Brooks Automation, Inc.

     2,665,784         27,137,681   

Lam Research Corp.

     495,517         34,686,190   
                61,823,871   

Semiconductors–3.28%

  

Lattice Semiconductor Corp. (b)

     1,859,450         12,718,638   

Microsemi Corp. (b)

     746,365         17,897,833   

ON Semiconductor Corp. (b)

     9,656,700         82,661,352   
                113,277,823   

Specialized Consumer Services–1.53%

  

ServiceMaster Global Holdings, Inc. (b)

     3,006,464         52,823,573   
      Shares      Value  

Specialized Finance–1.97%

  

NASDAQ OMX Group, Inc. (The)

     1,610,100       $ 67,930,119   

Steel–1.84%

  

Allegheny Technologies, Inc.

     1,681,600         63,312,240   

Technology Distributors–0.62%

  

CDW Corp.

     691,174         21,350,365   

Trading Companies & Distributors–1.27%

  

AerCap Holdings N.V. (Netherlands)(b)

     1,002,670         43,746,492   

Total Common Stocks
(Cost $2,488,992,619)

              3,328,962,191   

Money Market Funds–3.63%

     

Liquid Assets Portfolio –Institutional Class (d)

     62,618,509         62,618,509   

Premier Portfolio –Institutional Class (d)

     62,618,508         62,618,508   

Total Money Market Funds
(Cost $125,237,017)

              125,237,017   

TOTAL INVESTMENTS–100.16%
(Cost $2,614,229,636)

              3,454,199,208   

OTHER ASSETS LESS LIABILITIES–(0.16)%

  

     (5,467,477

NET ASSETS–100.00%

            $ 3,448,731,731   

Notes to Schedule of Investments:

 

(a)  Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s.
(b)  Non-income producing security.
(c)  Affiliated company during the period. The Investment Company Act of 1940 defines affiliates as those companies in which a fund holds 5% or more of the outstanding voting securities. The Fund has not owned enough of the outstanding voting securities of the issuer to have control (as defined in the Investment Company Act of 1940) of that issuer. The aggregate value of these securities as of July 31, 2014 was $507,479,914, which represented 14.71% of the Fund’s Net Assets. See Note 3.
(d)  The money market fund and the Fund are affiliated by having the same investment adviser.
 

 

See accompanying notes which are an integral part of this schedule.

 

Invesco Small Cap Value Fund


Notes to Quarterly Schedule of Portfolio Holdings

July 31, 2014

(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 ask prices from the exchange on which they are principally traded. Options not listed on an exchange are valued by an independent source at the mean between the last bid and ask prices. For purposes of determining net asset value per share, futures and option contracts generally are valued 15 minutes after the close of the customary trading session of the New York Stock Exchange (“NYSE”).

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

Debt obligations (including convertible securities) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.

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

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

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

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

 

Invesco Small Cap Value Fund


A. Security Valuations(continued)

 

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

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

C.

Country Determination – For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues and the country that has the primary market for the issuer’s securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted.

D.

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

The Fund may invest in foreign securities which may be subject to foreign taxes on income, gains on investments or currency repatriation, a portion of which may be recoverable.

E.

Forward Foreign Currency Contracts – The Fund may engage in foreign currency transactions either on a spot (i.e. for prompt delivery and settlement) basis at the rate prevailing in the currency exchange market at the time 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

 

Invesco Small Cap Value Fund


E. Forward Foreign Currency Contracts (continued)

 

upon notional amount (non-deliverable forwards). The Fund will set aside liquid assets in an amount equal to daily mark-to-market obligation for forward foreign currency contracts.

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

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.

The following is a summary of the tiered valuation input levels, as of July 31, 2014. The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

 

      Level 1      Level 2      Level 3      Total  

Equity Securities

   $     3,399,719,116       $     54,480,092       $     —       $     3,454,199,208   

 

Invesco Small Cap Value Fund


NOTE 3 — Investments in Other Affiliates

The Investment Company Act of 1940, as amended (the “1940 Act”), defines affiliates as those issuances in which a fund holds 5% or more of the outstanding voting securities. The Fund has not owned enough of the outstanding voting securities of the issuer to have control (as defined in the 1940 Act) of that issuer. The following is a summary of the investments in other affiliates for the three months ended July 31, 2014.

 

     

Value

04/30/14

    

Purchases

at Cost

    

Proceeds

from Sales

    

Change in

Unrealized

Appreciation

(Depreciation)

    

Realized

Gain

    

Value

07/31/14

    

Interest /

Dividend

Income

 

Abercrombie & Fitch Co.

   $ 135,389,800       $ -       $ -       $ 9,502,331       $ -       $ 144,892,131       $ 736,615   

Aegion Corp.

     55,376,668         -         -         (5,605,014)         -         49,771,654         -   

Callaway Golf Co.

     44,081,641         -         -         (5,617,752)         -