N-Q 1 d784228dnq.htm N-Q - AIF N-Q - AIF
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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       811-05426                                                                                                                                            

AIM Investment Funds (Invesco Investment 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:   

    10/31                                 

   
  Date of reporting period:   

    07/31/14

   

Item 1. Schedule of Investments.

 

 

  Invesco All Cap Market Neutral Fund
 

Quarterly Schedule of Portfolio Holdings

July 31, 2014

 

 

 

 

  LOGO    
 

 

invesco.com/us

  

 

ACMN-QTR-1    7/14

  

 

Invesco Advisers, Inc.

Schedule of Investments(a)

July 31, 2014

(Unaudited)

 

       Shares         Value   

Common Stocks & Other Equity Interests–87.40%

  

Aerospace & Defense–1.50%

      

Ducommun Inc. (b)

      1,070       $ 29,585   

Raytheon Co. (c)

      1,740         157,940   
                187,525   

Agricultural Products–1.03%

      

Archer-Daniels-Midland Co. (c)

      2,780         128,992   

Alternative Carriers–0.57%

      

Inteliquent, Inc. (c)

      6,740         71,511   

Aluminum–0.78%

      

Alcoa Inc. (c)

      5,940         97,357   

Apparel Retail–0.64%

      

Guess?, Inc. (c)

      3,080         80,111   

Apparel, Accessories & Luxury Goods–0.51%

  

   

Columbia Sportswear Co. (c)

      160         11,962   

Iconix Brand Group, Inc. (b)(c)

      1,240         52,365   
                64,327   

Auto Parts & Equipment–1.57%

      

Motorcar Parts of America, Inc. (b)(c)

      2,830         62,996   

Tower International Inc. (b)(c)

      4,230         133,245   
                196,241   

Biotechnology–8.81%

      

Acorda Therapeutics Inc. (b)(c)

      3,910         114,446   

Bluebird Bio, Inc. (b)

      5,070         169,338   

Emergent Biosolutions, Inc. (b)(c)

      5,940         130,680   

Epizyme, Inc. (b)

      1,750         54,810   

Hyperion Therapeutics Inc. (b)(c)

      4,160         94,723   

Myriad Genetics, Inc. (b)(c)

      4,380         158,118   

Prothena Corp. PLC (Ireland)(b)(c)

      4,490         77,946   

Repligen Corp. (b)(c)

      6,560         137,563   

Sangamo BioSciences, Inc. (b)

      13,710         162,875   
                1,100,499   

Broadcasting–0.74%

      

CTC Media, Inc. (Russia)(c)

      9,600         92,832   

Building Products–0.12%

      

Allegion PLC

      280         14,400   

Casinos & Gaming–0.51%

      

Isle of Capri Casinos, Inc. (b)

      8,040         63,596   

Commercial Printing–1.45%

      

Deluxe Corp.

      730         40,157   

R. R. Donnelley & Sons Co.

      8,090         140,443   
                180,600   
       Shares         Value   

Communications Equipment–3.27%

      

Black Box Corp.

      3,130       $ 64,791   

Brocade Communications Systems, Inc. (c)

      18,940         174,438   

Palo Alto Networks, Inc. (b)

      2,090         168,997   
                408,226   

Computer & Electronics Retail–3.06%

  

   

Best Buy Co., Inc. (c)

      6,600         196,218   

GameStop Corp. -Class A (c)

      4,440         186,347   
                382,565   

Computer Storage & Peripherals–1.50%

      

Lexmark International, Inc. -Class A (c)

      3,890         186,837   

Construction Machinery & Heavy Trucks–2.70%

  

   

Caterpillar Inc. (c)

      1,650         166,238   

Trinity Industries, Inc. (c)

      3,930         171,505   
                337,743   

Consumer Electronics–2.12%

      

Harman International Industries, Inc. (c)

      1,890         205,159   

Skullcandy Inc. (b)

      5,470         36,977   

ZAGG Inc. (b)

      4,370         22,331   
                264,467   

Consumer Finance–0.70%

      

Imperial Holdings, Inc. (b)

      4,010         27,348   

Nelnet, Inc. -Class A

      1,470         60,608   
                87,956   

Data Processing & Outsourced Services–2.03%

  

   

Computer Sciences Corp.

      2,730         170,325   

Information Services Group, Inc. (b)

      7,660         33,474   

Xerox Corp.

      3,740         49,592   
                253,391   

Diversified Chemicals–0.04%

      

Olin Corp.

      190         5,048   

Diversified Commercial & Professional Services–0.91%

  

Global Cash Access Holdings, Inc. (b)(c)

      13,510         113,079   

Diversified Metals & Mining–0.09%

      

U.S. Silica Holdings, Inc.

      200         11,244   

Electronic Components–0.11%

      

Knowles Corp. (b)

      490         14,249   

Fertilizers & Agricultural Chemicals–0.06%

  

   

Scotts Miracle-Gro Co. (The) -Class A

      150         7,980   

Footwear–1.05%

      

Deckers Outdoor Corp. (b)(c)

      1,480         130,995   
 

 

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

 

Invesco All Cap Market Neutral Fund

      Shares      Value  

Gas Utilities–0.15%

      

New Jersey Resources Corp.

      370       $ 18,900   

General Merchandise Stores–0.68%

      

Big Lots, Inc.

      1,940         84,875   

Health Care Equipment–0.10%

      

Exactech, Inc. (b)

      540         12,280   

Health Care Services–1.22%

      

Addus HomeCare Corp. (b)(c)

      2,140         47,380   

Alliance HealthCare Services, Inc. (b)(c)

      2,190         62,524   

Radnet, Inc. (b)

      8,430         43,077   
                152,981   

Health Care Supplies–0.91%

      

Anika Therapeutics, Inc. (b)(c)

      2,700         113,562   

Heavy Electrical Equipment–0.19%

      

Broadwind Energy, Inc. (b)

      2,760         23,943   

Home Entertainment Software–1.52%

      

Take-Two Interactive Software, Inc. (b)(c)

      8,470         189,558   

Hotels, Resorts & Cruise Lines–0.07%

      

Ambassadors Group, Inc. (b)

      1,890         8,127   

Human Resource & Employment Services–0.22%

  

Korn/Ferry International (b)

      930         27,361   

Internet Retail–2.24%

      

Lands’ End, Inc. (b)

      580         20,410   

Liberty Ventures -Series A (b)(c)

      2,420         167,367   

Nutrisystem, Inc. (c)

      5,720         91,806   
                279,583   

Internet Software & Services–2.22%

      

Constant Contact, Inc. (b)(c)

      4,360         135,727   

Conversant, Inc. (b)

      3,720         86,936   

LogMeIn, Inc. (b)

      1,350         54,959   
                277,622   

Investment Banking & Brokerage–0.40%

      

E*TRADE Financial Corp. (b)

      2,370         49,817   

IT Consulting & Other Services–0.10%

      

NCI, Inc. -Class A (b)

      1,410         12,662   

Life Sciences Tools & Services–0.17%

      

Enzo Biochem, Inc. (b)

      4,430         21,264   

Managed Health Care–2.00%

      

Centene Corp. (b)

      1,110         80,020   

Health Net Inc. (b)(c)

      4,120         169,703   
                249,723   

Movies & Entertainment–1.49%

      

Live Nation Entertainment, Inc. (b)(c)

      8,000         185,680   

Office Services & Supplies–1.46%

      

Pitney Bowes Inc. (c)

      6,760         182,926   
      Shares      Value  

Oil & Gas Drilling–2.85%

      

Nabors Industries Ltd.

      6,490       $ 176,268   

Patterson-UTI Energy, Inc. (c)

      5,240         179,994   
                356,262   

Oil & Gas Equipment & Services–1.24%

      

Basic Energy Services, Inc. (b)(c)

      6,440         154,496   

Oil & Gas Exploration & Production–10.63%

  

Abraxas Petroleum Corp. (b)(c)

      21,010         107,151   

Chesapeake Energy Corp. (c)

      6,370         167,977   

Clayton Williams Energy, Inc. (b)(c)

      1,520         161,743   

Encana Corp. (Canada)

      7,780         167,659   

Enerplus Corp. (Canada)(c)

      7,070         162,044   

Gran Tierra Energy, Inc. (Canada)(b)(c)

      14,680         97,475   

Kosmos Energy Ltd. (b)(c)

      15,010         144,546   

Penn West Petroleum Ltd. (Canada)

      6,250         48,313   

Seventy Seven Energy Inc. (b)

      409         9,174   

SM Energy Co. (c)

      2,210         173,574   

Warren Resources Inc. (b)(c)

      14,910         87,820   
                1,327,476   

Oil & Gas Refining & Marketing–4.36%

  

   

Adams Resources & Energy, Inc.

      590         38,550   

Green Plains Inc. (c)

      5,810         217,817   

REX American Resources Corp. (b)(c)

      1,660         140,021   

Valero Energy Corp. (c)

      2,930         148,844   
                545,232   

Oil & Gas Storage & Transportation–0.58%

  

Knightsbridge Tankers Ltd. (Bermuda)(c)

      6,300         71,820   

Packaged Foods & Meats–1.43%

      

Pilgrim’s Pride Corp. (b)

      6,410         179,224   

Paper Products–0.03%

      

Domtar Corp.

      120         4,310   

Personal Products–0.25%

      

Synutra International, Inc. (China)(b)

      5,140         31,303   

Pharmaceuticals–4.35%

      

Cumberland Pharmaceuticals Inc. (b)(c)

      1,650         7,656   

DepoMed, Inc. (b)(c)

      12,050         119,898   

Lannett Co., Inc. (b)(c)

      4,740         159,311   

Pernix Therapeutics Holdings, Inc. (b)

      7,640         57,376   

Pfizer Inc. (c)

      5,450         156,415   

POZEN Inc. (b)

      5,940         43,006   
                543,662   

Precious Metals & Minerals–0.19%

      

Stillwater Mining Co. (b)

      1,360         24,344   

Property & Casualty Insurance–1.16%

      

United Insurance Holdings Corp. (c)

      3,970         57,645   

Universal Insurance Holdings, Inc. (c)

      7,270         87,676   
                145,321   
 

 

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

 

Invesco All Cap Market Neutral Fund

      Shares      Value  

Publishing–0.14%

  

Time Inc. (b)

      700       $ 16,870   

Regional Banks–0.32%

  

Orrstown Financial Services, Inc. (b)

      910         14,296   

Popular, Inc. (Puerto Rico)(b)

      810         25,839   
                40,135   

Residential REIT’s–0.11%

  

Starwood Waypoint Residential Trust (b)

      500         13,145   

Retail REIT’s–0.14%

  

Washington Prime Group Inc. (b)

      900         17,001   

Semiconductors–3.63%

  

Marvell Technology Group Ltd.

      6,170         82,308   

Micron Technology, Inc. (b)(c)

      5,470         167,108   

Skyworks Solutions, Inc. (c)

      4,020         204,055   
                453,471   

Specialty Stores–0.94%

  

Staples, Inc. (c)

      10,100         117,059   

Steel–0.28%

  

United States Steel Corp.

      1,050         35,164   

Technology Hardware, Storage & Peripherals–3.08%

  

Hewlett-Packard Co. (c)

      5,580         198,704   

NetApp, Inc.

      4,800         186,432   
                385,136   

Thrifts & Mortgage Finance–0.15%

  

BBX Capital Corp. -Class A (b)

      1,010         18,261   

Trading Companies & Distributors–0.13%

  

NOW Inc. (b)

      520         16,739   

Trucking–0.31%

  

USA Truck Inc. (b)

      2,060         38,110   

Water Utilities–0.09%

  

Consolidated Water Co., Ltd. (Cayman Islands)(c)

      1,050         10,909   

Total Common Stocks & Other Equity Interests (Cost $10,749,828)

               10,918,085   

Money Market Funds–14.59%

      

Liquid Assets Portfolio –Institutional Class (d)

      910,995         910,995   

Premier Portfolio –Institutional Class (d)

      910,995         910,995   

Total Money Market Funds
(Cost $1,821,990)

   

      1,821,990   

TOTAL INVESTMENTS–101.99%
(Cost $12,571,818)

   

      12,740,075   

OTHER ASSETS LESS LIABILITIES–(1.99)%

  

      (248,100)   

NET ASSETS–100.00%

  

    $ 12,491,975   
Securities Sold Short              
      Shares      Value  

Common Stocks–88.00%

   

Aerospace & Defense–1.51%

  

DigitalGlobe Inc.(b)

      860       $ 22,489   

Erickson Inc.(b)

      650         9,509   

Triumph Group, Inc.

      2,470         156,475   
                188,473   

Agricultural Products–1.22%

  

Darling International Inc.(b)

      8,140         152,381   

Apparel Retail–1.10%

  

Aeropostale, Inc.(b)

      4,050         13,446   

American Eagle Outfitters, Inc.

      11,590         123,549   
                136,995   

Apparel, Accessories & Luxury Goods–1.14%

  

Lululemon Athletica Inc.(b)

      3,710         142,724   

Application Software–2.42%

  

Concur Technologies, Inc.(b)

      780         72,509   

Datawatch Corp.(b)

      1,930         26,093   

Qlik Technologies Inc.(b)

      1,430         37,838   

Splunk Inc.

      3,540         166,451   
                302,891   

Asset Management & Custody Banks–0.35%

  

Financial Engines Inc.

      1,130         44,013   

Automobile Manufacturers–1.34%

  

Tesla Motors, Inc.(b)

      750         167,475   

Automotive Retail–1.34%

  

CarMax, Inc.(b)

      3,420         166,930   

Biotechnology–9.88%

  

ACADIA Pharmaceuticals Inc.(b)

      6,010         121,823   

Alnylam Pharmaceuticals Inc.(b)

      3,050         164,853   

ARIAD Pharmaceuticals, Inc.(b)

      11,140         64,166   

Biogen Idec Inc.(b)

      480         160,507   

CytRx Corp.(b)

      10,650         34,719   

Galectin Therapeutics Inc.(b)

      4,310         26,463   

KYTHERA Biopharmaceuticals, Inc.(b)

      990         33,244   

La Jolla Pharmaceutical Co.(b)

      1,110         10,811   

Mirati Therapeutics, Inc. (Canada)(b)

      1,490         27,073   

Navidea Biopharmaceuticals Inc.(b)

      25,520         33,942   

Ohr Pharmaceutical, Inc.(b)

      4,490         40,410   

Orexigen Therapeutics Inc.(b)

      21,460         107,085   

Raptor Pharmaceuticals Corp.(b)

      12,350         106,334   

Senomyx, Inc.(b)

      8,360         58,980   

Sorrento Therapeutics, Inc.(b)

      4,720         25,677   

Synta Pharmaceuticals Corp.(b)

      18,380         72,601   

Theravance, Inc.(b)

      6,720         145,824   
                1,234,512   
 

 

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

 

Invesco All Cap Market Neutral Fund

       Shares         Value   

Brewers–0.71%

      

Boston Beer Co., Inc. (The)-Class A(b)

      400       $ 88,160   

Broadcasting–0.58%

      

Sinclair Broadcast Group, Inc.-Class A

      2,250         72,697   

Coal & Consumable Fuels–1.17%

      

Solazyme Inc.(b)

      15,100         146,168   

Communications Equipment–3.01%

      

Finisar Corp.(b)

      5,910         116,604   

Ubiquiti Networks Inc.(b)

      2,520         96,340   

ViaSat, Inc.(b)

      2,790         163,131   
                376,075   

Consumer Finance–0.08%

      

First Marblehead Corp. (The)(b)

      1,990         10,109   

Department Stores–1.36%

      

J. C. Penney Co., Inc.(b)

      18,170         170,435   

Electrical Components & Equipment–1.31%

  

SolarCity Corp.(b)

      2,290         163,804   

Electronic Equipment Manufacturers–0.12%

  

CUI Global, Inc.(b)

      2,330         14,469   

Electronic Manufacturing Services–1.11%

      

IPG Photonics Corp.(b)

      2,060         138,741   

Fertilizers & Agricultural Chemicals–0.50%

  

Intrepid Potash, Inc.(b)

      3,330         49,317   

Marrone Bio Innovations, Inc.(b)

      1,480         13,720   
                63,037   

Food Retail–0.93%

      

Fresh Market, Inc. (The)(b)

      2,920         87,395   

Whole Foods Market, Inc.

      740         28,283   
                115,678   

Forest Products–0.84%

      

Louisiana-Pacific Corp.(b)

      7,760         105,088   

General Merchandise Stores–0.45%

      

Conn’s, Inc.(b)

      1,410         56,400   

Gold–0.13%

      

Allied Nevada Gold Corp.(b)

      5,370         16,808   

Health Care Equipment–1.07%

      

GenMark Diagnostics Inc.(b)

      8,450         90,415   

TransEnterix, Inc.(b)

      10,740         42,638   
                133,053   

Health Care Facilities–1.32%

      

Tenet Healthcare Corp.(b)

      3,130         165,170   
       Shares         Value   

Health Care Services–1.00%

      

BioScrip Inc.(b)

      13,780       $ 103,212   

Catamaran Corp.(b)

      470         21,381   
                124,593   

Health Care Supplies–1.02%

      

Cerus Corp.(b)

      14,270         50,230   

TearLab Corp.(b)

      6,320         27,555   

Unilife Corp.(b)

      19,620         49,443   
                127,228   

Health Care Technology–0.47%

      

Medidata Solutions, Inc.(b)

      1,310         58,740   

Home Improvement Retail–0.84%

      

Tile Shop Holdings, Inc.(b)

      10,390         105,043   

Homebuilding–2.36%

      

KB Home

      5,410         88,183   

M.D.C. Holdings, Inc.

      3,000         80,910   

Ryland Group, Inc. (The)

      2,880         92,448   

Taylor Morrison Home Corp.-Class A(b)

      1,870         33,249   
                294,790   

Industrial Machinery–1.84%

      

Chart Industries, Inc.(b)

      1,780         135,369   

ExOne Co. (The)(b)

      2,870         93,878   
                229,247   

Insurance Brokers–0.73%

      

Brown & Brown, Inc.

      1,850         56,943   

eHealth, Inc.(b)

      1,680         34,776   
                91,719   

Integrated Oil & Gas–1.31%

      

Chevron Corp.

      1,270         164,135   

Internet Retail–1.25%

      

Amazon.com, Inc.(b)

      500         156,510   

Internet Software & Services–3.30%

      

GTT Communications, Inc.(b)

      900         9,144   

LinkedIn Corp.-Class A(b)

      900         162,576   

MercadoLibre Inc. (Argentina)

      1,830         169,275   

Millennial Media Inc.(b)

      17,420         60,099   

Spark Networks, Inc.(b)

      1,910         11,384   
                412,478   

Investment Banking & Brokerage–0.91%

      

FXCM, Inc.-Class A

      8,360         113,863   

Leisure Facilities–0.75%

      

Life Time Fitness, Inc.(b)

      2,390         94,046   

Leisure Products–0.15%

      

Black Diamond, Inc.(b)

      2,100         18,438   

Life & Health Insurance–0.06%

      

Citizens, Inc.(b)

      1,030         6,942   
 

 

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

 

Invesco All Cap Market Neutral Fund

       Shares         Value   

Mortgage REIT’s–1.50%

      

Altisource Asset Management Corp.(b)

      245       $ 150,190   

Altisource Residential Corp.

      1,610         37,336   
                187,526   

Movies & Entertainment–1.34%

      

DreamWorks Animation SKG, Inc.-Class A(b)

      4,670         93,400   

Imax Corp. (Canada)(b)

      2,210         58,101   

Madison Square Garden Co. (The)-Class A(b)

      260         15,428   
                166,929   

Oil & Gas Drilling–1.45%

      

Atwood Oceanics, Inc.(b)

      380         18,297   

Diamond Offshore Drilling, Inc.

      3,470         162,361   
                180,658   

Oil & Gas Equipment & Services–2.24%

  

   

McDermott International, Inc.(b)

      22,230         162,279   

Nuverra Environmental Solutions, Inc.(b)

      790         14,710   

Schlumberger Ltd.

      950         102,970   
                279,959   

Oil & Gas Exploration & Production–8.51%

  

   

American Eagle Energy Corp.(b)

      5,770         37,101   

Cobalt International Energy, Inc.(b)

      10,500         168,210   

Emerald Oil, Inc.(b)

      13,210         96,961   

Gastar Exploration Inc.(b)

      12,460         82,485   

Gulfport Energy Corp.(b)

      3,050         162,901   

Halcon Resources Corp.(b)

      27,170         161,662   

Midstates Petroleum Co. Inc.(b)

      13,970         89,129   

Miller Energy Resources Inc.(b)

      9,160         44,792   

Ring Energy Inc. (Canada)(b)

      5,090         88,057   

Triangle Petroleum Corp.(b)

      12,180         131,544   
                1,062,842   

Oil & Gas Storage & Transportation–3.67%

  

   

Cheniere Energy, Inc.(b)

      1,850         130,906   

Enbridge Inc. (Canada)

      3,330         163,103   

Golar LNG Ltd. (Norway)

      2,670         164,499   
                458,508   

Packaged Foods & Meats–0.29%

      

B&G Foods Inc.

      1,280         35,930   

Personal Products–0.65%

  

   

Elizabeth Arden, Inc.(b)

      1,690         34,865   

Nu Skin Enterprises, Inc.-Class A

      780         45,778   
                80,643   

Pharmaceuticals–3.82%

      

Adamis Pharmaceuticals Corp.(b)

      1,710         6,447   

Alimera Sciences Inc.(b)

      4,220         24,392   

Ampio Pharmaceuticals, Inc.(b)

      10,280         61,989   

Cempra Holdings Inc.(b)

      6,830         62,836   

Omeros Corp.(b)

      6,740         91,731   

Supernus Pharmaceuticals Inc.(b)

      7,920         68,587   

TherapeuticsMD, Inc.(b)

      23,710         110,014   
       Shares         Value   

Pharmaceuticals–(continued)

      

Xenoport Inc.(b)

      11,890       $ 51,008   
                477,004   

Real Estate Management & Development–0.36%

  

   

Alexander & Baldwin Inc.

      1,170         44,659   

Research & Consulting Services–1.32%

  

   

Acacia Research

      9,630         164,288   

Restaurants–0.58%

      

Bob Evans Farms, Inc.

      1,390         66,039   

Diversified Restaurant Holdings, Inc.(b)

      1,470         6,894   
                72,933   

Semiconductor Equipment–1.30%

      

GT Advanced Technologies Inc.(b)

      9,420         130,373   

Rubicon Technology, Inc.(b)

      4,290         32,304   
                162,677   

Semiconductors–2.73%

      

Applied Micro Circuits Corp.(b)

      15,110         126,169   

InvenSense Inc.(b)

      7,120         163,831   

MoSys, Inc.(b)

      5,250         17,377   

QuickLogic Corp.(b)

      10,070         34,238   
                341,615   

Specialty Stores–1.32%

      

Ulta Salon, Cosmetics & Fragrance, Inc.(b)

      1,790         165,271   

Systems Software–2.03%

      

CommVault Systems, Inc.(b)

      2,700         129,654   

NetSuite Inc.(b)

      1,470         123,936   
                253,590   

Technology Distributors–0.60%

      

SYNNEX Corp.(b)

      1,170         75,465   

Technology Hardware, Storage & Peripherals–1.82%

  

Silicon Graphics International Corp.(b)

      6,530         62,100   

Stratasys Ltd.(b)

      1,640         164,886   
                226,986   

Thrifts & Mortgage Finance–1.16%

      

Ocwen Financial Corp.(b)

      4,800         144,816   

Wireless Telecommunication Services–0.33%

  

   

SBA Communications Corp.-Class A(b)

      380         40,633   

Total Securities Sold Short
(Total Proceeds $11,827,190)

             $ 10,992,990   
 

 

 

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

 

Invesco All Cap Market Neutral Fund

Investment Abbreviations:

 

REIT

  

—Real Estate Investment Trust

Notes to Schedule of Investments:

 

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

 

(b)  Non-income producing security.

 

(c)  All or a portion of this security was pledged as collateral to cover margin requirements for securities sold short. The aggregate value of collateral that was segregated by the Fund was $17,410,972, which represents 158.38% of the value of securities sold short.

 

(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 All Cap Market Neutral 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 All Cap Market Neutral 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. Securities Sold Short – The Fund may enter into short sales of securities which it concurrently holds (“covered”) or for which it holds no corresponding position (“not covered”). Securities sold short represent a liability of the Fund to acquire specific securities at prevailing market prices at a future date in order to satisfy the obligation to deliver the securities sold. The liability is recorded on the books of the Fund at the market value of the common stock determined each day in accordance with the Fund’s security valuations policy. The Fund will incur a loss if the price of the security increases between the date of short sale and the date on which the Fund replaces the borrowed security. The Fund realizes a gain if the price of the security declines between those dates. For positions not covered, there is no ceiling on the ultimate price paid for the securities to cover the short position and therefore, the loss could exceed the amount of proceeds received.

The Fund is required to segregate cash or securities as collateral in margin accounts with the broker at a level that is equal to the obligation to the broker who delivered such securities to the buyer on behalf of the Fund. The short stock rebate presented in the Statement of Operations represents the net income earned on short sale proceeds held on deposit with the broker and margin interest earned or incurred on short sale transactions. The Fund may also earn or incur margin interest on short sale transactions. Margin interest is the income earned (or expenses incurred) as a result of the market value of securities sold short being less than (or greater than) the proceeds received on the short sales.

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

 

Invesco All Cap Market Neutral Fund

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

    $ 12,740,075       $ —       $ —       $ 12,740,075   

 

  

Securities Sold Short

      (10,992,990)         —         —         (10,992,990)   

 

  

Total Investments

    $ 1,747,085       $ —       $ —       $ 1,747,085   

 

  

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 period December 17, 2013 (commencement date) to July 31, 2014 was $18,783,900 and $8,417,222, respectively. In a fund’s initial year of operations, the cost of investments for tax purposes will not reflect any tax adjustments until its fiscal year end reporting period.

 

Unrealized Appreciation (Depreciation) of Investments on a Tax Basis  

 

  

Aggregate unrealized appreciation of:

   

Investment securities

    $ 679,331   

 

  

Securities sold short

      1,199,585   

 

  

Aggregate unrealized (depreciation) of:

   

Investment securities

      (511,074)   

 

  

Securities sold short

      (365,385)   

 

  

Net unrealized appreciation of investments

    $ 1,002,457   

 

  
Cost of investments is the same for tax and financial reporting purposes.   
Proceeds from securities sold short are the same for tax and financial reporting purposes.   

 

Invesco All Cap Market Neutral Fund

 

 

Invesco Balanced-Risk Allocation Fund

Quarterly Schedule of Portfolio Holdings

July 31, 2014

 

 

 

 

LOGO

 

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

 

 

Consolidated Schedule of Investments

July 31, 2014

(Unaudited)

 

     

Interest
Rate

  

Maturity
Date

     

Principal
Amount

      Value  

U.S. Treasury Securities–35.07%

           

U.S. Treasury Bills–29.45%(a)

           

U.S. Treasury Bills (b)

    0.06%     08/07/14       $ 358,750,000       $ 358,749,697   

U.S. Treasury Bills

    0.07%     08/28/14         116,886,000         116,885,117   

U.S. Treasury Bills

    0.02%     10/02/14         338,410,000         338,404,132   

U.S. Treasury Bills

    0.02%     10/09/14         348,670,000         348,666,613   

U.S. Treasury Bills

    0.05%     12/04/14         173,050,000         173,028,928   

U.S. Treasury Bills (b)

    0.05%     12/11/14         180,550,000         180,523,473   

U.S. Treasury Bills

    0.02%     12/18/14         172,069,000         172,042,378   

U.S. Treasury Bills

    0.04%     12/18/14         166,341,000         166,315,265   

U.S. Treasury Bills (b)

    0.10%     01/08/15         193,400,000         193,361,260   

U.S. Treasury Bills

    0.05%     01/15/15         290,100,000         290,039,347   

U.S. Treasury Bills

    0.05%     01/22/15         270,760,000         270,701,016   

U.S. Treasury Bills

    0.06%     01/29/15         233,180,000         233,124,270   
                             2,841,841,496   

U.S. Treasury Notes–5.62%

           

U.S. Treasury Notes (c)

    0.07%     01/31/16         204,210,000         204,183,115   

U.S. Treasury Notes (c)

    0.09%     04/30/16         338,290,000         338,315,148   
                             542,498,263   

Total U.S. Treasury Securities (Cost $3,384,224,254)

                            3,384,339,759   
         Expiration
Date		                

Commodity-Linked Securities–2.86%

           

Cargill, Inc. Commodity Linked Notes, one month LIBOR rate minus 0.10% (linked to the Monthly Rebalance Commodity Excess Return Index, multiplied by two) (d)

          12/19/14         83,000,000         88,424,254   

Cargill, Inc. Commodity Linked Notes, one month LIBOR rate minus 0.10% (linked to the Monthly Rebalance Commodity Excess Return Index, multiplied by two) (d)

          06/11/15         79,000,000         66,151,472   

Canadian Imperial Bank of Commerce Linked EMTN, U.S. Federal Funds Effective Rate minus 0.04% (linked to the CIBC Custom 1 Agriculture Commodity Index, multiplied by 2) (d)

          12/04/14         82,158,940         87,759,672   

RBC Capital Markets Commodity Linked Notes, U.S. Federal Funds Effective Rate minus 0.04% (linked to the RBC Enhanced Agricultural Basked 01 Excess Return Index, multiplied by 2) (d)

          08/24/15         35,500,000         34,018,379   

Total Commodity-Linked Securities (Cost $279,658,940)

                            276,353,777   
                Shares         

Money Market Funds–56.36%

           

Liquid Assets Portfolio - Institutional Class (e)

                   608,654,477         608,654,477   

Premier Portfolio – Institutional Class (e)

                   608,654,477         608,654,477   

STIC (Global Series) PLC – U.S. Dollar Liquidity Portfolio (Ireland) – Institutional Class (e)

                   1,049,178,574         1,049,178,574   

Treasury Portfolio - Institutional Class (e)

                   3,173,273,873         3,173,273,873   

Total Money Market Funds (Cost $5,439,761,401)

                            5,439,761,401   

TOTAL INVESTMENTS–94.29% (Cost $9,103,644,595)

                            9,100,454,937   

OTHER ASSETS LESS LIABILITIES–5.71%

                            551,135,425   

NET ASSETS–100.00%

                          $ 9,651,590,362   

 

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

Invesco Balanced-Risk Allocation Fund

Open Futures Contracts at Period-End(f)

  
Futures Contracts    Type of
Contract		    Number of
Contracts		      Expiration
Month		      Notional
Value		     

Unrealized

Appreciation

(Depreciation)

  

Brent Crude

    Long      2,220         December-2014         $237,362,400         $(8,314,560)   

Gas Oil

    Long      1,060         September-2014         94,287,000         (46,008)   

Gasoline Reformulated Blendstock Oxygenate Blending

    Long      1,752         September-2014         205,851,240         (4,872,911)   

Heating Oil

    Long      103         January-2015         12,654,848         (364,498)   

Silver

    Long      2,780         September-2014         283,726,800         (9,443,776)   

WTI Crude

    Long      2,095         October-2014         203,885,400         2,148,936   

Subtotal - Commodity Risk

                                      $(20,892,817)   

Australian 10 Year Bonds

    Long      13,920         September-2014         1,563,868,928         34,884,515   

Canada 10 Year Bonds

    Long      14,060         September-2014         1,765,398,514         25,893,377   

Euro Bonds

    Long      8,750         September-2014         1,733,758,346         36,270,665   

Japan 10 Year Bonds

    Long      768         September-2014         1,089,505,736         5,383,057   

Long Gilt

    Long      8,580         September-2014         1,603,172,794         11,657,208   

U.S. Treasury 20 Year Bonds

    Long      6,280         September-2014         862,911,250         3,487,038   

Subtotal – Interest Rate Risk

                                      $117,575,860   

Dow Jones EURO STOXX 50 Index

    Long      18,150         September-2014         757,949,282         (35,124,125)   

E-Mini S&P 500 Index

    Long      4,950         September-2014         476,388,000         (933,927)   

FTSE 100 Index

    Long      5,800         September-2014         654,320,997         (3,168,732)   

Hang Seng Index

    Long      3,440         August-2014         549,638,327         12,498,877   

Russell 2000 Index Mini

    Long      3,580         September-2014         399,778,600         (17,152,553)   

Tokyo Stock Price Index

    Long      4,700         September-2014         590,584,289         25,714,654   

Subtotal - Market Risk

                                      $(18,165,806)   

Total Future Contracts

                                      $78,517,237   

 

Open Over-The-Counter Total Return Swap Agreements at Period-End

  
Long Swap Agreements    Type of
Contract		    Counterparty    Number of
Contracts		    Termination
Date		    Notional
Value		   

 

Unrealized
Appreciation
(Depreciation)

  

Receive a return equal to Dow Jones-UBS Gold Index and pay the product of (i) 0.15% of the Notional Value multiplied by (ii) days in the period divided by 365

    Long    Merrill Lynch
International		    1,042,000    December-2014    $172,944,179      $0   

Receive a return equal to MLCX Dynamic Enhanced Copper Excess Return Index and pay the product of (i) 0.25% of the Notional Value multiplied by (ii) days in the period divided by 365

    Long    Merrill Lynch
International		    430,000    May-2015    299,274,668      0   

 

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

Invesco Balanced-Risk Allocation Fund

Open Over-The-Counter Total Return Swap Agreements at Period-End

  
Long Swap Agreements    Type of
Contract		    Counterparty    Number of
Contracts		    Termination
Date		    Notional
Value		    Unrealized
Appreciation
(Depreciation)		  

Receive a return equal to Barclays Commodity Strategy 1452 Excess Return Index and pay the product of (i) 0.33% of the Notional value multiplied by (ii) days in the period divided by 365

    Long    Barclays Bank
PLC		    353,000    May-2015    $200,800,873      $(429,248)   

Receive a return equal to Single Commodity Index Excess Return and pay the product of (i) 0.12% of the Notional Value multiplied by (ii) days in the period divided by 365

    Long    Cargill, Inc.    166,500    May-2015    158,015,793      0   

Receive a return equal to CIBC Dynamic Roll LME Copper Excess Return Index and pay the product of (i) 0.30% of the Notional value multiplied by (ii) days in the period divided by 365

    Long    Canadian
Imperial Bank
Commerce		    2,240,000    April-2015    201,964,672      (1,156,960)   

Receive a return equal to Goldman Sachs Alpha Basket B765 Excess Return Strategy and pay the product of (i) 0.45% of the Notional Value multiplied by (ii) days in the period divided by 365

    Long    Goldman

Sachs
International

    137,000    June-2015    77,025,332      0   

Receive a return equal to J.P. Morgan Bespoke Commodity Index and pay the product of (i) 0.49% of the Notional Value multiplied by (ii) days in the period divided by 365

    Long    J.P. Morgan
Chase Bank,
N.A.		    2,000    June-2015    1,353,632      2,511   

Receive a return equal to S&P GSCI Gold Index Excess Return and pay the product of (i) 0.09% of the Notional Value multiplied by (ii) days in the period divided by 365

    Long    J.P. Morgan
Chase Bank,
N.A.		    1,250,000    April-2015    137,387,125      (2,646,875)   

Receive a return equal to Macquarie Commodity Customized Product 118E Index and pay the product of (i) 0.33% of the Notional Value multiplied by (ii) days in the period divided by 365

    Long    Macquarie
Bank Limited		    67,667    July-2015    23,536,146      (279,126)   

 

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

Invesco Balanced-Risk Allocation Fund

Open Over-The-Counter Total Return Swap Agreements at Period-End

  
Long Swap Agreements    Type of
Contract		    Counterparty    Number of
Contracts		    Termination
Date		      Notional
Value		      Unrealized
Appreciation
(Depreciation)		  

Receive a return equal to Macquarie Commodity Customized Product 118E Index and pay the product of (i) 0.33% of the Notional Value multiplied by (ii) days in the period divided by 365

    Long    Macquarie
Bank Limited		    67,667      July-2015         $23,536,146         $(279,126)   

Receive a return equal to Macquarie Commodity Customized Product 118E Index and pay the product of (i) 0.33% of the Notional Value multiplied by (ii) days in the period divided by 365

    Long    Macquarie
Bank Limited		    67,667      July-2015         23,535,798         (279,122)   

Receive a return equal to S&P GSCI Aluminum Dynamic Roll Index Excess Return and pay the product of (i) 0.38% of the Notional Value multiplied by (ii) days in the period divided by 365

    Long    Morgan Stanley
Capital
Services LLC		    1,105,000      October-2014         131,865,728         (832,618)   

Subtotal – Commodity Risk

                                       $(5,900,564)   

Open Centrally Cleared Total Return Swap Agreements at Period-End(f)

 

  

    

                                          

Receive a return equal to the LIFFE Long Gilt Futures multiplied by 0.01% of the Notional Value

    Long    Goldman Sachs
International		    390      September-2014         72,871,491         500,507   

Subtotal – Interest Rate Risk

                                       $500,507   

Receive a return equal to Hang Seng Index Futures multiplied by the Notional Value

    Long    Goldman Sachs
International		    1,720      August-2014         274,819,164         5,777,544   

Subtotal – Market Risk

                                       $5,777,544   

Total Swap Agreements

                                       $377,487   

Investment Abbreviations:

 

EMTN             

—   Euro Medium Term Notes

 

LIBOR     

—  London Interbank Offered Rate

 

LIFFE      —  London International Financial Futures and Options Exchange

 

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

Invesco Balanced-Risk Allocation Fund

Index Information:

 

Dow Jones-UBS Gold Index    —   a commodity index composed of future contracts on gold.
MLCX Dynamic Enhanced Copper Excess Return Index    —   a commodity index composed of future contracts on copper.
Barclays Commodity Strategy 1452 Excess Return Index    —   a commodity index that provide exposure to future contracts on copper.
RBC Enhanced Agricultural Basket 01 Excess Return Index    —   a basket of four indices that provide exposure to various components of the agriculture markets. The underlying commodities comprising the indices are: Cotton, Soybeans, Soybean Meal and Sugar.
Single Commodity Excess Return Index    —   a commodity index composed of future contracts on gold.
CIBC Dynamic Roll LME Copper Excess Return Index    —   a commodity index composed of future contracts on copper.
Goldman Sachs Alpha Basket B765 Excess Return Strategy    —   a basket of four indices that provide exposure to various components of the agriculture markets. The underlying commodities comprising the indices are: Sugar, Soybeans, Soybean Meal and Live Cattle.
JP Morgan Bespoke Commodity Index    —   an index comprised of four commodity indices that provide exposure to various components of the agriculture markets. The underlying commodities comprising the indices are: Sugar, Soybeans, Soybean Meal and Live Cattle.
S&P GSCI Gold Index Excess Return    —   a commodity index composed of future contracts on gold.
Macquarie Commodity Customized Product 118E Index    —   a basket of four indices that provide exposure to various components of the agriculture markets. The underlying commodities comprising the indices are: Sugar, Cotton, Soybeans and Soybean Meal.
S&P GSCI Aluminum Dynamic Roll Index Excess Return    —   a commodity index composed of future contracts on aluminum.

Notes to Schedule of Investments:

 

(a)  Security traded on a discount basis. The interest rate shown represents the discount rate at the time of purchase by the Fund.
(b)  All or a portion of the value was designated as collateral to cover margin requirements for swap agreements. See Note 1H.
(c)  Interest or dividend rate is redetermined periodically. Rate shown is the rate in effect on July 31, 2014.
(d)  Security purchased or received in a transaction exempt from registration under the Securities Act of 1933, as amended (the “1933 Act”). The security may be resold pursuant to an exemption from registration under the 1933 Act, typically to qualified institutional buyers. The aggregate value of these securities at July 31, 2014 was $276,353,777, which represented 2.86% of the Fund’s Net Assets.
(e)  The money market fund and the Fund are affiliated by having the same investment adviser.
(f)  Futures and centrally cleared swap agreements collateralized by $609,220,000 cash held with Bank of America Securities LLC, the futures commission merchant.

 

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

Invesco Balanced-Risk Allocation Fund

Notes to Quarterly Schedule of Portfolio Holdings

July 31, 2014

(Unaudited)

NOTE 1 — Significant Accounting Policies

Invesco Balanced-Risk Allocation Fund (the “Fund”) will seek to gain exposure to the commodity markets primarily through investments in the Invesco Cayman Commodity Fund I Ltd. (the “Subsidiary”), a wholly-owned subsidiary of the Fund organized under the laws of the Cayman Islands. The Subsidiary was organized by the Fund to invest in commodity-linked derivatives. The Fund may invest up to 25% of its total assets in the Subsidiary.

 

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

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

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

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

Swap agreements are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service are valued based on a model which may include end of day net present values, spreads, ratings, industry, and company performance.

Foreign securities’ (including foreign exchange contracts) 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.

 

Invesco Balanced-Risk Allocation Fund

 

A. Security Valuations – (continued)

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.

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

B. Securities Transactions and Investment Income – Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income (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. Bond premiums and discounts are amortized and/or accreted for financial reporting purposes.

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

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

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

C. Country Determination – For the purposes of making investment selection decisions and presentation in the Consolidated Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues and the country that has the primary market for the issuer’s securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted.
D. Structured Securities – The Fund may invest in structured securities. Structured securities are a type of derivative security whose value is determined by reference to changes in the value of underlying securities, currencies, interest rates, commodities, indices or other financial indicators (“reference instruments”). Most structured securities are fixed-income securities that have maturities of three years or less. Structured securities may be positively or negatively indexed (i.e., their principal value or interest rates may increase or decrease if the underlying reference instrument appreciates) and may have return characteristics similar to direct investments in the underlying reference instrument.

 

Invesco Balanced-Risk Allocation Fund

 

D. Structured Securities – (continued)

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

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 market prices on investments (net of estimated foreign tax withholding) are included with the net realized and unrealized gain or loss from investments in the Consolidated Statement of Operations. Reported net realized foreign currency gains or losses arise from (1) sales of foreign currencies, (2) currency gains or losses realized between the trade and settlement dates on securities transactions, and (3) the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign currency gains and losses arise from changes in the fair values of assets and liabilities, other than investments in securities at fiscal period end, resulting from changes in exchange rates.

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

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 Consolidated Statement of Operations. The primary risks associated with forward foreign currency contracts include failure of the counterparty to meet the terms of the contract and the value of the foreign currency changing unfavorably. These risks may be in excess of the amounts reflected in the Consolidated Statement of Assets and Liabilities.

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

 

Invesco Balanced-Risk Allocation Fund

 

G. Futures Contracts – (continued)

be subject to market risk with respect to the value of the contracts and continue to be required to maintain the margin deposits on the futures contracts. Futures contracts have minimal counterparty risk since the exchange’s clearinghouse, as counterparty to all exchange-traded futures, guarantees the futures against default. Risks may exceed amounts recognized in the Consolidated Statement of Assets and Liabilities.

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

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

Changes in the value of swap agreements are recognized as unrealized gains (losses) in the Consolidated Statement of Operations by “marking to market” on a daily basis to reflect the value of the swap agreement at the end of each trading day. Payments received or paid at the beginning of the agreement are reflected as such on the Consolidated Statement of Assets and Liabilities and may be referred to as upfront payments. The Fund accrues for the fixed payment stream and amortizes upfront payments, if any, on swap agreements on a daily basis with the net amount, recorded as a component of realized gain (loss) on the Consolidated Statement of Operations. A liquidation payment received or made at the termination of a swap agreement is recorded as realized gain (loss) on the Consolidated Statement of Operations. The Fund segregates liquid securities having a value at least equal to the amount of the potential obligation of a Fund under any swap transaction. Entering into these agreements involves, to varying degrees, lack of liquidity and elements of credit, market, and Counterparty risk in excess of amounts recognized on the Consolidated Statement of Assets and Liabilities. Such risks involve the possibility that a swap is difficult to sell or liquidate; the Counterparty does not honor its obligations under the agreement and unfavorable interest rates and market fluctuations. It is possible that developments in the swaps market, including potential government regulation, could adversely affect the Fund’s ability to terminate existing swap agreements or to realize amounts to be received under such agreements.

I. Other Risks – The Fund will seek to gain exposure to commodity markets primarily through an investment in the Subsidiary and through investments in exchange traded funds and commodity-linked derivatives. The Subsidiary, unlike the Fund, may invest without limitation in commodities, commodity-linked derivatives and other securities, such as exchange traded notes, that may provide leverage and non-leveraged exposure to commodity markets. The Fund is indirectly exposed to the risks associated with the Subsidiary’s investments.

The Fund is non-diversified and may invest in securities of fewer issuers than if it were diversified. Thus, the value of the Fund’s shares may vary more widely and the Fund may be subject to greater market and credit risk than if the Fund invested more broadly.

J. Leverage Risk – Leverage exists when a Fund can lose more than it originally invests because it purchases or sells an instrument or enters into a transaction without investing an amount equal to the full economic exposure of the instrument or transaction.
K. Collateral – To the extent the Fund has designated or segregated a security as collateral and that security is subsequently sold, it is the Fund’s practice to replace such collateral no later than the next business day.

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:

 

Invesco Balanced-Risk Allocation Fund

 

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 consolidated financial statements may materially differ from the value received upon actual sale of those investments.

 

      Level 1      Level 2      Level 3      Total  

Money Market Funds

    $ 5,439,761,401       $ —       $ —       $ 5,439,761,401   

U.S. Treasury Securities

      —         3,384,339,759         —         3,384,339,759   

Commodity-Linked Securities

      —         276,353,777         —         276,353,777   
       5,439,761,401         3,660,693,536         —         9,100,454,937   

Futures*

      78,517,237         —         —         78,517,237   

Swap Agreements*

      —         377,487         —         377,487   

Total Investments

    $ 5,518,278,638       $ 3,661,071,023       $ —       $ 9,179,349,661   
* Unrealized appreciation.

NOTE 3 — Derivative Investments

Value of Derivative Investments at Period-End

The table below summarizes the value of the Fund’s derivative investments, detailed by primary risk exposure, held as of July 31, 2014:

 

     Value  
Risk Exposure/ Derivative Type    Assets      Liabilities  

Commodity risk:

                  

Futures contracts (a)

    $ 2,148,936       $ (23,041,753 ) 

Swap agreements

      2,511         (5,903,075 ) 

Interest rate risk:

      

Futures contracts (a)

      117,575,860         —   

Swap agreements

      500,507         —   

Market risk:

      

Futures contracts (a)

      38,213,531         (56,379,337 ) 

Swap agreements

      5,777,544         —   

Total

    $ 164,218,889       $ (85,324,165 ) 

 

(a)  Includes cumulative appreciation (depreciation) of futures contracts.

 

Invesco Balanced-Risk Allocation Fund

 

Effect of Derivative Investments for the nine months ended July 31, 2014

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

 

      Location of Gain (Loss)  
   Futures     Swap Agreements  

Realized Gain (Loss)

     

Commodity risk

    $ (18,242,948 )    $ (49,159,471 ) 

Interest rate risk

      446,431,046        8,246,730   

Market risk

      383,454,822        6,554,445   

Change in Unrealized Appreciation (Depreciation)

     

Commodity risk

      (5,308,569 )      14,172,327   

Interest rate risk

      (130,004,065 )      500,507   

Market risk

      (195,945,115 )      5,777,544   

Total

    $ 480,385,171      $ (13,907,918 ) 

The table below summarizes the average notional value of futures contracts and swap agreements outstanding during the period.

 

      Futures      Swap
Agreements		  

Average notional value

    $ 13,902,525,475       $ 1,784,054,596   

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 nine months ended July 31, 2014 was $279,659,124 and $246,720,950, 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

    $ 11,157,081   

Aggregate unrealized (depreciation) of investment securities

      (14,346,739 ) 

Net unrealized appreciation (depreciation) of investment securities

    $ (3,189,658 ) 
Cost of investments is the same for tax and financial reporting purposes.   

 

Invesco Balanced-Risk Allocation Fund

 

 

 

 

Invesco Balanced-Risk Commodity

Strategy Fund

 

Quarterly Schedule of Portfolio Holdings

July 31, 2014

 

 

 

 

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invesco.com/us

  

 

BRCS-QTR-1    7/14

  

 

Invesco Advisers, Inc.

Consolidated Schedule of Investments

July 31, 2014

(Unaudited)

 

 

     

Interest

Rate

    

Maturity

Date

    Principal
Amount		      Value

U.S. Treasury Securities–60.35%

           

U.S. Treasury Bills–51.77%(a)

 

           

U.S. Treasury Bills (b)

      0.06 %    08/07/14    $ 82,490,000       $    82,489,930

U.S. Treasury Bills

      0.07 %    08/28/14      77,560,000       77,559,415

U.S. Treasury Bills (b)

      0.02 %    10/02/14      18,770,000       18,769,675

U.S. Treasury Bills (c)

      0.02 %    10/09/14      19,340,000       19,339,812

U.S. Treasury Bills (c)

      0.05 %    12/04/14      38,390,000       38,385,325

U.S. Treasury Bills (b)

      0.05 %    12/11/14      8,190,000       8,188,797

U.S. Treasury Bills (b)

      0.06 %    12/11/14      2,210,000       2,209,675

U.S. Treasury Bills (b)

      0.02 %    12/18/14      9,544,000       9,542,523

U.S. Treasury Bills (b)

      0.04 %    12/18/14      9,226,000       9,224,573

U.S. Treasury Bills (b)

      0.10 %    01/08/15      16,800,000       16,796,635

U.S. Treasury Bills (b)

      0.05 %    01/15/15      40,200,000       40,191,595

U.S. Treasury Bills (b)

      0.05 %    01/22/15      23,520,000       23,514,876

U.S. Treasury Bills

      0.06 %    01/29/15      53,610,000       53,597,187
                           399,810,018

U.S. Treasury Notes–8.58%

           

U.S. Treasury Notes (c)(d)

      0.07 %    01/31/16      18,890,000       18,887,513

U.S. Treasury Notes (b)(d)

      0.09 %    04/30/16      47,340,000       47,343,519
                          

66,231,032

Total U.S. Treasury Securities (Cost $466,024,197)

                          466,041,050
                Shares       

Exchange Traded Fund–3.00%

           

 

PowerShares DB Gold Fund (Cost $28,788,689) (e)(f)

                   542,000       23,213,860
          

Expiration

Date

    Principal
Amount		       

Commodity-Linked Security–2.71%

           

 

Barclays Bank PLC, Series 4, U.S. Federal Funds (Effective) Rate minus 0.06% (linked to the Barclays Diversified Energy-Metals Total Return Index, multiplied by 3) (Cost $20,365,000) (g)

            09/02/14    $ 20,365,000       20,905,889
                Shares       

Money Market Funds–35.70%

           

 

Liquid Assets Portfolio—Institutional Class (h)

                   101,326,777       101,326,777

Premier Portfolio—Institutional Class (h)

                   101,326,777       101,326,777

STIC (Global Series) PLC – U.S. Dollar Liquidity Portfolio (Ireland)—Institutional Class (h)

                   73,021,441       73,021,441

Total Money Market Funds (Cost $275,674,995)

                          275,674,995

TOTAL INVESTMENTS–101.76% (Cost $790,852,881)

                          785,835,794

OTHER ASSETS LESS LIABILITIES–(1.76)%

                          (13,606,413)

NET ASSETS–100.00%

                          $   772,229,381

 

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

 

Invesco Balanced-Risk Commodity Strategy Fund

Open Futures Contracts and Swap Agreements at Period-End  
Futures Contracts    Type of
Contract		          Number of
Contracts		     

Expiration

Month

    Notional
Value		     Unrealized
Appreciation
(Depreciation)		  

Coffee C

    Short           103       September–2014    $ (7,533,806 )    $ (830,382 ) 

Corn

    Short           716       December–2014      (13,138,600 )      2,324,193   

Cotton No. 2

    Short           25       December–2014      (785,875 )      118,930   

Natural Gas

    Short           1,360       September–2014      (13,059,400 )      440,164   

NYH RBOB Gasoline (Globex)

    Long           370       September–2014      43,473,150        (972,160 ) 

Soybean

    Long           1,160       November–2014      62,756,000        (8,011,198 ) 

Soybean Oil

    Short           643       December–2014      (14,043,120 )      808,193   

Wheat

    Short           349       September–2014      (9,252,863 )      1,022,360   

Total Futures Contracts—Commodity Risk

  

   $ (5,099,900 ) 
Swap Agreements    Type of
Contract		    Counterparty    Number of
Contracts		      Termination
Date		    Notional
Value		     Unrealized
Appreciation
(Depreciation)		  
Receive a return equal to the Barclays Brent Crude Roll Yield Excess Return Index and pay the product of (i) 0.35% of the Notional Amount multiplied by (ii) days in the period divided by 365.    Long    Barclays
Bank PLC		      83,500       March–2015    $ 55,466,036      $ (129,600 ) 
Receive a return equal to the Barclays Heating Oil Roll Yield Excess Return Index and pay the product of (i) 0.37% of the Notional Amount multiplied by (ii) days in the period divided by 365.    Long    Barclays
Bank PLC		      6,500       June–2015      3,012,307        728   
Receive a return equal to the Barclays Silver Nearby Excess Return Index and pay the product of (i) 0.19% of the Notional Amount multiplied by (ii) days in the period divided by 365.    Long    Barclays
Bank PLC		      235,900       June–2015      65,147,229        (1,487,633 ) 
Receive a return equal to the Barclays WTI Crude Roll Yield Excess Return Index and pay the product of (i) 0.35% of the Notional Amount multiplied by (ii) days in the period divided by 365.    Long    Barclays
Bank PLC		      80,100       March–2015      48,753,970        (842,019 ) 
Receive a return equal to the CIBC Dynamic Roll LME Copper Excess Return Index 2 and pay the product of (i) 0.30% of the Notional Amount multiplied by (ii) days in the period divided by 365.    Long    Canadian
Imperial
Bank of
Commerce		      1,548,700       April–2015      139,635,128        (799,903 ) 
Receive a return equal to the CIBC Silver Index and pay the product of (i) 0.11% of the Notional Amount multiplied by (ii) days in the period divided by 365.    Long    Canadian
Imperial
Bank of
Commerce		      165,200       February–2015      21,439,805        (1,047,963 ) 
Receive a return equal to the Goldman Sachs Soybean Meal Excess Return Strategy and pay the product of (i) 0.30% of the Notional Amount multiplied by (ii) days in the period divided by 365.    Long    Goldman
Sachs
International		      61,620       November–2014      69,651,366        (1,922,421 ) 
Pay/Receive a floating rate equal to the S&P GSCI Brent Crude 1 Month Forward Index Excess Return and pay the product of (i) 0.12% of the Notional Amount multiplied by (ii) days in the period divided by 365.    Short    Goldman
Sachs
International		      8,250       February–2015      (12,077,365 )      0   
Receive a return equal to the S&P GSCI Crude Oil 1 Month Forward Index Excess Return and pay the product of (i) 0.12% of the Notional Amount multiplied by (ii) days in the period divided by 365.    Long    Goldman
Sachs
International		      69,550       February–2015      48,215,364        0   
Receive a return equal to the S&P GSCI Gasoil 1 Month Forward Index Excess Return and pay the product of (i) 0.12% of the Notional Amount multiplied by (ii) days in the period divided by 365.    Long    Goldman
Sachs
International		      14,000       July–2015      13,958,290        0   
Pay/Receive a floating rate equal to the S&P GSCI Heating Oil 1 Month Forward Index Excess Return and pay the product of (i) 0.12% of the Notional Amount multiplied by (ii) days in the period divided by 365.    Short    Goldman
Sachs
International		      124,200       February–2015      (60,246,390 )      0   
Receive a return equal to the S&P GSCI Natural Gas 1 Month Forward Index Excess Return and pay the product of (i) 0.12% of the Notional Amount multiplied by (ii) days in the period divided by 365.    Long    Goldman
Sachs
International		      2,430,000       January–2015      24,100,619        0   

 

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

 

Invesco Balanced-Risk Commodity Strategy Fund

Swap Agreements (continued)    Type of
Contract		    Counterparty    Number of
Contracts		    Termination
Date		    Notional
Value		      Unrealized
Appreciation
(Depreciation)		  
Receive a return equal to the Enhanced Strategy Sugar A141 on the S&P GSCI Sugar Excess Return Index and pay the product of (i) 0.37% of the Notional Amount multiplied by (ii) days in the period divided by 365.    Long    Goldman Sachs
International		    119,650    March–2015    $     37,036,999       $ (1,405,708 ) 
Pay/Receive a floating rate equal to the S&P GSCI Gold Index Excess Return and pay the product of (i) 0.09% of the Notional Amount multiplied by (ii) days in the period divided by 365.    Long    JPMorgan Chase
Bank, N.A.		    506,100    April–2015      55,625,299         (1,071,667 ) 
Receive a return equal to the Modified Macquarie Single Commodity Sugar type A Excess Return Index and pay the product of (i) 0.34% of the Notional Amount multiplied by (ii) days in the period divided by 365.    Long    Macquarie Bank
Ltd.		    97,850    March–2015      26,490,285         (733,875 ) 
Receive a return equal to the Merrill Lynch Gold Excess Return Index and pay the product of (i) 0.14% of the Notional Amount multiplied by (ii) days in the period divided by 365.    Long    Merrill Lynch
International		    354,000    June–2015      61,694,872         0   
Receive a return equal to the MLCX Aluminum Annual Excess Return Index and pay the product of (i) 0.28% of the Notional Amount multiplied by (ii) days in the period divided by 365.    Long    Merrill Lynch
International		    310,500    July–2015      35,814,281         0   
Receive a return equal to the MLCX Dynamic Enhanced Copper Excess Return Index and pay the product of (i) 0.25% of the Notional Amount multiplied by (ii) days in the period divided by 365.    Long    Merrill Lynch
International		    107,820    May–2015      75,041,383         0   

Total Swap Agreements–Commodity Risk

                                 $ (9,440,061 ) 

 

Index Information:     
Barclays Diversified Energy-Metals Total Return Index   —    a basket of indices that provide exposure to various components of the energy and metals markets. The underlying commodities comprising the indices are: gold, silver, copper, Brent Crude oil, WTI Crude oil, gasoil and unleaded gasoline.
Barclays Brent Crude Roll Yield Excess Return Index   —    a commodity index composed of futures contracts on Brent Crude oil.
Barclays Heating Oil Roll Yield Excess Return Index   —    a commodity index composed of futures contracts on heating oil.
Barclays Silver Nearby Excess Return Index   —    a commodity index composed of futures contracts on silver.
Barclays WTI Crude Roll Yield Excess Return Index   —    a commodity index composed of futures contracts on WTI Crude oil.
CIBC Dynamic Roll LME Copper Excess Return Index 2   —    a commodity index composed of futures contracts on copper.
CIBC Silver Index   —    a commodity index composed of futures contracts on silver.
Goldman Sachs Soybean Meal Excess Return Strategy   —    a commodity index composed of futures contracts on soybean meal.
S&P GSCI Brent Crude 1 Month Forward Index Excess Return   —    a commodity index composed of futures contracts on Brent Crude oil.
S&P GSCI Crude Oil 1 Month Forward Index Excess Return   —    a commodity index composed of futures contracts on crude oil.
S&P GSCI Gasoil 1 Month Forward Index Excess Return   —    a commodity index composed of futures contracts on gasoil.
S&P GSCI Heating Oil 1 Month Forward Index Excess Return   —    a commodity index composed of futures contracts on heating oil.
S&P GSCI Natural Gas 1 Month Forward Index Excess Return   —    a commodity index composed of futures contracts on natural gas.
Enhanced Strategy Sugar A141 on the S&P GSCI Sugar Excess Return Index   —    a commodity index composed of futures contracts on sugar.
S&P GSCI Gold Index Excess Return   —    a commodity index composed of futures contracts on gold.
Modified Macquarie Single Commodity Sugar type A Excess Return Index   —    a commodity index composed of futures contracts on sugar.
Merrill Lynch Gold Excess Return Index   —    a commodity index composed of futures contracts on gold.
MLCX Aluminum Annual Excess Return Index   —    a commodity index composed of futures contracts on aluminum.
MLCX Dynamic Enhanced Copper Excess Return Index   —    a commodity index composed of futures contracts on copper.

 

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

 

Invesco Balanced-Risk Commodity Strategy Fund

Notes to Consolidated Schedule of Investments:

 

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

 

(b)  All or a portion of the value was designated as collateral for swap agreements. See Note 1F and Note 3.

 

(c)  All or a portion of the value was pledged as collateral to cover margin requirements for open futures contracts. See Note 1E and Note 3.

 

(d)  Interest or dividend rate is redetermined periodically. Rate shown is the rate in effect on July 31, 2014.

 

(e)  Affiliated company during the period. The Investment Company Act of 1940 defines affiliates as those issuances in which a fund holds 5% or more of the outstanding voting securities. The Fund has not owned enough of the outstanding voting securities of the issuer to have control (as defined in the Investment Company Act of 1940) of that issuer. The value of this security as of July 31, 2014 represented 3.00% of the Fund’s Net Assets. See Note 4.

 

(f)  Non-income producing security.

 

(g)  Security purchased or received in transaction exempt from registration under the Securities Act of 1933, as amended (the “1933 Act”). The security may be resold pursuant to an exemption from registration under the 1933 Act, typically to qualified institutional buyers. The value of this security at July 31, 2014 represented 2.71% of the Fund’s Net Assets.

 

(h)  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 consolidated schedule.

 

Invesco Balanced-Risk Commodity Strategy Fund

Notes to Quarterly Consolidated Schedule of Portfolio Holdings

July 31, 2014

(Unaudited)

 

NOTE 1 — Significant Accounting Policies

Invesco Balanced-Risk Commodity Strategy Fund (the “Fund”) will seek to gain exposure to the commodity markets primarily through investments in Invesco Cayman Commodity Fund III Ltd. (the “Subsidiary”), a wholly-owned subsidiary of the Fund organized under the laws of the Cayman Islands. The Subsidiary was organized by the Fund to invest in commodity-linked derivatives. The Fund may invest up to 25% of its total assets in the Subsidiary.

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

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

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

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

Swap agreements are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service are valued based on a model which may include end of day net present values, spreads, ratings, industry, and company performance.

Foreign securities’ (including foreign exchange contracts) 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.

 

Invesco Balanced-Risk Commodity Strategy Fund

A. Security Valuations – (continued)

 

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.

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

B. Securities Transactions and Investment Income – Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income (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. Bond premiums and discounts are amortized and/or accreted for financial reporting purposes.

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

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

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

C. Country Determination – For the purposes of making investment selection decisions and presentation in the Consolidated Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues and the country that has the primary market for the issuer’s securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted.
D. Structured Securities – The Fund may invest in structured securities. Structured securities are a type of derivative security whose value is determined by reference to changes in the value of underlying securities, currencies, interest rates, commodities, indices or other financial indicators (“reference instruments”). Most structured securities are fixed-income securities that have maturities of three years or less. Structured securities may be positively or negatively indexed (i.e., their principal value or interest rates may increase or decrease if the underlying reference instrument appreciates) and may have return characteristics similar to direct investments in the underlying reference instrument.

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

 

Invesco Balanced-Risk Commodity Strategy Fund

E. Futures Contracts – The Fund may enter into futures contracts to manage exposure to interest rate, equity and market price movements and/or currency risks. A futures contract is an agreement between two parties to purchase or sell a specified underlying security, currency or commodity (or delivery of a cash settlement price, in the case of an index future) for a fixed price at a future date. The Fund currently invests only in exchange-traded futures and they are standardized as to maturity date and underlying financial instrument. Initial margin deposits required upon entering into futures contracts are satisfied by the segregation of specific securities or cash as collateral at the futures commission merchant (broker). During the period the futures contracts are open, changes in the value of the contracts are recognized as unrealized gains or losses by recalculating the value of the contracts on a daily basis. Subsequent or variation margin payments are received or made depending upon whether unrealized gains or losses are incurred. These amounts are reflected as receivables or payables on the Consolidated Statement of Assets and Liabilities. When the contracts are closed or expire, the Fund recognizes a realized gain or loss equal to the difference between the proceeds from, or cost of, the closing transaction and the Fund’s basis in the contract. The net realized gain (loss) and the change in unrealized gain (loss) on futures contracts held during the period is included on the Consolidated Statement of Operations. The primary risks associated with futures contracts are market risk and the absence of a liquid secondary market. If the Fund were unable to liquidate a futures contract and/or enter into an offsetting closing transaction, the Fund would continue to be subject to market risk with respect to the value of the contracts and continue to be required to maintain the margin deposits on the futures contracts. Futures contracts have minimal counterparty risk since the exchange’s clearinghouse, as counterparty to all exchange-traded futures, guarantees the futures against default. Risks may exceed amounts recognized in the Consolidated Statement of Assets and Liabilities.
F. Swap Agreements – The Fund may enter into various swap transactions, including interest rate, total return, index, currency exchange rate and credit default swap contracts (“CDS”) for investment purposes or to manage interest rate, currency or credit risk. Such transactions are agreements between two parties (“Counterparties”). These agreements may contain among other conditions, events of default and termination events, and various covenants and representations such as provisions that require the Fund to maintain a pre-determined level of net assets, and/or provide limits regarding the decline of the Fund’s NAV over specific periods of time. If the Fund were to trigger such provisions and have open derivative positions at that time, the Counterparty may be able to terminate such agreement and request immediate payment in an amount equal to the net liability positions, if any.

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

Changes in the value of swap agreements are recognized as unrealized gains (losses) in the Consolidated Statement of Operations by “marking to market” on a daily basis to reflect the value of the swap agreement at the end of each trading day. Payments received or paid at the beginning of the agreement are reflected as such on the Consolidated Statement of Assets and Liabilities and may be referred to as upfront payments. The Fund accrues for the fixed payment stream and amortizes upfront payments, if any, on swap agreements on a daily basis with the net amount, recorded as a component of realized gain (loss) on the Consolidated Statement of Operations. A liquidation payment received or made at the termination of a swap agreement is recorded as realized gain (loss) on the Consolidated Statement of Operations. The Fund segregates liquid securities having a value at least equal to the amount of the potential obligation of a Fund under any swap transaction. Entering into these agreements involves, to varying degrees, lack of liquidity and elements of credit, market, and Counterparty risk in excess of amounts recognized on the Consolidated Statement of Assets and Liabilities. Such risks involve the possibility that a swap is difficult to sell or liquidate; the Counterparty does not honor its obligations under the agreement and unfavorable interest rates and market fluctuations. It is possible that developments in the swaps market, including potential government regulation, could adversely affect the Fund’s ability to terminate existing swap agreements or to realize amounts to be received under such agreements.

G. Other Risks – The Fund will seek to gain exposure to commodity markets primarily through an investment in the Subsidiary and through investments in exchange traded funds and commodity-linked derivatives. The Subsidiary, unlike the Fund, may invest without limitation in commodities, commodity-linked derivatives and other securities, such as exchange traded notes, that may provide leverage and non-leveraged exposure to commodity markets. The Fund is indirectly exposed to the risks associated with the Subsidiary’s investments.

The Fund is non-diversified and may invest in securities of fewer issuers than if it were diversified. Thus, the value of the Fund’s shares may vary more widely and the Fund may be subject to greater market and credit risk than if the Fund invested more broadly.

 

Invesco Balanced-Risk Commodity Strategy Fund

H. Leverage Risk – Leverage exists when a Fund can lose more than it originally invests because it purchases or sells an instrument or enters into a transaction without investing an amount equal to the full economic exposure of the instrument or transaction.
I. Collateral – To the extent the Fund has designated or segregated a security as collateral and that security is subsequently sold, it is the Fund’s practice to replace such collateral no later than the next business day.

NOTE 2 — 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 consolidated financial statements may materially differ from the value received upon actual sale of those investments.

 

      Level 1   Level 2   Level 3    Total

Commodity-Linked Securities

      $ —               $ 20,905,889       $ —                $ 20,905,889  

Exchange Traded Funds

        23,213,860         —                 —                  23,213,860  

U.S. Treasury Securities

        —                 466,041,050         —                  466,041,050  

Money Market Funds

        275,674,995         —                 —                  275,674,995  
         298,888,855         486,946,939         —                  785,835,794  

Futures Contracts*

        (5,099,900 )       —                 —                  (5,099,900 )

Swap Agreements*

        —                 (9,440,061 )       —                  (9,440,061 )

Total Investments

      $     293,788,955       $     477,506,878       $         —                $     771,295,833  

 

* Unrealized appreciation (depreciation).

 

Invesco Balanced-Risk Commodity Strategy Fund

NOTE 3 — Derivative Investments

Value of Derivative Investments at Period-End

The table below summarizes the value of the Fund’s derivative investments, detailed by primary risk exposure, held as of July 31, 2014:

 

     Value  
Risk Exposure/ Derivative Type    Assets      Liabilities  

Commodity Risk

      

Futures Contracts(a)

    $ 4,713,840       $ (9,813,740 ) 

Swap Agreements

      728         (9,440,789 ) 

Total

    $ 4,714,568       $ (19,254,529 ) 

 

(a)  Includes cumulative appreciation (depreciation) of futures contracts.

Effect of Derivative Investments for the nine months ended July 31, 2014

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

     Location of Gain (Loss)  
      Futures
Contracts		     Swap
Agreements		  

Realized Gain (Loss)

     

Commodity Risk

    $ 744,222      $ (10,581,335 ) 

Change in Unrealized Appreciation (Depreciation)

     

Commodity Risk

      (4,134,882 )      (4,690,825 ) 

Total

    $ (3,390,660 )    $ (15,272,160 ) 

The table below summarizes the average notional value of futures contracts and swap agreements outstanding during the period.

 

      Futures
Contracts		      Swap
Agreements		  

Average notional value

    $ 156,233,247       $ 715,773,807   

NOTE 4 — 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 nine months ended July 31, 2014.

 

     

Value

10/31/13

     

Purchases

at Cost

      Proceeds
from Sales		     Change in
Unrealized
Appreciation		      Realized
Gain
(Loss)		    

Value

07/31/14

      Dividend
Income		  

PowerShares DB Gold Fund

    $ 25,321,440       $ 2,392,512       $ (3,514,795 )    $ 259,315       $ (1,244,612 )    $ 23,213,860       $ —   

 

Invesco Balanced-Risk Commodity Strategy Fund

NOTE 5 — 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 nine months ended July 31, 2014 was $2,392,512 and $3,514,795, 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    $ 558,662   
Aggregate unrealized (depreciation) of investment securities      (5,793,118 ) 
Net unrealized appreciation (depreciation) of investment securities    $   (5,234,456 ) 
Cost of investments for tax purposes is $791,070,250.   

 

Invesco Balanced-Risk Commodity Strategy Fund

 
Invesco China Fund
Quarterly Schedule of Portfolio Holdings
July 31, 2014

 

 

 

LOGO         
invesco.com/us    CHI-QTR-1    7/14    Invesco Advisers, Inc.

Schedule of Investments(a)

July 31, 2014

(Unaudited)

 

      Shares      Value  

Common Stocks & Other Equity Interests–97.44%(b)

  

Asset Management & Custody Banks–1.54%

  

China Cinda Asset Management Co. Ltd. - Class H(c)

      2,552,000       $ 1,462,080   

Automobile Manufacturers–1.55%

  

Chongqing Changan Automobile Co., Ltd. -Class B

      678,930         1,474,594   

Casinos & Gaming–7.12%

  

Melco International Development Ltd. (Hong Kong)

      1,429,000         4,239,824   

MGM China Holdings Ltd. (Macau)

      343,200         1,257,320   

Sands China Ltd. (Hong Kong)

      173,200         1,270,214   
                6,767,358   

Coal & Consumable Fuels–2.27%

  

China Coal Energy Co. Ltd. -Class H

      2,131,000         1,286,229   

China Shenhua Energy Co. Ltd. -Class H

      296,000         875,042   
                2,161,271   

Diversified Banks–15.69%

  

Agricultural Bank of China Ltd. -Class H

      4,093,000         1,994,039   

China Construction Bank Corp. -Class H

      8,060,290         6,199,746   

China Merchants Bank Co., Ltd. -Class H

      1,457,000         2,962,077   

Industrial & Commercial Bank of China Ltd. -Class H

      5,495,000         3,765,965   
                14,921,827   

Electrical Components & Equipment–0.16%

  

Zhuzhou CSR Times Electric Co., Ltd. -Class H

      43,000         147,651   

Food Retail–1.17%

  

China Resources Enterprise Ltd.

      366,000         1,112,559   

Health Care Distributors–1.99%

  

Shanghai Pharmaceuticals Holding Co., Ltd. -Class H

      1,019,300         1,896,531   

Industrial Conglomerates–2.21%

  

Beijing Enterprises Holdings Ltd.

      242,000         2,104,713   

Integrated Oil & Gas–5.02%

  

China Petroleum & Chemical Corp. (Sinopec) -Class H

      2,984,000         2,952,590   

PetroChina Co. Ltd. -Class H

      1,392,000         1,822,450   
                4,775,040   

Integrated Telecommunication Services–2.54%

  

China Unicom (Hong Kong) Ltd.

      1,384,000         2,417,255   

Internet Software & Services–16.70%

  

21Vianet Group, Inc. -ADR (c)

      73,256         2,038,714   

Baidu, Inc. -ADR (c)

      4,912         1,061,238   

HC International, Inc.(c)

      904,000         1,926,225   
      Shares      Value  

Internet Software & Services–(continued)

  

Tencent Holdings Ltd.

      535,200       $ 8,653,133   

YY Inc. -ADR(c)

      28,416         2,197,125   
                15,876,435   

Investment Banking & Brokerage–0.87%

  

CITIC Securities Co., Ltd. -Class H

      329,500         823,864   

IT Consulting & Other Services–0.76%

  

China Public Procurement Ltd. (c)

      16,236,000         721,032   

Life & Health Insurance–5.42%

  

China Life Insurance Co., Ltd. -Class H

      1,245,000         3,712,133   

Ping An Insurance (Group) Co. of China Ltd. -Class H

      169,000         1,443,549   
                5,155,682   

Multi-Line Insurance–2.35%

  

China Pacific Insurance (Group) Co., Ltd. -Class H

      568,200         2,235,142   

Oil & Gas Refining & Marketing–0.94%

  

Sinopec Kantons Holdings Ltd.

      1,212,000         898,335   

Packaged Foods & Meats–2.00%

  

China Mengniu Dairy Co. Ltd.

      390,000         1,897,137   

Pharmaceuticals–10.92%

  

CSPC Pharmaceutical Group Ltd.

      3,476,000         2,699,173   

Dawnrays Pharmaceutical (Holdings) Ltd.

      1,504,000         1,215,374   

Guangzhou Baiyunshan Pharmaceutical Holdings Co., Ltd. -Class H

      818,000         2,609,169   

Livzon Pharmaceutical Group Inc. -Class H

      131,900         811,498   

Luye Pharma Group Ltd. (c)

      1,784,000         1,551,485   

Tong Ren Tang Technologies Co. Ltd. -Class H

      1,052,000         1,491,424   
                10,378,123   

Real Estate Development–3.35%

  

Shimao Property Holdings Ltd.

      694,500         1,604,811   

Sunac China Holdings Ltd.

      1,920,000         1,575,684   
                3,180,495   

Renewable Electricity–3.84%

  

Huaneng Renewables Corp. Ltd. -Class H

      11,108,000         3,653,743   

Semiconductors–1.94%

  

United Photovoltaics Group Ltd. (Hong Kong)(c)

      13,834,000         1,843,920   

Trading Companies & Distributors–1.44%

  

Summit Ascent Holdings Ltd. (Hong Kong)(c)

      2,012,000         1,370,932   

Water Utilities–5.65%

  

Beijing Enterprises Water Group Ltd.

      8,260,000         5,367,839   

Total Common Stocks & Other Equity Interests
(Cost $87,996,804)

   

      92,643,558   
 

 

 

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

Invesco China Fund

      Shares      Value  

Money Market Funds–1.74%

      

Liquid Assets Portfolio –Institutional Class (d)

      828,121       $ 828,121   

Premier Portfolio –Institutional Class (d)

      828,121         828,121   

Total Money Market Funds
(Cost $1,656,242)

               1,656,242   

TOTAL INVESTMENTS–99.18%
(Cost $89,653,046)

   

      94,299,800   

OTHER ASSETS LESS LIABILITIES–0.82%

  

      783,445   

NET ASSETS–100.00%

  

    $ 95,083,245   

 

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)   Country of issuer and/or credit risk exposure listed in Common Stocks & Other Equity Interests has been determined to be China unless otherwise noted.
(c)   Non-income producing security.
(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 China 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 China 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 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

 

Invesco China Fund

E. Forward Foreign Currency Contracts – (continued)

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.

F. Other Risks - Investing in a single-country mutual fund involves greater risk than investing in a more diversified fund due to lack of exposure to other countries. The political and economic conditions and changes in regulatory, tax or economic policy in a single country could significantly affect the market in that country and in surrounding or related countries.

Investing in developing countries can add additional risk, such as high rates of inflation or sharply devalued currencies against the U.S. dollar.

Transaction costs are often higher and there may be delays in settlement procedures.

Certain securities issued by companies in China may be less liquid, harder to sell or more volatile than may U.S. securities.

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.

During the nine months ended July 31, 2014, there were transfers from Level 1 to Level 2 of $36,406,688, due to foreign fair value adjustments.

 

Invesco China Fund

      Level 1      Level 2      Level 3      Total  

Consumer Discretionary

    $ —       $ 10,168,177       $ —       $ 10,168,177   

Consumer Staples

      1,897,137         1,112,559         —         3,009,696   

Energy

      —         7,834,645         —         7,834,645   

Financials

      —         27,779,090         —         27,779,090   

Health Care

      3,448,016         8,826,638         —         12,274,654   

Industrials

      —         3,623,296         —         3,623,296   

Information Technology

      5,297,077         11,218,085         —         16,515,162   

Telecommunication Services

      —         2,417,256         —         2,417,256   

Utilities

      —         9,021,582         —         9,021,582   

Money Market Funds

      1,656,242         —         —         1,656,242   

Total Investments

    $     12,298,472       $     82,001,328       $         —       $     94,299,800   

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 nine months ended July 31, 2014 was $105,726,228 and $123,015,703, 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

    $     8,779,919   

Aggregate unrealized (depreciation) of investment securities

      (5,064,280)   

Net unrealized appreciation of investment securities

    $     3,715,639   

Cost of investments for tax purposes is $90,584,161.

   

 

Invesco China Fund

 
Invesco Developing Markets Fund
Quarterly Schedule of Portfolio Holdings
July 31, 2014

 

 

 

LOGO         
invesco.com/us    DVM-QTR-1    7/14    Invesco Advisers, Inc.

Schedule of Investments

July 31, 2014

(Unaudited)

 

      Shares      Value  

Common Stocks & Other Equity Interests–87.75%

  

Brazil–21.57%

  

Arcos Dorados Holdings, Inc. -Class A

      5,088,427       $ 52,207,261   

Banco Bradesco S.A. -ADR

      9,345,483         142,798,980   

BM&FBovespa S.A.

      20,411,800         108,831,753   

BR Malls Participacoes S.A.

      8,480,300         73,652,381   

BRF S.A.

      1,293,240         31,684,209   

CETIP S.A. - Mercados Organizados

      7,004,986         98,774,809   

Cielo S.A.

      5,431,214         99,462,966   

Diagnosticos da America S.A.

      3,880,000         25,337,799   

Duratex S.A.

      14,891,296         55,053,306   

Fleury S.A.

      7,768,000         51,104,362   

Petroleo Brasileiro S.A. -ADR

      1,939,231         32,617,865   

Totvs S.A.

      2,845,000         48,791,487   

Wilson Sons Ltd. -BDR

      962,600         14,816,083   
                835,133,261   

China–13.03%

  

Baidu, Inc. -ADR(a)

      323,223         69,832,329   

Belle International Holdings Ltd.

      50,669,000         63,145,377   

China Mobile Ltd.

      4,774,500         52,811,674   

CNOOC Ltd.

      21,600,000         38,325,452   

Golden Eagle Retail Group Ltd.

      30,301,000         39,152,636   

Industrial & Commercial Bank of China Ltd. -Class H

      164,848,000         112,977,567   

Lee & Man Paper Manufacturing Ltd.

      80,495,000         48,915,911   

NetEase, Inc. -ADR

      387,185         32,539,027   

Stella International Holdings Ltd.

      11,189,000         31,184,424   

Want Want China Holdings Ltd.

      11,449,000         15,660,418   
                504,544,815   

Czech Republic–0.57%

  

CEZ A.S.

      776,574         22,054,717   

Egypt–0.31%

  

Egyptian Financial Group-Hermes Holding (a)

      5,456,990         11,983,822   

Hong Kong–1.43%

  

Galaxy Entertainment Group Ltd.

      6,601,000         55,322,677   

Hungary–1.34%

  

Richter Gedeon Nyrt

      3,147,000         51,680,387   

Indonesia–8.34%

  

PT Bank Central Asia Tbk

      24,954,000         24,997,098   

PT Bank Mandiri Persero Tbk

      121,601,000         103,195,234   

PT Indocement Tunggal Prakarsa Tbk

      12,754,300         27,480,120   

PT Perusahaan Gas Negara Persero Tbk

      159,818,500         81,427,388   

PT Telekomunikasi Indonesia Persero Tbk

      377,626,200         86,029,815   
                323,129,655   
      Shares      Value  

Israel–2.31%

  

Israel Chemicals Ltd.

      5,276,457       $ 43,049,667   

Teva Pharmaceutical Industries Ltd. -ADR

      868,015         46,438,802   
                89,488,469   

Malaysia–1.81%

  

Public Bank Berhad

      11,351,900         70,263,348   

Mexico–6.56%

  

America Movil S.A.B. de C.V. – Series L-ADR

      1,743,391         41,091,726   

Fomento Economico Mexicano, S.A.B. de C.V. -ADR

      682,829         64,110,815   

Grupo Televisa S.A.B. -ADR

      2,948,316         104,930,567   

Kimberly-Clark de Mexico, S.A.B. de C.V. -Class A

      17,356,970         44,033,430   
                254,166,538   

Nigeria–1.76%

  

Zenith Bank PLC

      440,151,377         68,196,680   

Peru–2.31%

  

Credicorp Ltd.

      605,820         89,612,894   

Philippines–5.12%

  

Ayala Corp.

      2,132,132         32,281,244   

Energy Development Corp.

      246,329,900         34,749,123   

Philippine Long Distance Telephone Co.

      1,532,260         107,704,933   

SM Investments Corp.

      1,278,910         23,453,550   
                198,188,850   

Russia–5.68%

  

Gazprom OAO -ADR

      4,879,035         35,860,907   

Mobile TeleSystems OJSC -ADR

      1,859,782         33,345,891   

Sberbank of Russia (a)

      37,218,144         76,758,440   

Sberbank of Russia -Preference Shares(a)

      21,470,146         34,383,086   

Yandex NV -Class A (a)

      1,301,500         39,409,420   
                219,757,744   

South Africa–0.62%

  

Sasol Ltd.

      418,828         24,167,572   

South Korea–2.77%

  

Hyundai Department Store Co., Ltd.

      272,521         38,962,212   

Samsung Electronics Co., Ltd.

      52,425         68,311,999   
                107,274,211   

Taiwan–2.39%

  

Taiwan Semiconductor Manufacturing Co. Ltd.

      23,082,000         92,641,185   
 

 

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

Invesco Developing Markets Fund

      Shares      Value  

Thailand–4.45%

  

Kasikornbank PCL

      18,741,700       $ 122,973,457   

Siam Commercial Bank PCL (The)

      8,852,600         49,397,453   
                172,370,910   

Turkey–4.45%

  

Anadolu Efes Biracilik ve Malt Sanayii A.S. (a)

      2,888,185         35,044,246   

Eczacibasi Ilac Sanayi ve Ticaret A.S.

      12,515,924         12,653,554   

Haci Omer Sabanci Holding A.S.

      21,661,048         100,929,789   

Tupras-Turkiye Petrol Rafinerileri A.S.

      962,408         23,488,554   
                172,116,143   

Turkmenistan–0.93%

  

Dragon Oil PLC

      3,798,634         36,040,239   

Total Common Stocks & Other Equity Interests
(Cost $2,791,986,525)

   

      3,398,134,117   

Money Market Funds–12.08%

  

Liquid Assets Portfolio –Institutional Class (b)

      233,900,833         233,900,833   

Premier Portfolio –Institutional
Class (b)

      233,900,833         233,900,833   

Total Money Market Funds
(Cost $467,801,666)

   

      467,801,666   

TOTAL INVESTMENTS–99.83%
(Cost $3,259,788,191)

   

      3,865,935,783   

OTHER ASSETS LESS LIABILITIES–0.17%

  

      6,451,627   

NET ASSETS–100.00%

             $ 3,872,387,410   

 

Investment Abbreviations:

ADR           —American Depositary Receipt
BDR           —Brazilian Depositary Receipt
Notes to Schedule of Investments:
(a)   Non-income producing security.
(b)   The money market fund and the Fund are affiliated by having the same investment adviser.

    

 

 

Invesco Developing Markets 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 Developing Markets 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 contracts to manage or minimize currency or exchange rate risk.

 

Invesco Developing Markets Fund

E. Forward Foreign Currency Contracts – (continued)

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.

During the nine months ended July 31, 2014, there were transfers from Level 1 to Level 2 of $741,140,098 and from Level 2 to Level 1 of $122,834,816, due to foreign fair value adjustments.

 

Invesco Developing Markets Fund

      Level 1      Level 2      Level 3      Total  

Brazil

    $ 835,133,261       $ —       $ —       $ 835,133,261   

China

      133,555,780         370,989,035         —         504,544,815   

Czech Republic

      22,054,717         —         —         22,054,717   

Egypt

      11,983,822         —         —         11,983,822   

Hong Kong

      —         55,322,677         —         55,322,677   

Hungary

      51,680,387         —         —         51,680,387   

Indonesia

      133,904,606         189,225,049         —         323,129,655   

Israel

      46,438,802         43,049,667         —         89,488,469   

Malaysia

      70,263,348         —         —         70,263,348   

Mexico

      254,166,538         —         —         254,166,538   

Nigeria

      68,196,680         —         —         68,196,680   

Peru

      89,612,894         —         —         89,612,894   

Philippines

      55,734,794         142,454,056         —         198,188,850   

Russia

      108,616,218         111,141,526         —         219,757,744   

South Africa

      —         24,167,572         —         24,167,572   

South Korea

      —         107,274,211         —         107,274,211   

Taiwan

      —         92,641,185         —         92,641,185   

Thailand

      —         172,370,910         —         172,370,910   

Turkey

      35,044,246         137,071,897         —         172,116,143   

Turkmenistan

      36,040,239         —         —         36,040,239   

United States

      467,801,666         —         —         467,801,666   

Total Investments

    $     2,420,227,998       $     1,445,707,785       $         —       $     3,865,935,783   

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 nine months ended July 31, 2014 was $380,513,471 and $366,460,005, 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

    $     784,605,948   

Aggregate unrealized (depreciation) of investment securities

      (186,788,338)   

Net unrealized appreciation of investment securities

    $     597,817,610   

Cost of investments for tax purposes is $3,268,118,173.

   

 

Invesco Developing Markets Fund

 
Invesco Emerging Markets Equity Fund
Quarterly Schedule of Portfolio Holdings
July 31, 2014

 

 

 

LOGO         
invesco.com/us    EME-QTR-1    7/14    Invesco Advisers, Inc.

Schedule of Investments

July 31, 2014

(Unaudited)

 

      Shares      Value  

Common Stocks & Other Equity Interests–96.67%

  

Brazil–11.50%

  

Cielo S.A.

      27,700       $ 507,276   

Cosan Ltd. -Class A

      39,222         473,409   

Cyrela Brazil Realty S.A.
Empreendimentos e Participacoes

      54,900         304,086   

Grendene S.A.

      80,000         467,084   

M Dias Branco S.A.

      12,000         492,394   

Marcopolo S.A. -Preference Shares

      234,000         411,413   

Petroleo Brasileiro S.A. -ADR

      30,871         492,084   
                3,147,746   

Chile–3.31%

  

Banco de Credito e Inversiones (BCI)

      8,042         442,098   

Empresa Nacional de
Telecomunicaciones S.A.

      38,197         463,951   
                906,049   

China–18.40%

  

China Construction Bank Corp. -Class H

      1,043,000         802,246   

China Mobile Ltd.

      71,000         785,345   

China Shenhua Energy Co. Ltd. -Class H

      136,500         403,524   

CNOOC Ltd.

      272,000         482,617   

Dongfeng Motor Group Co. Ltd. -Class H

      170,000         301,067   

Haitian International Holdings Ltd.

      175,000         410,963   

Lenovo Group Ltd.

      214,000         293,096   

Shenzhou International Group Holdings Ltd.

      144,000         454,579   

Sun Art Retail Group Ltd.

      346,500         432,337   

Want Want China Holdings Ltd.

      198,000         270,833   

Zhuzhou CSR Times Electric Co., Ltd.
-Class H

      116,000         398,314   
                5,034,921   

France–1.32%

  

Edenred

      11,599         361,678   

Georgia–1.69%

  

Bank of Georgia Holdings PLC

      11,334         463,528   

Greece–1.91%

  

Eurobank Ergasias S.A. (a)

      1,169,457         522,848   

India–6.16%

  

Grasim Industries Ltd.

      11,300         597,865   

Jammu & Kashmir Bank Ltd. (The)

      11,471         300,910   

Motherson Sumi Systems Ltd.

      72,883         438,228   

Tata Motors Ltd. -ADR

      8,830         347,196   
                1,684,199   

Indonesia–5.65%

  

PT Bank Rakyat Indonesia Persero Tbk

      411,700         377,328   

PT Indocement Tunggal Prakarsa Tbk

      158,700         341,931   

PT Matahari Department Store Tbk

      398,700         494,508   

 

      Shares      Value  

Indonesia–(continued)

  

PT Telekomunikasi Indonesia Persero Tbk

      1,461,300       $ 332,910   
                1,546,677   

Malaysia–1.86%

  

Kossan Rubber Industries Berhad

      405,900         509,328   

Mexico–5.86%

  

Fibra Uno Administracion S.A. de C.V.

      118,800         417,216   

Grupo Financiero Banorte S.A.B. de C.V.
-Class O

      76,300         507,582   

Grupo Financiero Inbursa, SAB de C.V. -Class O

      62,500         190,988   

Kimberly-Clark de Mexico, S.A.B. de C.V.
-Class A

      191,700         486,339   
                1,602,115   

Russia–4.23%

  

Magnit OJSC -GDR

      10,062         591,715   

Sberbank of Russia -ADR(a)

      68,127         564,805   
                1,156,520   

South Africa–6.77%

  

Life Healthcare Group Holdings Ltd.

      117,936         484,137   

MTN Group Ltd.

      25,603         528,172   

Steinhoff International Holdings Ltd.

      60,854         304,213   

Tiger Brands Ltd.

      18,667         536,243   
                1,852,765   

South Korea–12.35%

  

Dongbu Insurance Co., Ltd.

      8,588         489,654   

Grand Korea Leisure Co., Ltd.

      9,758         403,330   

Hyundai Motor Co.

      3,463         824,652   

Samsung Electronics Co., Ltd.

      730         951,221   

Shinhan Financial Group Co., Ltd.

      8,682         430,987   

SK Telecom Co., Ltd. -ADR

      9,875         279,562   
                3,379,406   

Taiwan–6.00%

  

Hon Hai Precision Industry Co., Ltd.

      157,900         538,820   

Taiwan Semiconductor Manufacturing Co. Ltd.

      275,000         1,103,732   
                1,642,552   

Thailand–3.06%

  

Bangkok Bank PCL -NVDR

      79,800         482,761   

PTT PCL

      35,700         353,913   
                836,674   

Turkey–2.73%

  

TAV Havalimanlari Holding A.S.

      53,606         440,849   

Turkiye Sinai Kalkinma Bankasi A.S.

      343,765         305,240   
                746,089   

 

 

 

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

Invesco Emerging Markets Equity Fund

      Shares      Value  

Turkmenistan–2.18%

      

Dragon Oil PLC

      62,934       $ 597,098   

United Kingdom–1.21%

      

SABMiller PLC

      6,069         330,601   

United States–0.48%

      

Yum! Brands, Inc.

      1,890         131,166   

Total Common Stocks & Other Equity
Interests (Cost $25,135,621)

   

      26,451,960   

Money Market Funds–2.48%

      

Liquid Assets Portfolio –Institutional
Class (b)

      339,220         339,220   

Premier Portfolio –Institutional Class (b)

      339,220         339,220   

Total Money Market Funds
(Cost $678,440)

   

      678,440   

TOTAL INVESTMENTS–99.15%
(Cost $25,814,061)

               27,130,400   

OTHER ASSETS LESS LIABILITIES–0.85%

  

      232,456   

NET ASSETS–100.00%

             $ 27,362,856   

 

Investment Abbreviations:     

ADR

            — American Depositary Receipt   

GDR

            — Global Depositary Receipt   

NVDR

            — Non-Voting Depositary Receipt   
Notes to Schedule of Investments:   

(a)     Non-income producing security.

   

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

   
 

 

 

 

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

Invesco Emerging Markets Equity 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 Emerging Markets Equity 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 Emerging Markets Equity 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.

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.

During the nine months ended July 31, 2014, there were transfers from Level 1 to Level 2 of $6,152,320 and from Level 2 to Level 1 of $1,243,242, due to foreign fair value adjustments.

 

Invesco Emerging Markets Equity Fund

          Level 1                Level 2              Level 3              Total  

Brazil

    $ 3,147,746            $ —            $ —            $ 3,147,746   

Chile

      906,049              —              —              906,049   

China

      843,300              4,191,621              —              5,034,921   

France

      —              361,678              —              361,678   

Georgia

      —              463,528              —              463,528   

Greece

      —              522,848              —              522,848   

India

      347,196              1,337,003              —              1,684,199   

Indonesia

      341,931                     1,204,746                     —                     1,546,677   

Malaysia

      509,328              —              —              509,328   

Mexico

      1,602,115              —              —              1,602,115   

Russia

      —              1,156,520              —              1,156,520   

South Africa

      304,213              1,548,552              —              1,852,765   

South Korea

      769,216              2,610,190              —              3,379,406   

Taiwan

      —              1,642,552              —              1,642,552   

Thailand

      —              836,674              —              836,674   

Turkey

      —              746,089              —              746,089   

Turkmenistan

      597,098              —              —              597,098   

United Kingdom

      —              330,601              —              330,601   

United States

      809,606              —              —              809,606   

   Total Investments

    $     10,177,798            $     16,952,602            $             —            $     27,130,400   

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 nine months ended July 31, 2014 was $17,462,019 and $17,965,973, respectively. Cost of investments on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end.

 

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

Aggregate unrealized appreciation of investment securities

    $

 

       2,155,014

 

   

 

Aggregate unrealized (depreciation) of investment securities

     

 

 (1,074,983)

 

   

 

Net unrealized appreciation of investment securities

 

    $

 

 1,080,031

 

   

 

Cost of investments for tax purposes is $26,050,369.

   

 

Invesco Emerging Markets Equity Fund

 

 

Invesco Emerging Market Local

Currency Debt Fund

Quarterly Schedule of Portfolio Holdings

July 31, 2014

 

 

 

 

LOGO

 

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

 

 

Schedule of Investments

July 31, 2014

(Unaudited)

 

          Principal    
Amount    		      Value    

Non-U.S. Dollar Denominated Bonds & Notes–95.90%(a)

  

Brazil–11.00%

       

Banco Safra S.A.,

Sr. Unsec. Notes,

10.25%, 08/08/16(b)

   BRL     956,000       $ 410,725   

Brazil Letras do Tesouro
Nacional,

Unsec. Bonds,

0.00%, 07/01/16(c)

   BRL     4,600,000         1,647,260   

Brazil Notas do Tesouro Nacional,

  

   

Series B,

Unsec. Notes,

6.00%, 08/15/50

   BRL     250,000         274,528   

Series F,

Sr. Unsec. Notes,

10.00%, 01/01/17

   BRL     1,900,000         819,756   

Unsec. Notes,

10.00%, 01/01/21

   BRL     4,758,000         1,954,665   

10.00%, 01/01/23

   BRL     600,000         242,330   

Itau Unibanco Holding S.A.,
Sr. Unsec. Notes,
10.50%, 11/23/15(b)

   BRL     1,150,000         501,674   

REGS,

Sr. Unsec. Euro Notes,

10.50%, 11/23/15(b)

   BRL     702,000         306,240   
                   6,157,178   

Colombia–7.52%

       

Colombia Government International Bond,

  

   

Sr. Unsec. Global Bonds,

4.38%, 03/21/23

   COP     4,313,000,000         2,076,630   

9.85%, 06/28/27

   COP     633,000,000         436,876   

Empresas Publicas de Medellin,
Sr. Unsec. Notes,
8.38%, 02/01/21(b)

   COP     1,000,000,000         566,160   

Empresas Publicas de Medellin
ESP, REGS, Sr. Unsec. Euro
Notes, 8.38%, 02/01/21(b)

   COP     2,000,000,000         1,132,321   
                   4,211,987   

Costa Rica–1.48%

       

Republic of Costa Rica,
Unsec. Bonds,
9.43%, 06/29/22(b)

   CRC     200,000,000         355,152   

11.04%, 09/27/17(b)

   CRC     237,500,000         472,042   
                   827,194   

Germany–2.75%

       

Deutsche Bank A.G., Sr. Unsec.
Medium-Term Euro Notes,
8.38%, 03/17/34(b)

   IDR     18,300,000,000         1,540,383   
          Principal    
Amount    		      Value    

Hungary–2.92%

       

Hungary Government Bond,
Series 17/A,
Unsec. Bonds,
6.75%, 11/24/17

   HUF     158,000,000       $ 747,950   

Series 17/B,

Unsec. Bonds,

6.75%, 02/24/17

   HUF     190,500,000         885,943   
                   1,633,893   

Indonesia–0.90%

       

Indonesia Treasury Bond, Series
FR70, Sr. Unsec. Bonds,
8.38%, 03/15/24

   IDR     5,700,000,000         505,641   

Luxembourg–1.63%

       

Bank of New York Mellon
Luxembourg S.A., Series NG5,
Sec. Medium-Term Euro
Notes, 10.70%, 06/05/18(b)

   NGN     150,000,000         914,995   

Malaysia–8.66%

       

Malaysia Government Bond,
Series 0111,
Sr. Unsec. Bonds,
4.16%, 07/15/21

   MYR     5,681,000         1,818,501   

Series 0112,

Sr. Unsec. Bonds,

3.42%, 08/15/22

   MYR     2,000,000         607,209   

Series 0902,

Sr. Unsec. Bonds,

4.38%, 11/29/19

   MYR     7,500,000         2,419,503   
                   4,845,213   

Mexico–10.35%

       

America Movil S.A.B. de C.V.,
Sr. Unsec. Euro Notes,
6.45%, 12/05/22

   MXN     16,600,000         1,236,462   

7.13%, 12/09/24

   MXN     2,000,000         153,199   

Sr. Unsec. Gtd. Global Notes,

8.46%, 12/18/36

   MXN     17,000,000         1,270,405   

Mexican Bonos,
Series M,
Unsec. Bonds,
7.75%, 11/13/42

   MXN     100,000         8,419   

8.00%, 12/07/23

   MXN     11,300,000         991,089   

Series M20,

Sr. Unsec. Bonds,

10.00%, 12/05/24

   MXN     21,350,000         2,134,309   
                   5,793,883   
 

 

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

 

Invesco Emerging Market Local Currency Debt Fund

            Principal    
Amount    		      Value    

Peru–2.74%

       

Peruvian Government International Bond,

  

   

Sr. Unsec. Notes,

8.20%, 08/12/26(b)

     PEN        2,330,000       $ 1,028,998   

REGS,

Sr. Unsec. Global Notes,

6.95%, 08/12/31(b)

     PEN        1,300,000         506,421   
                       1,535,419   

Philippines–0.42%

       

Philippine Government
International Bond,
Sr. Unsec. Global Bonds,
3.90%, 11/26/22

     PHP        10,000,000         232,513   

Poland–5.72%

       

Poland Government Bond,
Series 1020,
Unsec. Bonds,
5.25%, 10/25/20

     PLN        1,600,000         575,835   

Series 1021,

Unsec. Bonds,

5.75%, 10/25/21

     PLN        1,015,000         377,115   

Series 1023,

Unsec. Bonds,

4.00%, 10/25/23

     PLN        582,000         195,194   

Series DS1017,

Unsec. Bonds,

5.25%, 10/25/17

     PLN        5,935,000         2,052,201   
                       3,200,345   

Romania–1.50%

       

Romania Government Bond,
Series 5Y, Unsec. Bonds,
5.90%, 07/26/17

     RON        2,550,000         839,157   

Russia–9.27%

       

Russian Federal Bond - OFZ
Series 5080, Unsec. Bonds,
7.40%, 04/19/17

     RUB        11,500,000         310,455   

Series 6208,

Unsec. Bonds,

7.50%, 02/27/19

     RUB        116,722,000         3,067,956   

Series 6215,

Unsec. Bonds,

7.00%, 08/16/23

     RUB        74,000,000         1,812,328   
                       5,190,739   

South Africa–4.07%

       

South Africa Government Bond,
Series 2023, Unsec. Bonds,
7.75%, 02/28/23

     ZAR        24,892,000         2,276,645   

Supranational–3.98%

       

European Bank for Reconstruction
& Development,
Sr. Unsec. Medium-Term Euro
Notes, 0.00%, 12/31/18(c)

     ZAR        5,600,000         377,222   
           

Principal    

Amount    

     Value    

Supranational–(continued)

  

  

International Bank for Reconstruction & Development,
Sr. Unsec. Medium-Term Euro Notes,

   

  

7.00%, 06/07/23

     ZAR        17,000,000      $ 1,449,433   

Series GDIF,

Sr. Unsec. Medium-Term Euro Notes,

  

  

  

7.68%, 08/10/16

     ZAR        4,250,000        400,232   
                      2,226,887   

Thailand–4.70%

      

Thailand Government Bond,
Sr. Unsec. Bonds,
3.65%, 12/17/21

     THB        51,600,000        1,628,284   

3.88%, 06/13/19

     THB        31,175,000        1,004,984   
                      2,633,268   

Turkey–5.20%

      

Turkey Government Bond,
Unsec. Bonds,
8.80%, 09/27/23

     TRY        1,735,000        810,903   

Series CPI,

Unsec. Bonds,

3.60%, 02/23/22

     TRY        2,702,900 (d)      1,631,777   

5.51%, 04/01/20

     TRY        650,000 (d)      468,002   
                      2,910,682   

United Kingdom–7.64%

      

Barclays Bank PLC, Series FR52,
Sr. Unsec. Medium-Term Euro

   

  

Notes, 10.50%, 08/19/30(b)

     IDR        13,200,000,000        1,332,573   

Standard Chartered Bank,
Sr. Unsec. Medium-Term Euro Notes,

   

  

8.12%, 12/14/20

     INR        40,000,000        645,773   

8.28%, 09/23/27

     INR        58,000,000        925,347   

8.38%, 03/17/34

     IDR        16,304,000,000        1,371,782   
                      4,275,475   

United States–3.45%

      

JP Morgan Chase Bank N.A.,
Unsec. Medium-Term Euro

   

  

Notes, 8.25%, 06/17/32(b)

     IDR        4,000,000,000        332,976   

Morgan Stanley, Series G, Sr.
Unsec. Medium-Term Euro
Notes, 8.44%, 12/28/15

     MXN        20,000,000        1,601,216   
                      1,934,192   

Total Non-U.S. Dollar Denominated Bonds
& Notes (Cost $55,058,964)

   

     53,685,689   

U.S. Dollar Denominated Bonds and Notes–2.20%

  

Hungary–1.31%

  

  

Hungary Government International Bond,
Sr. Unsec. Global Notes,

   

  

4.00%, 03/25/19

             $350,000        360,664   

5.38%, 03/25/24

             350,000        371,000   
                      731,664   

 

 

 

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

 

Invesco Emerging Market Local Currency Debt Fund

      Principal    
Amount    		      Value    

Venezuela–0.89%

      

Petroleos de Venezuela S.A.,

Series 2014, Sr. Unsec. Euro Bonds,
4.90%, 10/28/14

    $ 500,000       $ 499,400   

Total U.S. Dollar Denominated Bonds and Notes (Cost $1,190,344)

               1,231,064   

TOTAL INVESTMENTS–98.10%
(Cost $56,249,308)

               54,916,753   

OTHER ASSETS LESS LIABILITIES–1.90%

               1,062,100   

NET ASSETS–100.00%

             $ 55,978,853   

Investment Abbreviations:

 

BRL — Brazilian Real
COP — Colombian Peso
CRC — Costa Rican Colon
HUF — Hungary Forint
IDR — Indonesian Rupiah
INR — Indian Rupees
MXN — Mexican Peso
MYR — Malaysian Ringgit
NGN — Nigerian Naira
PEN — Peru Nuevo Sol
PHP — Philippines Peso
PLN — Poland Zloty
RON — Romanian Leu
RUB — Russian Rouble
Sec. — Secured
Sr. — Senior
THB — Thailand Baht
TRY — New Turkish Lire
Unsec. — Unsecured
ZAR — South African Rand

Notes to Schedule of Investments:

 

(a)  Foreign denominated security. Principal amount is denominated in currency indicated.

 

(b)  Security purchased or received in a transaction exempt from registration under the Securities Act of 1933, as amended (the “1933 Act”). The security may be resold pursuant to an exemption from registration under the 1933 Act, typically to qualified institutional buyers. The aggregate value of these securities at July 31, 2014 was $9,400,660, which represented 16.79% of the Fund’s Net Assets.

 

(c)  Zero coupon bond issued at a discount.

 

(d)  Principal amount of security and interest payments are adjusted for inflation.

    

 

 

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

 

Invesco Emerging Market Local Currency Debt 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 Emerging Market Local Currency Debt 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. Bond premiums and discounts are amortized and/or accreted for financial reporting purposes.

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

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

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

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

 

Invesco Emerging Market Local Currency Debt Fund

E. Forward Foreign Currency Contracts – (continued)

 

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 2 inputs (see the Schedule of Investments for security categories). The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities.

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 nine months ended July 31, 2014 was $34,068,424 and $28,604,872, respectively. Cost of investments on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end.

 

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

Aggregate unrealized appreciation of investment securities

    $ 1,632,196   

Aggregate unrealized (depreciation) of investment securities

      (2,964,751)   

Net unrealized (depreciation) of investment securities

    $                 (1,332,555)   
Cost of investments is same for tax and financial reporting purposes.   

 

Invesco Emerging Market Local Currency Debt Fund

 

 

Invesco Endeavor Fund

Quarterly Schedule of Portfolio Holdings

July 31, 2014

 

 

 

 

LOGO

 

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

Schedule of Investments(a)

July 31, 2014

(Unaudited)

 

      Shares          Value    

Common Stocks & Other Equity Interests–78.40%

  

Air Freight & Logistics–3.73%

  

Echo Global Logistics, Inc. (b)

      852,131       $   18,755,403   

Airlines–1.57%

  

Ryanair Holdings PLC -ADR (Ireland)(b)

      148,800         7,884,912   

Apparel Retail–5.15%

  

Francesca’s Holdings Corp. (b)

      840,286         10,738,855   

Ross Stores, Inc.

      236,018         15,199,559   
                25,938,414   

Application Software–1.23%

  

Autodesk, Inc. (b)

      115,807         6,178,303   

Brewers–1.86%

  

Molson Coors Brewing Co. -Class B

      138,455         9,349,866   

Building Products–1.57%

  

Kingspan Group PLC (Ireland)

      461,678         7,899,838   

Communications Equipment–1.92%

  

Plantronics, Inc.

      206,272         9,688,596   

Construction & Engineering–7.10%

  

Orion Marine Group, Inc. (b)(c)

      1,649,133         17,827,128   

Pike Corp. (b)(c)

      1,803,742         14,538,160   

Quanta Services, Inc. (b)

      101,731         3,406,971   
                35,772,259   

Environmental & Facilities Services–3.75%

  

Newalta Corp. (Canada)

      978,927         18,863,851   

Health Care Distributors–2.01%

  

Patterson Cos. Inc.

      260,000         10,142,600   

Health Care Equipment–3.63%

  

Zimmer Holdings, Inc.

      182,381         18,250,867   

Home Entertainment Software–2.64%

  

Activision Blizzard, Inc.

      593,290         13,277,830   

Industrial Conglomerates–2.88%

  

DCC PLC (Ireland)

      254,531         14,503,843   

Integrated Oil & Gas–3.38%

  

Cenovus Energy Inc. (Canada)

      554,694         17,038,156   

IT Consulting & Other Services–2.68%

  

Cognizant Technology Solutions Corp.
-Class A (b)

      274,612         13,469,719   

Life & Health Insurance–2.69%

  

Unum Group

      394,920         13,557,604   
      Shares          Value    

Managed Health Care–2.50%

  

UnitedHealth Group Inc.

      155,306       $ 12,587,551   

Multi-Line Insurance–2.55%

  

Vienna Insurance Group AG Wiener Versicherung Gruppe (Austria)

      258,042         12,845,409   

Oil & Gas Exploration & Production–6.36%

  

Devon Energy Corp.

      170,289         12,856,819   

Ultra Petroleum Corp. (b)

      835,563         19,151,104   
                32,007,923   

Paper Products–0.29%

  

Fortress Paper Ltd. -Class A (Canada)(b)

      575,700         1,478,455   

Real Estate Operating Companies–3.66%

  

Brookfield Property Partners L.P.

      893,740         18,446,794   

Research & Consulting Services–2.39%

  

FTI Consulting, Inc. (b)

      325,661         12,036,431   

Semiconductor Equipment–2.46%

  

Ultratech, Inc. (b)

      523,867         12,405,171   

Semiconductors–3.57%

  

International Rectifier Corp. (b)

      724,318         17,992,059   

Trading Companies & Distributors–4.53%

  

Grafton Group PLC (Ireland)(d)

      954,395         9,242,654   

Titan Machinery, Inc. (b)

      925,357         13,565,734   
                22,808,388   

Trucking–2.30%

  

Con-way Inc.

      234,804         11,587,577   

Total Common Stocks & Other Equity Interests
(Cost $308,842,656)

   

      394,767,819   

Money Market Funds–21.88%

  

Liquid Assets Portfolio –Institutional Class (e)

      55,088,767         55,088,767   

Premier Portfolio –Institutional Class (e)

      55,088,767         55,088,767   

Total Money Market Funds
(Cost $110,177,534)

   

      110,177,534   

TOTAL INVESTMENTS–100.28%
(Cost $419,020,190)

               504,945,353   

OTHER ASSETS LESS LIABILITIES–(0.28)%

  

      (1,430,638 ) 

NET ASSETS–100.00%

             $   503,514,715   

Investment Abbreviations:

 

ADR —American Depositary Receipt
 

 

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

Invesco Endeavor Fund

Notes to Schedule of Investments:

 

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

 

(b)  Non-income producing security.

 

(c)  Affiliated 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 $32,365,288, which represented 6.43% of the Fund’s Net Assets. See Note 3.

 

(d)  Each unit represents one ordinary share, seventeen Class A shares and one Class C share.

 

(e)  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 Endeavor 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 Endeavor 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 Endeavor 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

    $     481,198,856       $     23,746,497       $ —           $     504,945,353       

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 nine months ended July 31, 2014.

 

     

Value

10/31/13

     

Purchases

at Cost

     

Proceeds

from Sales

     

Change in

Unrealized

Appreciation

(Depreciation)

    

Realized

Gain

(Loss)

     

Value

07/31/14

     

Dividend

Income

  

Orion Marine Group, Inc.

    $ 20,614,163       $ —           $ —           $ (2,787,035 )    $ —           $ 17,827,128       $ —       

Pike Corp.

      15,883,965         3,031,294         —             (4,377,099 )      —             14,538,160         —       

Total

    $   36,498,128       $   3,031,294       $ —           $ (7,164,134 )    $ —           $   32,365,288       $ —       

 

Invesco Endeavor 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 nine months ended July 31, 2014 was $75,091,108 and $62,269,207, 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

    $     110,069,534   

Aggregate unrealized (depreciation) of investment securities

      (24,468,222 ) 

Net unrealized appreciation of investment securities

    $ 85,601,312   

Cost of investments for tax purposes is $419,344,041.

   

 

Invesco Endeavor Fund

 

 

Invesco Global Health Care Fund

Quarterly Schedule of Portfolio Holdings

July 31, 2014

 

 

 

 

 

LOGO

 

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

 

 

Schedule of Investments(a)

July 31, 2014

(Unaudited)

 

      Shares          Value    

Common Stocks & Other Equity Interests–91.92%

  

Biotechnology–22.67%

      

ACADIA Pharmaceuticals Inc. (b)

      322,242       $ 6,531,845   

Alexion Pharmaceuticals, Inc. (b)

      317,150         50,423,678   

Biogen Idec Inc. (b)

      157,754         52,751,360   

BioMarin Pharmaceutical Inc. (b)

      339,649         20,997,101   

Celgene Corp. (b)

      489,690         42,676,484   

Celldex Therapeutics Inc. (b)

      398,967         5,222,478   

Evolutionary Genomics/GenoPlex, Inc.
(Acquired 09/15/97-05/25/12;
Cost $408,490)(b)(c)(d)

      9,944         29,832   

Exact Sciences Corp. (b)

      615,090         9,601,555   

Gilead Sciences, Inc. (b)

      753,020         68,938,981   

Incyte Corp. (b)

      324,929         15,456,873   

Insmed, Inc. (b)

      267,100         4,564,739   

Intercept Pharmaceuticals Inc. (b)

      45,000         10,456,200   

Keryx Biopharmaceuticals, Inc. (b)

      671,551         10,106,843   

Medivation Inc. (b)

      302,288         22,438,838   

NPS Pharmaceuticals, Inc. (b)

      406,528         11,358,392   

Vanda Pharmaceuticals Inc. (b)

      865,662         12,725,231   

Vertex Pharmaceuticals Inc. (b)

      264,816         23,544,791   
         367,825,221   

Drug Retail–1.55%

      

CVS Caremark Corp.

      225,243         17,199,556   

Raia Drogasil S.A. (Brazil)

      945,978         7,882,455   
         25,082,011   

Health Care Distributors–3.03%

      

Cardinal Health, Inc.

      340,863         24,422,834   

McKesson Corp.

      128,968         24,743,800   
         49,166,634   

Health Care Equipment–5.14%

      

Abbott Laboratories

      535,140         22,540,097   

Olympus Corp. (Japan)(b)

      717,200         25,403,564   

ResMed Inc.

      390,774         20,218,647   

Wright Medical Group, Inc. (b)

      493,227         15,201,256   
         83,363,564   

Health Care Facilities–8.99%

      

Community Health Systems Inc. (b)

      681,150         32,490,855   

HCA Holdings, Inc. (b)

      770,750         50,337,682   

Tenet Healthcare Corp. (b)

      630,482         33,270,535   

Universal Health Services, Inc. -Class B

      279,586         29,803,868   
         145,902,940   

Health Care Services–3.55%

      

Air Methods Corp. (b)

      309,568         15,555,792   

Express Scripts Holding Co. (b)

      566,246         39,439,034   
      Shares          Value    

Health Care Services–(continued)

  

   

Innovacare Inc. (Puerto Rico)
(Acquired 12/12/12;
Cost $3,158,532)(b)(c)

      805,748       $ 2,618,681   
         57,613,507   

Life Sciences Tools & Services–2.91%

  

   

Thermo Fisher Scientific, Inc.

      257,902         31,335,093   

Waters Corp. (b)

      153,125         15,839,250   
         47,174,343   

Managed Health Care–3.74%

      

Aetna Inc.

      341,105         26,445,871   

Qualicorp S.A. (Brazil)(b)

      791,200         9,224,972   

UnitedHealth Group Inc.

      308,879         25,034,643   
         60,705,486   

Pharmaceuticals–40.34%

      

AbbVie Inc.

      734,660         38,452,104   

Allergan, Inc.

      96,136         15,945,117   

Auxilium Pharmaceuticals Inc. (b)

      759,948         15,214,159   

Bayer AG (Germany)

      312,053         41,329,544   

Bristol-Myers Squibb Co.

      773,684         39,163,884   

Endo International PLC (b)

      384,441         25,788,302   

GlaxoSmithKline PLC -ADR
(United Kingdom)

      1,368,278         66,183,607   

Hikma Pharmaceuticals PLC
(United Kingdom)

      838,443         25,434,883   

Horizon Pharma, Inc. (b)

      558,919         4,750,811   

Jazz Pharmaceuticals PLC (b)

      158,510         22,148,602   

Johnson & Johnson

      241,707         24,192,454   

Locus Pharmaceuticals, Inc.
(Acquired 11/21/00-05/09/07;
Cost 6,852,940)(b)(c)(d)

      258,824         0   

Mylan Inc. (b)

      519,669         25,656,059   

Nippon Shinyaku Co., Ltd. (Japan)

      834,000         23,848,769   

Novartis AG -ADR (Switzerland)

      701,780         61,012,753   

Perrigo Co. PLC

      170,927         25,715,967   

Pfizer Inc.

      1,381,568         39,651,002   

Repros Therapeutics Inc. (b)

      266,788         3,740,368   

Roche Holding AG (Switzerland)

      214,814         62,405,052   

Sanofi -ADR (France)

      1,243,725         65,009,506   

Teva Pharmaceutical Industries Ltd. -ADR (Israel)

      536,922         28,725,327   
                654,368,270   

Total Common Stocks & Other Equity Interests
(Cost $864,196,246)

   

      1,491,201,976   

Preferred Stock–0.00%

      

Health Care Equipment–0.00%

      

Intact Medical Corp. -Series C, Pfd.
(Acquired 03/26/01;
Cost $2,000,001)(b)(c)(d)

      2,439,026         0   
 

 

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

 

Invesco Global Health Care Fund

      Shares          Value    

Money Market Funds–3.86%

      

Liquid Assets Portfolio –Institutional Class (e)

      31,311,957       $ 31,311,957   

Premier Portfolio –Institutional Class (e)

      31,311,956         31,311,956   

Total Money Market Funds
(Cost $62,623,913)

   

      62,623,913   

 

  

TOTAL INVESTMENTS–95.78%
(Cost $928,820,160)

   

      1,553,825,889   

OTHER ASSETS LESS LIABILITIES–4.22%

  

      68,503,004   

NET ASSETS–100.00%

             $ 1,622,328,893   

Investment Abbreviations:

 

ADR —American Depositary Receipt

 

Pfd. —Preferred

Notes to Schedule of Investments:

 

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

 

(b)  Non-income producing security.

 

(c)  Security purchased or received in a transaction exempt from registration under the Securities Act of 1933, as amended (the “1933 Act”). The security may be resold pursuant to an exemption from registration under the 1933 Act, typically to qualified institutional buyers. The aggregate value of these securities at July 31, 2014 was $2,648,513, which represented less than 1% of the Fund’s Net Assets.

 

(d)  Security is considered venture capital. See Note 1F.

 

(e)  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 Global Health Care 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 Global Health Care 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 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

 

Invesco Global Health Care Fund

E. Forward Foreign Currency Contracts – (continued)

 

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.

F. Other Risks - The Fund’s performance is vulnerable to factors affecting the health care industry, including government regulation, obsolescence caused by scientific advances and technological innovations.

The Fund has invested in non-publicly traded companies, some of which are in the startup or development stages. These investments are inherently risky, as the market for the technologies or products these companies are developing are typically in the early stages and may never materialize. The Fund could lose its entire investment in these companies. These investments are valued at fair value as determined in good faith in accordance with procedures approved by the Board of Trustees. Investments in privately held venture capital securities are illiquid.

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.

During the nine months ended July 31, 2014, there were transfers from Level 1 to Level 2 of $49,252,333 due to foreign fair value adjustments.

      Level 1      Level 2      Level 3      Total  

Equity Securities

    $ 1,414,085,108       $ 137,092,268       $ 2,648,513       $ 1,553,825,889   

Forward Foreign Currency Contracts*

      —         1,444,410         —         1,444,410   

Total Investments

    $   1,414,085,108       $   138,536,678       $   2,648,513       $   1,555,270,299   
* Unrealized appreciation.

 

Invesco Global Health Care Fund

NOTE 3 — Derivative Investments

 

Open Forward Foreign Currency Contracts at Period-End
Settlement
Date		   

Counterparty

   

Contract to

   

Notional

Value

     

Unrealized

Appreciation

      Deliver    Receive      
                                        

08/08/14

    Citibank Capital, Inc.    CHF    39,944,000    USD    44,768,977    $ 43,954,258       $   814,719

08/08/14

    Citibank Capital, Inc.    EUR    28,008,000    USD    38,130,932      37,501,241       629,691

Total open forward foreign currency contracts - Currency Risk

  

    $1,444,410

Currency Abbreviations:

CHF – Swiss Franc

EUR – Euro

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 nine months ended July 31, 2014 was $233,373,988 and $331,388,793, 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

    $ 651,526,185   

Aggregate unrealized (depreciation) of investment securities

      (27,435,915)   

Net unrealized appreciation of investment securities

    $ 624,090,270   
Cost of investments for tax purposes is $929,735,619.   

 

Invesco Global Health Care Fund

 

 

Invesco Global Infrastructure Fund

Quarterly Schedule of Portfolio Holdings

July 31, 2014

 

 

 

 

LOGO

 

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

 

 

Schedule of Investments

July 31, 2014

(Unaudited)

 

      Shares      Value  

Common Stocks & Other Equity Interests–96.67%

  

Australia–4.07%

  

APA Group

      4,572       $ 31,437   

AusNet Services (a)

      8,648         10,792   

Macquarie Atlas Roads Group

      1,992         6,180   

Spark Infrastructure Group

      6,922         12,089   

Sydney Airport

      5,860         23,245   

Transurban Group

      12,822         91,647   
                175,390   

Canada–11.52%

  

Enbridge Inc.

      2,828         138,638   

Fortis, Inc.

      1,880         57,850   

Keyera Corp.

      204         15,271   

Pembina Pipeline Corp.

      1,997         83,668   

TransCanada Corp.

      3,878         194,558   

Westshore Terminals Investment Corp.

      214         6,516   
                496,501   

China–2.21%

  

Beijing Capital International Airport
Co. Ltd. -Class H

      18,000         12,408   

China Merchants Holdings International Co. Ltd.

      6,000         20,286   

China Resources Gas Group Ltd.

      4,000         12,645   

ENN Energy Holdings Ltd.

      5,000         35,353   

Jiangsu Expressway Co. Ltd. -Class H

      12,000         14,602   
                95,294   

France–2.71%

  

Aeroports de Paris

      295         40,354   

Eutelsat Communications S.A.

      800         27,568   

Groupe Eurotunnel S.A.

      3,692         48,802   
                116,724   

Hong Kong–2.56%

  

China Gas Holdings Ltd.

      14,000         27,016   

Hong Kong and China Gas Co. Ltd.

      36,000         78,509   

Towngas China Co. Ltd.

      4,000         4,605   
                110,130   

Italy–3.22%

  

Atlantia S.p.A.

      3,149         83,232   

Snam S.p.A.

      7,652         45,086   

Societa Iniziative Autostradali e Servizi S.p.A.

      874         10,397   
                138,715   

Japan–1.86%

  

Tokyo Gas Co., Ltd.

      14,000         80,127   

Luxembourg–2.10%

  

SES

      2,469         90,538   
      Shares      Value  

Mexico–0.50%

  

Grupo Aeroportuario del Sureste S.A.B.
de C.V. - ADR

      172       $ 21,410   

Netherlands–0.13%

  

Koninklijke Vopak N.V.

      123         5,693   

New Zealand–0.57%

  

Auckland International Airport Ltd.

      7,658         24,693   

Spain–3.87%

  

Enagas S.A.

      802         26,684   

Ferrovial S.A.

      3,321         69,339   

Red Electrica Corp. S.A.

      823         70,475   
                166,498   

Switzerland–0.56%

  

Flughafen Zuerich AG

      39         24,247   

United Arab Emirates–0.89%

  

DP World Ltd.

      1,935         38,506   

United Kingdom–10.69%

  

National Grid PLC

      22,644         326,125   

Pennon Group PLC

      2,337         32,114   

Severn Trent PLC

      1,313         42,749   

United Utilities Group PLC

      3,981         59,618   
                460,606   

United States–49.21%

  

Access Midstream Partners L.P.

      1,033         62,207   

American Tower Corp.

      2,442         230,500   

American Water Works Co., Inc.

      1,091         52,117   

Aqua America Inc.

      1,196         28,441   

Atmos Energy Corp.

      546         26,383   

CenterPoint Energy, Inc.

      2,623         63,791   

Consolidated Edison, Inc.

      1,605         90,024   

Crown Castle International Corp.

      1,533         113,718   

Energy Transfer Equity, L.P.

      1,863         101,329   

EnLink Midstream LLC

      1,032         39,433   

EQT Midstream Partners L.P.

      692         59,886   

ITC Holdings Corp.

      1,703         61,478   

Kinder Morgan Inc.

      2,979         107,184   

New Jersey Resources Corp.

      228         11,646   

NiSource Inc.

      2,279         85,873   

Northeast Utilities

      1,878         82,444   

NorthWestern Corp.

      210         9,706   

ONEOK, Inc.

      1,473         94,905   

PG&E Corp.

      2,356         105,243   

Piedmont Natural Gas Co., Inc.

      421         14,604   

SBA Communications Corp. -Class A (a)

      707         75,600   

SemGroup Corp. -Class A

      234         18,037   

Sempra Energy

      1,464         145,975   

Southwest Gas Corp.

      253         12,531   

Spectra Energy Corp.

      3,674         150,340   
 

 

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

 

Invesco Global Infrastructure Fund

      Shares      Value  

United States–(continued)

      

Targa Resources Corp.

      373       $ 47,558   

Williams Cos., Inc. (The)

      4,047         229,182   
                2,120,135   

Total Common Stocks & Other Equity
Interests (Cost $4,000,804)

   

      4,165,207   

Money Market Funds–2.31%

      

Liquid Assets Portfolio – Institutional Class (b)

      49,785         49,785   

Premier Portfolio – Institutional Class (b)

      49,786         49,786   

Total Money Market Funds (Cost $99,571)

  

      99,571   

TOTAL INVESTMENTS–98.98%
(Cost $4,100,375)

               4,264,778   

OTHER ASSETS LESS LIABILITIES–1.02%

  

      43,844   

NET ASSETS–100.00%

             $ 4,308,622   

 

Investment Abbreviations:     

ADR—

    American Depositary Receipt   
Notes to Schedule of Investments:   

 

(a)  Non-income producing security.

 

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

 

 

 

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

 

Invesco Global Infrastructure 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 Global Infrastructure 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 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 Global Infrastructure 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  

Australia

    $ —       $ 175,390       $ —       $ 175,390   

Canada

      496,501         —         —         496,501   

China

      12,645         82,649         —         95,294   

France

      —         116,724         —         116,724   

Hong Kong

      —         110,130         —         110,130   

Italy

      —         138,715         —         138,715   

Japan

      —         80,127         —         80,127   

Luxembourg

      —         90,538         —         90,538   

Mexico

      21,410         —         —         21,410   

Netherlands

      —         5,693         —         5,693   

New Zealand

      —         24,693         —         24,693   

Spain

      —         166,498         —         166,498   

Switzerland

      —         24,247         —         24,247   

United Arab Emirates

      38,506         —         —         38,506   

United Kingdom

      —         460,606         —         460,606   

United States

      2,219,706         —         —         2,219,706   

Total Investments

    $         2,788,768       $         1,476,010       $       —       $         4,264,778   

 

Invesco Global Infrastructure 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 for the period May 2, 2014 (commencement date) to July 31, 2014 was $4,222,712 and $227,988, respectively. In a fund’s initial year of operations, the cost of investments for tax purposes will not reflect any tax adjustments until its fiscal year end reporting period.

 

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

Aggregate unrealized appreciation of investment securities

    $ 189,580   

Aggregate unrealized (depreciation) of investment securities

      (25,177)   

Net unrealized appreciation of investment securities

    $         164,403   
Cost of investments is the same for tax and financial reporting purposes.   

 

Invesco Global Infrastructure Fund

 
Invesco Global Market Neutral Fund
Quarterly Schedule of Portfolio Holdings
July 31, 2014

 

 

 

LOGO         
invesco.com/us    GMN-QTR-1    7/14    Invesco Advisers, Inc.

Schedule of Investments

July 31, 2014

(Unaudited)

 

      Shares      Value  

Common Stocks–74.63%

      

Australia–0.79%

      

Flight Centre Travel Group Ltd.

      1,838       $ 80,168   

Ramsay Health Care Ltd.

      685         30,464   
                110,632   

Canada–5.05%

      

Agnico-Eagle Mines Ltd.

      1,000         37,182   

Baytex Energy Corp.

      600         25,721   

Canadian Natural Resources Ltd.

      1,700         74,109   

Encana Corp.

      8,700         187,358   

Enerplus Corp.

      4,000         91,461   

Kinross Gold Corp. (a)

      7,200         28,792   

Penn West Petroleum Ltd.

      8,700         67,347   

Stantec Inc.

      2,100         133,246   

Suncor Energy, Inc.

      1,500         61,593   
                706,809   

Denmark–1.12%

      

Pandora AS

      701         47,890   

Vestas Wind Systems A.S. (a)

      2,420         108,542   
                156,432   

Finland–0.50%

      

UPM-Kymmene Oyj

      4,330         70,381   

France–1.56%

      

Plastic Omnium S.A.

      522         13,789   

Technicolor S.A. (a)

      7,992         57,687   

Valeo S.A.

      1,229         146,631   
                218,107   

Germany–3.73%

      

Continental AG

      930         201,090   

ProSiebenSat.1 Media AG

      4,869         204,651   

Rheinmetall AG

      348         21,121   

United Internet AG

      2,381         95,478   
                522,340   

Ireland–1.61%

      

Shire PLC

      2,722         224,755   

Israel–0.74%

      

Bezeq The Israeli Telecommunication Corp. Ltd.

      27,543         51,444   

Delek Group Ltd.

      133         52,408   
                103,852   

Japan–17.96%

      

Alfresa Holdings Corp.

      700         42,013   
      Shares      Value  

Japan–(continued)

      

Aoyama Trading Co., Ltd.

      3,600       $ 91,901   

Asahi Glass Co., Ltd.

      5,000         29,709   

Dai Nippon Printing Co., Ltd.

      4,000         41,058   

Daihatsu Motor Co., Ltd.

      5,700         101,698   

Daiichi Sankyo Co., Ltd.

      3,100         56,394   

Daito Trust Construction Co., Ltd.

      1,200         144,892   

DeNA Co., Ltd.

      2,600         33,649   

Denki Kagaku Kogyo Kabushiki Kaisha

      40,000         149,771   

FamilyMart Co., Ltd.

      3,000         134,551   

Marubeni Corp.

      23,000         162,355   

Medipal Holdings Corp.

      8,300         104,928   

Namco Bandai Holdings Inc.

      2,300         58,324   

Nippon Electric Glass Co., Ltd.

      14,000         78,889   

Nippon Paper Industries Co. Ltd.

      2,500         43,716   

Nippon Telegraph & Telephone Corp.

      3,200         212,746   

Nomura Real Estate Holdings, Inc.

      3,900         72,490   

Nomura Research Institute, Ltd.

      900         28,376   

Osaka Gas Co., Ltd.

      23,000         95,699   

Sekisui Chemical Co., Ltd.

      3,000         35,943   

Sumitomo Forestry Co., Ltd

      6,100         72,001   

Suzuken Co., Ltd.

      1,800         57,549   

TDK Corp.

      1,700         81,476   

Tokyo Gas Co., Ltd.

      34,000         194,594   

Toppan Printing Co. Ltd.

      6,000         45,849   

TOTO Ltd.

      3,000         37,622   

Trend Micro Inc.

      2,700         96,219   

West Japan Railway Co.

      4,600         209,079   
                2,513,491   

Macau–0.76%

      

MGM China Holdings Ltd.

      29,200         106,975   

Netherlands–1.32%

      

NXP Semiconductors N.V. (a)

      1,700         105,995   

Randstad Holding N.V.

      1,577         77,969   
                183,964   

New Zealand–0.23%

      

Telecom Corp. of New Zealand Ltd.

      13,027         31,502   

Norway–0.48%

      

DNB ASA

      3,810         67,328   

Spain–0.20%

      

Gamesa Corporacion Tecnologica, S.A (a)

      2,197         27,359   
 

 

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

Invesco Global Market Neutral Fund

      Shares      Value  

Sweden–0.91%

      

Intrum Justitia AB

      4,155       $ 126,943   

Switzerland–1.88%

      

Adecco S.A.

      484         36,164   

Georg Fischer AG

      257         169,687   

OC Oerlikon Corporation AG

      4,269         57,476   
                263,327   

United Kingdom–4.57%

      

Britvic PLC

      8,362         98,630   

BT Group PLC

      9,246         60,291   

ITV PLC

      53,241         186,764   

Next PLC

      1,875         213,722   

WH Smith PLC

      4,232         80,436   
                639,843   

United States–31.22%

      

AECOM Technology Corp. (a)

      2,000         67,900   

AES Corp. (The)

      3,100         45,291   

Alexion Pharmaceuticals, Inc. (a)

      300         47,697   

Amgen Inc.

      1,600         203,824   

AOL Inc. (a)

      1,000         38,550   

Archer-Daniels-Midland Co.

      4,200         194,880   

Best Buy Co., Inc.

      2,300         68,379   

Brocade Communications Systems, Inc.

      11,300         104,073   

CA, Inc.

      5,600         161,728   

Cardinal Health, Inc.

      800         57,320   

Celgene Corp. (a)

      400         34,860   

Chesapeake Energy Corp.

      6,900         181,953   

Cisco Systems, Inc.

      4,300         108,489   

ConocoPhillips

      2,600         214,500   

Deckers Outdoor Corp. (a)

      200         17,702   

Devon Energy Corp.

      800         60,400   

Everest Re Group, Ltd.

      800         124,728   

GameStop Corp. -Class A

      3,700         155,289   

Garmin Ltd.

      400         22,016   

Hewlett-Packard Co.

      6,100         217,221   

HollyFrontier Corp.

      600         28,206   

Huntington Ingalls Industries Inc.

      1,100         100,012   

L-3 Communications Holdings, Inc.

      400         41,984   

Lexmark International, Inc. -Class A

      4,200         201,726   

Lincoln National Corp.

      800         41,912   

Live Nation Entertainment, Inc. (a)

      1,700         39,457   

Manpowergroup Inc.

      900         70,101   

Marathon Petroleum Corp.

      600         50,088   

Marvell Technology Group Ltd.

      11,000         146,740   

Nabors Industries Ltd.

      1,200         32,592   

NetApp, Inc.

      3,100         120,404   

Northrop Grumman Corp.

      1,600         197,232   

NVIDIA Corp.

      3,700         64,750   

Oracle Corp.

      1,800         72,702   

Oshkosh Corp.

      700         32,354   

Patterson-UTI Energy, Inc.

      2,800         96,180   

Pitney Bowes Inc.

      1,400         37,884   

R. R. Donnelley & Sons Co.

      5,800         100,688   

Raytheon Co.

      1,400         127,078   

Rite Aid Corp. (a)

      5,500         36,795   
      Shares      Value  

United States–(continued)

      

Trinity Industries, Inc.

      3,500       $ 152,740   

United Therapeutics Corp. (a)

      800         72,752   

Valero Energy Corp.

      1,300         66,040   

VeriSign, Inc. (a)

      1,900         102,695   

Western Refining, Inc.

      5,100         208,896   
                4,368,808   

Total Common Stocks (Cost $9,875,387)

  

      10,442,848   

Money Market Funds–7.88%

      

Premier Portfolio –Institutional Class (b)

      551,520         551,520   

Liquid Assets Portfolio –Institutional
Class (b)

      551,520         551,520   

Total Money Market Funds
(Cost $1,103,040)

   

      1,103,040   

TOTAL INVESTMENTS–82.51%
(Cost $10,978,427)

   

      11,545,888   

OTHER ASSETS LESS LIABILITIES–17.49%

  

      2,447,484   

NET ASSETS–100.00%

             $ 13,993,372   

Notes to Schedule of Investments:

 

(a)  Non-income producing security.
(b)  The money market fund and the Fund are affiliated by having the same investment adviser.
 

 

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

Invesco Global Market Neutral Fund

Total Return Swap Agreements Outstanding at July 31, 2014

 

 

Reference Entity    Counterparty   

Expiration

Date

    Floating Rate (1)    Notional Value   

Unrealized

Appreciation
(Depreciation)

      Net Value of
Reference
Entities		  

Equity Securities-Short

    Morgan Stanley & Co. LLC    12/20/15    AUD-Overnight Rate    AUD (26,959)    $ 230       $ (24,825)   

Equity Securities-Short

    Morgan Stanley & Co. LLC    12/20/15    Bank of Canada Overnight Lending Rate    CAD (798,297)      12,160         (719,972)   

Equity Securities-Short

    Morgan Stanley & Co. LLC    02/20/15    Tom-Next Overnight Index Swap Rate for Swiss Franc    CHF (184,857)      2,846         (200,578)   

Equity Securities-Short

    Morgan Stanley & Co. LLC    03/24/16    Copenhagen Interbank Offered Rate    DKK (277,552)      (3,420)         (53,251)   

Equity Securities-Short

    Morgan Stanley & Co. LLC    12/20/15    Euro Overnight Index Average    EUR (318,115)      (1,391)         (427,289)   

Equity Securities-Short

    Morgan Stanley & Co. LLC    12/20/15    Euro Overnight Index Average    EUR (485,786)      (9,441)         (659,860)   

Equity Securities-Short

    Morgan Stanley & Co. LLC    12/20/15    GBP Sterling Overnight Index Average    GBP (504,898)      11,876         (840,513)   

Equity Securities-Short

    Morgan Stanley & Co. LLC    12/20/15    Overnight Rate calculated by Hong Kong Broker Association    HKD (1,601,934)      (5,040)         (211,739)   

Equity Securities-Short

    Morgan Stanley & Co. LLC    12/20/15    Japan Overnight Rate    JPY (266,830,800)      (8,090)         (2,602,042)   

Equity Securities-Short

    Morgan Stanley & Co. LLC    12/20/15    Norwegian Interbank Offered Rate    NOK (1,115,187)      6,047         (171,391)   

Equity Securities-Short

    Morgan Stanley & Co. LLC    12/20/15    Stockholm InterBank Offered Rate    SEK (1,250,501)      4,496         (176,774)   

Equity Securities-Short

    Morgan Stanley & Co. LLC    12/20/15    Federal Funds Floating Rate    USD (4,186,840)      99,710         (4,085,771)   
                           $ 109,983(2)(3)       $ (10,174,005)   

Abbreviations:

AUD

   –    Australian Dollar

CAD

   –    Canadian Dollar

CHF

   –    Swiss Franc

DKK

   –    Danish Krone

EUR

   –    Euro

GBP

   –    British Pound

HKD

   –    Hong Kong Dollar

JPY

   –    Japanese Yen

NOK

   –    Norwegian Krone

SEK

   –    Swedish Krona

SGD

   –    Singapore Dollar

USD

   –    United States Dollar
 
  (1)  The Fund receives or pays the total return on a portfolio of short positions underlying the total return swap and pays or receives a specific rate which is denominated in various currencies based on the currencies of the securities underlying the total return swap.
  (2)  Amount includes $(1,163) of dividends and financing fees payable from the Fund to the counterparty.
  (3)  Swaps collateralized by $60,954 cash held with Morgan Stanley & Co. LLC, the Counterparty

 

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

Invesco Global Market Neutral Fund

The following table represents the individual short positions and related values of equity securities underlying the equity swap basket with Morgan Stanley & Co. LLC as of July 31, 2014.

 

      Shares      Value  

Equity Securities - Short

      
Australia              

GrainCorp Ltd.-Class A

      (3,067)         $  (24,825)   

Canada

                  

Athabasca Oil Corp.

      (17,900)         (102,281)   

Enbridge Inc.

      (2,400)         (117,656)   

MEG Energy Corp.

      (2,600)         (93,240)   

Paramount Resources Ltd.-Class A

      (2,700)         (138,133)   

Secure Energy Services Inc.

      (1,700)         (35,971)   

Tourmaline Oil Corp.

      (3,900)         (183,607)   

Trican Well Service Ltd.

      (3,400)         (49,084)   
                (719,972)   

Denmark

                  

Genmab A/S

      (1,328)         (53,251)   

Germany

                  

Deutsche Wohnen AG-BR

      (3,306)         (71,774)   

MorphoSys AG

      (417)         (40,043)   

MTU Aero Engines AG

      (1,261)         (109,169)   

Sky Deutschland AG

      (9,939)         (89,891)   

TAG Immobilien AG

      (1,897)         (23,164)   

Volkswagen AG

      (399)         (93,248)   
                (427,289)   

Hong Kong

                  

Esprit Holdings Ltd.

      (33,500)         (52,735)   

Hong Kong & China Gas Co. Ltd.

      (45,100)         (98,695)   

Shangri-La Asia Ltd.

      (38,000)         (60,309)   
                (211,739)   

Japan

                  

Asics Corp.

      (1,900)         (40,638)   

Fast Retailing Co. Ltd.

      (100)         (33,448)   

Hakuhodo DY Holdings Inc.

      (10,500)         (111,166)   

Hamamatsu Photonics KK

      (700)         (33,278)   

Hokkaido Electric Power Co., Inc.

      (6,100)         (53,255)   

Hulic Co. Ltd.

      (9,000)         (107,710)   

Isetan Mitsukoshi Holdings Ltd.

      (14,900)         (187,445)   

Keyence Corp.

      (300)         (131,961)   

Kikkoman Corp.

      (3,000)         (66,556)   
      Shares      Value  

Japan – (continued)

                  

Kintetsu Corp.

      (8,000)         $  (29,321)   

Kyushu Electric Power Co. Inc.

      (13,300)         (149,085)   

M3 Inc.

      (7,900)         (128,569)   

Mazda Motor Corp.

      (5,200)         (126,436)   

McDonald’s Holdings Co. Japan Ltd.

      (2,100)         (52,939)   

Mitsubishi Estate Co. Ltd.

      (3,000)         (74,300)   

Mitsubishi Motors Corp.

      (5,300)         (61,059)   

Mitsui Chemicals Inc.

      (52,000)         (141,552)   

NGK Spark Plug Co., Ltd.

      (2,000)         (60,471)   

Nintendo Co., Ltd.

      (1,200)         (134,455)   

Olympus Corp.

      (5,800)         (211,452)   

Ono Pharmaceutical Co. Ltd.

      (1,900)         (162,736)   

Sawai Pharmaceutical Co. Ltd.

      (500)         (28,485)   

Sharp Corp.

      (11,000)         (34,863)   

SoftBank Corp.

      (600)         (44,169)   

Sugi Holdings Co. Ltd.

      (4,500)         (193,588)   

Sumitomo Realty & Development Co. Ltd.

      (1,000)         (41,829)   

Yamaha Motor Co. Ltd.

      (9,600)         (161,276)   
                (2,602,042)   

Norway

                  

Schibsted ASA

      (3,050)         (147,973)   

Telenor ASA

      (1,016)         (23,418)   
                (171,391)   

Supranational

      

ASML Holding N.V.

      (1,133)         (107,341)   

Dassault Systemes

      (658)         (44,173)   

Galp Energia SGPS SA

      (5,967)         (105,937)   

IPSOS

      (729)         (19,760)   

OCI N.V.

      (1,963)         (75,063)   

Remy Cointreau SA

      (2,283)         (186,918)   

Koninklijke Vopak NV

      (2,601)         (120,668)   
                (659,860)   

Sweden

                  

Volvo AB-Class B

      (14,415)         (176,774)   
 

 

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

Invesco Global Market Neutral Fund

 

       Shares         Value   

Switzerland

                  

Swiss Prime Site AG

      (614)         $  (48,779)   

Syngenta AG

      (425)         (151,799)   
                (200,578)   

United Kingdom

                  

ASOS PLC

      (1,900)         (80,382)   

G4S PLC

      (15,846)         (67,199)   

Intertek Group PLC

      (3,740)         (161,888)   

Melrose Industries PLC

      (33,828)         (150,309)   

Monitise PLC

      (106,330)         (82,573)   

Ophir Energy PLC

      (31,794)         (115,669)   

Polyus Gold International Ltd.

      (9,397)         (29,388)   

UBM PLC

      (11,051)         (115,576)   

Weir Group PLC (The)

      (866)         (37,529)   
                (840,513)   

United States

                  

ACI Worldwide Inc.

      (2,100)         (39,354)   

Alexander & Baldwin Inc.

      (3,500)         (133,595)   

Amazon.com Inc.

      (100)         (31,299)   

Arthur J Gallagher & Co.

      (500)         (22,500)   

Ascena Retail Group, Inc.

      (3,400)         (54,604)   

Atwood Oceanics Inc.

      (600)         (28,890)   

Beacon Roofing Supply Inc.

      (2,100)         (58,044)   

BioMarin Pharmaceutical Inc.

      (2,200)         (136,004)   

Carpenter Technology Corp.

      (400)         (21,656)   

Cepheid, Inc.

      (2,300)         (86,572)   

Chart Industries, Inc.

      (1,000)         (76,050)   

Clean Harbors, Inc.

      (500)         (28,815)   

Cypress Semiconductor Corp.

      (11,400)         (115,254)   

Darden Restaurants, Inc.

      (400)         (18,700)   

DigitalGlobe Inc.

      (1,200)         (31,380)   

Duke Energy Corp.

      (700)         (50,491)   

Family Dollar Stores, Inc.

      (1,400)         (104,650)   

Fastenal Co.

      (3,800)         (168,549)   

Fortune Brands Home & Security Inc.

      (2,000)         (75,580)   

Fresh Market, Inc. (The)

      (1,100)         (32,923)   

Genesee & Wyoming Inc.

      (1,300)         (129,649)   

Gulfport Energy Corp.

      (2,600)         (138,866)   
      Shares      Value  

United States – (continued)

                  

Haemonetics Corp.

      (2,700)         $  (96,039)   

Howard Hughes Corp. (The)

      (200)         (29,084)   

Kinder Morgan Management, LLC

      (2,530)         (194,633)   

Liberty Global PLC

      (1,000)         (41,600)   

Life Time Fitness, Inc.

      (1,400)         (55,090)   

Lululemon Athletica Inc.

      (700)         (26,926)   

Madison Square Garden Co. (The)

      (400)         (23,736)   

Markel Corp.

      (300)         (189,633)   

National Instruments Corp.

      (6,000)         (191,040)   

NCR Corp.

      (4,700)         (145,465)   

NetSuite Inc.

      (700)         (59,017)   

Northeast Utilities

      (2,000)         (87,800)   

Ocwen Financial Corp.

      (1,300)         (39,221)   

ONEOK, Inc.

      (300)         (19,329)   

Owens Corning

      (1,700)         (57,885)   

Panera Bread Co.

      (700)         (103,110)   

Pentair PLC

      (600)         (38,442)   

Perrigo Co PLC

      (400)         (60,180)   

PVH Corp

      (400)         (44,072)   

Rackspace Hosting, Inc.

      (1,300)         (39,377)   

salesforce.com. inc.

      (400)         (21,700)   

SBA Communications Corp.

      (1,300)         (139,009)   

Semtech Corp.

      (1,700)         (37,961)   

Stratasys Ltd.

      (300)         (30,174)   

Susquehanna Bancshares, Inc.

      (1,900)         (19,342)   

T-Mobile US, Inc.

      (1,000)         (32,940)   

Trimble Navigation Ltd

      (4,700)         (145,230)   

Triumph Group, Inc.

      (2,400)         (152,040)   

Ulta Salon Cosmetics & Fragrance, Inc.

      (1,000)         (92,330)   

Ultimate Software Group, Inc. (The)

      (200)         (26,992)   

United Continental Holdings Inc.

      (700)         (32,473)   

ViaSat, Inc.

      (3,600)         (210,492)   

Woodward Inc.

      (400)         (19,984)   
                (4,085,771)   

Total Equity Securities-Short

               $(10,174,005)   
 

 

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

Invesco Global Market Neutral 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 Global Market Neutral 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. Swap Agreements – The Fund may enter into various swap transactions, including interest rate, total return, volatility, variance, index, currency exchange rate and credit default swap contracts (“CDS”) for investment purposes or to manage interest rate, equity, currency or credit risk. Such transactions are agreements between two parties (“Counterparties”). These agreements may contain among other conditions, events of default and termination events, and various covenants and representations such as provisions that require the Fund to maintain a pre-determined level of net assets, and/or provide limits regarding the decline of the Fund’s NAV over specific periods of time. If the Fund were to trigger such provisions and have open derivative positions at that

 

Invesco Global Market Neutral Fund

E. Swap Agreements – (continued)

time, the Counterparty may be able to terminate such agreement and request immediate payment in an amount equal to the net liability positions, if any.

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

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

Changes in the value of swap agreements are recognized as unrealized gains (losses) in the Statement of Operations by “marking to market” on a daily basis to reflect the value of the swap agreement at the end of each trading day. Payments received or paid at the beginning of the agreement are reflected as such on the Statement of Assets and Liabilities and may be referred to as upfront payments. The Fund accrues for the fixed payment stream and amortizes upfront payments, if any, on swap agreements on a daily basis with the net amount, recorded as a component of realized gain (loss) on the Statement of Operations. A liquidation payment received or made at the termination of a swap agreement is recorded as realized gain (loss) on the Statement of Operations. The Fund segregates liquid securities having a value at least equal to the amount of the potential obligation of a Fund under any swap transaction. Entering into these agreements involves, to varying degrees, lack of liquidity and elements of credit, market, and Counterparty risk in excess of amounts recognized on the Statement of Assets and Liabilities. Such risks involve the possibility that a swap is difficult to sell or liquidate; the Counterparty does not honor its obligations under the agreement and unfavorable interest rates and market fluctuations. It is possible that developments in the swaps market, including potential government regulation, could adversely affect the Fund’s ability to terminate existing swap agreements or to realize amounts to be received under such agreements.

F. Leverage Risk – Leverage exists when a Fund can lose more than it originally invests because it purchases or sells an instrument or enters into a transaction without investing an amount equal to the full economic exposure of the instrument or transaction.
G. Collateral – To the extent the Fund has designated or segregated a security as collateral and that security is subsequently sold, it is the Fund’s practice to replace such collateral no later than the next business day.

NOTE 2 — 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 Global Market Neutral 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.

During the period December 19, 2013 (commencement date) to July 31, 2014, there were transfers from Level 1 to Level 2 of $2,303,692 and from Level 2 to Level 1 of $276,199, due to foreign fair value adjustments.

 

      Level 1      Level 2      Level 3      Total  

Australia

    $ —       $ 110,632       $ —       $ 110,632   

Canada

      706,809         —         —         706,809   

Denmark

      —         156,432         —         156,432   

Finland

      —         70,381         —         70,381   

France

      —         218,107         —         218,107   

Germany

      95,478         426,862         —         522,340   

Ireland

      224,755         —         —         224,755   

Israel

      103,852         —         —         103,852   

Japan

      —         2,513,491         —         2,513,491   

Macau

      —         106,975         —         106,975   

Netherlands

      105,995         77,969         —         183,964   

New Zealand

      —         31,502         —         31,502   

Norway

      —         67,328         —         67,328   

Spain

      —         27,359         —         27,359   

Sweden

      —         126,943         —         126,943   

Switzerland

      —         263,327         —         263,327   

United Kingdom

      —         639,843         —         639,843   

United States

      5,471,848         —         —         5,471,848   
       6,708,737         4,837,151         —         11,545,888   

Swap Agreements*

      —         108,820         —         108,820   

Total Investments

    $     6,708,737       $     4,945,971       $     —       $     11,654,708   
* Unrealized appreciation.

NOTE 3 — Derivative Investments

Value of Derivative Investments at Period-End

The table below summarizes the value of the Fund’s derivative investments, detailed by primary risk exposure, held as of July 31, 2014:

 

     Value  
Risk Exposure/ Derivative Type    Assets      Liabilities  

Equity risk:

      

Swap agreements

    $     136,202       $     (27,382)   

 

Invesco Global Market Neutral Fund

Effect of Derivative Investments for the period December 19, 2013 (commencement date) to July 31, 2014

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

 

   

Location of Gain on

    Statement of Operations    

     Swap Agreements

Realized Gain:

  

Equity risk

   $ 186

Change in Unrealized Appreciation (Depreciation):

  

Equity risk

   108,820

Total

   $109,006

The table below summarizes the average notional value of swap agreements outstanding during the period.

 

       Swap Agreements   

AUD

      (65,141)   

CAD

      (834,341)   

CHF

      (169,810)   

DKK

      (91,318)   

EUR – Germany

      (333,970)   

EUR – Supranational

      (469,682)   

GBP

      (496,612)   

HKD

      (1,312,105)   

JPY

      (228,942,384)   

NOK

      (281,576)   

SEK

      (1,317,420)   

SGD

      (36,410)   

USD

      $  (4,210,742)   

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 period December 19, 2013 (commencement date) to July 31, 2014 was $12,134,964 and $2,316,268, respectively. In a fund’s initial year of operations, the cost of investments for tax purposes will not reflect any tax adjustments until its fiscal year end reporting period.

 

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

Aggregate unrealized appreciation of investment securities

    $ 846,524   

Aggregate unrealized (depreciation) of investment securities

                      (279,063)   

Net unrealized appreciation of investment securities

    $ 567,461   

Cost of investments is the same for tax and financial reporting purposes.

   

 

Invesco Global Market Neutral Fund

 
Invesco Global Markets Strategy Fund
Quarterly Schedule of Portfolio Holdings
July 31, 2014

 

 

 

LOGO         
invesco.com/us    GMS-QTR-1    7/14    Invesco Advisers, Inc.

Consolidated Schedule of Investments

July 31, 2014

(Unaudited)

 

      Interest
Rate		         Maturity
Date		      Principal
Amount		      Value  

U.S. Treasury Securities–34.33%

              

U.S. Treasury Bills–28.48%(a)

              

U.S. Treasury Bills (b)

    0.07%          08/07/14       $ 8,340,000       $ 8,339,993   

U.S. Treasury Bills (b)(c)

    0.07%          08/28/14         9,785,000         9,784,926   

U.S. Treasury Bills (b)

    0.05%          12/04/14         4,000,000         3,999,513   

U.S. Treasury Bills (c)

    0.10%          01/08/15         5,800,000         5,798,838   

U.S. Treasury Bills

    0.05%          01/15/15         8,700,000         8,698,181   

U.S. Treasury Bills

    0.05%          01/22/15         8,120,000         8,118,231   

U.S. Treasury Bills

    0.06%          01/29/15         5,410,000         5,408,707   
                                  50,148,389   

U.S. Treasury Notes–5.85%

              

U.S. Treasury Notes (d)

    0.07%          01/31/16         1,000,000         999,868   

U.S. Treasury Notes (d)

    0.09%          04/30/16         9,290,000         9,290,691   
                                  10,290,559   

Total U.S. Treasury Securities (Cost $60,435,801)

                                 60,438,948   
                     Shares         

Money Market Funds–66.50%

              

Liquid Assets Portfolio—Institutional Class (e)

                        42,206,589         42,206,589   

Premier Portfolio—Institutional Class (e)

                        42,206,588         42,206,588   

STIC (Global Series) PLC – U.S. Dollar Liquidity Portfolio (Ireland)—Institutional Class (e)

                        32,684,802         32,684,802   

Total Money Market Funds (Cost $117,097,979)

                                 117,097,979   

TOTAL INVESTMENTS–100.83% (Cost $177,533,780)

                                 177,536,927   

OTHER ASSETS LESS LIABILITIES–(0.83)%

                                 (1,465,250)   

NET ASSETS–100.00%

                               $   176,071,677   

 

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

Invesco Global Markets Strategy Fund

Open Futures Contracts and Swap Agreements at Period-End  
Futures Contracts    Type of
Contract		          Number of
Contracts		   

Expiration

Month

    Notional
Value		     

Unrealized

Appreciation
(Depreciation)

  

Brent Crude

    Long         44    December-2014    $ 4,704,480       $ (160,305)   

Cotton No.2

    Short         128    December-2014          (4,023,680)         623,439   

Gas Oil

    Long         7    September-2014      622,650         (335)   

Gasoline Reformulated Blendstock Oxygenate Blending

    Long         24    September-2014      2,819,880         (66,395)   

Heating Oil

    Long         1    January-2015      122,863         (3,472)   

Silver

    Long         42    September-2014      4,286,520         (169,657)   

Soybean

    Long         1    November-2014      54,100         (6,846)   

WTI Crude

    Long         45    October-2014      4,379,400         57,915   

Subtotal–Commodity Risk

                                   274,344   

Australia 10 Year Bonds

    Long         127    September-2014      14,268,057         308,690   

Canada 10 Year Bonds

    Long         264    September-2014      33,148,308         485,477   

Euro Bonds

    Long         159    September-2014      31,504,866         660,836   

Long Gilt

    Long         138    September-2014      25,785,297         187,077   

U.S. Treasury 20 Year Bonds

    Long         130    September-2014      17,862,813         61,991   

Subtotal–Interest Rate Risk

                                   1,704,071   

Dow Jones EURO STOXX 50 Index

    Long         471    September-2014      19,669,097         (904,126)   

E-Mini S&P 500 Index

    Long         152    September-2014      14,628,480         (35,473)   

FTSE 100 Index

    Long         106    September-2014      11,958,280         (47,501)   

Hang Seng Index

    Long         113    August-2014      18,054,980         410,944   

Russell 2000 Index Mini

    Long         120    September-2014      13,400,400         (665,509)   

Tokyo Stock Price Index

    Long         114    September-2014      14,324,810         577,321   

Subtotal–Market Risk

                                   (664,344)   

Total Futures Contracts

                                 $ 1,314,071   
Swap Agreements          Counterparty          Termination
Date		                
Receive a return equal to the Dow Jones-UBS Gold Index and pay the product of (i) 0.10% of the Notional Amount multiplied by (ii) days in the period divided by 365.    Long    Merrill Lynch
International		    24,650    December-2014    $ 4,091,242       $ 0   
Receive a return equal to the Barclays Capital Soymeal Nearby Excess Return Index and pay the product of (i) 0.30% of the Notional Amount multiplied by (ii) days in the period divided by 365.    Long    Barclays Bank
PLC		    1,640    October-2014      1,624,838         7,488   
Receive a return equal to the Barclays Commodity Strategy 1452 Excess Return Index and pay the product of (i) 0.33% of the Notional Amount multiplied by (ii) days in the period divided by 365.    Long    Barclays Bank
PLC		    20,700    October-2014      11,775,009         (25,171)   
Pay a floating rate equal to the S&P GSCI Sugar Excess Return A141 Strategy and receive the product of (i) 0.37% of the Notional Amount multiplied by (ii) days in the period divided by 365.    Short    Goldman Sachs
International		    1,600    February-2015      (501,798)         0   
Receive a return equal to the S&P GSCI Gold Index Excess Return and pay the product of (i) 0.09% of the Notional Amount multiplied by (ii) days in the period divided by 365.    Long    JPMorgan Chase
Bank, N.A.		    18,650    April-2015      2,049,816         (39,491)   

 

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

 

Invesco Global Markets Strategy Fund

Swap Agreements (continued)    Type of
Contract		    Counterparty    Number of
Contracts		    Termination
Date		      Notional
Value		      Unrealized
Appreciation
(Depreciation)		  

Receive a return equal to the S&P GSCI Aluminum

Dynamic Roll Excess Return Index and pay the product

of (i) 0.38% of the Notional Amount multiplied by

(ii) days in the period divided by 365.

    Long    Morgan Stanley
Capital Services
LLC		    7,400      October-2014       $ 883,083       $ (5,576)   

Subtotal–Commodity Risk

                                       (62,750)   

Receive a return equal to Canada 10 Year Bond Futures

multiplied by 0.01% of the Notional Value.

    Long    Bank of America,
N.A.		    30      September-2014         3,766,853         48,963   

Receive a return equal to Eurex Euro Bond Futures

multiplied by 0.01% of the Notional Value.

    Long    Goldman Sachs
International		    27      September-2014             5,349,883         106,104   

Subtotal–Interest Rate Risk

                                       155,067   

Total Swap Agreements

                                     $ 92,317   

Index Information:

 

Dow Jones-UBS Gold Index    —   a commodity index composed of futures contracts on gold.
Barclays Capital Soymeal Nearby Excess Return Index    —   a commodity index composed of futures contracts on soybean meal.
Barclays Commodity Strategy 1452 Excess Return Index    —   a commodity index that provides exposure to futures contracts on copper.
S&P GSCI Sugar Excess Return A141 Strategy    —   a commodity index composed of futures contracts on sugar.
S&P GSCI Gold Index Excess Return    —   a commodity index composed of futures contracts on gold.
S&P GSCI Aluminum Dynamic Roll Excess Return Index    —   a commodity index composed of futures contracts on aluminum.

Notes to Consolidated Schedule of Investments:

(a) Securities traded on a discount basis. The interest rates shown represent the discount rates at the time of purchase by the Fund.

(b) All or a portion of the value was pledged as collateral to cover margin requirements for open futures contracts. See Note 1G and Note 3.

(c) All or a portion of the value was designated as collateral for swap agreements. See Note 1H and Note 3.

(d) Interest or dividend rate is redetermined periodically. Rate shown is the rate in effect on July 31, 2014.

(e) 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 consolidated schedule.

 

Invesco Global Markets Strategy Fund

Notes to Quarterly Consolidated Schedule of Portfolio Holdings

July 31, 2014

(Unaudited)

NOTE 1 — Significant Accounting Policies

Invesco Global Markets Strategy Fund (the “Fund”) will seek to gain exposure to the commodity markets primarily through investments in the Invesco Cayman Commodity Fund V Ltd. (the “Subsidiary”), a wholly-owned subsidiary of the Fund organized under the laws of the Cayman Islands. The Subsidiary was organized by the Fund to invest in commodity-linked derivatives. The Fund may invest up to 25% of its total assets in the Subsidiary.

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

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

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

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

Swap agreements are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service are valued based on a model which may include end of day net present values, spreads, ratings, industry, and company performance.

Foreign securities’ (including foreign exchange contracts) 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 Global Markets Strategy 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 consolidated financial statements may materially differ from the value received upon actual sale of those investments.

B. Securities Transactions and Investment Income – Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income (net of withholding tax, if any) is recorded on the accrual basis from settlement date. Dividend income (net of withholding tax, if any) is recorded on the ex-dividend date. Bond premiums and discounts are amortized and/or accreted for financial reporting purposes.

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

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

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

C. Country Determination – For the purposes of making investment selection decisions and presentation in the Consolidated Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues and the country that has the primary market for the issuer’s securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted.
D. 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 Consolidated Statement of Operations. Reported net realized foreign currency gains or losses arise from (1) sales of foreign currencies, (2) currency gains or losses realized between the trade and settlement dates on securities transactions, and (3) the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign currency gains and losses arise from changes in the fair values of assets and liabilities, other than investments in securities at fiscal period end, resulting from changes in exchange rates.

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

 

Invesco Global Markets Strategy 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 Consolidated Statement of Operations. The primary risks associated with forward foreign currency contracts include failure of the counterparty to meet the terms of the contract and the value of the foreign currency changing unfavorably. These risks may be in excess of the amounts reflected in the Consolidated Statement of Assets and Liabilities.

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

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

G. Futures Contracts – The Fund may enter into futures contracts to manage exposure to interest rate, equity and market price movements and/or currency risks. A futures contract is an agreement between two parties to purchase or sell a specified underlying security, currency or commodity (or delivery of a cash settlement price, in the case of an index future) for a fixed price at a future date. The Fund currently invests only in exchange-traded futures and they are standardized as to maturity date and underlying financial instrument. Initial margin deposits required upon entering into futures contracts are satisfied by the segregation of specific securities or cash as collateral at the futures commission merchant (broker). During the period the futures contracts are open, changes in the value of the contracts are recognized as unrealized gains or losses by recalculating the value of the contracts on a daily basis. Subsequent or variation margin payments are received or made depending upon whether unrealized gains or losses are incurred. These amounts are reflected as receivables or payables on the Consolidated Statement of Assets and Liabilities. When the contracts are closed or expire, the Fund recognizes a realized gain or loss equal to the difference between the proceeds from, or cost of, the closing transaction and the Fund’s basis in the contract. The net realized gain (loss) and the change in unrealized gain (loss) on futures contracts held during the period is included on the Consolidated Statement of Operations. The primary risks associated with futures contracts are market risk and the absence of a liquid secondary market. If the Fund were unable to liquidate a futures contract and/or enter into an offsetting closing transaction, the Fund would continue to be subject to market risk with respect to the value of the contracts and continue to be required to maintain the margin deposits on the futures contracts. Futures contracts have minimal counterparty risk since the exchange’s clearinghouse, as counterparty to all exchange-traded futures, guarantees the futures against default. Risks may exceed amounts recognized in the Consolidated Statement of Assets and Liabilities.
H. Swap Agreements – The Fund may enter into various swap transactions, including interest rate, total return, index, currency exchange rate and credit default swap contracts (“CDS”) for investment purposes or to manage interest rate, currency or credit risk. Such transactions are agreements between two parties (“Counterparties”). These agreements may contain among other conditions, events of default and termination events, and various covenants and representations such as provisions that require the Fund to maintain a pre-determined level of net assets, and/or provide limits regarding the decline of the Fund’s NAV over specific

 

 

Invesco Global Markets Strategy Fund

H. Swap Agreements – (continued)

periods of time. If the Fund were to trigger such provisions and have open derivative positions at that time, the Counterparty may be able to terminate such agreement and request immediate payment in an amount equal to the net liability positions, if any.

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

Changes in the value of swap agreements are recognized as unrealized gains (losses) in the Consolidated Statement of Operations by “marking to market” on a daily basis to reflect the value of the swap agreement at the end of each trading day. Payments received or paid at the beginning of the agreement are reflected as such on the Consolidated Statement of Assets and Liabilities and may be referred to as upfront payments. The Fund accrues for the fixed payment stream and amortizes upfront payments, if any, on swap agreements on a daily basis with the net amount, recorded as a component of realized gain (loss) on the Consolidated Statement of Operations. A liquidation payment received or made at the termination of a swap agreement is recorded as realized gain (loss) on the Consolidated Statement of Operations. The Fund segregates liquid securities having a value at least equal to the amount of the potential obligation of a Fund under any swap transaction. Entering into these agreements involves, to varying degrees, lack of liquidity and elements of credit, market, and Counterparty risk in excess of amounts recognized on the Consolidated Statement of Assets and Liabilities. Such risks involve the possibility that a swap is difficult to sell or liquidate; the Counterparty does not honor its obligations under the agreement and unfavorable interest rates and market fluctuations. It is possible that developments in the swaps market, including potential government regulation, could adversely affect the Fund’s ability to terminate existing swap agreements or to realize amounts to be received under such agreements.

I. Other Risks – The Fund will seek to gain exposure to commodity markets primarily through an investment in the Subsidiary and through investments in exchange traded funds and commodity-linked derivatives. The Subsidiary, unlike the Fund, may invest without limitation in commodities, commodity-linked derivatives and other securities, such as exchange traded notes, that may provide leverage and non-leveraged exposure to commodity markets. The Fund is indirectly exposed to the risks associated with the Subsidiary’s investments.

The Fund is non-diversified and may invest in securities of fewer issuers than if it were diversified. Thus, the value of the Fund’s shares may vary more widely and the Fund may be subject to greater market and credit risk than if the Fund invested more broadly.

J. Leverage Risk – Leverage exists when a Fund can lose more than it originally invests because it purchases or sells an instrument or enters into a transaction without investing an amount equal to the full economic exposure of the instrument or transaction.
K. Collateral – To the extent the Fund has designated or segregated a security as collateral and that security is subsequently sold, it is the Fund’s practice to replace such collateral no later than the next business day.

 

Invesco Global Markets Strategy Fund

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 consolidated financial statements may materially differ from the value received upon actual sale of those investments.

      Level 1        Level 2        Level 3        Total  

Money Market Funds

    $         117,097,979         $ —         $ —         $ 117,097,979   

U.S. Treasury Securities

      —           60,438,948           —           60,438,948   
       117,097,979           60,438,948           —           177,536,927   

Futures*

      1,314,071           —           —           1,314,071   

Swap Agreements*

      —           92,317           —           92,317   

Total Investments

    $ 118,412,050         $         60,531,265         $         —         $         178,943,315   

* Unrealized appreciation.

NOTE 3 — Derivative Investments

Value of Derivative Investments at Period-End

The table below summarizes the value of the Fund’s derivative investments, detailed by primary risk exposure, held as of July 31, 2014:

 

     Value  
Risk Exposure/ Derivative Type (a)    Assets        Liabilities  

Commodity risk:

        

Futures contracts

    $ 681,354         $ (407,010)   

Swap agreements

      7,488           (70,238)   

Interest rate risk:

        

Futures contracts

      1,704,071           —   

Swap agreements

      155,067           —   

Market risk:

        

Futures contracts

      988,265           (1,652,609)   

Total

    $ 3,536,245         $ (2,129,857)   
(a)  Includes cumulative appreciation (depreciation) of futures contracts and swap agreements.

 

Invesco Global Markets Strategy Fund

Effect of Derivative Investments for the nine months ended July 31, 2014

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

 

    

Location of Gain (Loss) on Consolidated

Statement of Operations

  
      Futures        Swap Agreements  

Realized Gain (Loss):

        

Commodity risk

      $(3,361,929)           $(1,431,223)   

Interest rate risk

      5,071,332           722,283   

Market risk

      3,625,272           —   

Change in Unrealized Appreciation (Depreciation):

        

Commodity risk

      392,029           (48,039)   

Interest rate risk

      439,986           148,909   

Market risk

      (2,814,029)           —   

Total

      $  3,352,661           $   (608,070)   

The table below summarizes the average notional value of futures contracts and swap agreements outstanding during the period.

 

      Futures        Swap Agreements  

Average notional value

      $216,900,227           $35,834,782   

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 nine months ended July 31, 2014 was $0 and $0, respectively. During the same period, purchases and sales of long-term U.S. Treasury obligations were $10,290,273 and $0, 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

    $         3,147   

Aggregate unrealized (depreciation) of investment securities

      —   

Net unrealized appreciation of investment securities

    $ 3,147   

Cost of investments is the same for tax and financial reporting purposes.

   

 

Invesco Global Markets Strategy Fund

 

 

  Invesco Global Targeted Returns Fund
 

Quarterly Schedule of Portfolio Holdings

July 31, 2014

 

 

 

 

  LOGO    
 

 

invesco.com/us

  

 

GTR-QTR-1    7/14

  

 

Invesco Advisers, Inc.

Schedule of Investments

July 31, 2014

(Unaudited)

 

Invesco Global Targeted Returns Fund

Schedule of Investments in Affiliated Issuers–69.25%(a)

 

     % of Net
Assets
07/31/14		     Value
12/19/13
(Commencement
Date)		     Purchases
at Cost		     Proceeds
from Sales		     Change in
Unrealized
Appreciation
(Depreciation)		     Realized
Gain		     Dividend
Income		     Shares
07/31/14		     Value
07/31/14		  

Domestic Equity Funds–16.16%

                  

Invesco Comstock Fund (b)

     10.17%        —          $ 3,072,821      $ —      $ 189,407      $ —      $ 22,821        130,855      $ 3,262,228   

Invesco Diversified Dividend Fund (b)

     5.99%        —            1,845,524        —        74,829        —        15,524        109,860        1,920,353   

Total Domestic Equity Funds

             —            4,918,345        —        264,236        —        38,345        240,715        5,182,581   

Fixed-Income Funds–11.73%

                  

Invesco High Yield Fund (b)

     11.73%        —            3,764,677        —        (344 )      —        122,134        838,382        3,764,333   

Foreign Equity Funds–32.57%

                  

Invesco Asia Pacific Growth Fund (c)

     12.63%        —            3,660,000        —        392,839        —        —        120,692        4,052,839   

Invesco European Growth Fund (c)

     9.80%        —            3,050,000        —        93,055        —        —        79,170        3,143,055   

Invesco International Growth Fund (b)

     10.14%        —            3,050,000        —        202,755        —        —        90,834        3,252,755   

Total Foreign Equity Funds

             —            9,760,000        —        688,649        —        —        290,696        10,448,649   

Money Market Funds–8.79%

                  

Liquid Assets Portfolio-Institutional Class

     4.39%        —            21,649,022        (20,238,307 )      —        —        836        1,410,715        1,410,715   

Premier Portfolio-Institutional Class

     4.40%        —            21,649,023        (20,238,307 )      —        —        283        1,410,716        1,410,716   

Total Money Market Funds

             —            43,298,045        (40,476,614 )      —        —        1,119        2,821,431        2,821,431   

TOTAL INVESTMENTS IN AFFILIATED ISSUERS (Cost $21,264,453)

     69.25%      $ —          $ 61,741,067      $ (40,476,614 )    $ 952,541      $ —      $ 161,598              $   22,216,994   

 

     Principal
Amount		         

Sovereign Debt–4.71%(d)

 

         

Hungary Government Bond (Hungary), Series 23, Class A, Unsec. Bonds, 6.00%, 11/24/23

      HUF         5,529,000         602,467   

Poland Government Bond (Poland), Series 1023, Unsec. Bonds, 4.00%, 10/25/23

      PLN         60,930,000         287,748   

South Africa Government Bond (South Africa), Series R186, Unsec. Bonds, 10.50%, 12/21/26

      ZAR         1,856,000         622,474   

Total Sovereign Debt (Cost $1,555,516)

                        1,512,689   

OPTIONS PURCHASED–3.95% (Cost $1,871,019)

                        1,267,721   

TOTAL INVESTMENTS–77.91% (Cost $24,690,988)

                        24,997,404   

OTHER ASSETS LESS LIABILITIES–22.09%

                        7,085,628   

NET ASSETS–100.00%

                      $      32,083,032   

Abbreviations:

 

HUF – Hungarian Forint    Unsec. – Unsecured
PLN – Polish Zloty    ZAR – South African Rand

Notes to Schedule of Investments:

(a)  Each underlying fund and the Fund are affiliated by either having the same investment adviser or an investment adviser under common control with the Fund’s investment adviser.
(b)  The Fund invests in Class R6 shares of the mutual funds listed.
(c)  The Fund invests in Class Y shares of the mutual funds listed.
(d)  Foreign denominated security. Principal amount is denominated in the currency indicated.

 

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

 

Invesco Global Targeted Returns Fund

Open Exchange-Traded Index Options Purchased

 

  

Description   Type of
Contract		   Broker   Expiration
Date		     Number of
Contracts		   Strike Price     Notional Value(e)     Value  
DAX Index   Call   BNP Securities     06/19/15      43   EUR     9,800      EUR     2,107,000      $ 119,060   
DAX Index   Call   UBS AG     06/19/15      4   EUR     9,800      EUR     196,000        11,075   
UKX Index   Call   Goldman Sachs & Co.     12/19/14      5   GBP     6,600      GBP     330,000        20,596   
UKX Index   Call   Bank of America Securities LLC     12/19/14      3   GBP     6,600      GBP     198,000        12,358   
UKX Index   Call   UBS AG     12/19/14      20   GBP     6,600      GBP     1,320,000        82,384   

Subtotal - Open Exchange-Traded Index Call Options Purchased

  

   75                             245,473   
FTSE MIB Index   Put   Goldman Sachs & Co.     06/19/15      45   EUR     19,000      EUR     2,565,000        161,773   
FTSE MIB Index   Put   Bank of America Securities LLC     06/19/15      5   EUR     19,000      EUR     285,000        17,975   
Hang Seng China Enterprises Index   Put   Morgan Stanley     12/30/15      54   HKD     10,000      HKD     27,000,000        245,610   
Hang Seng China Enterprises Index   Put   Goldman Sachs & Co.     12/30/15      7   HKD     8,400      HKD     2,940,000        11,606   
Hang Seng China Enterprises Index   Put   J.P. Morgan Chase Bank, NA     12/30/15      5   HKD     8,800      HKD     2,200,000        11,000   
Hang Seng China Enterprises Index   Put   Morgan Stanley     12/30/15      7   HKD     9,200      HKD     3,220,000        19,825   
Hang Seng China Enterprises Index   Put   HSBC     12/30/15      9   HKD     9,600      HKD     4,320,000        32,516   
Hang Seng China Enterprises Index   Put   J.P. Morgan Chase Bank, NA     12/30/15      5   HKD     9,600      HKD     2,400,000        18,064   
SX5E Index   Put   Morgan Stanley     06/19/15      74   EUR     2,600      EUR     1,924,000        70,148   
SX5E Index   Put   Goldman Sachs & Co.     06/19/15      10   EUR     2,650      EUR     265,000        10,805   
SX5E Index   Put   UBS AG     06/19/15      80   EUR     2,700      EUR     2,160,000        98,329   
SX5E Index   Put   Bank of America Securities LLC     06/19/15      16   EUR     2,800      EUR     448,000        25,214   
EURO STOXX Banks Index   Put   Deutsche Banc     12/18/15      42   EUR     130      EUR     273,000        31,491   
EURO STOXX Banks Index   Put   Bank of America Securities LLC     12/18/15      95   EUR     140      EUR     665,000        100,484   
EURO STOXX Banks Index   Put   Bank of America Securities LLC     12/18/15      42   EUR     140      EUR     294,000        44,425   
EURO STOXX Banks Index   Put   Goldman Sachs & Co.     12/18/15      24   EUR     140      EUR     168,000        25,385   
EURO STOXX Banks Index   Put   UBS AG     12/18/15      1   EUR     140      EUR     7,000        1,058   
UKX Index   Put   Morgan Stanley     12/18/15      2   GBP     6,300      GBP     126,000        12,729   
UKX Index   Put   Goldman Sachs & Co.     12/18/15      1   GBP     6,400      GBP     64,000        7,006   
UKX Index   Put   UBS AG     12/18/15      9   GBP     6,600      GBP     594,000        76,805   

Subtotal - Open Exchange-Traded Index Put Options Purchased

  

   533                             1,022,248   

Total Index Options Purchased (Cost $1,871,019) - Market Risk

  

   608                           $ 1,267,721   

Abbreviations:

 

EUR - Euro    HKD – Hong Kong Dollar
GBP – British Pound Sterling   

 

(e)  Notional Value is calculated by multiplying the Number of Contracts by the Strike Price by the multiplier.

 

Open Exchange-Traded Index Options Written(f)

 

  

Description   Type of
Contract		   Counterparty   Expiration
Date		   Number of
Contracts		   Strike
Price		     Premiums
Received		     Notional
Value(e)		     Value     Unrealized
Appreciation
(Depreciation)		  
CAC Index   Call   BNP Securities   06/19/15   49   EUR     4,200      $ 219,122      EUR     2,058,000      $ 148,736      $ 70,386   
CAC Index   Call   UBS AG   06/19/15   5   EUR     4,200        20,499      EUR     210,000        15,177        5,322   
SMI Index   Call   Morgan Stanley   12/19/14   25   CHF     8,200        114,513      CHF     2,050,000        110,640        3,873   
SMI Index   Call   Goldman Sachs & Co.   12/19/14   5   CHF     8,200        20,207      CHF     410,000        22,128        (1,921 ) 
SMI Index   Call   Bank of America Securities LLC   12/19/14   3   CHF     8,200        18,271      CHF     246,000        13,277        4,994   
Subtotal - Open Exchange-Traded Index Call Options Written   87                 392,612                    309,958        82,654   

 

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

 

Invesco Global Targeted Returns Fund

Open Exchange-Traded Index Options Written(f) – (continued)

 

 

Description   Type of
Contract		   Counterparty   Expiration
Date		   Number of
Contracts		   Strike
Price		     Premiums
Received		     Notional
Value(e)		     Value     Unrealized
Appreciation
(Depreciation)		  
DAX Index   Put   Morgan Stanley   08/15/14   23   EUR     9,100      $ 2,887      EUR     1,046,500      $ 6,344      $ (3,457 ) 
DAX Index   Put   Goldman Sachs & Co.   08/15/14   2   EUR     9,200        201      EUR     92,000        796        (595 ) 
DAX Index   Put   Morgan Stanley   09/19/14   23   EUR     9,100        9,503      EUR     1,046,500        19,077        (9,574 ) 
DAX Index   Put   Goldman Sachs & Co.   09/19/14   2   EUR     9,200        855      EUR     92,000        2,016        (1,161 ) 
SPX Index   Put   Morgan Stanley   08/16/14   7   USD     1,800        19,950      USD     1,260,000        2,626        17,324   
SPX Index   Put   Morgan Stanley   08/16/14   1   USD     1,880        250      USD     188,000        1,130        (880 ) 
SPX Index   Put   Morgan Stanley   09/20/14   7   USD     1,860        12,110      USD     1,302,000        15,015        (2,905 ) 
SPX Index   Put   Morgan Stanley   10/18/14   1   USD     1,880        1,050      USD     188,000        2,700        (1,650 ) 
SPX Index   Put   UBS AG   10/18/14   8   USD     1,860        16,560      USD     1,488,000        24,920        (8,360 ) 
SPX Index   Put   Morgan Stanley   09/20/14   1   USD     1,880        1,900      USD     188,000        3,650        (1,750 ) 
SX5E Index   Put   Morgan Stanley   06/19/15   37   EUR     2,950        164,846      EUR     1,091,500        82,978        81,868   
SX5E Index   Put   Goldman Sachs & Co.   06/19/15   5   EUR     2,950        19,486      EUR     147,500        11,213        8,273   
SX5E Index   Put   UBS AG   06/19/15   40   EUR     3,000        152,484      EUR     1,200,000        100,471        52,013   
SX5E Index   Put   Bank of America Securities LLC   06/19/15   8   EUR     3,100        19,956      EUR     248,000        25,075        (5,119 ) 
IBEX 35 mini Futures   Put   Bank of America Securities LLC   06/19/15   25   EUR     9,000        7,063      EUR     225,000        7,397        (334 ) 
IBEX 35 mini Futures   Put   Goldman Sachs & Co.   06/19/15   17   EUR     9,000        5,611      EUR     153,000        5,030        581   
IBEX 35 mini Futures   Put   Morgan Stanley   06/19/15   217   EUR     9,000        143,799      EUR     1,953,000        64,210        79,589   
Subtotal - Open Exchange-Traded Index Put Options Written   424                 578,511                    374,648        203,863   
Total Index Options Written - Market Risk   511               $ 971,123                  $ 684,606      $ 286,517   

Currency Abbreviations:

 

EUR - Euro    USD - United States Dollar
CHF – Swiss Franc   

 

(e)  Notional Value is calculated by multiplying the Number of Contracts by the Strike Price by the multiplier.
(f)  Exchange-traded index options written collateralized by $1,932,016 cash held with Bank of America Securities LLC.

 

Open Over-The-Counter Swaptions Written

 

  

Description   Type of
Contract		   Counterparty   Exercise
Rate		     Pay/Receive
Exercise Rate		   Floating Rate
Index		   Expiration
Date		   Premiums
Received		     Notional Value     Value     Unrealized
Appreciation
(Depreciation)		  
5 Year Interest Rate Swap   Call   Goldman Sachs &
Co.		     3.02%      Receive   6 Month GBP
LIBOR		   02/24/21   $ 310,634        GBP        8,000,000      $ 323,523      $ (12,889 ) 
5 Year Interest Rate Swap   Call   Barclays     3.06        Receive   6 Month GBP
LIBOR		   04/04/21     30,658        GBP        800,000        33,751        (3,093 ) 
5 Year Interest Rate Swap   Call   Morgan Stanley     2.87        Receive   6 Month GBP
LIBOR		   07/25/21     31,418        GBP        900,000        30,302        1,116   
Total Swaptions Written - Interest Rate Risk                  $ 372,710                      $ 387,576      $ (14,866 ) 
Total - Options Written                  $ 1,343,833                      $ 1,072,182      $ 271,651   

Abbreviations:

 

GBP - British Pound Sterling
LIBOR - London interbank offer rate

 

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

Invesco Global Targeted Returns Fund

Options Written Transactions
     Call Options         Put Options
      Number of
Contracts		    Notional Value   

Premiums

Received

         

Number of

Contracts

    Notional Value   

Premiums

Received

Beginning of period

    —    $      —              $      —                   —    $      —               $      —           

Written

    211    12,671,000    1,116,728         713    26,450,900    912,661

Closed

    (124)      (7,697,000)      (724,116)         (231)       (4,446,400)    (239,554)

Exercised

    —    —      —           —    —      —

Expired

    —    —      —           (58)      (10,095,500)      (94,596)

End of period

    87    $  4,974,000    $  392,612             424    $  11,909,000    $    578,511    

 

Open Futures Contracts(g)
Futures Contracts   

Type of

Contract

   

Number of

Contracts

             Expiration Month           Notional Value           

Unrealized

Appreciation

(Depreciation)

Long Gilt

    Long           10      September-2014       $     1,868,500            $        12,243

Euro OAT 10 Year

    Short           10      September-2014         (1,902,309)            (45,675)

Subtotal - Interest Rate Risk

                                            (33,432)

CAA Index

    Long           92      September-2014         886,271            (66,246)

FTSE 100 Index

    Long           13      September-2014         1,466,582            (17,336)

Hang Seng China Enterprises Index

    Long           31      September-2014         2,227,771            40,401

Dow Jones EURO STOXX 50

    Short           23      September-2014         (960,487)            34,424

E-Mini S&P 500 Index

    Short           33      September-2014         (3,175,920)            6,001

MSCI AC Asia Index

    Short           14      September-2014         (547,355)            (24,742)

Nikkei 225

    Short           4      September-2014         (304,103)            (8,955)

Russell 2000 Index Mini

    Short           17      September-2014         (1,898,390)            64,637

SPI 200 Index

    Short           13      September-2014         (1,682,265)            (59,689)

STOXX Europe 600 Index

    Short           112      September-2014         (2,514,026)            77,491

Subtotal - Market Risk

                                            45,986

Total - Futures Contracts

                                            $        12,554

 

(g)  Futures contracts collateralized by $1,136,675 cash held with Bank of America Securities LLC, the futures commission merchant.

 

Open Centrally Cleared Credit Default Swap Agreements(i)

Counterparty/

Clearinghouse

   Reference Entity   

Buy/Sell

Protection

   

(Pay)/Receive

Fixed Rate

   

Implied

Credit

Spread(h)

  

Expiration

Date

         

Notional

Value

     

Upfront

Payments

    

Unrealized

Appreciation

(Depreciation)

Credit Suisse First

Boston/ICE

  

Markit iTraxx

Europe Index

    Sell    1.00%    1.04%   June-2024    EUR      4,592,985       $ (142,394)      $    130,558

Credit Suisse First

Boston/ICE

   Markit iTraxx Europe Index    Sell    1.00    1.04   June-2024    EUR      297,000         672      (2,079)

Credit Suisse First

Boston/ICE

   Markit iTraxx Europe Index    Sell    1.00    1.04   June-2024    EUR      2,634,000         20,025      (32,546)

Credit Suisse First

Boston/ICE

   Markit iTraxx Europe Index    Sell    1.00    1.04   June-2024    EUR      779,000         1,535      (5,257)

 

Credit Suisse First

Boston/ICE

  

Markit iTraxx Europe Crossover

Index

    Buy    (5.00)    2.62   June-2019    EUR      1,187,000         (147,588)      (24,656)

Credit Suisse First

Boston/ICE

   Markit iTraxx Europe Index    Buy    (1.00)    0.65   June-2019    EUR      4,592,985         (66,625)      (36,807)

 

Credit Suisse First

Boston/ICE

  

Markit iTraxx Europe Crossover

Index

    Buy    (5.00)    2.62   June-2019    EUR      78,000         (13,145)      2,026

 

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

 

Invesco Global Targeted Returns Fund

Open Centrally Cleared Credit Default Swap Agreements(i) – (continued)  

Counterparty/

Clearinghouse

   Reference Entity  

Buy/Sell

Protection

  

(Pay)/Receive

Fixed Rate

  

Implied

Credit

Spread(h)

  

Expiration

Date

  

Notional

Value

    

Upfront

Payments

    

Unrealized

Appreciation

(Depreciation)

  

Credit Suisse First

Boston/ICE

   Markit iTraxx Europe Index   Buy   (1.00)%   0.65%   June-2019   EUR     297,000      $ (8,165 )    $ 1,422   

Credit Suisse First

Boston/ICE

   Markit iTraxx Europe Index   Buy   (1.00)   0.65   June-2019   EUR     2,634,000        (77,066 )      16,627   

Credit Suisse First

Boston/ICE

   Markit iTraxx Europe Crossover Index   Buy   (5.00)   2.62   June-2019   EUR     658,000        (112,767 )      18,231   

Credit Suisse First

Boston/ICE

   Markit iTraxx Europe Index   Buy   (1.00)   0.65   June-2019   EUR     779,000        (20,076 )      2,492   

Credit Suisse First

Boston/ICE

   Markit iTraxx Europe Crossover Index   Buy   (5.00)   2.62   June-2019   EUR     200,000        (30,501 )      2,207   

Total - Credit Default Swap Agreements - Credit Risk

                   $ (596,095 )    $ 72,218   

Abbreviations:

EUR - Euro

ICE - Intercontinental Exchange

 

(h)  Implied credit spreads represent the current level as of July 31, 2014 at which protection could be bought or sold given the terms of the existing credit default swap contract and serve as an indicator of the current status of the payment/performance risk of the credit default swap contract. An implied credit spread that has widened or increased since entry into the initial contract may indicate a deteriorating credit profile and increased risk of default for the reference entity. A declining or narowing spread may indicate an improving credit profile or decreased risk of default for the reference entity. Alternatively, credit spreads may increase or decrease reflecting the general tolerance for risk in the credit spread markets generally.

 

Open Centrally Cleared Interest Rate Swap Agreements(i)

 

  

Counterparty/

Clearinghouse

   

Pay/Receive

Floating

Rate

          Floating Rate Index         

Fixed

Rate

          Termination Date         

Notional Value

    

Unrealized

Appreciation

(Depreciation)

  
Credit Suisse First Boston/CME    Pay         6 Month GBP LIBOR         3.06%         April-2021         GBP      400,000      $         6,167   
Credit Suisse First Boston/CME    Pay         6 Month GBP LIBOR         2.87         July-2021         GBP      450,000        (1,681 ) 
Credit Suisse First Boston/CME    Pay         6 Month EUR LIBOR         2.85         March-2028         EUR      537,600        42,357   
Credit Suisse First Boston/CME    Pay         6 Month EUR LIBOR         2.63         June-2028         EUR      387,870        17,382   
Credit Suisse First Boston/CME    Pay         6 Month EUR LIBOR         2.32         July-2028         EUR      668,070        2,879   
Credit Suisse First Boston/CME    Pay         3 Month USD LIBOR         4.46         March-2034         USD      375,000        13,461   
Credit Suisse First Boston/CME    Pay         3 Month USD LIBOR         4.15         June-2034         USD      262,500        4,086   
Credit Suisse First Boston/CME    Pay         6 Month JPY LIBOR         2.29         July-2034         JPY      518,822,000        (3,056 ) 
Credit Suisse First Boston/CME    Pay         3 Month USD LIBOR         3.92         July-2034         USD      450,000        494   
Credit Suisse First Boston/CME    Pay         6 Month JPY LIBOR         2.30         July-2034         JPY      48,672,000        (227 ) 
Credit Suisse First Boston/CME    Pay         3 Month USD LIBOR         4.64         December-2043         USD      3,500,000        327,551   
Credit Suisse First Boston/CME    Pay         3 Month USD LIBOR         4.02         June-2044         USD      245,000        6,098   
Credit Suisse First Boston/CME    Pay         3 Month USD LIBOR         3.79         July-2044         USD      420,000        471   
Credit Suisse First Boston/CME    Pay         6 Month GBP LIBOR         3.02         February-2021         GBP      4,000,000        58,826   
Credit Suisse First Boston/CME    Pay         6 Month EUR LIBOR         3.20         December-2027         EUR      5,453,250        709,262   

 

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

 

Invesco Global Targeted Returns Fund

Open Centrally Cleared Interest Rate Swap Agreements(i) – (continued)

 

Counterparty/ Clearinghouse   

Pay/Receive
Floating

Rate

    Floating Rate Index    Fixed
Rate		      Termination Date          Notional
Value		     Unrealized
Appreciation
(Depreciation)
Credit Suisse First Boston/CME    Pay    3 Month USD LIBOR      4.78%       December-2033    USD      3,750,000      $        213,288
Credit Suisse First Boston/CME    Pay    3 Month USD LIBOR      4.26       March-2044    USD      350,000      17,685
Credit Suisse First Boston/CME    Receive    6 Month EUR LIBOR      3.43       December-2033    EUR      (2,726,625 )    (197,995)
Credit Suisse First Boston/CME    Receive    6 Month EUR LIBOR      1.58       June-2024    EUR      (258,580 )    (7,160)
Credit Suisse First Boston/CME    Receive    6 Month JPY LIBOR      0.67       July-2024    JPY      (453,969,000 )    (1,924)
Credit Suisse First Boston/CME    Receive    6 Month EUR LIBOR      1.39       July-2024    EUR      (445,380 )    (1,276)
Credit Suisse First Boston/CME    Receive    6 Month JPY LIBOR      0.67       July-2024    JPY      (42,588,000 )    (139)
Credit Suisse First Boston/CME    Receive    6 Month EUR LIBOR      3.10       June-2034    EUR      (193,935 )    (7,052)
Credit Suisse First Boston/CME    Receive    6 Month EUR LIBOR      2.80       July-2034    EUR      (334,035 )    (1,818)
Credit Suisse First Boston/CME    Receive    6 Month EUR LIBOR      2.84       March-2048    EUR      (215,040 )    (30,778)
Credit Suisse First Boston/CME    Receive    6 Month EUR LIBOR      2.68       June-2048    EUR      (155,148 )    (13,874)
Credit Suisse First Boston/CME    Receive    6 Month EUR LIBOR      2.41       July-2048    EUR      (267,228 )    (2,301)
Credit Suisse First Boston/CME    Receive    6 Month EUR LIBOR      1.81       March-2024    EUR      (358,400 )    (21,573)
Credit Suisse First Boston/CME    Receive    6 Month EUR LIBOR      2.10       December-2023    EUR      (3,635,500 )    (368,817)
Credit Suisse First Boston/CME    Receive    6 Month EUR LIBOR      3.26       March-2034    EUR      (268,800 )    (14,392)
Credit Suisse First Boston/CME    Receive    6 Month EUR LIBOR      3.04       December-2047    EUR      (2,181,300 )    (465,009)

Total - Interest Rate Swap Agreements - Interest Rate Risk

  

   $        280,935

Abbreviations:

 

CME - Chicago Mercantile Exchange    GBP - British Pound Sterling    LIBOR - London Interbank Offer Rate
EUR - Euro    JPY - Japanese Yen    USD - United States Dollar

 

(i)  Centrally cleared swap agreements collateralized by $613,115 cash held with Credit Suisse First Boston.

 

Open Over-The-Counter Interest Rate Swap Agreements

 

Counterparty    Pay/Receive
Floating Rate		    Floating Rate Index    Fixed
Rate		      Termination Date          Notional
Value		      Unrealized
Appreciation
(Depreciation)
J.P. Morgan Chase Bank, NA    Pay    3 Month STIBOR      2.45%       March-2024    SEK      3,173,200       $        23,528
Morgan Stanley    Pay    3 Month BBR      3.91       March-2018    AUD      1,103,700       12,506
Morgan Stanley    Pay    3 Month STIBOR      2.16       June-2024    SEK      2,337,930       7,844
Royal Bank of Scotland Securities Inc.    Pay    3 Month STIBOR      1.88       July-2024    SEK      4,099,680       (2,023)
Morgan Stanley    Pay    3 Month BBR      3.34       July-2018    AUD      952,560       (686)
Morgan Stanley    Pay    3 Month BBR      4.07       December-2017    AUD      11,221,000       174,116
Barclays NA    Pay    3 Month STIBOR      2.80       December-2023    SEK      32,651,000       392,418
Bank of America Securities LLC    Receive    3 Month BBR      3.62       May-2018    AUD      3,000,000       (16,327)
Total - Interest Rate Swap Agreements - Interest Rate Risk       $        591,376

Abbreviations:

 

AUD - Australian Dollar    SEK - Swedish Krona
BBR - Bank Base Rate    STIBOR - Stockholm Interbank Offer Rate

 

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

 

Invesco Global Targeted Returns Fund

Open Over-The-Counter Variance Swap Agreements

 

Counterparty   Reference Entity   Pay/Receive
Variance		   Volatility
Strike Rate		     Expiration Date         Notional
Value		      Unrealized
Appreciation
(Depreciation)
Goldman Sachs & Co.   S&P 500 Index   Pay     15.00%      December-2014    USD     (14,700)       $        (2,016)
Goldman Sachs & Co.   S&P 500 Index   Pay     17.00      December-2014    USD     (1,750)       4,830
UBS   S&P 500 Index   Pay     17.15      December-2014    USD     (1,750)       5,049
HSBC New York   S&P 500 Index   Pay     17.90      December-2015    USD     (6,000)       (8,783)
HSBC New York   S&P 500 Index   Pay     18.00      December-2014    USD     (3,500)       13,597
Morgan Stanley   S&P 500 Index   Pay     18.00      December-2014    USD     (2,500)       10,152
Deutsche Banc   S&P 500 Index   Pay     18.10      December-2014    USD     (1,800)       7,189
UBS   S&P 500 Index   Pay     18.10      December-2015    USD     (2,500)       (2,401)
HSBC New York   S&P 500 Index   Pay     18.10      December-2015    USD     (2,500)       (2,401)
HSBC New York   S&P 500 Index   Pay     18.30      December-2015    USD     (4,200)       (5,064)
Morgan Stanley   S&P 500 Index   Pay     18.40      December-2014    USD     (1,600)       6,762
Deutsche Banc   S&P 500 Index   Pay     18.70      December-2014    USD     (17,500)       80,563
Goldman Sachs & Co.   S&P 500 Index   Pay     18.85      December-2014    USD     (3,500)       15,508
J.P. Morgan Chase Bank, NA   S&P 500 Index   Pay     18.90      December-2014    USD     (17,500)       83,189
Goldman Sachs & Co.   Hang Seng China Enterprise Index   Receive     22.10      December-2014    HKD     56,976       (12,466)
HSBC New York   Hang Seng China Enterprise Index   Receive     25.50      December-2015    HKD     15,500       548
HSBC New York   Hang Seng China Enterprise Index   Receive     25.60      December-2015    HKD     38,759       (884)
HSBC New York   Hang Seng China Enterprise Index   Receive     26.05      December-2015    HKD     16,276       (312)
Goldman Sachs & Co.   Hang Seng China Enterprise Index   Receive     26.10      December-2014    HKD     13,589       (10,809)
Morgan Stanley   Hang Seng China Enterprise Index   Receive     27.40      December-2014    HKD     9,700       (9,168)
HSBC New York   Hang Seng China Enterprise Index   Receive     27.50      December-2014    HKD     13,566       (12,512)
HSBC New York   Hang Seng China Enterprise Index   Receive     27.75      December-2015    HKD     19,066       (507)
J.P. Morgan Chase Bank, NA   Hang Seng China Enterprise Index   Receive     28.00      December-2014    HKD     135,664       (132,774)
Goldman Sachs & Co.   Hang Seng China Enterprise Index   Receive     28.00      December-2015    HKD     33,372       (1,943)
Deutsche Banc   Hang Seng China Enterprise Index   Receive     28.20      December-2014    HKD     13,900       (13,944)
Goldman Sachs & Co.   Hang Seng China Enterprise Index   Receive     28.60      December-2014    HKD     13,589       (13,999)
Deutsche Banc   Hang Seng China Enterprise Index   Receive     30.90      December-2015    HKD     158,920       (64,681)
Goldman Sachs & Co.   Hang Seng China Enterprise Index   Receive     31.35      December-2015    HKD     15,918       (7,297)
Goldman Sachs & Co.   Hang Seng Index   Receive     17.70      December-2014    HKD     56,976       (7,235)
UBS   Hang Seng Index   Receive     21.00      December-2014    HKD     13,589       (7,965)
UBS   Hang Seng Index   Receive     21.00      December-2015    HKD     31,007       1,295
HSBC New York   Hang Seng Index   Receive     21.05      December-2015    HKD     15,500       1,078
Morgan Stanley   Hang Seng Index   Receive     21.40      December-2014    HKD     9,700       (6,261)
HSBC New York   Hang Seng Index   Receive     21.40      December-2015    HKD     16,276       752
Morgan Stanley   Hang Seng Index   Receive     21.80      December-2014    HKD     16,000       (10,790)
Deutsche Banc   Hang Seng Index   Receive     21.90      December-2014    HKD     135,664       (92,670)
HSBC New York   Hang Seng Index   Receive     22.00      December-2014    HKD     13,566       (9,201)
Goldman Sachs & Co.   Hang Seng Index   Receive     22.80      December-2014    HKD     13,589       (10,472)

Total - Variance Swap Agreements - Market Risk

  

    $        (216,043)

Currency Abbreviations:

HKD - Hong Kong Dollar

USD - United States Dollar

 

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

 

Invesco Global Targeted Returns Fund

Open Over-The-Counter Volatility Swap Agreements

 

Counterparty    Reference Entity   

Pay/Receive

Volatility

    Volatility
Strike Rate		    Expiration Date          Notional
Value		    Unrealized
Appreciation
(Depreciation)
Deutsche Banc    USD/JPY    Pay        8.75%      July-2016    USD        (4,500)      $        (1,494)
Royal Bank of Scotland Securities Inc.    USD/JPY    Pay        8.90      June-2016    USD        (4,000)      368
Deutsche Banc    USD/JPY    Pay        9.00      June-2016    USD        (1,578)      290
Deutsche Banc    USD/JPY    Pay        9.05      June-2016    USD        (2,625)      805
Goldman Sachs & Co.    USD/JPY    Pay        9.05      June-2016    USD        (36,000)      8,405
Deutsche Banc    AUD/JPY    Receive        10.30      July-2016    AUD        4,763      1,773
Deutsche Banc    AUD/JPY    Receive        10.70      June-2016    AUD        8,107      (2,129)
Deutsche Banc    AUD/JPY    Receive        10.90      June-2016    AUD        2,794      (1,434)
Goldman Sachs & Co.    AUD/JPY    Receive        11.00      June-2016    AUD        36,000      (18,957)

Total - Volatility Swap Agreements - Currency Risk

                                         $        (12,373)

Currency Abbreviations:

 

AUD - Australian Dollar    USD - United States Dollar   
JPY - Japanese Yen      

 

Open Forward Foreign Currency Contracts

 

          Contract to    Notional
Value		      Unrealized
Appreciation
(Depreciation)

Settlement

Date

    Counterparty    Deliver     

Receive

      
8/22/2014    State Street Bank & Trust Co.    AUD             509,646       USD            477,202    $ 472,853       $        4,349
8/22/2014    State Street Bank & Trust Co.    CHF          1,074,453       USD         1,196,536      1,182,409       14,127
8/22/2014    State Street Bank & Trust Co.    EUR          2,028,069       USD         2,739,831      2,715,646       24,185
8/22/2014    State Street Bank & Trust Co.    GBP          316,259       USD         540,013      533,823       6,190
8/22/2014    State Street Bank & Trust Co.    HKD          5,074,000       USD         654,635      654,736       (101)
8/22/2014    State Street Bank & Trust Co.    JPY          14,395,000       USD         142,044      139,960       2,084
8/22/2014    State Street Bank & Trust Co.    SEK          3,750,000       USD         547,547      543,524       4,023
8/22/2014    State Street Bank & Trust Co.    USD          92,487       EUR         69,000      92,393       (94)
8/22/2014    State Street Bank & Trust Co.    USD          16,968       GBP         10,000      16,879       (89)
8/22/2014    State Street Bank & Trust Co.    USD          172,260       HKD         1,335,000      172,265       5
8/22/2014    State Street Bank & Trust Co.    USD          15,146       JPY         1,545,000      15,022       (124)
8/22/2014    State Street Bank & Trust Co.    USD          31,407       SEK         215,000      31,162       (245)
8/22/2014    State Street Bank & Trust Co.    USD          58,056       AUD         62,000      57,524       (532)
9/2/2014    Deutsche Banc    AUD          370,000       USD         345,935      343,010       2,925
9/2/2014    Deutsche Banc    CLP          84,661,500       USD         149,976      147,420       2,556
9/2/2014    Deutsche Banc    CNY          490,929       USD         79,554      79,431       123
9/2/2014    Deutsche Banc    IDR          372,859,200       USD         32,005      31,726       279
9/2/2014    Deutsche Banc    KRW          22,219,920       USD         21,600      21,478       122

 

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

 

Invesco Global Targeted Returns Fund

Open Forward Foreign Currency Contracts – (continued)

 

        Contract to    Notional
Value		      Unrealized
Appreciation
(Depreciation)

Settlement

Date

   Counterparty   Deliver    

Receive

      
9/2/2014   Deutsche Banc   PHP             1,400,652      USD        32,348    $ 32,144       $        204
9/2/2014   Deutsche Banc   SGD             22,275      USD           17,943      17,855       88
9/2/2014   Deutsche Banc   THB                687,096      USD        21,546      21,324       222
9/2/2014   Deutsche Banc   USD             148,515      BRL        333,120      145,332       (3,183)
9/2/2014   Deutsche Banc   USD             347,841      JPY        35,464,500      344,835       (3,006)
9/2/2014   Goldman Sachs & Co.   AUD             2,500,000      USD        2,338,700      2,317,646       21,054
9/2/2014   Goldman Sachs & Co.   CAD             95,349      USD        87,550      87,377       173
9/2/2014   Goldman Sachs & Co.   CLP             24,246,250      USD        43,320      42,220       1,100
9/2/2014   Goldman Sachs & Co.   JPY             408,000,000      USD        4,001,648      3,967,145       34,503
9/2/2014   Goldman Sachs & Co.   USD             2,351,458      JPY        239,750,000      2,331,184       (20,274)
9/2/2014   Royal Bank of Scotland Securities Inc.   JPY             40,700,000      USD        400,172      395,742       4,430
9/2/2014   Royal Bank of Scotland Securities Inc.   THB             6,461,712      USD        196,751      200,541       (3,790)
9/2/2014   State Street Bank & Trust Co.   AUD             1,340,435      USD        1,248,876      1,242,661       6,215
9/2/2014   State Street Bank & Trust Co.   CAD             3,611,300      USD        3,307,535      3,309,363       (1,828)
9/2/2014   State Street Bank & Trust Co.   CHF             622,684      USD        694,484      685,292       9,192
9/2/2014   State Street Bank & Trust Co.   CLP             800,886,750      USD        1,439,020      1,394,572       44,448
9/2/2014   State Street Bank & Trust Co.   CNY             4,481,169      USD        721,931      725,039       (3,108)
9/2/2014   State Street Bank & Trust Co.   EUR             3,351,787      USD        4,559,150      4,488,350       70,800
9/2/2014   State Street Bank & Trust Co.   GBP             2,243,899      USD        3,759,526      3,787,223       (27,697)
9/2/2014   State Street Bank & Trust Co.   IDR             3,457,755,000      USD        288,941      294,214       (5,273)
9/2/2014   State Street Bank & Trust Co.   JPY             374,009,680      USD        3,655,258      3,636,644       18,614
9/2/2014   State Street Bank & Trust Co.   PHP             13,300,740      USD        302,496      305,245       (2,749)
9/2/2014   State Street Bank & Trust Co.   SGD             209,433      USD        166,708      167,882       (1,174)
9/2/2014   State Street Bank & Trust Co.   USD             3,631,266      AUD        3,943,000      3,655,390       24,124
9/2/2014   State Street Bank & Trust Co.   USD             1,481,514      BRL        3,421,556      1,492,744       11,230
9/2/2014   State Street Bank & Trust Co.   USD             5,357,778      JPY        547,840,019      5,326,864       (30,914)
9/2/2014   State Street Bank & Trust Co.   USD             2,391,880      NOK        14,449,402      2,295,669       (96,211)
Total forward foreign currency contracts - Currency Risk                      $        106,973

Currency Abbreviations:

 

AUD - Australian Dollar    EUR - Euro    NOK - Norwegian Krone
BRL - Brazilian Real    GBP - British Pound Sterling    PHP - Philippine Peso
CAD - Canadian Dollar    HKD - Hong Kong Dollar    SEK - Swedish Krona
CHF - Swiss Franc    IDR - Indonesian Rupiah    SGD - Singapore Dollar
CLP - Chilean Peso    JPY - Japanese Yen    THB - Thai Baht
CNY - Chinese Yuan    KRW - South Korean Won    USD - United States Dollar

 

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

 

Invesco Global Targeted Returns Fund

Notes to Quarterly Schedule of Portfolio Holdings

July 31, 2014

(Unaudited)

 

NOTE 1 — Significant Accounting Policies

The Fund is a “fund of funds,” in that it invests in mutual funds advised by Invesco Advisers, Inc. (“Invesco”).

A. Security Valuations – Securities of 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. Investments in shares of funds that are not traded on an exchange are valued at the end of day net asset value per share of such fund. Securities in the underlying funds, including restricted securities, are valued in accordance with the valuation policy of such fund. The policies of the underlying funds affiliated with the Fund as a result of having the same investment adviser are set forth below.

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”).

Senior secured floating rate loans and senior secured floating rate debt securities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may reflect appropriate factors such as ratings, tranche type, industry, company performance, spread, individual trading characteristics, institution-size trading in similar groups of securities and other market data.

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.

Swap agreements are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service are valued based on a model which may include end of day net present values, spreads, ratings, industry, and company performance.

Foreign securities’ (including foreign exchange contracts) 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

 

Invesco Global Targeted Returns Fund

A. Security Valuations – (continued)

 

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.

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

 

Invesco Global Targeted Returns Fund

D. Foreign Currency Translations – (continued)

 

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.

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.

F. Futures Contracts – The Fund may enter into futures contracts to manage exposure to interest rate, equity and market price movements and/or currency risks. A futures contract is an agreement between two parties to purchase or sell a specified underlying security, currency or commodity (or delivery of a cash settlement price, in the case of an index future) for a fixed price at a future date. The Fund currently invests only in exchange-traded futures and they are standardized as to maturity date and underlying financial instrument. Initial margin deposits required upon entering into futures contracts are satisfied by the segregation of specific securities or cash as collateral at the futures commission merchant (broker). During the period the futures contracts are open, changes in the value of the contracts are recognized as unrealized gains or losses by recalculating the value of the contracts on a daily basis. Subsequent or variation margin payments are received or made depending upon whether unrealized gains or losses are incurred. These amounts are reflected as receivables or payables on the Statement of Assets and Liabilities. When the contracts are closed or expire, the Fund recognizes a realized gain or loss equal to the difference between the proceeds from, or cost of, the closing transaction and the Fund’s basis in the contract. The net realized gain (loss) and the change in unrealized gain (loss) on futures contracts held during the period is included on the Statement of Operations. The primary risks associated with futures contracts are market risk and the absence of a liquid secondary market. If the Fund were unable to liquidate a futures contract and/or enter into an offsetting closing transaction, the Fund would continue to be subject to market risk with respect to the value of the contracts and continue to be required to maintain the margin deposits on the futures contracts. Futures contracts have minimal counterparty risk since the exchange’s clearinghouse, as counterparty to all exchange-traded futures, guarantees the futures against default. Risks may exceed amounts recognized in the Statement of Assets and Liabilities.
G. Swap Agreements – The Fund may enter into various swap transactions, including interest rate, total return, volatility, variance, index, currency exchange rate and credit default swap contracts (“CDS”) for investment purposes or to manage interest rate, equity, currency or credit risk. Such transactions are agreements between two parties (“Counterparties”). A swap agreement may be negotiated bilaterally and traded over-the-counter (OTC) between two parties (‘uncleared/OTC”) or, in some instances, must be transacted through a future commission merchant (FCM) and cleared through a clearinghouse that serves as a central Counterparty (“centrally cleared swap”). These agreements may contain among other conditions, events of default and termination events, and various covenants and representations such as provisions that require the Fund to maintain a pre-determined level of net assets, and/or provide limits regarding the decline of the Fund’s NAV over specific periods of time. If the Fund were to trigger such provisions and have open derivative positions at that time, the Counterparty may be able to terminate such agreement and request immediate payment in an amount equal to the net liability positions, if any.

Interest rate, total return, volatility, variance, index, and currency exchange rate swap agreements are two-party contracts entered into primarily to exchange the returns (or differentials in rates of returns) earned or realized on particular predetermined investments or instruments. The gross returns to be exchanged or “swapped” between the parties are calculated with respect to a

 

Invesco Global Targeted Returns Fund

G. Swap Agreements – (continued)

 

notional amount, i.e., the return on or increase in value of a particular dollar amount invested at a particular interest rate or return of an underlying asset, in a particular foreign currency, or in a “basket” of securities representing a particular index.

In a centrally cleared swap, the Fund’s ultimate Counterparty is a central clearinghouse. The Fund initially will enter into centrally cleared swaps through an executing broker. When a Fund enters into a centrally cleared swap, it must deliver to the central Counterparty (via the FCM) an amount referred to as “initial margin.” Initial margin requirements are determined by the central Counterparty, but an FCM may require additional initial margin above the amount required by the central Counterparty. Initial margin deposits required upon entering into centrally cleared swaps are satisfied by cash or securities as collateral at the FCM. Securities deposited as initial margin are designated on the Schedule of Investments and cash deposited is recorded on the Statement of Assets and Liabilities. During the term of a cleared swap agreement, a “variation margin” amount may be required to be paid by the Fund or may be received by the Fund, based on the daily change in price of the underlying reference instrument subject to the swap agreement and is recorded as a receivable or payable for variation margin in the Statement of Assets and Liabilities until the centrally cleared swap is terminated at which time a realized gain or loss is recorded.

A CDS is an agreement between Counterparties to exchange the credit risk of an issuer. A buyer of a CDS is said to buy protection by paying a fixed payment over the life of the agreement and in some situations an upfront payment to the seller of the CDS. If a defined credit event occurs (such as payment default or bankruptcy), the Fund as a protection buyer would cease paying its fixed payment, the Fund would deliver eligible bonds issued by the reference entity to the seller, and the seller would pay the full notional value, or the “par value”, of the referenced obligation to the Fund. A seller of a CDS is said to sell protection and thus would receive a fixed payment over the life of the agreement and an upfront payment, if applicable. If a credit event occurs, the Fund as a protection seller would cease to receive the fixed payment stream, the Fund would pay the buyer “par value” or the full notional value of the referenced obligation, and the Fund would receive the eligible bonds issued by the reference entity. In turn, these bonds may be sold in order to realize a recovery value. Alternatively, the seller of the CDS and its Counterparty may agree to net the notional amount and the market value of the bonds and make a cash payment equal to the difference to the buyer of protection. If no credit event occurs, the Fund receives the fixed payment over the life of the agreement. As the seller, the Fund would effectively add leverage to its portfolio because, in addition to its total net assets, the Fund would be subject to investment exposure on the notional amount of the CDS. In connection with these agreements, cash and securities may be identified as collateral in accordance with the terms of the respective swap agreements to provide assets of value and recourse in the event of default under the swap agreement or bankruptcy/insolvency of a party to the swap agreement. If a Counterparty becomes bankrupt or otherwise fails to perform its obligations due to financial difficulties, the Fund may experience significant delays in obtaining any recovery in a bankruptcy or other reorganization proceeding. The Fund may obtain only limited recovery or may obtain no recovery in such circumstances. The Fund’s maximum risk of loss from Counterparty risk, either as the protection seller or as the protection buyer, is the value of the contract. The risk may be mitigated by having a master netting arrangement between the Fund and the Counterparty and by the designation of collateral by the Counterparty to cover the Fund’s exposure to the Counterparty.

Implied credit spreads represent the current level at which protection could be bought or sold given the terms of the existing CDS contract and serve as an indicator of the current status of the payment/performance risk of the CDS. An implied spread that has widened or increased since entry into the initial contract may indicate a deteriorating credit profile and increased risk of default for the reference entity. A declining or narrowing spread may indicate an improving credit profile or decreased risk of default for the reference entity. Alternatively, credit spreads may increase or decrease reflecting the general tolerance for risk in the credit markets.

A volatility swap involves an exchange between the Fund and a Counterparty of periodic payments based on the measured volatility of an underlying security, currency, commodity, interest rate, index or other reference asset over a specified time frame. Depending on the structure of the swap, either the Fund’s or the Counterparty’s payment obligation will typically be based on the realized volatility of the reference asset as measured by changes in its price or level over a specified time period while the other party’s payment obligation will be based on a specified rate representing expected volatility for the reference asset at the time the swap is executed, or the measured volatility of a different reference asset over a specified time period. The Fund will typically make or lose money on a volatility swap depending on the magnitude of the reference asset’s volatility, or size of the movements in its price, over a specified time period, rather than general increases or decreases in the price of the reference asset. Volatility swaps are often used to speculate on future volatility levels, to trade the spread between realized and expected volatility, or to decrease the volatility exposure of other investments held by the Fund. Variance swaps are similar to volatility swaps except payments are based on the difference between the implied and measured volatility mathematically squared.

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

 

 

Invesco Global Targeted Returns Fund

G. Swap Agreements – (continued)

 

Changes in the value of centrally cleared and OTC swap agreements are recognized as unrealized gains (losses) in the Statement of Operations by “marking to market” on a daily basis to reflect the value of the swap agreement at the end of each trading day. Payments received or paid at the beginning of the agreement are reflected as such on the Statement of Assets and Liabilities and may be referred to as upfront payments. The Fund accrues for the fixed payment stream and amortizes upfront payments, if any, on swap agreements on a daily basis with the net amount, recorded as a component of realized gain (loss) on the Statement of Operations. A liquidation payment received or made at the termination of a swap agreement is recorded as realized gain (loss) on the Statement of Operations. The Fund segregates liquid securities having a value at least equal to the amount of the potential obligation of a Fund under any swap transaction. Entering into these agreements involves, to varying degrees, lack of liquidity and elements of credit, market, and Counterparty risk in excess of amounts recognized on the Statement of Assets and Liabilities. Such risks involve the possibility that a swap is difficult to sell or liquidate; the Counterparty does not honor its obligations under the agreement and unfavorable interest rates and market fluctuations. It is possible that developments in the swaps market, including potential government regulation, could adversely affect the Fund’s ability to terminate existing swap agreements or to realize amounts to be received under such agreements.

The maximum potential amount of future payments (undiscounted) that the Fund as a seller of protection could be required to make under a credit default swap agreement would be an amount equal to the notional amount of the agreement. Notional amounts of each individual credit default swap agreement outstanding as of July 31, 2014 for which the Fund is the seller of protection are disclosed in the Notes to Schedule of Investments. These potential amounts would be partially offset by any recovery values of the respective referenced obligations, upfront payments received upon entering into the agreement, or net amounts received from the settlement of buy protection credit default swap agreements entered into by the Fund for the same referenced entity or entities.

H. Call Options Written and Purchased – The Fund may write covered call options and/or buy call options. A covered call option gives the purchaser of such option the right to buy, and the writer the obligation to sell, the underlying security at the stated exercise price during the option period. Options written by the Fund normally will have expiration dates between three and nine months from the date written. The exercise price of a call option may be below, equal to, or above the current market value of the underlying security at the time the option is written.

Additionally, the Fund may enter into an option on a swap agreement, also called a “swaption,” is an option that gives the buyer the right, but not the obligation, to enter into a swap on a future date in exchange for paying a market-based premium. A receiver swaption gives the owner the right to receive the total return of a specified asset, reference rate or index. Swaptions also include options that allow an existing swap to be terminated or extended by one of the counterparties.

When the Fund writes a covered call option, an amount equal to the premium received by the Fund is recorded as an asset and an equivalent liability in the Statement of Assets and Liabilities. The amount of the liability is subsequently “marked-to-market” to reflect the current market value of the option written. If a written covered call option expires on the stipulated expiration date, or if the Fund enters into a closing purchase transaction, the Fund realizes a gain (or a loss if the closing purchase transaction exceeds the premium received when the option was written) without regard to any unrealized gain or loss on the underlying security, and the liability related to such option is extinguished. If a written covered call option is exercised, the Fund realizes a gain or a loss from the sale of the underlying security and the proceeds of the sale are increased by the premium originally received. Realized and unrealized gains and losses on these contracts are included in the Statement of Operation. A risk in writing a covered call option is that the Fund gives up the opportunity for profit if the market price of the security increases and the option is exercised.

When the Fund buys a call option, an amount equal to the premium paid by the Fund is recorded as an investment on the Statement of Assets and Liabilities. The amount of the investment is subsequently “marked-to-market” to reflect the current value of the option purchased. Realized and unrealized gains and losses on these contracts are included in the Statement of Operations. A risk in buying an option is that the Fund pays a premium whether or not the option is exercised. In addition, there can be no assurance that a liquid secondary market will exist for any option purchased.

I.

Put Options Purchased and Written – The Fund may purchase and write put options including options on securities indexes and/or futures contracts. By purchasing a put option, the Fund obtains the right (but not the obligation) to sell the option’s underlying instrument at a fixed strike price. In return for this right, the Fund pays an option premium. The option’s underlying instrument may be a security, securities index, or a futures contract. Put options may be used by the Fund to hedge securities it owns by locking in a minimum price at which the Fund can sell. If security prices fall, the put option could be exercised to offset all or a portion of the Fund’s resulting losses. At the same time, because the maximum the Fund has at risk is the cost of the option, purchasing put options does not eliminate the potential for the Fund to profit from an increase in the value of the underlying portfolio securities. The Fund may write put options to earn additional income in the form of option premiums if it expects the price of the underlying instrument to remain stable or rise during the option period so that the option will not be

 

Invesco Global Targeted Returns Fund

I. Put Options Purchased and Written – (continued)

 

  exercised. The risk in this strategy is that the price of the underlying securities may decline by an amount greater than the premium received. Put options written are reported as a liability in the Statement of Assets and Liabilities. Realized and unrealized gains and losses on these contracts are included in the Statement of Operations. A risk in buying an option is that the Fund pays a premium whether or not the option is exercised. In addition, there can be no assurance that a liquid secondary market will exist for any option purchased.
J. Other Risks – The Fund is non-diversified and may invest in securities of fewer issuers than if it were diversified. Thus, the value of the Fund’s shares may vary more widely and the Fund may be subject to greater market and credit risk than if the Fund invested more broadly.
K. Leverage Risk – Leverage exists when a Fund can lose more than it originally invests because it purchases or sells an instrument or enters into a transaction without investing an amount equal to the full economic exposure of the instrument or transaction.
L. Collateral – To the extent the Fund has designated or segregated a security as collateral and that security is subsequently sold, it is the Fund’s practice to replace such collateral no later than the next business day.

NOTE 2 — 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

    $         22,216,994       $ —       $ —       $         22,216,994   

 

  

Foreign Sovereign Debt Securities

      —         1,512,689         —         1,512,689   

 

  

Options Purchased

      1,267,721         —         —         1,267,721   

 

  
     23,484,715         1,512,689         —         24,997,404   

 

  

Forward Foreign Currency Contracts*

      —         106,973         —         106,973   

 

  

Futures*

      12,554         —         —         12,554   

 

  

Options Written*

      (684,606)         (387,576)         —         (1,072,182)   

 

  

Swap Agreements*

      —         716,113         —         716,113   

 

  

Total Investments

    $         22,812,663       $         1,948,199       $         —       $ 24,760,862   

 

  
* Forward Foreign Currency Contracts, Futures and Swap Agreements are valued at unrealized appreciation (depreciation). Options Written are shown at value.

 

Invesco Global Targeted Returns Fund

NOTE 3 — Derivative Investments

Value of Derivative Investments at Period-End

The table below summarizes the value of the Fund’s derivative investments, detailed by primary risk exposure, held as of July 31, 2014:

 

         Value    
  

 

Risk Exposure/Derivative Type        Assets            Liabilities    

 

Credit risk

      

  Swap agreements

    $173,563        $(101,345)    

 

Currency risk

      

  Forward foreign currency contracts

    307,365    (200,392)

 

  Swap agreements

    11,641    (24,014)

 

Interest rate risk

      

  Futures contracts (a)

    12,243    (45,675)

 

  Options written

    —    (387,576)

 

  Swap agreements

    2,030,419    (1,158,108)

 

Market risk

      

  Futures contracts (a)

    222,954    (176,968)

 

  Options purchased (b)

    1,267,721    —

 

  Options written

    —    (684,606)

 

  Swap agreements

    230,512    (446,555)

 

Total

    $4,256,418    $(3,225,239)

 

 

(a)  Includes cumulative appreciation (depreciation) of futures contracts.

 

(b)  Options purchased at value as reported in the Schedule of Investments.

Effect of Derivative Investments for the period December 19, 2013 (commencement date) to July 31, 2014

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

 

         Location of Gain (Loss) on Statement of Operations(a)      
  

 

 

  
     Futures     Forward
Foreign
Currency
Contracts		      Swap
Agreements		     Options
Written		  

 

  

Realized Gain (Loss)

          

Credit risk

    $ —      $ —       $ 37,606      $ —   

 

  

Currency risk

      —        416,814         —        124,650   

 

  

Interest rate risk

      (53,518 )      —         40,118        —   

 

  

Market Risk

      (271,747 )      —         —        (31,206 ) 

 

  

Change in Unrealized Appreciation (Depreciation)

          

Credit risk

      —        —         72,218        —   

 

  

Currency risk

      —        106,973         (12,373 )      —   

 

  

Interest rate risk

      (33,432 )      —         872,311        (14,866 ) 

 

  

Market risk

      45,986        —         (216,043 )      286,517   

 

  

Total

    $ (312,711 )    $ 523,787       $ 793,837      $ 365,095   

 

  
(a)  Options purchased are included in the net realized gain (loss) from investment securities and net change in unrealized appreciation (depreciation) on investment securities.

 

Invesco Global Targeted Returns Fund

The table below summarizes the average notional value of futures contracts, forward foreign currency contracts, swap agreements, index options written, index options purchased, foreign currency options and swaptions outstanding during the period.

 

      Futures   

Forward

Foreign

Currency

Contracts

   

Swap

Agreements

   

Index

Options

Written

   

Index

Options

Purchased

   

Foreign

Currency

Options

    Swaptions

Average notional value

    $17,735,019    $37,896,783    $73,655,339    $58,251,275    $23,349,298    $23,349,298    $14,629,657

Average contracts

    —    —    —    397    783    —    —

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 period December 19, 2013 (commencement date) to July 31, 2014 was $22,262,538 and $1,552,915, respectively. In a fund’s initial year of operations, the cost of investments for tax purposes will not reflect any tax adjustments until its fiscal year end reporting period.

 

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

 

  

Aggregate unrealized appreciation of investment securities

    $                     982,898   

Aggregate unrealized (depreciation) of investment securities

      (676,482)   

Net unrealized appreciation of investment securities

    $ 306,416   

Cost of investments is the same for tax and financial reporting purposes.

   

 

Invesco Global Targeted Returns Fund

 
Invesco International Total Return Fund
Quarterly Schedule of Portfolio Holdings
July 31, 2014

 

 

 

LOGO         
invesco.com/us    ITR-QTR-1    7/14    Invesco Advisers, Inc.

Schedule of Investments

July 31, 2014

(Unaudited)

 

              Principal    
Amount    		      Value    

Non-U.S. Dollar Denominated Bonds & Notes–87.70%(a)

  

Australia–1.94%

         

Australia Government Bond,

Series 130, Sr. Unsec. Bonds,

4.75%, 06/15/16

      AUD         1,200,000       $ 1,158,880   

Austria–1.02%

         

OMV AG, Jr. Unsec. Sub.

Medium-Term Euro Notes, 6.75% (b)

      EUR         400,000         607,861   

Belgium–5.09%

         

Anheuser-Busch InBev N.V., Sr.

Unsec. Gtd. Medium-Term

Euro Notes, 4.00%, 09/24/25

      GBP         200,000         344,110   

Belgium Government Bond,

Series 67, Unsec. Euro Bonds,

3.00%, 09/28/19

      EUR         900,000         1,357,107   

Series 71,

Sr. Unsec. Euro Bonds,

3.75%, 06/22/45

      EUR         800,000         1,330,561   
                         3,031,778   

Brazil–1.14%

         

Votorantim Cimentos S.A., Sr.

Unsec. Bonds, 3.25%, 04/25/21(c)

      EUR         500,000         679,947   

Canada–4.02%

         

Province of Ontario Canada,

Unsec. Bonds, 3.45%, 06/02/45

      CAD         2,700,000         2,398,042   

Czech Republic–0.30%

         

CET 21 spol sro, REGS, Sr. Sec.

Gtd. Euro Notes, 9.00%, 11/01/17(c)

      EUR         125,000         176,777   

Denmark–0.64%

         

TDC A/S, Sr. Unsec. Medium- Term Euro Notes, 3.75%, 03/02/22

      EUR         250,000         383,673   

France–6.79%

         

Banque Federative du Credit Mutuel S.A., Sr. Unsec. Medium-Term Euro Notes, 2.63%, 02/24/21

      EUR         200,000         287,975   

Caisse Francaise de Financement

Local, Sr. Sec. Medium-Term

Euro Notes, 1.80%, 05/09/17

      JPY         130,000,000         1,316,636   

Electricite de France S.A., Jr.

Unsec. Sub. Medium-Term

Euro Notes, 4.13% (b)

      EUR         200,000         280,332   
            Principal    
Amount    		      Value    

France–(continued)

         

France Government Bond OAT, Unsec. Euro Bonds, 3.75%, 10/25/19

    EUR      800,000       $ 1,251,005   

4.00%, 04/25/60

    EUR      500,000         909,917   
                     4,045,865   

Germany–11.84%

         

Bundesrepublik Deutschland,

Unsec. Euro Bonds, 1.75%, 02/15/24

    EUR      3,400,000         4,804,009   

EnBW Energie Baden- Wuerttemberg AG, Jr. Unsec. Sub. Medium-Term Euro Notes, 7.38%, 04/02/72

    EUR      120,000         180,953   

Kreditanstalt fur Wiederaufbau,

Sr. Unsec. Gtd. Global Notes,

2.05%, 02/16/26

    JPY      150,000,000         1,709,542   

RWE AG, Jr. Unsec. Sub. Euro

Notes, 7.00% (b)

    GBP      200,000         365,623   
                     7,060,127   

Italy–4.70%

         

Italy Buoni Poliennali Del Tesoro,

Sr. Unsec. Euro Bonds,

4.75%, 09/01/44(c)

    EUR      800,000         1,243,393   

5.00%, 03/01/25(c)

    EUR      880,000         1,416,824   

Manutencoop Facility Management SpA, REGS, Sr. Sec. Gtd. Euro Notes, 8.50%, 08/01/20(c)

    EUR      100,000         143,932   
                     2,804,149   

Japan–3.25%

         

Japan Government Twenty Year

Bond, Series 122, Sr. Unsec.

Bonds, 1.80%, 09/20/30

    JPY      180,000,000         1,938,769   

Luxembourg–0.23%

         

Magnolia BC S.A., REGS, Sr.

Sec. Gtd. Medium-Term Euro

Notes, 9.00%, 08/01/20(c)

    EUR      100,000         138,576   

Mexico–2.26%

         

Mexican Bonos, Series M, Sr.

Unsec. Bonds, 7.75%, 05/29/31

    MXN      15,800,000         1,346,337   

Netherlands–3.79%

         

Cooperatieve Centrale Raiffeisen-Boerenleenbank BA,
Unsec. Sub. Euro Bonds,

3.88%, 07/25/23

    EUR      600,000         876,066   

Series 1719A, Tranche 1, Sr. Unsec. Medium-Term Euro Notes, 1.85%, 04/12/17

    JPY      90,000,000         912,056   
 

 

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

 

Invesco International Total Return Fund

          Principal    
Amount    		      Value    

Netherlands–(continued)

       

Netherlands Government Bond,
Unsec. Euro Bonds,
3.50%, 07/15/20(c)

   EUR     300,000       $ 469,565   
                   2,257,687   

New Zealand–5.21%

       

New Zealand Government Bond,
Series 521, Sr. Unsec. Bonds,
6.00%, 05/15/21

   NZD     3,300,000         3,105,562   

Norway–3.26%

       

DNB Bank ASA, Unsec. Sub.
Medium-Term Euro Notes,
4.75%, 03/08/22

   EUR     250,000         362,549   

Norway Government Bond,
Series 476, Unsec. Bonds,
3.00%, 03/14/24

   NOK     9,400,000         1,581,274   
                   1,943,823   

Poland–7.08%

       

Poland Government Bond,
Series 0718, Unsec. Bonds,
2.50%, 07/25/18

   PLN     800,000         253,273   

Poland Government International Bond, Series 12, Sr. Unsec. Bonds,
1.05%, 11/08/17

   JPY     400,000,000         3,969,240   
                   4,222,513   

South Korea–3.02%

       

Korea Treasury Bond,
Series 04250-1409, Sr. Unsec.
Bonds, 4.25%, 09/10/14

   KRW     1,000,000,000         974,714   

Republic of Korea, Sr. Unsec.
Euro Notes, 2.13%, 06/10/24

   EUR     600,000         822,138   
                   1,796,852   

Spain–4.66%

       

Spain Government Bond, Sr.
Unsec. Euro Bonds,
5.15%, 10/31/28(c)

   EUR     1,700,000         2,778,677   

Supranational–2.52%

       

Asian Development Bank, Series
339-00-1, Sr. Unsec. Medium-Term Global Notes, 2.35%, 06/21/27

   JPY     130,000,000         1,500,995   

Sweden–1.07%

       

Nordea Bank AB, Unsec. Sub. Medium-Term Euro Notes,
4.63%, 02/15/22

   EUR     100,000         144,641   

Sweden Government Bond,
Series 1053, Unsec. Bonds,
3.50%, 03/30/39

   SEK     2,800,000         495,492   
                   640,133   
            Principal    
Amount    		      Value    

United Arab Emirates–0.57%

  

IPIC GMTN Ltd., REGS, Sr.
Unsec. Gtd. Medium-Term Euro Notes, 5.88%, 03/14/21(c)

     EUR        200,000       $ 336,733   

United Kingdom–9.02%

       

Abbey National Treasury
Services PLC, Sr. Sec. Gtd. Mortgage-Backed Medium-Term Euro Notes,
5.25%, 02/16/29

     GBP        200,000         402,018   

Bakkavor Finance 2 PLC, REGS,
Sr. Sec. Gtd. Euro Notes, 8.25%, 02/15/18(c)

     GBP        105,000         187,010   

Cabot Financial Luxembourg
S.A., REGS, Sr. Sec. Gtd. Euro Notes, 10.38%, 10/01/19(c)

     GBP        100,000         192,877   

Direct Line Insurance Group
PLC, Unsec. Sub. Gtd. Euro Notes, 9.25%, 04/27/42

     GBP        150,000         318,949   

Lloyds Bank PLC, Unsec. Sub.
Medium-Term Euro Notes, 10.75%, 12/16/21

     GBP        200,000         399,175   

Lowell Group Financing PLC,
REGS, Sr. Sec. Gtd. Euro Notes, 10.75%, 04/01/19(c)

     GBP        100,000         187,812   

NGG Finance PLC, Unsec. Sub.
Gtd. Euro Notes,
5.63%, 06/18/73

     GBP        250,000         441,929   

Scottish Widows PLC, Unsec.
Sub. Euro Notes,
5.50%, 06/16/23

     GBP        150,000         263,287   

SSE PLC, Unsec. Sub. Medium-
Term Euro Notes, 5.45% (b)

     GBP        400,000         695,742   

Thomas Cook Finance PLC,
REGS, Sr. Unsec. Gtd. Medium-Term Euro Notes, 7.75%, 06/15/20(c)

     EUR        120,000         172,899   

Travelex Financing PLC, REGS,
Sr. Sec. Gtd. Euro Notes, 8.00%, 08/01/18(c)

     GBP        100,000         179,371   

United Kingdom Gilt, Unsec.
Bonds, 3.25%, 01/22/44

     GBP        1,160,000         1,936,933   
                       5,378,002   

United States–4.28%

       

Bank of America Corp., Series 8,
Sr. Unsec. Bonds,
2.31%, 06/26/17

     JPY        100,000,000         1,026,578   

General Electric Capital Corp.,
Sr. Unsec. Medium-Term Global Notes, 2.00%, 02/22/17

     JPY        150,000,000         1,524,362   
                       2,550,940   

Total Non-U.S. Dollar Denominated Bonds
& Notes (Cost $51,699,869)

   

      52,282,698   

 

 

 

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

 

Invesco International Total Return Fund

      Principal    
Amount    		      Value    

U.S. Dollar Denominated Bonds and Notes–5.49%

  

Brazil–1.89%

      

Marfrig Holding Europe B.V.,
Sr. Unsec. Gtd. Notes,
6.88%, 06/24/19(c)

    $ 600,000       $ 599,700   

Rio Oil Finance Trust, Series 2014-1, Sr. Sec. Notes, 6.25%, 07/06/24(c)

      500,000         523,805   
                1,123,505   

France–0.81%

      

Societe Generale S.A., Jr. Unsec.
Sub. Notes, 6.00% (b)(c)

      500,000         484,505   

Mexico–0.34%

      

Grupo Televisa S.A.B., Sr. Unsec. Global Notes, 5.00%, 05/13/45

      200,000         200,039   

Russia–0.78%

      

VimpelCom Holdings B.V., REGS, Sr. Unsec. Gtd. Euro Notes, 5.95%, 02/13/23(c)

      500,000         467,500   

Switzerland–0.85%

      

Credit Suisse Group AG, Jr. Unsec. Sub. Notes, 6.25% (b)(c)

      500,000         503,750   

United States–0.82%

      

Walt Disney Co. (The), Sr. Unsec. Medium-Term Global Notes, 4.13%, 06/01/44

      500,000         490,381   

Total U.S. Dollar Denominated Bonds and Notes (Cost $3,267,614)

               3,269,680   

Collateralized Mortgage Obligations–2.94%

  

United Kingdom–1.13%

      

Permanent Master Issuer PLC, Series 2009-1, Class A3, Floating Rate Pass Through Ctfs., 1.90%, 07/15/42(a)(c)(d)

   EUR      500,000         671,494   

United States–1.81%

      

JP Morgan Mortgage Trust, Series 2007-A4, Class 3A1, Floating Rate Pass Through Ctfs., 5.25%, 06/25/37(d)

    $ 317,526         292,799   

Wells Fargo Mortgage Backed Securities Trust, Series 2005-AR14, Class A1, Floating Rate Pass Through Ctfs., 5.36%, 08/25/35(d)

      235,470         242,886   

WFRBS Commercial Mortgage Trust, Series 2013-C16, Class A5, Pass Through Ctfs., 4.42%, 09/15/46

      500,000         544,604   
                1,080,289   

Total Collateralized Mortgage Obligations (Cost $1,785,522)

               1,751,783   
      Shares          Value    

Money Market Funds–0.49%

      

Liquid Assets Portfolio –Institutional
Class(e)

      146,929       $ 146,929   

Premier Portfolio –Institutional Class(e)

      146,930         146,930   

Total Money Market Funds
(Cost $293,859)

               293,859   

TOTAL INVESTMENTS–96.62%
(Cost $57,046,864)

               57,598,020   

OTHER ASSETS LESS LIABILITIES–3.38%

               2,017,934   

NET ASSETS–100.00%

             $ 59,615,954   

Investment Abbreviations:

 

AUD — Australian Dollar
CAD — Canadian Dollar
Ctfs. — Certificates
EUR — Euro
GBP — British Pound Sterling
Gtd. — Guaranteed
JPY — Japanese Yen
Jr. — Junior
KRW — South Korean Won
MXN — Mexican Peso
NOK — Norwegian Krona
NZD — New Zealand Dollar
PLN — Poland Zloty
REGS — Regulation S
Sec. — Secured
SEK — Swedish Krona
Sr. — Senior
Sub. — Subordinated
Unsec. — Unsecured

Notes to Schedule of Investments:

 

(a)  Foreign denominated security. Principal amount is denominated in currency indicated.

 

(b)  Perpetual bond with no specified maturity date.

 

(c)  Security purchased or received in a transaction exempt from registration under the Securities Act of 1933, as amended (the “1933 Act”). The security may be resold pursuant to an exemption from registration under the 1933 Act, typically to qualified institutional buyers. The aggregate value of these securities at July 31, 2014 was $11,555,147, which represented 19.38% of the Fund’s Net Assets.

 

(d)  Interest or dividend rate is redetermined periodically. Rate shown is the rate in effect on July 31, 2014.

 

(e)  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 International Total Return 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.

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.

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.

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. 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

 

Invesco International Total Return Fund

A. Security Valuations – (continued)

 

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. Bond premiums and discounts are amortized and/or accreted for financial reporting purposes.

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

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

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

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

F. Futures Contracts – The Fund may enter into futures contracts to manage exposure to interest rate, equity and market price movements and/or currency risks. A futures contract is an agreement between two parties to purchase or sell a specified underlying security, currency or commodity (or delivery of a cash settlement price, in the case of an index future) for a fixed price at a future date. The Fund currently invests only in exchange-traded futures and they are standardized as to maturity date and underlying financial instrument. Initial margin deposits required upon entering into futures contracts are satisfied by the segregation of specific securities or cash as collateral at the futures commission merchant (broker). During the period the futures contracts are open, changes in the value of the contracts are recognized as unrealized gains or losses by recalculating the value of the contracts on a daily basis. Subsequent or variation margin payments are received or made depending upon whether unrealized gains or losses are incurred. These amounts are reflected as receivables or payables on the Statement of Assets and Liabilities. When the contracts are closed or expire, the Fund recognizes a realized gain or loss equal to the difference between the proceeds from, or cost of, the closing transaction and the Fund’s basis in the contract. The net realized gain (loss) and the change in unrealized gain (loss) on futures contracts held during the period is included on the Statement of Operations. The primary risks associated with futures contracts are market risk and the absence of a liquid secondary market. If the Fund were unable to liquidate a futures contract and/or enter into an offsetting closing transaction, the Fund would continue to be subject to market risk with respect to the value of the contracts and continue to be required to maintain the margin deposits on the futures contracts. Futures contracts have minimal counterparty risk since the exchange’s clearinghouse, as counterparty to all exchange-traded futures, guarantees the futures against default. Risks may exceed amounts recognized in the Statement of Assets and Liabilities.
G. Collateral – To the extent the Fund has designated or segregated a security as collateral and that security is subsequently sold, it is the Fund’s practice to replace such collateral no later than the next business day.

NOTE 2 — 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.

 

Invesco International Total Return Fund

      Level 1      Level 2      Level 3      Total  

Corporate Debt Securities

    $ —       $ 3,269,680       $ —       $ 3,269,680   

Foreign Debt Securities

               16,740,986                  16,740,986   

Foreign Sovereign Debt Securities

      —         35,541,712         —         35,541,712   

Collateralized Mortgage Obligations

      —         1,751,783         —         1,751,783   

Money Market Funds

      293,859         —         —         293,859   
       293,859         57,304,161         —         57,598,020   

Forward Foreign Currency Contracts*

      —         51,452         —         51,452   

Futures*

      4,451         —         —         4,451   

Total Investments

    $ 298,310       $ 57,355,613       $ —       $ 57,653,923   

* Unrealized appreciation.

NOTE 3 — Derivative Investments

Value of Derivative Investments at Period-End

The table below summarizes the value of the Fund’s derivative investments, detailed by primary risk exposure, held as of July 31, 2014:

 

     Value  
Risk Exposure/ Derivative Type(a)    Assets      Liabilities  

Currency risk

      

Forward foreign currency contracts

    $ 111,562       $ (60,110 ) 

Interest rate risk

      

Futures contracts

      151,898         (147,447 ) 

Total

    $ 263,460       $ (207,557 ) 

 

(a) Includes cumulative appreciation (depreciation) of futures contracts and forward foreign currency contracts.

Effect of Derivative Investments for the nine months ended July 31, 2014

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

 

     Location of Gain (Loss) on Statement of
Operations		  
      Futures     Forward Foreign
Currency Contracts		  

Realized Gain (Loss)

     

Currency risk

    $ —      $ (214,705 ) 

Interest rate risk

      (471,245 )      —   

Change in Unrealized Appreciation (Depreciation)

     

Currency risk

      —        121,993   

Interest rate risk

      (2,720 )      —   

Total

    $ (473,965 )    $ (92,712 ) 

The table below summarizes the average notional value of futures contracts and forward foreign currency contracts outstanding during the period.

 

 

    Futures      Forward Foreign
Currency Contracts		  

Average notional value

    $ 29,782,580       $ 19,497,158   

 

Invesco International Total Return Fund

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

  12/05/2014

    State Street Bank & Trust Co.    AUD      1,700,000       USD      1,576,242         $1,565,613         $    10,629   

  12/05/2014

    State Street Bank & Trust Co.    GBP      500,000       USD      851,710         843,073         8,637   

  12/05/2014

    State Street Bank & Trust Co.    JPY      70,000,000       USD      680,901         681,181         (280)   

  12/05/2014

    State Street Bank & Trust Co.    MXN      7,000,000       USD      535,651         524,609         11,042   

  12/05/2014

    State Street Bank & Trust Co.    NOK      9,100,000       USD      1,455,546         1,441,009         14,537   

  12/05/2014

    State Street Bank & Trust Co.    NZD      3,600,000       USD      3,077,136         3,019,721         57,415   

  12/05/2014

    State Street Bank & Trust Co.    SEK      8,000,000       USD      1,168,368         1,159,066         9,302   

  12/05/2014

    Citigroup Global Markets Inc.    USD      803,772       EUR      600,000         803,755         (17)   

  12/05/2014

    State Street Bank & Trust Co.    USD      185,474       CAD      200,000         182,854         (2,620)   

  12/05/2014

    State Street Bank & Trust Co.    USD      2,285,079       EUR      1,700,000         2,277,306         (7,773)   

  12/05/2014

    State Street Bank & Trust Co.    USD      1,186,518       GBP      700,000         1,180,302         (6,216)   

  12/05/2014

    State Street Bank & Trust Co.    USD      2,562,069       JPY      260,000,000         2,530,101         (31,968)   

  12/05/2014

    State Street Bank & Trust Co.    USD      1,198,416       SEK      8,194,050         1,187,180         (11,236)   

 

  Total open forward foreign currency contracts – Currency Risk

  

                             $    51,452   

Currency Abbreviations:

 

AUD — Australian Dollar

CAD — Canadian Dollar

EUR — Euro

GBP — British Pound Sterling

JPY — Japanese Yen

MXN — Mexican New Peso

NOK — Norwegian Krona

NZD — New Zealand Dollar

SEK — Swedish Krona

USD — U.S. Dollar

 

 

Open Futures Contracts at Period-End(a)
     Type of   

Number of

    Expiration         Notional          

Unrealized

Appreciation

Futures Contracts    Contract    Contracts    Month          Value            (Depreciation)

Australia 10 Year Bonds

    Long           5            September-2014           $        561,735              $    (2,878)        

Euro BTP

    Long           15            September-2014           2,565,868              81,895        

Japanese 10 Year Mini Bonds

    Long              41               September-2014              5,816,770                 27,868        

Canada 10 Year Bonds

    Short           23            September-2014           (2,887,921)              (44,059)        

Euro Bonds

    Short           36            September-2014           (7,133,177)              (98,952)        

Long Gilt

    Short           10            September-2014           (1,868,499)              (1,558)        

U.S. Treasury 5 Year Notes

    Short           80            September-2014           (9,506,875)              13,001        

U.S. Treasury 10 Year Bonds

    Short           48            September-2014           (5,981,250)              19,022        

U.S. Ultra Bonds

    Short         6          September-2014         (905,063)            10,112      

  Total Futures Contracts – Interest Rate Risk

                                                 $      4,451        

 

(a)  Futures collateralized by $641,341 cash held with Bank of America Securities LLC, the futures commission merchant.

 

Invesco International Total Return 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 nine months ended July 31, 2014 was $100,029,819 and $93,043,158, respectively. Cost of investments on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end.

 

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

Aggregate unrealized appreciation of investment securities

    $

 

       1,880,325

 

   

 

Aggregate unrealized (depreciation) of investment securities

     

 

 (1,347,875)

 

   

 

Net unrealized appreciation of investment securities

 

    $

 

 532,450

 

   

 

Cost of investments for tax purposes is $57,065,570.

  

 

Invesco International Total Return Fund

 
Invesco Long/Short Equity Fund
Quarterly Schedule of Portfolio Holdings
July 31, 2014

 

 

 

LOGO         
  invesco.com/us    LSE-QTR-1    7/14    Invesco Advisers, Inc.

Schedule of Investments(a)

July 31, 2014

(Unaudited)

 

      Shares      Value  

Common Stocks & Other Equity Interests–95.25%

  

Aerospace & Defense–1.00%

      

L-3 Communications Holdings, Inc.

      3,350       $ 351,616   

Agricultural Products–1.43%

      

Archer-Daniels-Midland Co.

      100         4,640   

Ingredion Inc.

      6,740         496,266   
                500,906   

Air Freight & Logistics–1.10%

      

C.H. Robinson Worldwide, Inc.

      5,750         387,895   

Airlines–1.20%

      

Southwest Airlines Co.

      14,970         423,352   

Aluminum–1.48%

      

Alcoa Inc.

      31,660         518,907   

Brewers–1.31%

      

Molson Coors Brewing Co. -Class B

      6,820         460,555   

Building Products–1.26%

      

Masco Corp.

      21,350         444,080   

Cable & Satellite–1.17%

      

Cablevision Systems Corp. -Class A

      21,310         409,578   

Casinos & Gaming–1.03%

      

MGM Resorts International (b)

      13,480         361,803   

Coal & Consumable Fuels–1.45%

      

Peabody Energy Corp.

      33,700         511,229   

Communications Equipment–2.82%

      

F5 Networks, Inc. (b)

      4,750         534,803   

Juniper Networks, Inc. (b)

      19,310         454,557   
                989,360   

Computer & Electronics Retail–2.74%

      

Best Buy Co., Inc.

      14,530         431,977   

GameStop Corp. -Class A

      12,660         531,340   
                963,317   

Construction Machinery & Heavy Trucks–1.39%

  

Joy Global Inc.

      8,250         488,895   
      Shares      Value  

Consumer Electronics–1.32%

      

Harman International Industries, Inc.

      4,260       $ 462,423   

Data Processing & Outsourced Services–3.54%

  

Computer Sciences Corp.

      8,110         505,983   

Western Union Co. (The)

      18,150         317,081   

Xerox Corp.

      31,720         420,607   
                1,243,671   

Department Stores–0.52%

      

Kohl’s Corp.

      2,440         130,637   

Macy’s, Inc.

      920         53,167   
                183,804   

Diversified REIT’s–0.26%

      

Vornado Realty Trust

      860         91,177   

Diversified Support Services–0.52%

      

Cintas Corp.

      2,940         184,044   

Electric Utilities–2.51%

      

Edison International

      5,270         288,796   

Entergy Corp.

      5,370         391,097   

FirstEnergy Corp.

      6,500         202,865   
                882,758   

Electronic Manufacturing
Services–0.29%

  

Flextronics International Ltd. (b)

      9,750         101,303   

Gas Utilities–3.81%

      

AGL Resources Inc.

      9,350         482,834   

National Fuel Gas Co.

      5,250         361,777   

UGI Corp.

      10,190         494,623   
                1,339,234   

Gold–0.73%

      

Franco-Nevada Corp.

      4,530         256,172   

Health Care Equipment–2.53%

      

Boston Scientific Corp. (b)

      26,040         332,791   

C.R. Bard, Inc.

      2,810         419,337   

St. Jude Medical, Inc.

      2,070         134,943   
                887,071   

Health Care Services–0.95%

      

Omnicare, Inc.

      5,320         332,500   

Home Entertainment Software–1.46%

  

Electronic Arts Inc. (b)

      15,250         512,400   

Household Products–0.84%

      

Energizer Holdings, Inc. (Canada)

      2,580         296,081   
 

 

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

Invesco Long/Short Equity Fund

      Shares      Value  

Human Resource & Employment Services–1.45%

  

Manpowergroup Inc.

      6,530       $ 508,622   

Independent Power Producers & Energy Traders–1.11%

  

AES Corp. (The)

      26,790         391,402   

Industrial Machinery–1.21%

      

SPX Corp.

      4,300         426,259   

Integrated Telecommunication Services–1.72%

  

CenturyLink Inc.

      820         32,177   

Windstream Holdings Inc.

      49,960         572,541   
                604,718   

Internet Retail–1.60%

      

Expedia, Inc.

      6,480         514,641   

Lands’ End, Inc. (b)

      1,340         47,155   
                561,796   

Internet Software & Services–3.03%

      

AOL Inc. (Canada)(b)

      12,940         498,837   

VeriSign, Inc. (b)

      10,470         565,903   
                1,064,740   

IT Consulting & Other Services–1.35%

      

Leidos Holdings, Inc.

      12,800         472,832   

Life & Health Insurance–1.73%

      

Lincoln National Corp. (Canada)

      6,800         356,252   

Unum Group

      7,350         252,325   
                608,577   

Managed Health Care–0.46%

      

Humana Inc.

      1,360         160,004   

Marine–1.34%

      

Kirby Corp. (b)

      4,030         469,334   

Mortgage REIT’s–1.22%

      

Annaly Capital Management Inc.

      38,640         428,904   

Multi-Line Insurance–0.90%

      

Assurant, Inc.

      4,980         315,533   

Multi-Utilities–0.47%

      

Public Service Enterprise Group Inc.

      4,650         163,541   

Office Services & Supplies–1.53%

      

Pitney Bowes Inc.

      19,900         538,494   

Oil & Gas Drilling–2.74%

      

Helmerich & Payne, Inc.

      4,320         459,043   

Nabors Industries Ltd. (b)

      18,530         503,275   
                962,318   
      Shares      Value  

Oil & Gas Equipment & Services–1.36%

  

Seventy Seven Energy Inc. (b)

      165       $ 3,701   

Superior Energy Services, Inc.

      14,180         476,448   
                480,149   

Oil & Gas Exploration & Production–6.56%

  

Chesapeake Energy Corp.

      4,290         113,127   

Cimarex Energy Co.

      1,750         243,285   

Denbury Resources Inc.

      30,050         509,347   

Encana Corp. (b)

      17,870         385,098   

Newfield Exploration Co. (b)

      12,630         508,989   

Penn West Petroleum Ltd. (b)

      19,100         147,643   

Southwestern Energy Co. (b)

      3,270         132,697   

Talisman Energy Inc. (Canada)

      25,010         261,355   
                2,301,541   

Oil & Gas Refining & Marketing–1.61%

  

HollyFrontier Corp.

      11,510         541,085   

Valero Energy Corp.

      510         25,908   
                566,993   

Paper Packaging–0.70%

      

Sealed Air Corp.

      7,640         245,397   

Pharmaceuticals–0.16%

      

Mylan Inc. (b)

      1,170         57,763   

Publishing–0.15%

      

Time Inc. (b)

      2,150         51,815   

Reinsurance–1.47%

      

PartnerRe Ltd.

      4,950         516,582   

Residential REIT’s–0.96%

      

UDR, Inc.

      11,550         335,874   

Retail REIT’s–1.69%

      

Kimco Realty Corp.

      15,470         346,219   

Regency Centers Corp.

      3,950         214,722   

Washington Prime Group Inc. (b)

      1,825         34,474   
                595,415   

Security & Alarm Services–1.39%

      

ADT Corp. (The) (Canada)

      14,010         487,548   

Semiconductor Equipment–1.47%

      

Lam Research Corp.

      7,360         515,200   

Semiconductors–4.26%

      

Broadcom Corp. -Class A

      1,700         65,042   

Marvell Technology Group Ltd.

      39,100         521,594   

NVIDIA Corp.

      20,680         361,900   

Skyworks Solutions, Inc.

      10,760         546,178   
                1,494,714   

Silver–1.47%

      

Silver Wheaton Corp.

      19,730         515,150   

Soft Drinks–1.47%

      

Dr Pepper Snapple Group, Inc.

      8,780         515,913   
 

 

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

Invesco Long/Short Equity Fund

      Shares          Value    

Specialized Finance–1.26%

  

NASDAQ OMX Group, Inc. (The)

      10,520       $ 443,839   

Specialized REIT’s–1.41%

  

Extra Space Storage Inc.

      9,580         495,573   

Specialty Stores–0.75%

  

Staples, Inc.

      22,680         262,861   

Steel–1.81%

  

United States Steel Corp.

      18,950         634,635   

Systems Software–0.77%

  

CA, Inc.

      9,310         268,873   

Technology Distributors–0.88%

  

Arrow Electronics, Inc. (b)

      5,330         308,873   

Technology Hardware, Storage & Peripherals–3.06%

  

Lexmark International, Inc.
-Class A

      10,700         513,921   

NetApp, Inc.

      13,310         516,960   

Western Digital Corp.

      450         44,924   
                1,075,805   

Trading Companies & Distributors–0.07%

  

United Rentals, Inc. (b)

      230         24,357   

Total Common Stocks & Other Equity Interests
(Cost $32,499,446)

   

      33,456,075   
      Shares          Value    

Money Market Funds–6.49%

  

Liquid Assets Portfolio –Institutional Class (c)

      1,138,742       $ 1,138,742   

Premier Portfolio –Institutional Class (c)

      1,138,741         1,138,741   

Total Money Market Funds
(Cost $2,277,483)

   

      2,277,483   

TOTAL INVESTMENTS–101.74%
(Cost $34,776,929)

               35,733,558   

OTHER ASSETS LESS LIABILITIES–(1.74)%

  

      (610,220 ) 

NET ASSETS–100.00%

             $ 35,123,338   

Investment Abbreviations:

 

REIT —Real Estate Investment Trust

Notes to Schedule of Investments:

 

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

 

(b)  Non-income producing security.

 

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

 

Total return swaps outstanding as of July 31, 2014 were as follows:

 

Reference Entity           Counterparty         Expiration
Dates		    Floating Rate Index(1)     Notional
Amount		   

Unrealized

Appreciation

(Depreciation)(2)

      Net Value of
Reference
Entities		  

  Equity Securities Long

   Morgan Stanley & Co., LLC   12/21/2015    Federal Funds floating rate   $34,376,026      $(976,083)(3)         $33,370,649   

  Equity Securities Short

   Morgan Stanley & Co., LLC   12/21/2015    Federal Funds floating rate   (34,062,654)      545,964(4)         (33,490,397)   
                        $(430,119)            
 

(1)  The Fund receives or pays the total return on the long and short positions underlying the total return swap and pays or receives a specific Federal Funds floating rate.

 

(2)  Swaps collateralized by $52,464 cash held with Morgan Stanley & Co. LLC, the Counterparty.

 

(3)  Amount includes $29,294 of dividends receivable and fees from the Fund to the counterparty.

 

(4)  Amount includes $(26,293) of dividends payable and fees from the Fund to the counterparty.

 

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

Invesco Long/Short Equity Fund

The following table represents the individual long and short positions and related values of equity securities underlying the total return swap with Morgan Stanley & Co., LLC. as of July 31, 2014.

 

      Shares      Value  
Equity Securities Long  
Aerospace & Defense  

Boeing Co. (The)

      3,360       $ 404,812   

General Dynamics Corp.

      3,570         416,868   

Lockheed Martin Corp.

      3,200         534,303   

Northrop Grumman Corp.

      3,220         396,928   

Raytheon Co.

      5,400         490,157   
                2,243,068   

Agricultural Products

      

Archer-Daniels-Midland Co.

      11,550         535,919   

Airlines

      

Southwest Airlines Co.

      3,850         108,878   

Aluminum

      

Alcoa Inc.

      2,300         37,697   

Auto Parts & Equipment

  

Magna International Inc.

      4,220         453,228   

Biotechnology

      

Alexion Pharmaceuticals, Inc.

      3,200         508,768   

Brewers

      

Molson Coors Brewing Co.–Class B

      40         2,701   

Communications Equipment

  

Cisco Systems, Inc.

      18,300         461,709   

Juniper Networks, Inc.

      1,560         36,722   

QUALCOMM, Inc.

      6,480         477,706   
                976,137   

Computer & Electronics Retail

  

Best Buy Co., Inc.

      2,330         69,271   

Construction Machinery & Heavy Trucks

  

Caterpillar Inc.

      4,690         472,518   

Consumer Finance

      

Capital One Financial Corp.

      6,160         489,966   

Data Processing & Outsourced Services

  

Western Union Co. (The)

      340         5,940   

Xerox Corp.

      9,110         120,799   
                126,739   

Department Stores

      

Kohl’s Corp.

      5,980         320,169   

Macy’s, Inc.

      6,840         395,284   
                715,453   

Diversified Chemicals

      

Dow Chemical Co. (The)

      8,140         415,710   

Diversified REIT’s

      

Vornado Realty Trust

      2,900         307,458   
      Shares      Value  
Electric Utilities  

American Electric Power Co., Inc.

      2,740       $ 142,453   

Edison International

      3,630         198,924   

Entergy Corp.

      1,630         118,713   

Exelon Corp.

      16,650         517,482   

FirstEnergy Corp.

      7,000         218,470   
                1,196,042   

Electronic Components

  

Corning Inc.

      26,200         514,830   

Gold

      

Barrick Gold Corp.

      28,350         512,568   

Health Care Distributors

  

Cardinal Health, Inc.

      7,390         529,494   

Health Care Equipment

  

Boston Scientific Corp.

      1,400         17,892   

St. Jude Medical, Inc.

      3,160         206,000   
                223,892   

Health Care Services

  

Express Scripts Holding Co.

      7,800         543,270   

Human Resource & Employment Services

  

Manpowergroup Inc.

      20         1,558   

Hypermarkets & Super Centers

  

Wal-Mart Stores, Inc.

      6,780         498,872   

Industrial Conglomerates

  

General Electric Co.

      19,320         485,898   

Integrated Oil & Gas

  

Cenovus Energy Inc.

      6,900         211,830   

Hess Corp.

      5,040         498,859   

Suncor Energy, Inc.

      11,800         484,626   
                1,195,315   

Integrated Telecommunication Services

  

CenturyLink Inc.

      13,450         527,778   

Internet Retail

      

TripAdvisor Inc.

      1,950         184,938   

IT Consulting & Other Services

  

International Business Machines Corp.

      2,850         546,260   

Life & Health Insurance

  

Lincoln National Corp.

      3,120         163,457   

MetLife, Inc.

      4,950         260,370   
                423,827   

Life Sciences Tools & Services

  

Agilent Technologies, Inc.

      640         35,898   

Managed Health Care

  

Humana Inc.

      2,640         310,596   

UnitedHealth Group Inc.

      6,230         504,942   

WellPoint, Inc.

      4,730         519,401   
                1,334,939   
 

 

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

Invesco Long/Short Equity Fund

      Shares      Value  

Multi-Line Insurance

      

American International Group, Inc.

      8,490       $ 441,310   

Multi-Utilities

      

PG&E Corp.

      10,020         447,593   

Public Service Enterprise Group Inc.

      8,030         282,415   
                730,008   

Oil & Gas Drilling

      

Helmerich & Payne, Inc.

      230         24,440   

Oil & Gas Equipment & Services

  

Baker Hughes Inc.

      6,910         475,201   

Cameron International Corp.

      7,150         507,007   

Halliburton Co.

      7,170         494,658   

National Oilwell Varco Inc.

      6,180         500,827   

Seventy Seven Energy Inc.

      893         20,030   

Weatherford International PLC

      22,350         499,970   
                  2,497,693   

Oil & Gas Exploration & Production

  

Anadarko Petroleum Corp.

      4,670         498,990   

Apache Corp.

      5,120         525,619   

Canadian Natural Resources Ltd.

      11,240         490,064   

Chesapeake Energy Corp.

      15,060         397,132   

Cimarex Energy Co.

      1,250         173,775   

Crescent Point Energy Corp.

      2,550         104,091   

Devon Energy Corp.

      6,430         485,465   

Encana Corp.

      5,930         127,792   

EOG Resources, Inc.

      4,300         470,592   

Marathon Oil Corp.

      12,950         501,813   

Southwestern Energy Co.

      9,430         382,669   
                4,158,002   

Oil & Gas Refining & Marketing

  

Marathon Petroleum Corp.

      4,150         346,442   

Phillips 66

      4,580         371,484   

Valero Energy Corp.

      9,360         475,488   
                1,193,414   

Pharmaceuticals

      

Eli Lilly and Co.

      8,100         494,586   

Merck & Co., Inc.

      8,880         503,851   

Mylan Inc.

      8,740         431,494   

Pfizer Inc.

      17,210         493,927   
                1,923,858   
      Shares      Value  

Property & Casualty Insurance

  

Travelers Cos., Inc. (The)

      5,440       $ 487,206   

Railroads

      

Norfolk Southern Corp.

      2,430         247,034   

Residential REIT’s

      

AvalonBay Communities, Inc.

      3,500         518,280   

Retail REIT’s

      

General Growth Properties, Inc.

      21,670         506,428   

Simon Property Group, Inc.

      3,150         529,799   

Washington Prime Group Inc.

      875         16,529   
                  1,052,756   

Semiconductors

      

Broadcom Corp. –Class A

      12,760         488,198   

Intel Corp.

      2,500         84,725   

Micron Technology, Inc.

      15,870         484,829   
                1,057,752   

Specialized Finance

      

NASDAQ OMX Group, Inc. (The)

      80         3,375   

Specialized REIT’s

      

American Tower Corp.

      5,740         541,799   

Public Storage

      600         102,966   
                644,765   

Specialty Stores

      

Staples, Inc.

      1,200         13,908   

Systems Software

      

Oracle Corp.

      12,600         508,914   

Technology Hardware, Storage & Peripherals

  

Apple Inc.

      5,560         531,536   

Hewlett-Packard Co.

      15,060         536,287   

NetApp, Inc.

      1,080         41,947   

Western Digital Corp.

      5,050         504,444   
                1,614,214   

Trading Companies & Distributors

  

NOW Inc.

      1,082         34,830   

Total Equity Securities Long

             $ 33,370,649   
 

 

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

Invesco Long/Short Equity Fund

      Shares     Value  
Equity Securities Short   

Airlines

     

United Continental Holdings Inc.

      (11,100 )    $ (514,928 ) 

Apparel Retail

  

L Brands, Inc.

      (6,070 )      (351,877 ) 

Urban Outfitters, Inc.

      (9,520 )      (340,149 ) 
               (692,026 ) 

Apparel, Accessories & Luxury Goods

  

Gildan Activewear Inc.

      (1,570 )      (91,939 ) 

Lululemon Athletica Inc.

      (12,690 )      (488,121 ) 

Michael Kors Holdings Ltd.

      (6,050 )      (492,954 ) 

Under Armour, Inc.–Class A

      (7,400 )      (493,950 ) 
               (1,566,964 ) 

Application Software

  

Nuance Communications, Inc.

      (20,280 )      (368,690 ) 

salesforce.com, inc.

      (8,750 )      (474,688 ) 

Splunk Inc.

      (10,650 )      (500,763 ) 

Workday, Inc.–Class A

      (6,300 )      (528,192 ) 
               (1,872,333 ) 

Automobile Manufacturers

  

Tesla Motors, Inc.

      (2,250 )      (502,425 ) 

Automotive Retail

  

CarMax, Inc.

      (10,070 )      (491,517 ) 

Biotechnology

  

Biogen Idec Inc.

      (1,480 )      (494,897 ) 

BioMarin Pharmaceutical Inc.

      (6,650 )      (411,103 ) 
               (906,000 ) 

Building Products

  

Fortune Brands Home & Security Inc.

      (13,700 )      (517,723 ) 

Cable & Satellite

  

AMC Networks Inc.–Class A

      (8,540 )      (511,290 ) 

Charter Communications, Inc.–Class A

      (3,100 )      (479,012 ) 
               (990,302 ) 

Casinos & Gaming

  

Wynn Resorts Ltd.

      (2,050 )      (437,060 ) 

Commodity Chemicals

  

Methanex Corp.

      (7,500 )      (488,025 ) 

Construction & Engineering

  

Chicago Bridge & Iron Co. N.V.

      (8,350 )      (495,322 ) 

Data Processing & Outsourced Services

  

Alliance Data Systems Corp.

      (100 )      (26,229 ) 

MasterCard, Inc.–Class A

      (6,700 )      (496,805 ) 
               (523,034 ) 

Department Stores

  

J. C. Penney Co., Inc.

      (55,200 )      (517,776 ) 

Sears Holdings Corp.

      (13,450 )      (513,118 ) 
               (1,030,894 ) 
      Shares     Value  

Distributors

  

LKQ Corp.

      (19,270 )      $    (504,007 ) 

Diversified Chemicals

  

FMC Corp.

      (7,250 )      (472,845 ) 

Electronic Manufacturing Services

  

Trimble Navigation Ltd.

      (9,970 )      (308,073 ) 

Food Retail

  

Whole Foods Market, Inc.

      (13,260 )      (506,928 ) 

General Merchandise Stores

  

Target Corp.

      (8,350 )      (497,577 ) 

Health Care Facilities

  

Tenet Healthcare Corp.

      (9,400 )      (496,038 ) 

Catamaran Corp.

      (10,450 )      (475,371 ) 
               (971,409 ) 

Health Care Technology

  

Cerner Corp.

      (8,900 )      (491,280 ) 

Home Furnishings

  

Mohawk Industries, Inc.

      (4,000 )      (499,080 ) 

Homebuilding

  

D.R. Horton, Inc.

      (24,300 )      (503,010 ) 

Lennar Corp.–Class A

      (13,600 )      (492,728 ) 
               (995,738 ) 

Industrial Machinery

  

Colfax Corp.

      (6,450 )      (406,157 ) 

Insurance Brokers

  

Arthur J. Gallagher & Co.

      (8,160 )      (367,200 ) 

Integrated Oil & Gas

  

Chevron Corp.

      (3,940 )      (509,206 ) 

Internet Retail

  

Amazon.com, Inc.

      (1,580 )      (494,524 ) 

Internet Software & Services

  

Google Inc.–Class A

      (840 )      (486,822 ) 

LinkedIn Corp.–Class A

      (2,800 )      (505,792 ) 
               (992,614 ) 

IT Consulting & Other Services

  

CGI Group Inc.–Class A

      (6,900 )      (247,572 ) 

Leisure Products

  

Mattel, Inc.

      (10,340 )      (366,295 ) 

Polaris Industries Inc.

      (2,480 )      (365,899 ) 
               (732,194 ) 

Movies & Entertainment

  

Twenty-First Century Fox, Inc.–Class A

      (14,560 )      (461,115 ) 

Multi-line Insurance

  

Loews Corp.

      (10,440 )      (439,837 ) 
 

 

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

Invesco Long/Short Equity Fund

     Shares     Value  

Oil & Gas Drilling

  

Diamond Offshore Drilling, Inc.

     (10,370 )    $     (485,212 ) 

Rowan Cos. PLC–Class A

     (16,260 )      (496,255 ) 
              (981,467 ) 

Oil & Gas Equipment & Services

  

Schlumberger Ltd.

     (3,770 )      (408,630 ) 

Oil & Gas Exploration & Production

  

Cobalt International Energy, Inc.

     (31,650 )      (507,033 ) 

Oil & Gas Storage & Transportation

  

Cheniere Energy, Inc.

     (6,850 )      (484,706 ) 

Enbridge Inc.

     (10,050 )      (492,249 ) 
              (976,955 ) 

Paper Packaging

  

MeadWestvaco Corp.

     (2,640 )      (110,352 ) 

Pharmaceuticals

  

Bristol-Myers Squibb Co.

     (10,000 )      (506,200 ) 

Perrigo Co. PLC

     (3,250 )      (488,963 ) 
              (995,163 ) 

Property & Casualty Insurance

  

FNF Group

     (18,950 )      (513,735 ) 

Markel Corp.

     (100 )      (63,211 ) 
              (576,946 ) 

Railroads

  

Genesee & Wyoming Inc.–Class A

     (1,300 )      (129,649 ) 

Kansas City Southern

     (4,600 )      (501,676 ) 
              (631,325 ) 

Real Estate Services

  

Realogy Holdings Corp.

     (13,400 )      (492,584 ) 

Restaurants

  

Chipotle Mexican Grill, Inc.

     (740 )      (497,650 ) 

Panera Bread Co.–Class A

     (3,400 )      (500,820 ) 
              (998,470 ) 
     Shares     Value  

Semiconductors

  

Cree, Inc.

     (10,600 )    $ (500,638 ) 

Specialized Finance

  

Intercontinental Exchange, Inc.

     (2,600 )      (499,772 ) 

Specialty Stores

  

Dick’s Sporting Goods, Inc.

     (3,370 )      (143,326 ) 

Tiffany & Co.

     (5,110 )      (498,787 ) 

Ulta Salon, Cosmetics & Fragrance, Inc.

     (5,570 )      (514,278 ) 
              (1,156,391 ) 

Steel

  

Allegheny Technologies, Inc.

     (11,520 )      (433,728 ) 

Systems Software

  

NetSuite Inc.

     (5,960 )      (502,488 ) 

ServiceNow, Inc.

     (8,380 )      (492,744 ) 
              (995,232 ) 

Technology Hardware, Storage & Peripherals

  

NCR Corp.

     (16,500 )      (510,675 ) 

Thrifts & Mortgage Finance

  

Ocwen Financial Corp.

     (14,500 )      (437,465 ) 

Tires & Rubber

  

Goodyear Tire & Rubber Co. (The)

     (18,500 )      (465,828 ) 

Trading Companies & Distributors

  

Fastenal Co.

     (8,020 )      (355,727 ) 

MSC Industrial Direct Co., Inc.–Class A

     (1,890 )      (161,198 ) 
              (516,925 ) 

Wireless Telecommunication Services

  

SBA Communications Corp.–Class A

     (3,450 )      (368,909 ) 

Total Equity Securities Short

           $ (33,490,397 ) 
 

 

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

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

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

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

 

Invesco Long/Short Equity Fund

D. Swap Agreements – (continued)

Changes in the value of swap agreements are recognized as unrealized gains (losses) in the Statement of Operations by “marking to market” on a daily basis to reflect the value of the swap agreement at the end of each trading day. Payments received or paid at the beginning of the agreement are reflected as such on the Statement of Assets and Liabilities and may be referred to as upfront payments. The Fund accrues for the fixed payment stream and amortizes upfront payments, if any, on swap agreements on a daily basis with the net amount, recorded as a component of realized gain (loss) on the Statement of Operations. A liquidation payment received or made at the termination of a swap agreement is recorded as realized gain (loss) on the Statement of Operations. The Fund segregates liquid securities having a value at least equal to the amount of the potential obligation of a Fund under any swap transaction. Entering into these agreements involves, to varying degrees, lack of liquidity and elements of credit, market, and Counterparty risk in excess of amounts recognized on the Statement of Assets and Liabilities. Such risks involve the possibility that a swap is difficult to sell or liquidate; the Counterparty does not honor its obligations under the agreement and unfavorable interest rates and market fluctuations. It is possible that developments in the swaps market, including potential government regulation, could adversely affect the Fund’s ability to terminate existing swap agreements or to realize amounts to be received under such agreements.

E. Leverage Risk – Leverage exists when a Fund can lose more than it originally invests because it purchases or sells an instrument or enters into a transaction without investing an amount equal to the full economic exposure of the instrument or transaction.
F. Collateral – To the extent the Fund has designated or segregated a security as collateral and that security is subsequently sold, it is the Fund’s practice to replace such collateral no later than the next business day.

NOTE 2 — 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

    $ 35,733,558       $ —       $ —       $ 35,733,558   

  Swap Agreements*

      —             (430,119)         —         (430,119 ) 

Total Investments

    $     35,733,558       $ (430,119)       $ —       $     35,303,439   
* Unrealized appreciation (depreciation).

 

Invesco Long/Short Equity Fund

NOTE 3 — Derivative Investments

Value of Derivative Investments at Period-End

The table below summarizes the value of the Fund’s derivative investments, detailed by primary risk exposure, held as of July 31, 2014:

 

     Value
Risk Exposure/ Derivative Type    Assets    Liabilities

  Equity risk

      

Swap agreements

            $545,964                    $(976,083)        

Effect of Derivative Investments for the period December 19, 2013 (commencement date) to July 31, 2014

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

 

     Location of Gain (Loss)
on Statement of
Operations
      Swap Agreements

  Realized Gain

   

Equity risk

    $902,405

  Change in Unrealized Appreciation (Depreciation)

   

Equity risk

    (430,119)

  Total

    $472,286

The table below summarizes the average notional value of swap agreements outstanding during the period.

 

      Swap Agreements                

  Average notional value

    $35,627,438            

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 period December 19, 2013 (commencement date) to July 31, 2014 was $39,128,564 and $6,908,266, respectively. In a fund’s initial year of operations, the cost of investments for tax purposes will not reflect any tax adjustments until its fiscal year end reporting period.

 

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

Aggregate unrealized appreciation of investment securities

    $         1,545,121   

Aggregate unrealized (depreciation) of investment securities

      (588,492 ) 

Net unrealized appreciation of investment securities

    $ 956,629   

Cost of investments is the same for tax and financial reporting purposes.

   

 

Invesco Long/Short Equity Fund

 
Invesco Low Volatility Emerging Markets Fund
Quarterly Schedule of Portfolio Holdings
July 31, 2014

 

 

 

LOGO         
invesco.com/us    LVEM-QTR-1    7/14    Invesco Advisers, Inc.

Schedule of Investments

July 31, 2014

(Unaudited)

 

      Shares      Value      

Common Stocks & Other Equity Interests–95.57%

  

Brazil–15.00%

      

AES Tiete S.A. -Preference Shares

      4,000       $ 33,260   

Arteris S.A.

      2,400         18,623   

Banco Santander Brasil S.A. -ADR

      7,500         50,400   

CESP - Cia Energetica de Sao Paulo
-Class B -Preference Shares

      4,200         53,356   

Cia Brasileira de Distribuicao
-Preference Shares

      1,100         53,119   

Companhia Energetica de Minas Gerais -ADR

      7,192         59,119   

Companhia Paranaense de Energia - Copel
-Class B -Preference Shares

      1,200         18,592   

Estacio Participacoes S.A.

      4,100         50,857   

JBS S.A.

      9,200         34,094   

Kroton Educacional S.A.

      1,900         50,619   

M Dias Branco S.A.

      600         24,620   

MRV Engenharia e Participacoes S.A.

      17,700         56,780   

Multiplus S.A.

      1,700         24,907   

Porto Seguro S.A.

      4,000         55,310   

WEG S.A.

      910         10,991   
                594,647   

Chile–3.64%

      

Aguas Andinas S.A. -Class A

      16,538         10,464   

Banco de Chile

      308,317         38,322   

CAP S.A.

      900         12,193   

Compania Cervecerias Unidas S.A. -ADR

      1,200         27,072   

Enersis S.A.

      167,453         56,273   
                    144,324   

China–1.71%

      

Anhui Conch Cement Co. Ltd. -Class H

      14,500         54,574   

Shenzhen Expressway Co. Ltd. -Class H

      22,000         13,285   
                67,859   

Colombia–1.47%

      

Bancolombia S.A. -ADR

      700         43,687   

Cemex Latam Holdings S.A. (a)

      1,459         14,384   
                58,071   

Greece–1.50%

      

Hellenic Exchanges - Athens Stock
Exchange S.A. Holding

      1,558         15,402   

OPAP S.A.

      2,688         43,871   
                59,273   

Hong Kong–2.44%

      

China Resources Cement Holdings Ltd.

      62,000         44,872   

Huadian Power International Corp. Ltd.
-Class H

      84,000         51,757   
                96,629   
      Shares      Value      

Indonesia–4.16%

      

PT Astra Agro Lestari Tbk

      10,300       $ 23,749   

PT Indofood Sukses Makmur Tbk

      68,800         41,159   

PT Telekomunikasi Indonesia Persero Tbk

      247,900         56,476   

PT United Tractors Tbk

      22,000         43,506   
                164,890   

Malaysia–7.94%

      

AMMB Holdings Berhad

      25,400         55,012   

Axiata Group Berhad

      24,100         52,447   

British American Tobacco Malaysia Berhad

      700         15,417   

DiGi.Com Berhad

      6,600         11,725   

Hong Leong Financial Group Berhad

      2,100         11,490   

IJM Corp. Berhad

      24,600         51,404   

IOI Corp. Berhad

      33,900         53,040   

Malaysia Airports Holdings Berhad

      3,100         7,237   

Tenaga Nasional Berhad

      14,700         57,082   
                    314,854   

Mexico–4.49%

      

Gruma, S.A.B. de C.V. - Class B (a)

      4,200         46,096   

Grupo Aeroportuario del Pacifico
S.A.B. de C.V. -ADR

      400         26,928   

Grupo Mexico S.A.B. de C.V. -Series B

      16,400         58,352   

Grupo Sanborns S.A.B. de C.V.

      7,200         11,883   

Kimberly-Clark de Mexico, S.A.B. de C.V.
-Class A

      13,700         34,756   
                178,015   

Philippines–0.72%

      

DMCI Holdings Inc.

      16,960         28,386   

Poland–2.33%

      

Powszechna Kasa Oszczednosci Bank
Polski S.A.

      3,286         37,326   

Powszechny Zaklad Ubezpieczen S.A.

      392         55,080   
                92,406   

Russia–3.43%

      

LUKOIL OAO -ADR

      972         54,120   

MegaFon OAO -REGS -GDR(b)

      1,535         42,749   

NovaTek OAO -REGS -GDR(b)

      381         39,276   
                136,145   

South Africa–11.62%

      

African Rainbow Minerals Ltd.

      1,956         36,224   

AVI Ltd.

      3,443         19,492   

FirstRand Ltd.

      13,394         53,914   

Grindrod Ltd.

      3,780         9,216   

Imperial Holdings Ltd.

      2,818         51,877   

Kumba Iron Ore Ltd.

      229         7,997   

Liberty Holdings Ltd.

      1,476         17,827   

Mondi Ltd.

      1,447         25,406   

Mr. Price Group Ltd.

      2,001         37,730   

Netcare Ltd.

      22,293         64,135   
 

 

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

 

Invesco Low Volatility Emerging Markets Fund

      Shares      Value      

South Africa–(continued)

      

Omnia Holdings Ltd.

      586       $ 12,655   

PPC Ltd.

      5,271         15,810   

Sibanye Gold Ltd.

      14,487         34,425   

SPAR Group Ltd. (The)

      1,840         21,243   

Steinhoff International Holdings Ltd.

      10,561         52,795   
                460,746   

South Korea–19.44%

      

AMOREPACIFIC Group

      75         64,543   

Coway Co., Ltd.

      674         58,072   

E-Mart Co., Ltd.

      236         53,234   

Hanwha Corp.

      2,113         60,079   

Hyosung Corp.

      247         18,011   

Hyundai Marine & Fire Insurance Co., Ltd.

      1,972         58,434   

KCC Corp.

      89         52,518   

Kia Motors Corp.

      956         56,474   

KNB Financial Group Co., Ltd. (a)

      420         5,664   

KT&G Corp.

      609         58,788   

LG Hausys, Ltd.

      296         54,351   

Lotte Chilsung Beverage Co., Ltd.

      10         17,967   

LS Corp.

      789         55,963   

LS Industrial Systems Co., Ltd.

      370         22,767   

Samsung Electronics Co., Ltd.

      39         50,819   

SK Networks Co., Ltd. (a)

      2,288         25,034   

Woori Finance Holdings Co. Ltd. (a)

      4,255         57,942   
                770,660   

Taiwan–12.87%

      

Chunghwa Telecom Co., Ltd.

      8,000         24,373   

CTBC Financial Holding Co. Ltd.

      76,000         53,288   

Eternal Materials Co., Ltd.

      8,000         9,287   

Formosa Taffeta Co., Ltd.

      10,000         11,062   

Hon Hai Precision Industry Co., Ltd.

      16,000         54,599   

Inotera Memories Inc. (a)

      14,000         23,678   

Inventec Corp.

      43,000         38,066   

Pegatron Corp.

      28,000         52,688   

Pou Chen Corp.

      31,000         34,504   

Radiant Opto-Electronics Corp.

      11,000         45,626   

SinoPac Financial Holdings Co., Ltd.

      74,000         34,715   

Taishin Financial Holding Co., Ltd.

      82,000         43,781   

Taiwan Cement Corp.

      28,000         41,495   

Teco Electric & Machinery Co., Ltd.

      34,000         42,997   
                510,159   

Turkey–2.80%

      

TAV Havalimanlari Holding A.S.

      6,616         54,409   

Turkiye Is Bankasi -Class C

      3,246         9,003   

Ulker Biskuvi Sanayi A.S.

      6,134         47,519   
                110,931   

Total Common Stocks & Other Equity Interests (Cost $3,520,601)

               3,787,995   
      Shares      Value      

Money Market Funds–2.70%

  

Liquid Assets Portfolio –Institutional Class (c)

      53,505       $ 53,505   

Premier Portfolio –Institutional Class (c)

      53,505         53,505   

Total Money Market Funds (Cost $107,010)

  

      107,010   

TOTAL INVESTMENTS–98.27%
(Cost $3,627,611)

               3,895,005   

OTHER ASSETS LESS LIABILITIES–1.73%

  

      68,718   

NET ASSETS–100.00%

             $     3,963,723   

Investment Abbreviations:

 

ADR —American Depositary Receipt

 

GDR —Global Depositary Receipt

 

REGS —Regulation S

Notes to Schedule of Investments:

 

(a)  Non-income producing security.

 

(b)  Security purchased or received in a transaction exempt from registration under the Securities Act of 1933, as amended (the “1933 Act”). The security may be resold pursuant to an exemption from registration under the 1933 Act, typically to qualified institutional buyers. The aggregate value of these securities at July 31, 2014 was $82,025, which represented 2.07% of the Fund’s Net Assets.

 

(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 Low Volatility Emerging Markets 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 Low Volatility Emerging Markets 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 Low Volatility Emerging Markets 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.

F. Futures Contracts – The Fund may enter into futures contracts to manage exposure to interest rate, equity and market price movements and/or currency risks. A futures contract is an agreement between two parties to purchase or sell a specified underlying security, currency or commodity (or delivery of a cash settlement price, in the case of an index future) for a fixed price at a future date. The Fund currently invests only in exchange-traded futures and they are standardized as to maturity date and underlying financial instrument. Initial margin deposits required upon entering into futures contracts are satisfied by the segregation of specific securities or cash as collateral at the futures commission merchant (broker). During the period the futures contracts are open, changes in the value of the contracts are recognized as unrealized gains or losses by recalculating the value of the contracts on a daily basis. Subsequent or variation margin payments are received or made depending upon whether unrealized gains or losses are incurred. These amounts are reflected as receivables or payables on the Statement of Assets and Liabilities. When the contracts are closed or expire, the Fund recognizes a realized gain or loss equal to the difference between the proceeds from, or cost of, the closing transaction and the Fund’s basis in the contract. The net realized gain (loss) and the change in unrealized gain (loss) on futures contracts held during the period is included on the Statement of Operations. The primary risks associated with futures contracts are market risk and the absence of a liquid secondary market. If the Fund were unable to liquidate a futures contract and/or enter into an offsetting closing transaction, the Fund would continue to be subject to market risk with respect to the value of the contracts and continue to be required to maintain the margin deposits on the futures contracts. Futures contracts have minimal counterparty risk since the exchange’s clearinghouse, as counterparty to all exchange-traded futures, guarantees the futures against default. Risks may exceed amounts recognized in the Statement of Assets and Liabilities.
G. Collateral – To the extent the Fund has designated or segregated a security as collateral and that security is subsequently sold, it is the Fund’s practice to replace such collateral no later than the next business day.

 

Invesco Low Volatility Emerging Markets Fund

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.

During the period December 17, 2013 (commencement date) to July 31, 2014, there were transfers from Level 1 to Level 2 of $1,035,444 and from Level 2 to Level 1 of $167,934, due to foreign fair value adjustments.

 

      Level 1     Level 2      Level 3      Total  

Brazil

    $ 594,647      $ —       $ —       $ 594,647   

Chile

      144,324        —         —         144,324   

China

      13,285        54,574         —         67,859   

Colombia

      58,071        —         —         58,071   

Greece

      43,871        15,402         —         59,273   

Hong Kong

      —        96,629         —         96,629   

Indonesia

      67,255        97,635         —         164,890   

Malaysia

      53,040        261,814         —         314,854   

Mexico

      178,015        —         —         178,015   

Philippines

      —        28,386         —         28,386   

Poland

      —        92,406         —         92,406   

Russia

      —        136,145         —         136,145   

South Africa

      140,546        320,200         —         460,746   

South Korea

      61,627        709,033         —         770,660   

Taiwan

      —        510,159         —         510,159   

Turkey

      47,519        63,412         —         110,931   

United States

      107,010        —         —         107,010   
       1,509,210        2,385,795         —         3,895,005   

Futures*

      (2,781 )      —         —         (2,781 ) 

Total Investments

    $     1,506,429      $     2,385,795       $              —       $     3,892,224   

* Unrealized appreciation (depreciation).

 

Invesco Low Volatility Emerging Markets Fund

NOTE 3 — Derivative Investments

 

Open Futures Contracts at Period-End(a)
Futures Contracts    Type of
Contract		     

Number of

Contracts

     

Expiration

Month

     

Notional

Value

     

Unrealized

Appreciation

(Depreciation)

MSCI Emerging Markets Mini Index

    Long      2      September 2014      $105,460      $(2,781)
(a)  Futures collateralized by $4,300 cash held with Merrill Lynch, the futures commission merchant.

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 period December 17, 2013 (commencement date) to July 31, 2014 was $4,336,411 and $821,100, respectively. In a fund’s initial year of operations, the cost of investments for tax purposes will not reflect any tax adjustments until its fiscal year end reporting period.

 

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

Aggregate unrealized appreciation of investment securities

    $ 360,255   

Aggregate unrealized (depreciation) of investment securities

      (92,861)   

Net unrealized appreciation of investment securities

    $             267,394   

Cost of investments is the same for tax and financial reporting purposes.

   

 

Invesco Low Volatility Emerging Markets Fund

 
Invesco Macro International Equity Fund
Quarterly Schedule of Portfolio Holdings
July 31, 2014

 

 

 

 

LOGO         
invesco.com/us    MIE-QTR-1    7/14    Invesco Advisers, Inc.

Schedule of Investments

July 31, 2014

(Unaudited)

 

      Shares      Value  

Common Stocks & Other Equity Interests–88.70%

  

Australia–5.30%

  

AGL Energy Ltd.

      499       $     6,812   

ALS Ltd.

      865         6,229   

Alumina Ltd. (a)

      5,754         8,460   

Amcor Ltd.

      752         7,227   

AMP Ltd.

      1,521         7,676   

APA Group

      1,141         7,846   

Asciano Ltd.

      1,397         7,772   

ASX Ltd.

      218         7,289   

Aurizon Holdings Ltd.

      1,578         7,299   

AusNet Services (a)

      5,712         7,128   

Australia and New Zealand Banking Group Ltd.

      232         7,249   

Bank of Queensland Ltd.

      639         7,370   

Bendigo and Adelaide Bank Ltd.

      640         7,507   

BHP Billiton Ltd.

      213         7,573   

BlueScope Steel Ltd. (a)

      1,375         7,920   

Boral Ltd.

      1,505         7,405   

Brambles Ltd.

      867         7,529   

Caltex Australia Ltd.

      344         7,837   

CFS Retail Property Trust Group

      3,691         7,379   

Challenger Ltd.

      1,060         7,830   

Coca-Cola Amatil Ltd.

      857         7,336   

Cochlear Ltd.

      127         7,448   

Commonwealth Bank of Australia

      99         7,637   

Computershare Ltd.

      606         7,329   

Crown Resorts Ltd.

      523         7,839   

CSL Ltd.

      116         7,262   

Federation Centres

      3,084         7,321   

Fortescue Metals Group Ltd.

      1,854         8,326   

Iluka Resources Ltd.

      954         7,757   

Incitec Pivot Ltd.

      2,785         7,639   

Insurance Australia Group Ltd.

      1,397         8,121   

Leighton Holdings Ltd.

      386         7,818   

Lend Lease Group

      578         7,183   

Macquarie Group Ltd.

      129         6,952   

Metcash Ltd.

      2,825         7,551   

National Australia Bank Ltd.

      236         7,661   

Newcrest Mining Ltd. (a)

      709         7,140   

Oil Search Ltd.

      797         6,974   

Orica Ltd.

      410         8,294   

Origin Energy Ltd.

      519         6,845   

Primary Health Care Ltd.

      1,782         7,947   

Qantas Airways Ltd. (a)

      5,839         7,149   

QBE Insurance Group Ltd.

      704         7,132   

Ramsay Health Care Ltd.

      171         7,605   

Santos Ltd.

      548         7,360   

Seek Ltd.

      477         7,177   

Sonic Healthcare Ltd.

      461         7,717   

Suncorp Group Ltd.

      581         7,666   

Tabcorp Holdings Ltd.

      2,250         7,245   

Tatts Group Ltd.

      2,614         8,586   

Telstra Corp. Ltd.

      1,523         7,721   
      Shares      Value  

Australia–(continued)

  

Toll Holdings Ltd.

      1,553       $ 7,801   

Treasury Wine Estates Ltd.

      1,725         8,079   

Wesfarmers Ltd.

      184         7,453   

Westpac Banking Corp.

      223         7,096   

Woodside Petroleum Ltd.

      195         7,650   

Woolworths Ltd.

      221         7,519   

WorleyParsons Ltd.

      455         7,517   
                436,190   

Austria–0.22%

  

Erste Group Bank AG

      206         5,282   

OMV AG

      157         6,312   

Voestalpine AG

      142         6,245   
                17,839   

Belgium–0.49%

  

Ageas

      171         6,131   

Anheuser-Busch InBev N.V.

      62         6,702   

Delhaize Group S.A.

      104         6,774   

KBC Groep N.V. (a)

      124         6,705   

Solvay S.A.

      41         6,620   

UCB S.A.

      78         7,157   
                40,089   

Brazil–1.45%

  

Ambev S.A.

      900         6,218   

Banco Bradesco S.A. -Preference Shares

      400         6,134   

BB Seguridade Participacoes S.A.

      400         5,813   

BRF S.A.

      300         7,350   

Cia Brasileira de Distribuicao -Preference Shares

      100         4,829   

Cielo S.A.

      400         7,325   

Ecorodovias Infraestrutura e Logistica S.A.

      900         5,386   

Hypermarcas S.A. (a)

      800         6,405   

Itau Unibanco Holding S.A. -Preference Shares

      450         6,960   

Itausa - Investimentos Itau S.A. -Preference Shares

      1,570         6,565   

Lojas Americanas S.A. -Preference Shares

      1,025         6,527   

M Dias Branco S.A.

      100         4,103   

Multiplan Empreendimentos Imobiliarios S.A.

      300         7,136   

Souza Cruz S.A.

      600         5,576   

Telefonica Brasil S.A. -Preference Shares

      300         6,033   

Tractebel Energia S.A.

      400         5,993   

Transmissora Alianca de Energia Eletrica S.A. (b)

      700         6,385   

Ultrapar Participacoes S.A.

      300         6,881   

WEG S.A.

      650         7,851   
                119,470   
 

 

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

Invesco Macro International Equity Fund

      Shares      Value  

Chile–0.61%

  

Banco de Chile

      56,958       $ 7,080   

Banco Santander Chile

      93,729         5,952   

Cia Cervecerias Unidas S.A.

      543         6,103   

Empresa Nacional de Electricidad S.A.

      4,809         7,139   

Empresa Nacional de Telecomunicaciones S.A.

      468         5,684   

Empresas COPEC S.A.

      485         5,939   

Enersis S.A.

      20,996         7,056   

S.A.C.I. Falabella

      715         5,668   
                50,621   

China–2.16%

  

AAC Technologies Holdings Inc.

      1,000         5,954   

Agricultural Bank of China Ltd. -Class H

      12,000         5,846   

Bank of China Ltd. -Class H

      14,000         6,696   

Bank of Communications Co. Ltd.
-Class H

      9,000         6,910   

Belle International Holdings Ltd.

      7,000         8,724   

China Construction Bank Corp. -Class H

      8,000         6,153   

China Mobile Ltd.

      1,000         11,061   

China Telecom Corp. Ltd. -Class H

      12,000         6,731   

CNOOC Ltd.

      3,000         5,323   

ENN Energy Holdings Ltd.

      2,000         14,141   

Evergrande Real Estate Group Ltd.

      19,000         8,219   

GCL-Poly Energy Holdings Ltd. (a)

      23,000         7,414   

Hengan International Group Co. Ltd.

      500         5,354   

Industrial & Commercial Bank of China Ltd.
-Class H

      9,000         6,168   

People’s Insurance Co. (Group) of China Ltd.
-Class H

      16,000         7,086   

PetroChina Co. Ltd. -Class H

      6,000         7,855   

Shanghai Industrial Holdings Ltd.

      2,000         6,671   

Shimao Property Holdings Ltd.

      4,000         9,243   

SOHO China Ltd.

      8,500         7,141   

Sun Art Retail Group Ltd.

      11,500         14,349   

Tencent Holdings Ltd.

      500         8,084   

Tingyi (Cayman Islands) Holding Corp.

      2,000         5,690   

Want Want China Holdings Ltd.

      5,000         6,839   
                177,652   

Colombia–0.51%

  

Bancolombia S.A.

      478         7,209   

Bancolombia S.A. -Preference Shares

      515         7,959   

Cementos Argos S.A.

      981         5,751   

Ecopetrol S.A.

      3,408         5,775   

Grupo de Inversiones Suramericana S.A.

      335         7,462   

Grupo de Inversiones Suramericana S.A.
-Preference Shares

      356         7,528   
                41,684   

Czech Republic–0.14%

  

Komercni Banka A.S.

      27         5,876   

O2 Czech Republic A.S.

      441         5,819   
                11,695   
      Shares      Value  

Denmark–0.65%

  

A. P. Moller - Maersk AS -Class B

      4       $ 9,290   

Carlsberg AS -Class B

      92         8,795   

Coloplast AS -Class B

      102         8,611   

Danske Bank AS

      328         9,466   

Novo Nordisk AS -Class B

      199         9,183   

Vestas Wind Systems AS (a)

      182         8,163   
                53,508   

Finland–0.56%

  

Fortum Oyj

      257         6,594   

Kone Oyj -Class B

      159         6,682   

Nokia Oyj

      877         6,908   

Sampo Oyj -Class A

      129         6,405   

Stora Enso Oyj -Class R

      681         6,115   

UPM-Kymmene Oyj

      389         6,323   

Wartsila OYJ Abp

      134         6,767   
                45,794   

France–3.65%

  

Accor S.A.

      131         6,324   

Air Liquide S.A.

      57         7,252   

Airbus Group N.V.

      101         5,840   

Alcatel-Lucent (a)

      1,942         6,823   

Alstom S.A. (a)

      182         6,552   

Arkema S.A.

      70         6,506   

AXA S.A.

      283         6,480   

BNP Paribas S.A.

      99         6,528   

Bouygues S.A.

      155         6,100   

Bureau Veritas S.A.

      245         6,298   

Cap Gemini S.A.

      94         6,795   

Carrefour S.A.

      194         6,695   

Casino Guichard-Perrachon S.A.

      54         6,503   

Christian Dior S.A.

      34         5,908   

Cie Generale des Etablissements Michelin

      56         6,133   

Compagnie de Saint-Gobain

      117         5,670   

Credit Agricole S.A.

      457         6,192   

Danone

      94         6,788   

Dassault Systemes S.A.

      110         7,356   

Edenred

      235         7,328   

Electricite de France S.A.

      211         6,820   

Essilor International S.A.

      63         6,132   

GDF Suez

      237         6,071   

Kering

      31         6,616   

L’Oreal S.A.

      40         6,754   

Lafarge S.A.

      79         6,144   

Legrand S.A.

      111         6,130   

LVMH Moet Hennessy Louis Vuitton S.A.

      36         6,176   

Orange S.A.

      452         7,075   

Pernod Ricard S.A.

      56         6,276   

Publicis Groupe S.A.

      82         5,953   

Renault S.A.

      75         6,233   

Safran S.A.

      104         6,090   

Sanofi

      63         6,609   

Schneider Electric S.E.

      72         6,056   

SCOR S.E.

      199         6,386   

Societe Generale S.A.

      125         6,246   

Sodexo

      62         6,174   

Suez Environnement Co.

      340         6,318   
 

 

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

Invesco Macro International Equity Fund

      Shares      Value  

France–(continued)

  

Technip S.A.

      64       $ 5,885   

Total S.A.

      98         6,321   

Valeo S.A.

      51         6,085   

Vallourec S.A.

      152         6,698   

Veolia Environnement S.A.

      348         6,131   

Vinci S.A.

      87         5,986   

Vivendi S.A.

      267         6,698   

Zodiac Aerospace

      199         6,207   
                300,341   

Germany–2.71%

  

adidas AG

      67         5,329   

Allianz S.E.

      39         6,518   

BASF S.E.

      59         6,133   

Bayer AG

      49         6,490   

Bayerische Motoren Werke AG

      54         6,456   

Beiersdorf AG

      71         6,420   

Brenntag AG

      35         5,619   

Commerzbank AG (a)

      424         6,123   

Continental AG

      29         6,271   

Daimler AG

      73         6,048   

Deutsche Bank AG

      189         6,498   

Deutsche Boerse AG

      92         6,694   

Deutsche Lufthansa AG

      323         5,741   

Deutsche Post AG

      194         6,223   

Deutsche Telekom AG

      403         6,527   

E.ON S.E.

      342         6,470   

Fresenius Medical Care AG & Co. KGaA

      108         7,505   

Fresenius S.E. & Co. KGaA

      46         6,892   

GEA Group AG

      140         6,297   

HeidelbergCement AG

      76         5,661   

Henkel AG & Co. KGaA -Preference Shares

      61         6,813   

Infineon Technologies AG

      553         6,127   

K+S AG

      204         6,296   

LANXESS AG

      100         6,368   

Linde AG

      33         6,756   

Merck KGaA

      78         6,932   

Metro AG (a)

      161         5,825   

Muenchener Rueckversicherungs-Gesellschaft AG

      31         6,594   

Porsche Automobil Holding S.E. -Preference Shares

      65         6,085   

ProSiebenSat.1 Media AG

      147         6,179   

RWE AG

      160         6,439   

SAP S.E.

      89         7,014   

Siemens AG

      51         6,309   

ThyssenKrupp AG (a)

      244         6,914   

Volkswagen AG -Preference Shares

      26         6,076   
                222,642   

Greece–0.06%

  

National Bank of Greece S.A. (a)

      1,568         4,940   
      Shares      Value  

Hong Kong–3.80%

  

AIA Group Ltd.

      1,400       $ 7,508   

ASM Pacific Technology Ltd.

      600         6,375   

Bank of East Asia, Ltd. (The)

      1,800         7,675   

Cheung Kong Infrastructure Holdings Ltd.

      1,000         7,050   

China Gas Holdings Ltd.

      4,000         7,719   

CLP Holdings Ltd.

      1,000         8,308   

Dairy Farm International Holdings Ltd.

      900         9,621   

Espirit Holdings Ltd.

      5,300         8,329   

First Pacific Co. Ltd.

      6,000         7,224   

Galaxy Entertainment Group Ltd.

      1,000         8,381   

Global Brands Group Holding Ltd. (a)

      4,000         1,048   

Hang Lung Group Ltd.

      1,000         5,366   

Hang Lung Properties Ltd.

      2,000         6,175   

Hang Seng Bank Ltd.

      400         6,790   

Henderson Land Development Co. Ltd.

      1,100         7,009   

HKT Trust and HKT Ltd.

      7,000         8,267   

Hong Kong and China Gas Co. Ltd.

      3,300         7,197   

Hong Kong Exchanges & Clearing Ltd.

      400         8,899   

Hongkong Land Holdings Ltd.

      1,000         6,830   

Hutchison Whampoa Ltd.

      1,000         13,621   

Hysan Development Co. Ltd.

      2,000         9,589   

Kerry Properties Ltd.

      2,000         7,332   

Li & Fung Ltd.

      4,000         5,344   

Link REIT (The)

      1,500         8,506   

MTR Corp. Ltd.

      2,000         7,874   

New World Development Co. Ltd.

      6,000         7,583   

Noble Group Ltd.

      7,000         7,953   

Power Assets Holdings Ltd.

      1,000         8,935   

Sands China Ltd.

      1,200         8,801   

Shangri-La Asia Ltd.

      4,000         6,348   

Sino Land Co. Ltd.

      4,000         6,872   

SJM Holdings Ltd.

      3,000         8,040   

Sun Hung Kai Properties Ltd.

      1,000         15,149   

Swire Pacific Ltd. -Class A

      500         6,424   

Swire Properties Ltd.

      2,400         7,805   

Techtronic Industries Co. Ltd.

      2,500         7,526   

Wharf Holdings Ltd. (The)

      1,000         7,994   

Wheelock and Co. Ltd.

      2,000         10,090   

Wing Hang Bank Ltd.

      500         8,064   

Yue Yuen Industrial (Holdings) Ltd.

      2,000         6,708   
                312,329   

Hungary–0.13%

  

MOL Hungarian Oil and Gas PLC

      111         5,371   

Richter Gedeon Nyrt

      319         5,239   
                10,610   

India–0.07%

  

Infosys Ltd. -ADR

      111         6,085   

Indonesia–0.19%

  

Golden Agri-Resources Ltd.

      16,000         6,836   

PT Trada Maritime Tbk (a)

      53,100         8,460   
                15,296   
 

 

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

Invesco Macro International Equity Fund

      Shares      Value  

Ireland–0.56%

  

CRH PLC

      252       $ 5,888   

Kerry Group PLC -Class A

      92         6,822   

Shire PLC

      401         33,111   
                45,821   

Italy–1.10%

  

Assicurazioni Generali S.p.A.

      309         6,445   

Atlantia S.p.A

      253         6,687   

Enel S.p.A.

      1,147         6,518   

Eni S.p.A.

      264         6,710   

Fiat S.p.A. (a)

      672         6,470   

Intesa Sanpaolo S.p.A.

      2,147         6,354   

Luxottica Group S.p.A.

      119         6,571   

Prada S.p.A.

      1,000         7,063   

Saipem S.p.A. (a)

      244         5,676   

Snam S.p.A.

      1,150         6,776   

Telecom Italia S.p.A. (a)

      5,678         6,540   

Terna - Rete Elettrica Nazionale S.p.A.

      1,206         6,335   

UniCredit S.p.A.

      770         5,998   

Unione di Banche Italiane S.C.p.A.

      749         6,146   
                90,289   

Japan–17.90%

  

Aeon Co., Ltd.

      600         6,747   

Aisin Seiki Co., Ltd.

      100         3,888   

Amada Co., Ltd.

      600         5,850   

ANA Holdings Inc.

      4,000         9,927   

Aozora Bank, Ltd.

      2,000         6,816   

Asahi Glass Co., Ltd.

      1,000         5,942   

Asahi Group Holdings, Ltd.

      200         6,060   

Asahi Kasei Corp.

      1,000         7,910   

ASICS Corp.

      300         6,365   

Astellas Pharma Inc.

      500         6,713   

Bank of Kyoto, Ltd. (The)

      1,000         9,105   

Bank of Yokohama, Ltd. (The)

      1,000         5,715   

Benesse Holdings, Inc.

      100         3,776   

Bridgestone Corp.

      200         7,218   

Brother Industries, Ltd.

      300         5,406   

Canon Inc.

      200         6,546   

Casio Computer Co., Ltd.

      500         8,391   

Chiba Bank, Ltd. (The)

      1,000         7,294   

Chubu Electric Power Co., Inc. (a)

      600         6,986   

Chugai Pharmaceutical Co., Ltd.

      200         6,661   

Chugoku Bank, Ltd. (The)

      500         7,629   

Chugoku Electric Power Co., Inc. (The)

      500         6,665   

Credit Saison Co., Ltd.

      300         5,941   

Dai Nippon Printing Co., Ltd.

      1,000         10,265   

Dai-ichi Life Insurance Co. Ltd. (The)

      500         7,086   

Daihatsu Motor Co., Ltd.

      300         5,352   

Daiichi Sankyo Co., Ltd.

      300         5,457   

Daikin Industries, Ltd.

      100         6,900   

Daito Trust Construction Co., Ltd.

      100         12,074   

Daiwa Securities Group Inc.

      1,000         8,423   

Denso Corp.

      100         4,611   

Dentsu Inc.

      100         3,972   

East Japan Railway Co.

      100         8,039   

Eisai Co., Ltd.

      100         4,249   

Electric Power Development Co., Ltd.

      200         6,442   
      Shares      Value  

Japan–(continued)

  

FamilyMart Co., Ltd.

      100       $ 4,485   

Fuji Heavy Industries Ltd.

      200         5,695   

Fuji Media Holdings, Inc.

      300         4,809   

FUJIFILM Holdings Corp.

      200         5,712   

Fujitsu Ltd.

      1,000         7,693   

Fukuoka Financial Group, Inc.

      1,000         5,131   

GungHo Online Entertainment, Inc.

      1,000         5,620   

Gunma Bank, Ltd. (The)

      1,000         5,890   

Hachijuni Bank, Ltd. (The)

      1,000         6,173   

Hamamatsu Photonics K.K.

      100         4,713   

Hankyu Hanshin Holdings, Inc.

      1,000         5,825   

Hino Motors, Ltd.

      500         6,934   

Hiroshima Bank, Ltd. (The)

      1,000         4,865   

Hisamitsu Pharmaceutical Co., Inc.

      100         3,979   

Hitachi, Ltd.

      1,000         7,785   

Hokuhoku Financial Group, Inc.

      3,000         6,172   

Hokuriku Electric Power Co.

      600         7,782   

Honda Motor Co., Ltd.

      200         6,940   

Hoya Corp.

      200         6,502   

Hulic Co., Ltd.

      500         5,908   

Idemitsu Kosan Co., Ltd.

      300         6,157   

IHI Corp.

      1,000         4,651   

INPEX Corp.

      500         7,428   

Isetan Mitsukoshi Holdings Ltd.

      600         7,480   

Isuzu Motors Ltd.

      1,000         6,964   

ITOCHU Corp.

      600         7,678   

Iyo Bank, Ltd. (The)

      700         7,097   

J. Front Retailing Co., Ltd.

      1,000         6,690   

Japan Airlines Co. Ltd.

      100         5,535   

Japan Exchange Group Inc.

      200         4,565   

Japan Real Estate Investment Corp.

      1         5,658   

Japan Retail Fund Investment Corp.

      3         6,630   

Japan Tobacco, Inc.

      200         6,979   

JFE Holdings, Inc.

      300         6,332   

Joyo Bank, Ltd. (The)

      1,000         5,334   

JSR Corp.

      300         5,185   

JTEKT Corp.

      300         5,194   

JX Holdings, Inc.

      1,200         6,198   

Kajima Corp.

      1,000         4,673   

Kansai Electric Power Co., Inc. (The) (a)

      700         6,347   

Kao Corp.

      100         4,114   

Kawasaki Heavy Industries, Ltd.

      2,000         7,809   

KDDI Corp.

      100         5,760   

Keikyu Corp.

      1,000         8,827   

Keio Corp.

      1,000         8,008   

Keisei Electric Railway Co., Ltd.

      1,000         10,293   

Kintetsu Corp.

      2,000         7,289   

Kirin Holdings Co., Ltd.

      500         7,011   

Kobe Steel, Ltd.

      5,000         8,146   

Komatsu Ltd.

      300         6,598   

Konica Minolta Inc.

      700         7,504   

Kuraray Co., Ltd.

      600         7,895   

Kurita Water Industries Ltd.

      400         9,244   

Kyocera Corp.

      100         4,843   

Kyushu Electric Power Co., Inc. (a)

      600         6,677   

Lawson, Inc.

      100         7,494   

LIXIL Group Corp.

      200         4,871   

Makita Corp.

      100         5,890   

Marubeni Corp.

      1,000         7,059   
 

 

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

Invesco Macro International Equity Fund

      Shares      Value  

Japan–(continued)

  

Marui Group Co., Ltd.

      700       $ 6,690   

Mazda Motor Corp.

      200         4,799   

Medipal Holdings Corp.

      500         6,321   

MEIJI Holdings Co., Ltd.

      100         7,190   

Minebea Co., Ltd.

      1,000         11,873   

Mitsubishi Chemical Holdings Corp.

      1,500         6,580   

Mitsubishi Corp.

      300         6,328   

Mitsubishi Gas Chemical Co., Inc.

      1,000         6,494   

Mitsubishi Heavy Industries, Ltd.

      1,000         6,527   

Mitsubishi Materials Corp.

      2,000         7,321   

Mitsubishi Motors Corp.

      600         6,850   

Mitsubishi Tanabe Pharma Corp.

      500         7,282   

Mitsubishi UFJ Financial Group, Inc.

      1,000         5,920   

Mitsui & Co., Ltd.

      500         8,032   

Mitsui Chemicals, Inc.

      2,000         5,405   

Mitsui O.S.K. Lines, Ltd.

      2,000         7,410   

Mizuho Financial Group, Inc.

      3,300         6,426   

MS&AD Insurance Group Holdings, Inc.

      200         4,573   

Murata Manufacturing Co., Ltd.

      100         9,548   

Nagoya Railroad Co., Ltd.

      2,000         8,393   

Namco Bandai Holdings Inc.

      400         10,143   

NEC Corp.

      2,000         7,751   

Nidec Corp.

      100         6,522   

Nikon Corp.

      500         7,795   

Nippon Building Fund Inc.

      1         5,623   

Nippon Express Co., Ltd.

      1,000         4,842   

Nippon Prologis REIT Inc.

      4         9,345   

Nippon Steel & Sumitomo Metal Corp.

      2,000         6,058   

Nippon Telegraph & Telephone Corp.

      100         6,648   

Nippon Television Holdings, Inc.

      300         5,098   

Nippon Yusen Kabushiki Kaisha

      2,000         5,731   

Nissan Motor Co., Ltd.

      700         6,903   

Nisshin Seifun Group Inc.

      600         7,010   

Nissin Foods Holdings Co., Ltd.

      100         5,475   

Nitori Holdings Co., Ltd.

      100         5,629   

Nitto Denko Corp.

      100         4,512   

NKSJ Holdings, Inc.

      200         5,072   

Nomura Holdings, Inc.

      900         5,690   

Nomura Research Institute, Ltd.

      200         6,306   

NTT Data Corp.

      200         7,609   

NTT DoCoMo, Inc.

      300         5,290   

Obayashi Corp.

      1,000         7,322   

Odakyu Electric Railway Co., Ltd.

      1,000         9,814   

Oji Holdings Corp.

      1,000         4,030   

Olympus Corp. (a)

      200         7,084   

OMRON Corp.

      100         4,425   

Ono Pharmaceutical Co., Ltd.

      100         8,492   

ORIX Corp.

      500         8,129   

Osaka Gas Co., Ltd.

      1,000         4,161   

Otsuka Holdings Co., Ltd.

      200         6,364   

Panasonic Corp.

      600         7,252   

Rakuten Inc.

      600         7,904   

Renesas Electronics Corp. (a)

      800         5,890   

Resona Holdings, Inc.

      1,100         6,060   

Ricoh Co., Ltd.

      600         6,804   

Rinnai Corp.

      100         9,147   

Rohm Co. Ltd.

      100         5,693   

Santen Pharmaceutical Co., Ltd.

      100         5,882   
      Shares      Value  

Japan–(continued)

  

SECOM Co., Ltd.

      100       $ 6,102   

Sega Sammy Holdings Inc.

      300         5,960   

Seiko Epson Corp.

      100         4,214   

Sekisui Chemical Co., Ltd.

      1,000         11,981   

Sekisui House, Ltd.

      500         6,559   

Seven & I Holdings Co., Ltd.

      100         4,174   

Sharp Corp. (a)

      2,000         6,126   

Shikoku Electric Power Co. Inc. (a)

      500         6,593   

Shimadzu Corp.

      1,000         9,563   

Shimamura Co., Ltd.

      100         9,937   

Shimano Inc.

      100         11,673   

Shimizu Corp.

      1,000         7,665   

Shin-Etsu Chemical Co., Ltd.

      100         6,348   

Shinsei Bank, Ltd.

      3,000         6,334   

Shionogi & Co., Ltd.

      300         6,474   

Shiseido Co., Ltd.

      300         5,937   

Shizuoka Bank, Ltd. (The)

      1,000         10,801   

SoftBank Corp.

      100         7,090   

Sony Corp.

      500         9,099   

Sony Financial Holdings Inc.

      300         4,936   

Stanley Electric Co., Ltd.

      200         5,197   

Sumitomo Chemical Co., Ltd.

      2,000         7,534   

Sumitomo Corp.

      500         6,546   

Sumitomo Electric Industries, Ltd.

      500         7,331   

Sumitomo Heavy Industries, Ltd.

      1,000         4,909   

Sumitomo Mitsui Financial Group, Inc.

      100         4,094   

Sumitomo Mitsui Trust Holdings, Inc.

      1,000         4,350   

Suntory Beverage & Food Ltd.

      200         7,517   

Suzuken Co., Ltd.

      200         6,394   

Suzuki Motor Corp.

      200         6,681   

Sysmex Corp.

      200         7,796   

T&D Holdings, Inc.

      500         6,298   

Taiheiyo Cement Corp.

      1,000         3,896   

Taisei Corp.

      1,000         5,669   

Taisho Pharmaceutical Holdings Co. Ltd.

      100         7,127   

Takashimaya Co., Ltd.

      1,000         9,210   

Takeda Pharmaceutical Co. Ltd.

      100         4,570   

TDK Corp.

      100         4,793   

Teijin Ltd.

      4,000         9,918   

Terumo Corp.

      300         6,815   

THK Co., Ltd.

      200         4,817   

Tobu Railway Co., Ltd.

      1,000         5,248   

Toho Co., Ltd.

      400         9,731   

Toho Gas Co., Ltd.

      1,000         5,536   

Tohoku Electric Power Co., Inc.

      600         6,565   

Tokio Marine Holdings, Inc.

      200         6,300   

Tokyo Electric Power Co. Inc. (a)

      1,500         5,867   

Tokyo Electron Ltd.

      100         6,469   

Tokyo Gas Co., Ltd.

      1,000         5,723   

Tokyo Tatemono Co., Ltd.

      1,000         8,559   

Tokyu Corp.

      1,000         7,216   

TonenGeneral Sekiyu K.K.

      1,000         8,748   

Toppan Printing Co. Ltd.

      1,000         7,642   

Toray Industries, Inc.

      1,000         6,780   

Toshiba Corp.

      1,000         4,453   

Toyo Seikan Group Holdings Ltd.

      500         7,798   

Toyota Industries Corp.

      100         4,878   

Toyota Motor Corp.

      100         5,916   
 

 

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

Invesco Macro International Equity Fund

      Shares      Value  

Japan–(continued)

  

Toyota Tsusho Corp.

      200       $ 5,576   

Trend Micro Inc.

      200         7,127   

Unicharm Corp.

      100         6,135   

West Japan Railway Co.

      100         4,545   

Yahoo Japan Corp.

      1,300         5,785   

Yakult Honsha Co., Ltd.

      100         5,300   

Yamada Denki Co., Ltd.

      1,700         6,056   

Yamaguchi Financial Group, Inc.

      1,000         10,266   

Yamaha Motor Co., Ltd.

      300         4,988   

Yamato Holdings Co., Ltd.

      300         6,198   

Yaskawa Electric Corp.

      600         7,823   

Yokogawa Electric Corp.

      600         7,421   
                1,472,285   

Luxembourg–0.16%

  

ArcelorMittal S.A.

      460         6,973   

Tenaris S.A.

      299         6,434   
                13,407   

Macau–0.10%

  

Wynn Macau, Ltd.

      2,000         8,497   

Malaysia–3.08%

  

AMMB Holdings Berhad

      5,200         11,262   

Axiata Group Berhad

      7,300         15,887   

British American Tobacco Malaysia Berhad

      488         10,748   

Bumi Armada Berhad

      6,600         6,939   

CIMB Group Holdings Berhad

      4,300         9,391   

DiGi.Com Berhad

      6,400         11,370   

Gamuda Berhad

      5,100         7,628   

Genting Berhad

      2,400         7,405   

Genting Malaysia Berhad

      4,700         6,454   

IHH Healthcare Berhad

      6,600         9,707   

IJM Corp. Berhad

      4,200         8,776   

IOI Corp. Berhad

      4,600         7,197   

Kuala Lumpur Kepong Berhad

      1,100         8,158   

Malayan Banking Berhad

      3,700         11,430   

Malaysia Airports Holdings Berhad

      2,400         5,603   

Maxis Berhad

      6,500         13,739   

MISC Berhad

      3,100         6,276   

Petronas Chemicals Group Berhad

      5,000         10,389   

Petronas Dagangan Berhad

      1,000         5,820   

Petronas Gas Berhad

      1,100         8,082   

Public Bank Berhad

      2,200         13,617   

SapuraKencana Petroleum Berhad

      4,600         6,189   

Sime Darby Berhad

      5,900         17,539   

Telekom Malaysia Berhad

      4,800         9,373   

Tenaga Nasional Berhad

      2,100         8,155   

UMW Holdings Berhad

      2,400         8,787   

YTL Corp. Berhad

      14,500         7,124   
                253,045   

Mexico–0.55%

  

America Movil S.A.B. de C.V. -Series L

      6,500         7,675   

Arca Continental S.A.B. de C.V.

      1,000         7,069   

Cemex S.A.B. de C.V. -Series CPO(a)(c)

      4,600         5,786   
      Shares      Value  

Mexico–(continued)

  

Coca-Cola Femsa, S.A.B. de C.V. -Series L

      500       $ 5,338   

Fomento Economico Mexicano, S.A.B. de C.V.
-Series BD (d)

      700         6,582   

Grupo Televisa S.A.B. -Series CPO (e)

      900         6,411   

Wal-Mart de Mexico S.A.B. de C.V. -Series V

      2,500         6,208   
                45,069   

Netherlands–1.04%

  

Aegon N.V.

      776         6,292   

Akzo Nobel N.V.

      92         6,638   

ASML Holding N.V.

      73         6,893   

Gemalto N.V.

      65         6,332   

Heineken Holding N.V.

      107         6,815   

Heineken N.V.

      100         7,021   

Koninklijke Ahold N.V.

      372         6,483   

Koninklijke DSM N.V.

      97         6,689   

Koninklijke KPN N.V. (a)

      1,874         5,954   

Koninklijke Philips N.V.

      221         6,801   

Randstad Holding N.V.

      124         6,131   

Reed Elsevier N.V.

      304         6,829   

Wolters Kluwer N.V.

      234         6,461   
                85,339   

New Zealand–0.27%

  

Auckland International Airport Ltd.

      2,242         7,229   

Fletcher Building Ltd.

      958         7,378   

Spark New Zealand Ltd.

      3,153         7,625   
                22,232   

Norway–0.55%

  

DNB ASA

      503         8,889   

Orkla ASA

      1,058         9,583   

Statoil ASA

      293         8,353   

Telenor ASA

      414         9,506   

Yara International ASA

      187         8,550   
                44,881   

Philippines–0.09%

  

Philippine Long Distance Telephone Co.

      105         7,381   

Poland–0.13%

  

Powszechna Kasa Oszczednosci Bank Polski S.A.

      459         5,214   

Powszechny Zaklad Ubezpieczen S.A.

      41         5,761   
                10,975   

Portugal–0.08%

  

EDP - Energias de Portugal, S.A.

      1,412         6,604   

Russia–0.22%

  

LUKOIL OAO -ADR

      106         5,902   

Rosneft Oil Co. -REGS -GDR (f)

      941         5,800   

Surgutneftegas OAO -ADR

      879         6,089   
                17,791   
 

 

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

Invesco Macro International Equity Fund

      Shares      Value  

Singapore–1.79%

  

CapitaLand Ltd.

      3,000       $ 8,263   

CapitaMall Trust

      5,000         7,888   

City Developments Ltd.

      1,000         8,468   

ComfortDelGro Corp. Ltd.

      4,000         8,282   

DBS Group Holdings Ltd.

      1,000         14,584   

Genting Singapore PLC

      7,000         7,484   

Global Logistic Properties Ltd.

      3,000         6,670   

Keppel Corp. Ltd.

      1,000         8,777   

Oversea-Chinese Banking Corp. Ltd.

      1,000         7,967   

SembCorp Industries Ltd.

      2,000         8,738   

SembCorp Marine Ltd.

      2,000         6,632   

Singapore Airlines Ltd.

      1,000         8,250   

Singapore Exchange Ltd.

      1,000         5,652   

Singapore Press Holdings Ltd.

      2,000         6,653   

Singapore Technologies Engineering Ltd.

      2,000         6,065   

Singapore Telecommunications Ltd.

      2,000         6,516   

Suntec REIT

      5,000         7,162   

UOL Group Ltd.

      1,000         5,294   

Wilmar International Ltd.

      3,000         7,853   
                147,198   

South Africa–1.81%

  

Barclays Africa Group Ltd.

      408         6,348   

Bidvest Group Ltd.

      254         6,845   

Capitec Bank Holdings Ltd.

      335         7,610   

Coronation Fund Managers Ltd.

      640         5,836   

Exxaro Resources Ltd.

      448         6,079   

FirstRand Ltd.

      1,721         6,927   

Growthpoint Properties Ltd.

      2,774         6,421   

Investec Ltd.

      739         6,352   

Liberty Holdings Ltd.

      554         6,691   

Mediclinic International Ltd.

      765         6,088   

MTN Group Ltd.

      288         5,941   

Nedbank Group Ltd.

      313         6,806   

PPC Ltd.

      2,009         6,026   

Rand Merchant Insurance Holdings Ltd.

      2,202         6,381   

Redefine Properties Ltd.

      6,828         6,126   

Remgro Ltd.

      316         6,819   

Sasol Ltd.

      141         8,136   

Shoprite Holdings Ltd.

      415         6,258   

SPAR Group Ltd. (The)

      600         6,927   

Standard Bank Group Ltd.

      502         6,754   

Steinhoff International Holdings Ltd.

      1,145         5,724   

Tiger Brands Ltd.

      210         6,033   

Vodacom Group Ltd.

      483         5,654   
                148,782   

South Korea–8.62%

  

AMOREPACIFIC Corp.

      5         8,592   

Celltrion Inc. (a)

      178         6,883   

Coway Co., Ltd.

      90         7,754   

Daewoo Engineering & Construction Co., Ltd. (a)

      950         9,103   

Daewoo Securities Co., Ltd. (a)

      1,025         10,316   

Daewoo Shipbuilding & Marine
Engineering Co., Ltd.

      286         6,817   

Dongbu Insurance Co., Ltd.

      257         14,653   

E-Mart Co., Ltd.

      31         6,993   

 

      Shares      Value  

South Korea–(continued)

  

GS Holdings

      360       $ 16,457   

Hana Financial Group Inc.

      360         14,499   

Hankook Tire Co. Ltd.

      121         6,652   

Hanwha Corp.

      230         6,540   

Hotel Shilla Co., Ltd.

      83         8,815   

Hyundai Department Store Co., Ltd.

      53         7,577   

Hyundai Engineering & Construction Co. Ltd.

      280         17,098   

Hyundai Glovis Co., Ltd.

      28         7,173   

Hyundai Heavy Industries Co. Ltd.

      42         6,120   

Hyundai Marine & Fire Insurance Co., Ltd.

      271         8,030   

Hyundai Mobis Co., Ltd.

      48         14,277   

Hyundai Motor Co.

      34         8,096   

Hyundai Steel Co.

      104         7,972   

Hyundai Wia Corp.

      41         7,499   

Industrial Bank of Korea

      1,072         16,006   

Kangwon Land Inc.

      250         8,330   

KB Financial Group Inc.

      402         15,724   

KCC Corp.

      12         7,081   

Kia Motors Corp.

      247         14,591   

Korea Electric Power Corp.

      350         14,293   

Korea Zinc Co., Ltd.

      20         8,052   

KT Corp.

      481         15,541   

KT&G Corp.

      176         16,990   

LG Chem Ltd.

      50         13,984   

LG Corp.

      245         16,373   

LG Display Co. Ltd. (a)

      248         8,155   

LG Electronics Inc.

      186         13,858   

LG Household & Health Care Ltd.

      18         8,383   

LG Uplus Corp.

      803         7,418   

Lotte Chemical Corp.

      40         6,776   

Lotte Shopping Co., Ltd.

      47         14,533   

NAVER Corp.

      10         7,077   

NCSoft Corp.

      39         5,880   

OCI Co. Ltd. (a)

      42         6,637   

ORION Corp.

      9         8,221   

POSCO

      55         17,896   

S-Oil Corp.

      294         15,770   

Samsung C&T Corp.

      188         13,407   

Samsung Card Co., Ltd.

      176         8,193   

Samsung Electro-Mechanics Co., Ltd.

      228         13,976   

Samsung Electronics Co., Ltd.

      10         13,030   

Samsung Engineering Co., Ltd. (a)

      101         6,768   

Samsung Fire & Marine Insurance Co., Ltd.

      54         14,819   

Samsung Heavy Industries Co., Ltd.

      275         7,475   

Samsung Life Insurance Co., Ltd.

      142         14,507   

Samsung SDI Co., Ltd.

      146         22,662   

Samsung Securities Co., Ltd.

      347         16,345   

Samsung Techwin Co., Ltd.

      295         13,835   

Shinhan Financial Group Co., Ltd.

      310         15,389   

SK C&C Co. Ltd.

      43         7,010   

SK Holdings Co., Ltd.

      77         13,095   

SK Hynix Inc. (a)

      152         6,604   

SK Innovation Co., Ltd.

      144         14,427   

SK Telecom Co., Ltd.

      59         15,107   

Woori Finance Holdings Co. Ltd. (a)

      620         8,443   

Woori Investment & Securities Co., Ltd.

      786         8,567   
                709,144   
 

 

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

Invesco Macro International Equity Fund

      Shares      Value  

Spain–1.35%

  

Abertis Infraestructuras S.A.

      308       $ 6,740   

Amadeus IT Holding S.A. -Class A

      163         6,410   

Banco Bilbao Vizcaya Argentaria, S.A.

      546         6,718   

Banco de Sabadell S.A.

      2,025         6,556   

Banco Popular Espanol S.A.

      969         5,896   

Banco Santander S.A.

      650         6,532   

Bankia S.A. (a)

      3,467         6,773   

CaixaBank S.A.

      1,090         6,527   

Enagas S.A.

      222         7,386   

Ferrovial S.A.

      309         6,452   

Gas Natural SDG, S.A.

      219         6,705   

Grifols S.A.

      115         5,176   

Iberdrola S.A.

      939         6,971   

Industria de Diseno Textil, S.A.

      215         6,265   

Red Electrica Corp. S.A.

      78         6,679   

Repsol S.A.

      257         6,379   

Telefonica S.A.

      414         6,732   
                110,897   

Sweden–1.83%

  

Assa Abloy AB -Class B

      187         9,163   

Atlas Copco AB -Class A

      316         9,416   

Hennes & Mauritz AB -Class B

      216         8,858   

Hexagon AB -Class B

      290         8,972   

Investor AB -Class B

      247         8,877   

Nordea Bank AB

      632         8,463   

Sandvik AB

      656         8,240   

Skandinaviska Enskilda Banken AB -Class A

      694         9,317   

Skanska AB -Class B

      393         8,159   

SKF AB -Class B

      347         8,174   

Svenska Cellulosa AB -Class B

      339         8,378   

Svenska Handelsbanken AB -Class A

      190         9,152   

Swedbank AB -Class A

      350         8,967   

Swedish Match AB

      280         9,162   

Telefonaktiebolaget LM Ericsson -Class B

      761         9,458   

TeliaSonera AB

      1,274         9,544   

Volvo AB -Class B

      661         8,053   
                150,353   

Switzerland–2.83%

  

ABB Ltd.

      400         9,203   

Actelion Ltd.

      73         8,798   

Adecco S.A.

      111         8,294   

Cie Financiere Richemont S.A.

      89         8,469   

Credit Suisse Group AG

      311         8,453   

Geberit AG

      28         9,378   

Givaudan S.A.

      6         9,819   

Glencore PLC

      5,367         32,592   

Holcim Ltd.

      105         8,423   

Julius Baer Group Ltd.

      223         9,458   

Kuehne + Nagel International AG

      69         9,192   

Nestle S.A.

      121         8,982   

Novartis AG

      102         8,903   

Roche Holding AG

      30         8,715   

Schindler Holding AG -Participation Ctfs.

      61         9,113   

SGS S.A.

      4         8,727   

Sika AG

      2         7,762   
      Shares      Value  

Switzerland–(continued)

  

STMicroelectronics N.V.

      737       $ 6,117   

Swatch Group AG (The)

      16         8,565   

Swiss Re AG

      102         8,670   

Swisscom AG

      16         8,875   

Syngenta AG

      25         8,889   

UBS AG

      486         8,346   

Zurich Insurance Group AG

      30         8,721   
                232,464   

Taiwan–5.03%

  

Asia Cement Corp.

      7,000         9,723   

Cathay Financial Holding Co., Ltd.

      5,250         8,743   

Chang Hwa Commercial Bank

      18,000         11,765   

Cheng Shin Rubber Industry Co., Ltd.

      3,000         7,536   

Cheng Uei Precision Industry Co., Ltd.

      4,000         7,445   

Chicony Electronics Co., Ltd.

      2,010         5,546   

China Development Financial Holding Corp.

      33,000         10,864   

China Life Insurance Co., Ltd.

      8,000         7,627   

China Petrochemical Development Corp.

      17,000         6,893   

China Steel Chemical Corp.

      1,000         6,315   

China Steel Corp.

      12,000         10,353   

Chunghwa Telecom Co., Ltd.

      4,000         12,187   

CTBC Financial Holding Co. Ltd.

      14,000         9,816   

E.Sun Financial Holding Co. Ltd.

      13,000         8,671   

Far Eastern New Century Corp.

      8,000         8,957   

Far EasTone Telecommunications Co., Ltd.

      3,000         6,198   

First Financial Holding Co., Ltd.

      23,000         15,654   

Formosa Chemicals & Fibre Corp.

      3,000         7,297   

Formosa Petrochemical Corp.

      3,000         7,652   

Formosa Plastics Corp.

      3,000         7,693   

Foxconn Technology Co. Ltd.

      3,000         7,379   

Fubon Financial Holding Co. Ltd.

      6,000         9,405   

Highwealth Construction Corp. (a)

      3,000         6,935   

Hon Hai Precision Industry Co., Ltd.

      3,000         10,237   

Huaku Development Co. Ltd.

      3,000         7,131   

Lite-On Technology Corp.

      4,020         6,760   

Macronix International Co., Ltd. (a)

      24,688         6,337   

Mega Financial Holding Co., Ltd.

      11,000         9,665   

Nan Kang Rubber Tire Co., Ltd.

      7,000         8,149   

Nan Ya Plastics Corp.

      3,000         6,995   

President Chain Store Corp.

      1,000         7,936   

Ruentex Development Co., Ltd.

      4,000         7,142   

Ruentex Industries Ltd.

      2,000         5,019   

Shin Kong Financial Holding Co., Ltd.

      38,000         12,614   

Siliconware Precision Industries Co.

      3,000         4,090   

SinoPac Financial Holdings Co., Ltd.

      20,000         9,382   

Taishin Financial Holding Co., Ltd.

      21,000         11,212   

Taiwan Cement Corp.

      4,000         5,928   

Taiwan Cooperative Financial Holding Co. Ltd.

      30,000         17,866   

Taiwan Fertilizer Co., Ltd.

      5,000         10,135   

Taiwan Mobile Co., Ltd.

      2,000         6,125   

Taiwan Semiconductor Manufacturing Co. Ltd.

      2,000         8,027   

Tatung Co., Ltd. (a)

      22,000         7,245   

Uni-President Enterprises Corp.

      4,000         7,623   

Walsin Lihwa Corp. (a)

      22,000         8,163   
 

 

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

Invesco Macro International Equity Fund

      Shares      Value  

Taiwan–(continued)

  

Wistron Corp.

      7,140       $ 6,811   

WPG Holdings Ltd.

      5,000         6,614   

Yuanta Financial Holding Co., Ltd.

      14,000         7,773   

Yulon Motor Co., Ltd.

      5,000         8,141   
                413,774   

Thailand–0.09%

  

Thai Beverage PCL

      15,000         7,395   

United Kingdom–16.73%

  

Anglo American PLC

      1,184         31,731   

ARM Holdings PLC

      1,940         27,706   

Associated British Foods PLC

      559         26,167   

AstraZeneca PLC

      386         28,121   

Aviva PLC

      3,349         28,323   

BAE Systems PLC

      4,030         29,083   

Barclays PLC

      7,353         27,861   

BG Group PLC

      1,392         27,461   

BHP Billiton PLC

      907         30,968   

BP PLC

      3,326         27,176   

British American Tobacco PLC

      480         28,090   

British Sky Broadcasting Group PLC

      1,935         28,580   

BT Group PLC

      4,448         29,004   

Burberry Group PLC

      1,185         28,155   

Centrica PLC

      5,394         28,138   

CNH Industrial N.V. (a)

      638         5,874   

Compass Group PLC

      1,612         26,239   

Diageo PLC

      931         28,005   

Experian PLC

      1,717         29,336   

GlaxoSmithKline PLC

      1,084         26,163   

HSBC Holdings PLC

      2,830         30,294   

Imperial Tobacco Group PLC

      637         27,587   

Kingfisher PLC

      4,757         24,010   

Land Securities Group PLC

      1,691         29,642   

Legal & General Group PLC

      7,616         30,138   

Lloyds Banking Group PLC (a)

      22,486         28,004   

Marks & Spencer Group PLC

      3,977         28,742   

National Grid PLC

      2,045         29,453   

Next PLC

      271         30,890   

Old Mutual PLC

      8,824         29,036   

Pearson PLC

      1,541         29,603   

Prudential PLC

      1,283         29,542   

Reckitt Benckiser Group PLC

      328         28,943   

Reed Elsevier PLC

      1,803         29,053   

Rio Tinto Ltd.

      134         8,167   

Rio Tinto PLC

      561         32,065   

Rolls-Royce Holdings PLC

      1,590         27,698   

Royal Bank of Scotland Group PLC (a)

      5,115         30,520   

Royal Dutch Shell PLC -Class A

      710         29,194   

SABMiller PLC

      509         27,727   

Smith & Nephew PLC

      1,598         27,507   

SSE PLC

      1,093         26,804   

Standard Chartered PLC

      1,363         28,276   

Standard Life PLC

      4,548         28,629   

Tesco PLC

      5,941         25,708   

Tullow Oil PLC

      1,971         24,144   
      Shares      Value  

United Kingdom–(continued)

  

Unilever PLC

      642       $ 27,800   

Vodafone Group PLC

      8,991         29,935   

Wolseley PLC

      534         27,790   

WPP PLC

      1,348         26,818   
                1,375,900   

United States–0.09%

  

Samsonite International S.A.

      2,400         7,479   

Total Common Stocks & Other Equity Interests
(Cost $6,940,165)

   

      7,293,787   

Money Market Funds–9.20%

  

Liquid Assets Portfolio –Institutional Class (g)

      378,436         378,436   

Premier Portfolio –Institutional Class (g)

      378,435         378,435   

Total Money Market Funds
(Cost $756,871)

               756,871   

TOTAL INVESTMENTS–97.90%
(Cost $7,697,036)

               8,050,658   

OTHER ASSETS LESS LIABILITIES–2.10%

               172,689   

NET ASSETS–100.00%

             $ 8,223,347   

Investment Abbreviations:

 

ADR            — American Depositary Receipt
CPO            — Certificates of Ordinary Participation
Ctfs.            — Certificates
GDR            — Global Depositary Receipt
REGS            — Regulation S
REIT            — Real Estate Investment Trust

Notes to Schedule of Investments:

 

(a)  Non-income producing security.
(b)  Each unit represents one common share and two preferred shares.
(c)  Each CPO represents two Series A shares and one Series B share.
(d)  Each unit represents one Series B share, two Series D-B shares and two Series D-L shares.
(e)  Each CPO represents twenty-five A shares, twenty-two B shares, thirty-five L shares and thirty-five D shares.
(f)  Security purchased or received in a transaction exempt from registration under the Securities Act of 1933, as amended (the “1933 Act”). The security may be resold pursuant to an exemption from registration under the 1933 Act, typically to qualified institutional buyers. The value of this security at July 31, 2014 represented less than 1% of the Fund’s Net Assets.
(g)  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 Macro International Equity 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.

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

 

Invesco Macro International Equity Fund

A. Security Valuations – (continued)

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 Macro International Equity 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.

F. Futures Contracts – The Fund may enter into futures contracts to manage exposure to interest rate, equity and market price movements and/or currency risks. A futures contract is an agreement between two parties to purchase or sell a specified underlying security, currency or commodity (or delivery of a cash settlement price, in the case of an index future) for a fixed price at a future date. The Fund currently invests only in exchange-traded futures and they are standardized as to maturity date and underlying financial instrument. Initial margin deposits required upon entering into futures contracts are satisfied by the segregation of specific securities or cash as collateral at the futures commission merchant (broker). During the period the futures contracts are open, changes in the value of the contracts are recognized as unrealized gains or losses by recalculating the value of the contracts on a daily basis. Subsequent or variation margin payments are received or made depending upon whether unrealized gains or losses are incurred. These amounts are reflected as receivables or payables on the Statement of Assets and Liabilities. When the contracts are closed or expire, the Fund recognizes a realized gain or loss equal to the difference between the proceeds from, or cost of, the closing transaction and the Fund’s basis in the contract. The net realized gain (loss) and the change in unrealized gain (loss) on futures contracts held during the period is included on the Statement of Operations. The primary risks associated with futures contracts are market risk and the absence of a liquid secondary market. If the Fund were unable to liquidate a futures contract and/or enter into an offsetting closing transaction, the Fund would continue to be subject to market risk with respect to the value of the contracts and continue to be required to maintain the margin deposits on the futures contracts. Futures contracts have minimal counterparty risk since the exchange’s clearinghouse, as counterparty to all exchange-traded futures, guarantees the futures against default. Risks may exceed amounts recognized in the Statement of Assets and Liabilities.
G. Collateral – To the extent the Fund has designated or segregated a security as collateral and that security is subsequently sold, it is the Fund’s practice to replace such collateral no later than the next business day.

NOTE 2 — 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.

During the period December 17, 2013 (commencement date) to July 31, 2014, there were transfers from Level 1 to Level 2 of $2,501,861 and from Level 2 to Level 1 of $252,011, due to foreign fair value adjustments.

 

    

Invesco Macro International Equity Fund

         Level 1              Level 2               Level 3               Total  

Australia

    $ 8,079           $ 428,111            $ —            $ 436,190   

Austria

      —             17,839              —              17,839   

Belgium

      —             40,089              —              40,089   

Brazil

      119,470             —              —              119,470   

Chile

      50,621             —              —              50,621   

China

      20,039             157,613              —              177,652   

Colombia

      41,684             —              —              41,684   

Czech Republic

      5,876                    5,819                     —                     11,695   

Denmark

      —             53,508              —              53,508   

Finland

      6,767             39,027              —              45,794   

France

      45,742             254,599              —              300,341   

Germany

      133,947             88,695              —              222,642   

Greece

      —             4,940              —              4,940   

Hong Kong

      31,898             280,431              —              312,329   

Hungary

      10,610             —              —              10,610   

India

      6,085             —              —              6,085   

Indonesia

      —             6,836              8,460              15,296   

Ireland

      33,111             12,710              —              45,821   

Italy

      —             90,289              —              90,289   

Japan

      15,003             1,457,282              —              1,472,285   

Luxembourg

      —             13,407              —              13,407   

Macau

      —             8,497              —              8,497   

Malaysia

      120,360             132,685              —              253,045   

Mexico

      45,069             —              —              45,069   

Netherlands

      6,638             78,701              —              85,339   

New Zealand

      —             22,232              —              22,232   

Norway

      —             44,881              —              44,881   

Philippines

      —             7,381              —              7,381   

Poland

      —             10,975              —              10,975   

Portugal

      —             6,604              —              6,604   

Russia

      —             17,791              —              17,791   

Singapore

      6,653             140,545              —              147,198   

South Africa

      63,557             85,225              —              148,782   

South Korea

      44,884             664,260              —              709,144   

Spain

      —             110,897              —              110,897   

Sweden

      17,236             133,117              —              150,353   

Switzerland

      8,423             224,041              —              232,464   

Taiwan

      6,935             406,839              —              413,774   

Thailand

      7,395             —              —              7,395   

United Kingdom

      114,505             1,261,395              —              1,375,900   

United States

      764,350             —              —              764,350   
       1,734,937             6,307,261              8,460              8,050,658   

Futures Contracts*

      (8,766 )           —              —              (8,766 ) 

   Total Investments

    $     1,726,171           $     6,307,261            $     8,460            $     8,041,892   
  * Unrealized appreciation (depreciation).

 

    

Invesco Macro International Equity Fund

NOTE 3 — Derivative Investments

Value of Derivative Investments at Period-End

The table below summarizes the value of the Fund’s derivative investments, detailed by primary risk exposure, held as of July 31, 2014:

 

     Value  
Risk Exposure/ Derivative Type      Assets            Liabilities  

Market risk:

                      

Futures contracts (a)

    $ 19,173            $ (27,939 ) 

 

(a)  Includes cumulative appreciation (depreciation) of futures contracts.

Effect of Derivative Investments for the Period December 17, 2013 (commencement date) through July 31, 2014

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

 

     Location of Gain (Loss)
   Futures Contracts

Realized Gain

     

Market risk

    $83,456

Change in Unrealized Appreciation (Depreciation)

   

Market risk

    (8,766)

Total

    $74,690

The table below summarizes the average notional value of futures contracts outstanding during the period.

 

     Futures Contracts     

Average notional value

    $1,984,053                    

 

Open Futures Contracts at Period-End(a)  
Futures Contracts    Type of
Contract		          Number of
Contracts		          Expiration
Month		          Notional
Value		           

Unrealized

Appreciation

(Depreciation)

  

Dow Jones EURO STOXX 50 Index

    Long         14         September-2014         $ 584,644            $ (26,841 ) 

FTSE 100 Index

    Long            3            September-2014              338,442                 (1,098 ) 

Hang Seng Index

    Long         4         August-2014           639,114              11,078   

Mini MSCI Emerging Markets Index

    Long         7         September-2014           369,110              2,647   

Tokyo Stock Price Index

    Long         1         September-2014           125,656              5,448   

Total Futures Contracts - Market Risk

                       $ (8,766 ) 

(a) Futures contracts collateralized by $160,000 cash held with Goldman Sachs & Co., the futures commission merchant.

 

    

Invesco Macro International Equity 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 period December 17, 2013 (commencement date) through July 31, 2014 was $8,822,503 and $1,950,695, respectively. In a fund’s initial year of operations, the cost of investments for tax purposes will not reflect any tax adjustments until its fiscal year end reporting period.

 

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

Aggregate unrealized appreciation of investment securities

    $       555,078   

Aggregate unrealized (depreciation) of investment securities

      (201,456 ) 

Net unrealized appreciation of investment securities

    $ 353,622   

Cost of investments is the same for financial reporting and tax purposes.

  

 

    

Invesco Macro International Equity Fund

 

 

Invesco Macro Long/Short Fund

Quarterly Schedule of Portfolio Holdings

July 31, 2014

 

 

 

 

LOGO

 

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

 

 

Schedule of Investments

July 31, 2014

(Unaudited)

 

      Shares      Value  

Common Stocks & Other Equity Interests–80.98%

  

Australia–3.47%

      

AGL Energy Ltd.

      560       $     7,645   

ALS Ltd.

      971         6,992   

Alumina Ltd. (a)

      6,460         9,497   

Amcor Ltd.

      793         7,621   

AMP Ltd.

      1,708         8,619   

APA Group

      1,237         8,506   

Asciano Ltd.

      1,570         8,734   

ASX Ltd.

      248         8,292   

Aurizon Holdings Ltd.

      1,736         8,030   

AusNet Services (a)

      6,415         8,005   

Australia and New Zealand Banking Group Ltd.

      260         8,124   

Bank of Queensland Ltd.

      689         7,946   

Bendigo and Adelaide Bank Ltd.

      726         8,516   

BHP Billiton Ltd.

      244         8,675   

BlueScope Steel Ltd. (a)

      1,544         8,893   

Boral Ltd.

      1,690         8,316   

Brambles Ltd.

      914         7,937   

Caltex Australia Ltd.

      386         8,794   

CFS Retail Property Trust Group

      4,144         8,285   

Challenger Ltd.

      1,191         8,798   

Coca-Cola Amatil Ltd.

      962         8,234   

Cochlear Ltd.

      142         8,328   

Commonwealth Bank of Australia

      109         8,409   

Computershare Ltd.

      681         8,236   

Crown Resorts Ltd.

      587         8,799   

CSL Ltd.

      125         7,825   

Federation Centres

      3,379         8,021   

Fortescue Metals Group Ltd.

      2,082         9,350   

Iluka Resources Ltd.

      1,071         8,709   

Incitec Pivot Ltd.

      3,127         8,577   

Insurance Australia Group Ltd.

      1,571         9,132   

Leighton Holdings Ltd.

      433         8,770   

Lend Lease Group

      649         8,066   

Macquarie Group Ltd.

      153         8,245   

Metcash Ltd.

      2,959         7,910   

National Australia Bank Ltd.

      265         8,602   

Newcrest Mining Ltd. (a)

      796         8,016   

Oil Search Ltd.

      895         7,832   

Orica Ltd.

      460         9,305   

Origin Energy Ltd.

      604         7,966   

Primary Health Care Ltd.

      2,001         8,924   

Qantas Airways Ltd. (a)

      6,557         8,028   

QBE Insurance Group Ltd.

      791         8,013   

Ramsay Health Care Ltd.

      192         8,539   

Santos Ltd.

      616         8,273   

Seek Ltd.

      535         8,050   

Sonic Healthcare Ltd.

      517         8,655   

Suncorp Group Ltd.

      688         9,077   

Tabcorp Holdings Ltd.

      2,569         8,272   

Tatts Group Ltd.

      2,938         9,651   
      Shares      Value  

Australia–(continued)

      

Telstra Corp. Ltd.

      1,631       $     8,269   

Toll Holdings Ltd.

      1,743         8,755   

Treasury Wine Estates Ltd.

      1,937         9,072   

Wesfarmers Ltd.

      213         8,628   

Westpac Banking Corp.

      250         7,955   

Woodside Petroleum Ltd.

      212         8,318   

Woolworths Ltd.

      234         7,962   

WorleyParsons Ltd.

      511         8,442   
         487,440   

Austria–0.14%

      

Erste Group Bank AG

      231         5,923   

OMV AG

      176         7,076   

Voestalpine AG

      159         6,992   
         19,991   

Belgium–0.32%

      

Ageas

      192         6,884   

Anheuser-Busch InBev N.V.

      70         7,567   

Delhaize Group S.A.

      117         7,621   

KBC Groep N.V. (a)

      139         7,516   

Solvay S.A.

      48         7,750   

UCB S.A.

      88         8,074   
         45,412   

Brazil–0.98%

      

Ambev S.A.

      1,000         6,909   

Banco Bradesco S.A. –Preference Shares

      432         6,624   

BB Seguridade Participacoes S.A.

      490         7,121   

BRF S.A.

      315         7,717   

Cia Brasileira de Distribuicao -Preference Shares

      163         7,871   

Cielo S.A.

      408         7,472   

Ecorodovias Infraestrutura e Logistica S.A.

      992         5,936   

Hypermarcas S.A. (a)

      875         7,006   

Itau Unibanco Holding S.A. -Preference Shares

      455         7,037   

Itausa - Investimentos Itau S.A. -Preference Shares

      1,715         7,172   

Lojas Americanas S.A. -Preference Shares

      1,132         7,208   

M Dias Branco S.A.

      163         6,688   

Multiplan Empreendimentos Imobiliarios S.A.

      338         8,040   

Souza Cruz S.A.

      630         5,855   

Telefonica Brasil S.A. -Preference Shares

      350         7,039   

Tractebel Energia S.A.

      455         6,817   

Transmissora Alianca de Energia Eletrica S.A. (b)

      805         7,343   

Ultrapar Participacoes S.A.

      350         8,027   

WEG S.A.

      780         9,421   
         137,303   
 

 

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

Invesco Macro Long/Short Fund

      Shares      Value  

Chile–0.40%

  

Banco de Chile

      63,275       $     7,865   

Banco Santander Chile

      105,243         6,683   

Cia Cervecerias Unidas S.A.

      610         6,856   

Empresa Nacional de Electricidad S.A.

      5,399         8,015   

Empresa Nacional de Telecomunicaciones S.A.

      526         6,389   

Empresas COPEC S.A.

      525         6,428   

Enersis S.A.

      23,575         7,923   

S.A.C.I. Falabella

      831         6,587   
         56,746   

China–1.42%

      

AAC Technologies Holdings Inc.

      1,284         7,644   

Agricultural Bank of China Ltd. -Class H

      15,000         7,308   

Bank of China Ltd. -Class H

      17,000         8,131   

Bank of Communications Co. Ltd. -Class H

      11,000         8,445   

Belle International Holdings Ltd.

      8,000         9,970   

China Construction Bank Corp. -Class H

      10,000         7,692   

China Mobile Ltd.

      875         9,679   

China Telecom Corp. Ltd. -Class H

      13,536         7,593   

CNOOC Ltd.

      4,000         7,097   

ENN Energy Holdings Ltd.

      1,167         8,251   

Evergrande Real Estate Group Ltd.

      21,704         9,389   

GCL-Poly Energy Holdings Ltd. (a)

      25,555         8,237   

Hengan International Group Co. Ltd.

      817         8,748   

Industrial and Commercial Bank of China
Ltd. -Class H

      11,000         7,539   

People’s Insurance Co. (Group) of China
Ltd. -Class H

      17,737         7,855   

PetroChina Co. Ltd. -Class H

      6,000         7,855   

Shanghai Industrial Holdings Ltd.

      2,217         7,395   

Shimao Property Holdings Ltd.

      4,609         10,650   

SOHO China Ltd.

      9,500         7,981   

Sun Art Retail Group Ltd.

      12,500         15,597   

Tencent Holdings Ltd.

      548         8,860   

Tingyi (Cayman Islands) Holding Corp.

      3,034         8,632   

Want Want China Holdings Ltd.

      6,068         8,300   
         198,848   

Colombia–0.33%

      

Bancolombia S.A.

      536         8,084   

Bancolombia S.A. -Preference Shares

      578         8,933   

Cementos Argos S.A.

      1,102         6,460   

Ecopetrol S.A.

      3,565         6,041   

Grupo de Inversiones Suramericana S.A.

      376         8,375   

Grupo de Inversiones Suramericana S.A. -Preference Shares

      400         8,458   
         46,351   

Czech Republic–0.09%

      

Komercni Banka A.S.

      30         6,529   

O2 Czech Republic A.S.

      495         6,531   
         13,060   

Denmark–0.42%

      

A. P. Moller - Maersk AS -Class B

      4         9,290   

Carlsberg AS -Class B

      103         9,846   

Coloplast AS -Class B

      115         9,708   
      Shares      Value  

Denmark–(continued)

      

Danske Bank AS

      368       $     10,621   

Novo Nordisk AS -Class B

      223         10,290   

Vestas Wind Systems AS (a)

      205         9,195   
         58,950   

Finland–0.36%

      

Fortum Oyj

      289         7,415   

Kone Oyj -Class B

      178         7,481   

Nokia Oyj

      984         7,751   

Sampo Oyj -Class A

      147         7,299   

Stora Enso Oyj -Class R

      765         6,869   

UPM-Kymmene Oyj

      433         7,038   

Wartsila OYJ Abp

      140         7,070   
         50,923   

France–2.39%

      

Accor S.A.

      142         6,855   

Air Liquide S.A.

      65         8,269   

Airbus Group N.V.

      114         6,592   

Alcatel-Lucent (a)

      2,180         7,659   

Alstom S.A. (a)

      204         7,345   

Arkema S.A.

      79         7,343   

AXA S.A.

      318         7,282   

BNP Paribas S.A.

      112         7,385   

Bouygues S.A.

      180         7,083   

Bureau Veritas S.A.

      275         7,069   

Cap Gemini S.A.

      99         7,156   

Carrefour S.A.

      218         7,523   

Casino Guichard-Perrachon S.A.

      62         7,467   

Christian Dior S.A.

      40         6,951   

Cie Generale des Etablissements Michelin

      63         6,899   

Compagnie de Saint-Gobain

      128         6,203   

Credit Agricole S.A.

      513         6,951   

Danone

      104         7,510   

Dassault Systemes S.A.

      118         7,891   

Edenred

      263         8,201   

Electricite de France S.A.

      237         7,660   

Essilor International S.A.

      69         6,716   

GDF Suez

      266         6,814   

Kering

      37         7,897   

L’Oreal S.A.

      43         7,261   

Lafarge S.A.

      92         7,155   

Legrand S.A.

      116         6,406   

LVMH Moet Hennessy Louis Vuitton S.A.

      40         6,862   

Orange S.A.

      508         7,952   

Pernod Ricard S.A.

      64         7,172   

Publicis Groupe S.A.

      92         6,679   

Renault S.A.

      84         6,981   

Safran S.A.

      116         6,793   

Sanofi

      70         7,344   

Schneider Electric S.E.

      83         6,982   

SCOR S.E.

      208         6,675   

Societe Generale S.A.

      140         6,995   

Sodexo

      69         6,871   

Suez Environnement Co.

      372         6,912   

Technip S.A.

      72         6,620   

Total S.A.

      106         6,837   

Valeo S.A.

      57         6,801   
 

 

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

Invesco Macro Long/Short Fund

      Shares      Value  

France–(continued)

      

Vallourec S.A.

      171       $     7,535   

Veolia Environnement S.A.

      365         6,431   

Vinci S.A.

      102         7,018   

Vivendi S.A.

      300         7,526   

Zodiac Aerospace

      207         6,456   
         334,985   

Germany–1.77%

      

adidas AG

      75         5,966   

Allianz S.E.

      43         7,187   

BASF S.E.

      67         6,965   

Bayer AG

      53         7,020   

Bayerische Motoren Werke AG

      60         7,173   

Beiersdorf AG

      74         6,692   

Brenntag AG

      40         6,421   

Commerzbank AG (a)

      476         6,875   

Continental AG

      33         7,135   

Daimler AG

      77         6,380   

Deutsche Bank AG

      212         7,289   

Deutsche Boerse AG

      103         7,494   

Deutsche Lufthansa AG

      362         6,434   

Deutsche Post AG

      202         6,479   

Deutsche Telekom AG

      452         7,320   

E.ON S.E.

      365         6,905   

Fresenius Medical Care AG & Co. KGaA

      121         8,408   

Fresenius S.E. & Co. KGaA

      52         7,791   

GEA Group AG

      155         6,972   

HeidelbergCement AG

      85         6,331   

Henkel AG & Co. KGaA -Preference Shares

      69         7,707   

Infineon Technologies AG

      653         7,235   

K+S AG

      234         7,221   

LANXESS AG

      113         7,196   

Linde AG

      37         7,575   

Merck KGaA

      86         7,643   

Metro AG (a)

      180         6,512   

Muenchener Rueckversicherungs-Gesellschaft AG

      34         7,232   

Porsche Automobil Holding S.E. -Preference Shares

      72         6,740   

ProSiebenSat.1 Media AG

      165         6,935   

RWE AG

      181         7,284   

SAP S.E.

      100         7,881   

Siemens AG

      54         6,681   

ThyssenKrupp AG (a)

      279         7,906   

Volkswagen AG -Preference Shares

      29         6,777   
         247,762   

Greece–0.04%

      

National Bank of Greece S.A. (a)

      1,761         5,548   

Hong Kong–2.43%

      

AIA Group Ltd.

      1,600         8,581   

ASM Pacific Technology Ltd.

      700         7,438   

Bank of East Asia, Ltd. (The)

      2,000         8,528   

Cheung Kong Infrastructure Holdings Ltd.

      1,000         7,050   

China Gas Holdings Ltd.

      4,000         7,719   

CLP Holdings Ltd.

      1,000         8,308   

Dairy Farm International Holdings Ltd.

      900         9,621   

Espirit Holdings Ltd.

      5,900         9,272   
      Shares      Value  

Hong Kong–(continued)

      

First Pacific Co. Ltd.

      8,000       $     9,632   

Galaxy Entertainment Group Ltd.

      1,000         8,381   

Global Brands Group Holding Ltd. (a)

      4,000         1,048   

Hang Lung Group Ltd.

      2,000         10,732   

Hang Lung Properties Ltd.

      3,000         9,263   

Hang Seng Bank Ltd.

      500         8,487   

Henderson Land Development Co. Ltd.

      1,100         7,009   

HKT Trust and HKT Ltd.

      8,000         9,448   

Hong Kong and China Gas Co. Ltd.

      3,400         7,415   

Hong Kong Exchanges & Clearing Ltd.

      400         8,899   

Hongkong Land Holdings Ltd.

      1,000         6,830   

Hutchison Whampoa Ltd.

      1,000         13,621   

Hysan Development Co. Ltd.

      2,000         9,589   

Kerry Properties Ltd.

      2,500         9,164   

Li & Fung Ltd.

      4,000         5,344   

Link REIT (The)

      1,500         8,506   

MTR Corp. Ltd.

      2,000         7,874   

New World Development Co. Ltd.

      7,000         8,847   

Noble Group Ltd.

      7,000         7,953   

Power Assets Holdings Ltd.

      1,000         8,935   

Sands China Ltd.

      1,200         8,801   

Shangri-La Asia Ltd.

      6,000         9,522   

Sino Land Co. Ltd.

      4,000         6,872   

SJM Holdings Ltd.

      3,000         8,040   

Sun Hung Kai Properties Ltd.

      1,000         15,149   

Swire Pacific Ltd. -Class A

      500         6,424   

Swire Properties Ltd.

      2,800         9,106   

Techtronic Industries Co. Ltd.

      3,000         9,031   

Wharf Holdings Ltd. (The)

      1,000         7,994   

Wheelock and Co. Ltd.

      2,000         10,090   

Wing Hang Bank Ltd.

      500         8,064   

Yue Yuen Industrial (Holdings) Ltd.

      2,500         8,385   
         340,972   

Hungary–0.09%

      

MOL Hungarian Oil and Gas PLC

      129         6,243   

Richter Gedeon Nyrt

      358         5,879   
         12,122   

India–0.05%

      

Infosys Ltd. -ADR

      128         7,017   

Indonesia–0.12%

      

Golden Agri-Resources Ltd.

      18,000         7,691   

PT Trada Maritime Tbk (a)

      59,000         9,400   
         17,091   

Ireland–0.36%

      

CRH PLC

      272         6,355   

Kerry Group PLC -Class A

      96         7,119   

Shire PLC

      450         37,157   
         50,631   

Italy–0.71%

      

Assicurazioni Generali S.p.A.

      327         6,820   

Atlantia S.p.A

      294         7,771   

Enel S.p.A.

      1,288         7,319   

Eni S.p.A.

      297         7,549   
 

 

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

Invesco Macro Long/Short Fund

      Shares      Value  

Italy–(continued)

      

Fiat S.p.A. (a)

      755       $     7,269   

Intesa Sanpaolo S.p.A.

      2,252         6,664   

Luxottica Group S.p.A.

      135         7,454   

Prada S.p.A.

      1,100         7,769   

Saipem S.p.A. (a)

      274         6,374   

Snam S.p.A.

      1,308         7,707   

Telecom Italia S.p.A. (a)

      6,173         7,111   

Terna - Rete Elettrica Nazionale S.p.A.

      1,330         6,986   

UniCredit S.p.A.

      803         6,256   

Unione di Banche Italiane S.C.p.A.

      841         6,901   
         99,950   

Japan–11.73%

      

Aeon Co., Ltd.

      600         6,747   

Aisin Seiki Co., Ltd.

      200         7,777   

Amada Co., Ltd.

      700         6,826   

ANA Holdings Inc.

      4,000         9,927   

Aozora Bank, Ltd.

      2,000         6,816   

Asahi Glass Co., Ltd.

      1,000         5,942   

Asahi Group Holdings, Ltd.

      200         6,060   

Asahi Kasei Corp.

      1,000         7,910   

ASICS Corp.

      300         6,365   

Astellas Pharma Inc.

      600         8,055   

Bank of Kyoto, Ltd. (The)

      1,000         9,105   

Bank of Yokohama, Ltd. (The)

      1,000         5,715   

Benesse Holdings, Inc.

      200         7,552   

Bridgestone Corp.

      200         7,218   

Brother Industries, Ltd.

      500         9,010   

Canon Inc.

      200         6,546   

Casio Computer Co., Ltd.

      600         10,069   

Chiba Bank, Ltd. (The)

      1,000         7,294   

Chubu Electric Power Co., Inc. (a)

      600         6,986   

Chugai Pharmaceutical Co., Ltd.

      200         6,661   

Chugoku Bank, Ltd. (The)

      500         7,629   

Chugoku Electric Power Co., Inc. (The)

      600         7,999   

Credit Saison Co., Ltd.

      300         5,942   

Dai Nippon Printing Co., Ltd.

      1,000         10,265   

Dai-ichi Life Insurance Co. Ltd. (The)

      500         7,086   

Daihatsu Motor Co., Ltd.

      500         8,921   

Daiichi Sankyo Co., Ltd.

      500         9,096   

Daikin Industries, Ltd.

      100         6,900   

Daito Trust Construction Co., Ltd.

      100         12,074   

Daiwa Securities Group Inc.

      1,000         8,423   

Denso Corp.

      100         4,611   

Dentsu Inc.

      200         7,945   

East Japan Railway Co.

      100         8,039   

Eisai Co., Ltd.

      200         8,498   

Electric Power Development Co., Ltd.

      200         6,442   

FamilyMart Co., Ltd.

      200         8,970   

Fuji Heavy Industries Ltd.

      200         5,695   

Fuji Media Holdings, Inc.

      500         8,015   

FUJIFILM Holdings Corp.

      200         5,712   

Fujitsu Ltd.

      1,000         7,693   

Fukuoka Financial Group, Inc.

      1,000         5,131   

GungHo Online Entertainment, Inc.

      1,100         6,182   

Gunma Bank, Ltd. (The)

      1,000         5,890   

Hachijuni Bank, Ltd. (The)

      1,000         6,173   

Hamamatsu Photonics K.K.

      100         4,713   
      Shares      Value  

Japan–(continued)

      

Hankyu Hanshin Holdings, Inc.

      1,000       $     5,825   

Hino Motors, Ltd.

      600         8,321   

Hiroshima Bank, Ltd. (The)

      1,000         4,865   

Hisamitsu Pharmaceutical Co., Inc.

      200         7,957   

Hitachi, Ltd.

      1,000         7,785   

Hokuhoku Financial Group, Inc.

      3,000         6,172   

Hokuriku Electric Power Co.

      600         7,782   

Honda Motor Co., Ltd.

      200         6,940   

Hoya Corp.

      200         6,502   

Hulic Co., Ltd.

      600         7,090   

Idemitsu Kosan Co., Ltd.

      300         6,157   

IHI Corp.

      2,000         9,302   

INPEX Corp.

      500         7,428   

Isetan Mitsukoshi Holdings Ltd.

      600         7,480   

Isuzu Motors Ltd.

      1,000         6,964   

ITOCHU Corp.

      600         7,678   

Iyo Bank, Ltd. (The)

      800         8,111   

J. Front Retailing Co., Ltd.

      1,000         6,690   

Japan Airlines Co. Ltd.

      100         5,535   

Japan Exchange Group Inc.

      400         9,130   

Japan Real Estate Investment Corp.

      1         5,658   

Japan Retail Fund Investment Corp.

      3         6,630   

Japan Tobacco, Inc.

      200         6,979   

JFE Holdings, Inc.

      300         6,332   

Joyo Bank, Ltd. (The)

      1,000         5,334   

JSR Corp.

      500         8,642   

JTEKT Corp.

      500         8,657   

JX Holdings, Inc.

      1,400         7,231   

Kajima Corp.

      2,000         9,347   

Kansai Electric Power Co., Inc. (The) (a)

      800         7,254   

Kao Corp.

      200         8,229   

Kawasaki Heavy Industries, Ltd.

      2,000         7,809   

KDDI Corp.

      100         5,760   

Keikyu Corp.

      1,000         8,827   

Keio Corp.

      1,000         8,008   

Keisei Electric Railway Co., Ltd.

      1,000         10,293   

Kintetsu Corp.

      2,000         7,289   

Kirin Holdings Co., Ltd.

      600         8,413   

Kobe Steel, Ltd.

      5,000         8,146   

Komatsu Ltd.

      300         6,598   

Konica Minolta Inc.

      800         8,576   

Kuraray Co., Ltd.

      600         7,895   

Kurita Water Industries Ltd.

      300         6,933   

Kyocera Corp.

      100         4,843   

Kyushu Electric Power Co., Inc. (a)

      700         7,790   

Lawson, Inc.

      100         7,494   

LIXIL Group Corp.

      200         4,871   

Makita Corp.

      100         5,890   

Marubeni Corp.

      1,000         7,059   

Marui Group Co., Ltd.

      800         7,646   

Mazda Motor Corp.

      200         4,799   

Medipal Holdings Corp.

      600         7,585   

MEIJI Holdings Co., Ltd.

      100         7,190   

Minebea Co., Ltd.

      1,000         11,873   

Mitsubishi Chemical Holdings Corp.

      1,500         6,580   

Mitsubishi Corp.

      300         6,328   

Mitsubishi Gas Chemical Co., Inc.

      1,000         6,494   

Mitsubishi Heavy Industries, Ltd.

      1,000         6,527   

Mitsubishi Materials Corp.

      2,000         7,321   
 

 

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

Invesco Macro Long/Short Fund

      Shares      Value  

Japan–(continued)

      

Mitsubishi Motors Corp.

      700       $     7,992   

Mitsubishi Tanabe Pharma Corp.

      600         8,738   

Mitsubishi UFJ Financial Group, Inc.

      1,200         7,104   

Mitsui & Co., Ltd.

      500         8,032   

Mitsui Chemicals, Inc.

      2,000         5,405   

Mitsui O.S.K. Lines, Ltd.

      2,000         7,410   

Mizuho Financial Group, Inc.

      3,700         7,205   

MS&AD Insurance Group Holdings, Inc.

      400         9,147   

Murata Manufacturing Co., Ltd.

      100         9,548   

Nagoya Railroad Co., Ltd.

      2,000         8,393   

Namco Bandai Holdings Inc.

      400         10,143   

NEC Corp.

      2,000         7,751   

Nidec Corp.

      100         6,522   

Nikon Corp.

      500         7,795   

Nintendo Co., Ltd.

      100         11,127   

Nippon Building Fund Inc.

      1         5,623   

Nippon Express Co., Ltd.

      1,000         4,842   

Nippon Prologis REIT Inc.

      3         7,009   

Nippon Steel & Sumitomo Metal Corp.

      2,000         6,058   

Nippon Telegraph & Telephone Corp.

      100         6,648   

Nippon Television Holdings, Inc.

      500         8,496   

Nippon Yusen Kabushiki Kaisha

      2,000         5,731   

Nissan Motor Co., Ltd.

      800         7,889   

Nisshin Seifun Group Inc.

      700         8,178   

Nissin Foods Holdings Co., Ltd.

      100         5,475   

Nitori Holdings Co., Ltd.

      100         5,629   

Nitto Denko Corp.

      200         9,023   

NKSJ Holdings, Inc.

      200         5,072   

Nomura Holdings, Inc.

      1,000         6,322   

Nomura Research Institute, Ltd.

      200         6,306   

NTT Data Corp.

      200         7,609   

NTT DoCoMo, Inc.

      500         8,817   

Obayashi Corp.

      1,000         7,322   

Odakyu Electric Railway Co., Ltd.

      1,000         9,814   

Oji Holdings Corp.

      2,000         8,060   

Olympus Corp. (a)

      200         7,084   

OMRON Corp.

      200         8,851   

Ono Pharmaceutical Co., Ltd.

      100         8,492   

ORIX Corp.

      500         8,129   

Osaka Gas Co., Ltd.

      2,000         8,322   

Otsuka Holdings Co., Ltd.

      200         6,364   

Panasonic Corp.

      600         7,252   

Rakuten Inc.

      600         7,904   

Renesas Electronics Corp. (a)

      900         6,627   

Resona Holdings, Inc.

      1,300         7,162   

Ricoh Co., Ltd.

      600         6,804   

Rinnai Corp.

      100         9,147   

Rohm Co. Ltd.

      100         5,693   

Santen Pharmaceutical Co., Ltd.

      100         5,882   

SECOM Co., Ltd.

      100         6,102   

Sega Sammy Holdings Inc.

      300         5,960   

Seiko Epson Corp.

      200         8,428   

Sekisui Chemical Co., Ltd.

      1,000         11,981   

Sekisui House, Ltd.

      600         7,871   

Seven & I Holdings Co., Ltd.

      200         8,347   

Sharp Corp. (a)

      2,000         6,126   

Shikoku Electric Power Co. Inc. (a)

      600         7,911   

Shimadzu Corp.

      1,000         9,563   
      Shares      Value  

Japan–(continued)

      

Shimamura Co., Ltd.

      100       $     9,937   

Shimano Inc.

      100         11,673   

Shimizu Corp.

      1,000         7,665   

Shin-Etsu Chemical Co., Ltd.

      100         6,348   

Shinsei Bank, Ltd.

      3,000         6,334   

Shionogi & Co., Ltd.

      300         6,474   

Shiseido Co., Ltd.

      500         9,896   

Shizuoka Bank, Ltd. (The)

      1,000         10,801   

SoftBank Corp.

      100         7,090   

Sony Corp.

      500         9,099   

Sony Financial Holdings Inc.

      500         8,227   

Stanley Electric Co., Ltd.

      200         5,197   

Sumitomo Chemical Co., Ltd.

      2,000         7,534   

Sumitomo Corp.

      600         7,855   

Sumitomo Electric Industries, Ltd.

      600         8,797   

Sumitomo Heavy Industries, Ltd.

      1,000         4,909   

Sumitomo Mitsui Financial Group, Inc.

      200         8,188   

Sumitomo Mitsui Trust Holdings, Inc.

      1,000         4,350   

Suntory Beverage & Food Ltd.

      200         7,516   

Suzuken Co., Ltd.

      200         6,394   

Suzuki Motor Corp.

      200         6,681   

Sysmex Corp.

      200         7,795   

T&D Holdings, Inc.

      600         7,557   

Taiheiyo Cement Corp.

      2,000         7,792   

Taisei Corp.

      1,000         5,669   

Taisho Pharmaceutical Holdings Co. Ltd.

      100         7,127   

Takashimaya Co., Ltd.

      1,000         9,210   

Takeda Pharmaceutical Co. Ltd.

      100         4,570   

TDK Corp.

      100         4,793   

Teijin Ltd.

      4,000         9,918   

Terumo Corp.

      300         6,815   

THK Co., Ltd.

      400         9,634   

Tobu Railway Co., Ltd.

      1,000         5,248   

Toho Co., Ltd.

      400         9,731   

Toho Gas Co., Ltd.

      1,000         5,535   

Tohoku Electric Power Co., Inc.

      700         7,659   

Tokio Marine Holdings, Inc.

      200         6,300   

Tokyo Electric Power Co. Inc. (a)

      1,800         7,040   

Tokyo Electron Ltd.

      100         6,469   

Tokyo Gas Co., Ltd.

      1,000         5,723   

Tokyo Tatemono Co., Ltd.

      1,000         8,559   

Tokyu Corp.

      1,000         7,215   

TonenGeneral Sekiyu K.K.

      1,000         8,748   

Toppan Printing Co. Ltd.

      1,000         7,641   

Toray Industries, Inc.

      1,000         6,780   

Toshiba Corp.

      1,000         4,453   

Toyo Seikan Group Holdings Ltd.

      500         7,798   

Toyota Industries Corp.

      100         4,878   

Toyota Motor Corp.

      100         5,916   

Toyota Tsusho Corp.

      200         5,576   

Trend Micro Inc.

      200         7,127   

Unicharm Corp.

      100         6,135   

West Japan Railway Co.

      200         9,090   

Yahoo Japan Corp.

      1,500         6,675   

Yakult Honsha Co., Ltd.

      100         5,300   

Yamada Denki Co., Ltd.

      2,000         7,125   

Yamaguchi Financial Group, Inc.

      1,000         10,266   

Yamaha Motor Co., Ltd.

      500         8,313   

Yamato Holdings Co., Ltd.

      300         6,198   
 

 

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

Invesco Macro Long/Short Fund

      Shares      Value  

Japan–(continued)

      

Yaskawa Electric Corp.

      700       $     9,126   

Yokogawa Electric Corp.

      600         7,421   
         1,645,596   

Luxembourg–0.11%

      

ArcelorMittal S.A.

      516         7,823   

Tenaris S.A.

      333         7,165   
         14,988   

Macau–0.07%

      

Wynn Macau, Ltd.

      2,287         9,717   

Malaysia–2.01%

      

AMMB Holdings Berhad

      5,823         12,612   

Axiata Group Berhad

      8,168         17,775   

British American Tobacco Malaysia Berhad

      512         11,277   

Bumi Armada Berhad

      7,410         7,791   

CIMB Group Holdings Berhad

      4,831         10,551   

DiGi.Com Berhad

      7,200         12,791   

Gamuda Berhad

      5,500         8,227   

Genting Berhad

      2,731         8,426   

Genting Malaysia Berhad

      4,900         6,728   

IHH Healthcare Berhad

      7,421         10,914   

IJM Corp. Berhad

      4,679         9,777   

IOI Corp. Berhad

      5,200         8,136   

Kuala Lumpur Kepong Berhad

      1,300         9,641   

Malayan Banking Berhad

      4,119         12,725   

Malaysia Airports Holdings Berhad

      2,812         6,565   

Maxis Berhad

      7,281         15,390   

MISC Berhad

      3,524         7,135   

Petronas Chemicals Group Berhad

      5,600         11,636   

Petronas Dagangan Berhad

      1,000         5,820   

Petronas Gas Berhad

      1,200         8,817   

Public Bank Berhad

      2,485         15,381   

SapuraKencana Petroleum Berhad

      5,216         7,018   

Sime Darby Berhad

      6,605         19,635   

Telekom Malaysia Berhad

      5,391         10,526   

Tenaga Nasional Berhad

      2,322         9,016   

UMW Holdings Berhad

      2,707         9,911   

YTL Corp. Berhad

      16,232         7,974   
         282,195   

Mexico–0.37%

      

America Movil S.A.B. de C.V. -Series L

      7,340         8,667   

Arca Continental S.A.B. de C.V.

      1,132         8,002   

Cemex S.A.B. de C.V. –Series CPO(a)(c)

      5,134         6,458   

Coca-Cola Femsa, S.A.B. de C.V. -Series L

      600         6,405   

Fomento Economico Mexicano, S.A.B. de
C.V. -Series BD(d)

      800         7,523   

Grupo Televisa S.A.B. -Series CPO (e)

      1,100         7,835   

Wal-Mart de Mexico S.A.B. de C.V. -Series V

      2,824         7,013   
         51,903   

Netherlands–0.67%

      

Aegon N.V.

      871         7,063   

Akzo Nobel N.V.

      103         7,432   

ASML Holding N.V.

      77         7,271   
      Shares      Value  

Netherlands–(continued)

      

Gemalto N.V.

      73       $     7,111   

Heineken Holding N.V.

      114         7,260   

Heineken N.V.

      107         7,512   

Koninklijke Ahold N.V.

      417         7,267   

Koninklijke DSM N.V.

      109         7,517   

Koninklijke KPN N.V. (a)

      2,047         6,504   

Koninklijke Philips N.V.

      248         7,632   

Randstad Holding N.V.

      140         6,922   

Reed Elsevier N.V.

      325         7,301   

Wolters Kluwer N.V.

      259         7,151   
         93,943   

New Zealand–0.18%

      

Auckland International Airport Ltd.

      2,517         8,116   

Fletcher Building Ltd.

      1,076         8,287   

Spark New Zealand Ltd.

      3,726         9,010   
         25,413   

Norway–0.36%

      

DNB ASA

      560         9,896   

Orkla ASA

      1,188         10,761   

Statoil ASA

      329         9,380   

Telenor ASA

      466         10,700   

Yara International ASA

      210         9,601   
         50,338   

Philippines–0.06%

      

Philippine Long Distance Telephone Co.

      115         8,084   

Poland–0.08%

      

Powszechna Kasa Oszczednosci Bank Polski S.A.

      516         5,861   

Powszechny Zaklad Ubezpieczen S.A.

      42         5,902   
         11,763   

Portugal–0.05%

      

EDP - Energias de Portugal, S.A.

      1,585         7,413   

Russia–0.14%

      

LUKOIL OAO -ADR

      119         6,626   

Rosneft Oil Co. -REGS -GDR(f)

      1,057         6,515   

Surgutneftegas OAO -ADR

      987         6,837   
         19,978   

Singapore–1.23%

      

CapitaLand Ltd.

      3,000         8,263   

CapitaMall Trust

      5,000         7,888   

City Developments Ltd.

      1,000         8,469   

ComfortDelGro Corp. Ltd.

      4,000         8,281   

DBS Group Holdings Ltd.

      1,000         14,584   

Genting Singapore PLC

      8,000         8,553   

Global Logistic Properties Ltd.

      4,000         8,893   

Keppel Corp. Ltd.

      1,000         8,777   

Oversea-Chinese Banking Corp. Ltd.

      1,000         7,968   

SembCorp Industries Ltd.

      2,000         8,738   

SembCorp Marine Ltd.

      3,000         9,948   

Singapore Airlines Ltd.

      1,000         8,250   

Singapore Exchange Ltd.

      2,000         11,304   

Singapore Press Holdings Ltd.

      2,000         6,653   
 

 

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

Invesco Macro Long/Short Fund

      Shares      Value  

Singapore–(continued)

      

Singapore Technologies Engineering Ltd.

      3,000       $ 9,097   

Singapore Telecommunications Ltd.

      3,000         9,774   

Suntec REIT

      6,000         8,594   

UOL Group Ltd.

      2,000         10,589   

Wilmar International Ltd.

      3,000         7,853   
         172,476   

South Africa–1.19%

      

Barclays Africa Group Ltd.

      458         7,126   

Bidvest Group Ltd.

      268         7,222   

Capitec Bank Holdings Ltd.

      376         8,541   

Coronation Fund Managers Ltd.

      719         6,556   

Exxaro Resources Ltd.

      503         6,826   

FirstRand Ltd.

      1,932         7,777   

Growthpoint Properties Ltd.

      3,115         7,211   

Investec Ltd.

      829         7,125   

Liberty Holdings Ltd.

      581         7,017   

Mediclinic International Ltd.

      859         6,836   

MTN Group Ltd.

      323         6,663   

Nedbank Group Ltd.

      351         7,632   

PPC Ltd.

      2,256         6,767   

Rand Merchant Insurance Holdings Ltd.

      2,654         7,691   

Redefine Properties Ltd.

      7,246         6,501   

Remgro Ltd.

      375         8,092   

Sasol Ltd.

      159         9,175   

Shoprite Holdings Ltd.

      466         7,027   

SPAR Group Ltd. (The)

      674         7,781   

Standard Bank Group Ltd.

      563         7,575   

Steinhoff International Holdings Ltd.

      1,285         6,424   

Tiger Brands Ltd.

      236         6,779   

Vodacom Group Ltd.

      543         6,357   
         166,701   

South Korea–5.67%

      

AMOREPACIFIC Corp.

      5         8,592   

Celltrion Inc. (a)

      198         7,657   

Coway Co., Ltd.

      101         8,702   

Daewoo Engineering & Construction Co., Ltd. (a)

      1,060         10,157   

Daewoo Securities Co., Ltd. (a)

      1,150         11,574   

Daewoo Shipbuilding & Marine Engineering Co., Ltd.

      321         7,652   

Dongbu Insurance Co., Ltd.

      279         15,907   

E-Mart Co., Ltd.

      35         7,895   

GS Holdings

      404         18,469   

Hana Financial Group Inc.

      404         16,271   

Hankook Tire Co. Ltd.

      131         7,202   

Hanwha Corp.

      250         7,108   

Hotel Shilla Co., Ltd.

      93         9,877   

Hyundai Department Store Co., Ltd.

      59         8,435   

Hyundai Engineering & Construction Co. Ltd.

      314         19,174   

Hyundai Glovis Co., Ltd.

      31         7,942   

Hyundai Heavy Industries Co. Ltd.

      47         6,849   

Hyundai Marine & Fire Insurance Co., Ltd.

      304         9,008   

Hyundai Mobis Co., Ltd.

      54         16,061   

Hyundai Motor Co.

      39         9,287   

Hyundai Steel Co.

      124         9,505   

Hyundai Wia Corp.

      49         8,962   

Industrial Bank of Korea

      1,203         17,962   

 

      Shares      Value  

South Korea–(continued)

      

Kangwon Land Inc.

      280       $ 9,330   

KB Financial Group Inc.

      452         17,679   

KCC Corp.

      13         7,671   

Kia Motors Corp.

      277         16,364   

Korea Electric Power Corp.

      392         16,008   

Korea Zinc Co., Ltd.

      23         9,260   

KT Corp.

      540         17,447   

KT&G Corp.

      198         19,113   

LG Chem Ltd.

      56         15,662   

LG Corp.

      275         18,378   

LG Display Co. Ltd. (a)

      278         9,141   

LG Electronics Inc.

      209         15,571   

LG Household & Health Care Ltd.

      20         9,314   

LG Uplus Corp.

      902         8,332   

Lotte Chemical Corp.

      46         7,792   

Lotte Shopping Co., Ltd.

      53         16,389   

NAVER Corp.

      11         7,785   

NCSoft Corp.

      44         6,634   

OCI Co. Ltd. (a)

      46         7,269   

ORION Corp.

      10         9,134   

POSCO

      62         20,173   

S-Oil Corp.

      330         17,701   

Samsung C&T Corp.

      211         15,048   

Samsung Card Co., Ltd.

      197         9,170   

Samsung Electro-Mechanics Co., Ltd.

      255         15,632   

Samsung Electronics Co., Ltd.

      12         15,637   

Samsung Engineering Co., Ltd. (a)

      113         7,572   

Samsung Fire & Marine Insurance Co., Ltd.

      61         16,739   

Samsung Heavy Industries Co., Ltd.

      309         8,399   

Samsung Life Insurance Co., Ltd.

      160         16,346   

Samsung SDI Co., Ltd.

      163         25,301   

Samsung Securities Co., Ltd.

      389         18,324   

Samsung Techwin Co., Ltd.

      332         15,570   

Shinhan Financial Group Co., Ltd.

      350         17,375   

SK C&C Co. Ltd.

      49         7,988   

SK Holdings Co., Ltd.

      86         14,626   

SK Hynix Inc. (a)

      170         7,386   

SK Innovation Co., Ltd.

      162         16,230   

SK Telecom Co., Ltd.

      66         16,899   

Woori Finance Holdings Co. Ltd. (a)

      696         9,478   

Woori Investment & Securities Co., Ltd.

      883         9,624   
         795,739   

Spain–0.89%

      

Abertis Infraestructuras S.A.

      346         7,571   

Amadeus IT Holding S.A. -Class A

      183         7,196   

Banco Bilbao Vizcaya Argentaria, S.A.

      595         7,321   

Banco de Sabadell S.A.

      2,274         7,362   

Banco Popular Espanol S.A.

      1,088         6,620   

Banco Santander S.A.

      729         7,326   

Bankia S.A. (a)

      3,893         7,605   

CaixaBank S.A.

      1,224         7,330   

Enagas S.A.

      235         7,819   

Ferrovial S.A.

      365         7,621   

Gas Natural SDG, S.A.

      262         8,021   

Grifols S.A.

      128         5,761   

Iberdrola S.A.

      1,041         7,728   

Industria de Diseno Textil, S.A.

      240         6,994   
 

 

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

Invesco Macro Long/Short Fund

      Shares      Value  

Spain–(continued)

      

Red Electrica Corp. S.A.

      87       $ 7,450   

Repsol S.A.

      288         7,149   

Telefonica S.A.

      464         7,545   
         124,419   

Sweden–1.21%

      

Assa Abloy AB -Class B

      210         10,290   

Atlas Copco AB -Class A

      355         10,578   

Hennes & Mauritz AB -Class B

      243         9,965   

Hexagon AB -Class B

      325         10,055   

Investor AB -Class B

      290         10,423   

Nordea Bank AB

      740         9,909   

Sandvik AB

      759         9,534   

Skandinaviska Enskilda Banken AB -Class A

      780         10,472   

Skanska AB -Class B

      441         9,155   

SKF AB -Class B

      398         9,376   

Svenska Cellulosa AB -Class B

      381         9,416   

Svenska Handelsbanken AB -Class A

      214         10,308   

Swedbank AB -Class A

      372         9,530   

Swedish Match AB

      312         10,209   

Telefonaktiebolaget LM Ericsson -Class B

      854         10,614   

TeliaSonera AB

      1,431         10,720   

Volvo AB -Class B

      742         9,040   
         169,594   

Switzerland–1.91%

      

ABB Ltd.

      449         10,330   

Actelion Ltd.

      82         9,883   

Adecco S.A.

      118         8,817   

Cie Financiere Richemont S.A.

      99         9,421   

Credit Suisse Group AG

      349         9,486   

Geberit AG

      31         10,382   

Givaudan S.A.

      6         9,819   

Glencore PLC

      5,935         36,041   

Holcim Ltd.

      118         9,465   

Julius Baer Group Ltd.

      251         10,646   

Kuehne + Nagel International AG

      77         10,258   

Nestle S.A.

      134         9,947   

Novartis AG

      120         10,474   

Roche Holding AG

      35         10,168   

Schindler Holding AG -Participation Ctfs.

      69         10,308   

SGS S.A.

      4         8,727   

Sika AG

      3         11,644   

STMicroelectronics N.V.

      827         6,864   

Swatch Group AG (The)

      18         9,635   

Swiss Re AG

      113         9,605   

Swisscom AG

      18         9,984   

Syngenta AG

      27         9,600   

TE Connectivity Ltd.

      109         6,746   

UBS AG

      546         9,377   

Zurich Insurance Group AG

      35         10,174   
         267,801   

Taiwan–3.30%

      

Asia Cement Corp.

      8,285         11,508   

Cathay Financial Holding Co., Ltd.

      5,758         9,589   

Chang Hwa Commercial Bank

      20,071         13,118   

Cheng Shin Rubber Industry Co., Ltd.

      3,000         7,536   

 

      Shares      Value  

Taiwan–(continued)

      

Cheng Uei Precision Industry Co., Ltd.

      4,434       $ 8,252   

Chicony Electronics Co., Ltd.

      2,697         7,442   

China Development Financial Holding Corp.

      37,224         12,254   

China Life Insurance Co., Ltd.

      8,635         8,232   

China Petrochemical Development Corp.

      18,000         7,298   

China Steel Chemical Corp.

      1,400         8,842   

China Steel Corp.

      13,186         11,377   

Chunghwa Telecom Co., Ltd.

      4,551         13,865   

CTBC Financial Holding Co. Ltd.

      15,870         11,127   

E.Sun Financial Holding Co. Ltd.

      14,000         9,338   

Far Eastern New Century Corp.

      9,335         10,452   

Far EasTone Telecommunications Co., Ltd.

      3,267         6,750   

First Financial Holding Co., Ltd.

      26,022         17,711   

Formosa Chemicals & Fibre Corp.

      3,267         7,947   

Formosa Petrochemical Corp.

      3,000         7,652   

Formosa Plastics Corp.

      3,734         9,575   

Foxconn Technology Co. Ltd.

      3,734         9,184   

Fubon Financial Holding Co. Ltd.

      6,301         9,877   

Highwealth Construction Corp. (a)

      3,151         7,284   

Hon Hai Precision Industry Co., Ltd.

      3,384         11,548   

Huaku Development Co. Ltd.

      3,034         7,212   

Lite-On Technology Corp.

      4,222         7,100   

Macronix International Co., Ltd. (a)

      27,312         7,010   

Mega Financial Holding Co., Ltd.

      12,000         10,543   

Nan Kang Rubber Tire Co., Ltd.

      7,702         8,966   

Nan Ya Plastics Corp.

      3,384         7,891   

President Chain Store Corp.

      1,000         7,936   

Ruentex Development Co., Ltd.

      4,000         7,142   

Ruentex Industries Ltd.

      3,000         7,529   

Shin Kong Financial Holding Co., Ltd.

      42,825         14,215   

Siliconware Precision Industries Co.

      3,967         5,408   

SinoPac Financial Holdings Co., Ltd.

      22,755         10,675   

Taishin Financial Holding Co., Ltd.

      23,805         12,710   

Taiwan Cement Corp.

      4,668         6,918   

Taiwan Cooperative Financial Holding Co. Ltd.

      33,607         20,014   

Taiwan Fertilizer Co., Ltd.

      5,718         11,591   

Taiwan Mobile Co., Ltd.

      2,217         6,789   

Taiwan Semiconductor Manufacturing Co. Ltd.

      1,750         7,024   

Tatung Co., Ltd. (a)

      24,000         7,904   

Uni-President Enterprises Corp.

      4,668         8,896   

Walsin Lihwa Corp. (a)

      24,622         9,136   

Wistron Corp.

      7,140         6,811   

WPG Holdings Ltd.

      6,068         8,026   

Yuanta Financial Holding Co., Ltd.

      15,000         8,328   

Yulon Motor Co., Ltd.

      5,484         8,930   
         462,462   

Thailand–0.06%

      

Thai Beverage PCL

      16,000         7,888   

United Kingdom–10.97%

      

Anglo American PLC

      1,321         35,403   

ARM Holdings PLC

      2,164         30,905   

Associated British Foods PLC

      623         29,163   

AstraZeneca PLC

      431         31,399   

Aviva PLC

      3,793         32,078   

BAE Systems PLC

      4,432         31,985   
 

 

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

Invesco Macro Long/Short Fund

      Shares      Value  

United Kingdom–(continued)

      

Barclays PLC

      8,198       $     31,063   

BG Group PLC

      1,551         30,598   

BHP Billiton PLC

      1,007         34,382   

BP PLC

      3,709         30,306   

British American Tobacco PLC

      535         31,309   

British Sky Broadcasting Group PLC

      2,158         31,873   

BT Group PLC

      4,959         32,336   

Burberry Group PLC

      1,311         31,148   

Centrica PLC

      6,014         31,372   

CNH Industrial N.V. (a)

      712         6,555   

Compass Group PLC

      1,798         29,257   

Delphi Automotive PLC

      97         6,479   

Diageo PLC

      1,037         31,193   

Experian PLC

      1,914         32,701   

GlaxoSmithKline PLC

      1,208         29,156   

HSBC Holdings PLC

      3,156         33,784   

Imperial Tobacco Group PLC

      711         30,792   

Kingfisher PLC

      5,305         26,776   

Land Securities Group PLC

      1,885         33,043   

Legal & General Group PLC

      8,491         33,600   

Lloyds Banking Group PLC (a)

      25,073         31,226   

Marks & Spencer Group PLC

      4,435         32,052   

National Grid PLC

      2,280         32,837   

Next PLC

      303         34,537   

Old Mutual PLC

      9,837         32,369   

Pearson PLC

      1,719         33,022   

Prudential PLC

      1,430         32,926   

Reckitt Benckiser Group PLC

      365         32,208   

Reed Elsevier PLC

      1,991         32,083   

Rio Tinto Ltd.

      150         9,142   

Rio Tinto PLC

      625         35,722   

Rolls-Royce Holdings PLC

      1,773         30,886   

Royal Bank of Scotland Group PLC (a)

      5,704         34,035   

Royal Dutch Shell PLC -Class A

      791         32,525   

SABMiller PLC

      567         30,887   

Smith & Nephew PLC

      1,783         30,691   

SSE PLC

      1,206         29,575   

Standard Chartered PLC

      1,517         31,470   

Standard Life PLC

      5,071         31,922   

Tesco PLC

      6,624         28,663   

Tullow Oil PLC

      2,198         26,925   

Unilever PLC

      716         31,005   

Vodafone Group PLC

      10,024         33,375   

Wolseley PLC

      596         31,017   

WPP PLC

      1,496         29,763   
         1,539,519   

United States–22.83%

      

3M Co.

      48         6,763   

Abbott Laboratories

      162         6,823   

AbbVie Inc.

      116         6,071   

ABM Industries Inc.

      495         12,182   

Acadia Realty Trust

      550         15,527   

Accenture PLC -Class A

      74         5,867   

ACE Ltd.

      60         6,006   

Actavis PLC (a)

      31         6,642   

Actuant Corp. -Class A

      385         12,428   

Adobe Systems Inc. (a)

      97         6,704   
      Shares      Value  

United States–(continued)

      

Aetna Inc.

      88       $     6,823   

Aflac, Inc.

      100         5,974   

Agilent Technologies, Inc.

      109         6,114   

Agree Realty Corp.

      415         12,151   

Air Products and Chemicals, Inc.

      52         6,861   

Alexion Pharmaceuticals, Inc. (a)

      40         6,360   

Allergan, Inc.

      41         6,800   

ALLETE, Inc.

      345         16,187   

Allstate Corp. (The)

      110         6,430   

Altria Group, Inc.

      155         6,293   

Amazon.com, Inc. (a)

      21         6,573   

American Assets Trust Inc.

      374         12,824   

American Electric Power Co., Inc.

      130         6,759   

American Express Co.

      66         5,808   

American International Group, Inc.

      127         6,601   

American Tower Corp.

      77         7,268   

Ameriprise Financial, Inc.

      58         6,937   

Amgen Inc.

      52         6,624   

AmSurg Corp. (a)

      281         13,421   

Anadarko Petroleum Corp.

      60         6,411   

Analog Devices, Inc.

      118         5,856   

Anixter International Inc.

      121         10,402   

Aon PLC

      76         6,411   

Apache Corp.

      67         6,878   

Apple Inc.

      74         7,072   

Applied Materials, Inc.

      315         6,602   

Archer-Daniels-Midland Co.

      149         6,914   

AT&T Inc.

      186         6,620   

Automatic Data Processing, Inc.

      77         6,261   

AutoZone, Inc. (a)

      12         6,204   

Avista Corp.

      509         15,794   

Baker Hughes Inc.

      90         6,189   

Bank of America Corp.

      432         6,588   

Bank of New York Mellon Corp. (The)

      184         7,183   

Banner Corp.

      297         11,951   

Barnes Group Inc.

      333         11,405   

Baxter International Inc.

      93         6,946   

BB&T Corp.

      163         6,034   

Becton, Dickinson and Co.

      56         6,509   

Benchmark Electronics, Inc. (a)

      546         13,186   

Berkshire Hathaway Inc. -Class B (a)

      51         6,397   

Biglari Holdings, Inc. (a)

      33         14,025   

Biogen Idec Inc. (a)

      21         7,022   

BlackRock, Inc.

      21         6,399   

Boeing Co. (The)

      52         6,265   

Boston Properties, Inc.

      57         6,809   

Bristol-Myers Squibb Co.

      139         7,036   

Broadcom Corp. -Class A

      174         6,657   

Brookline Bancorp, Inc.

      1,709         15,432   

CACI International Inc. -Class A (a)

      207         14,281   

Calgon Carbon Corp. (a)

      627         13,292   

Capital One Financial Corp.

      83         6,602   

Capstead Mortgage Corp.

      1,079         13,854   

Cardinal Health, Inc.

      97         6,950   

Carnival Corp.

      170         6,157   

Casey’s General Stores, Inc.

      168         11,117   

Caterpillar Inc.

      61         6,146   

CBS Corp. -Class B

      113         6,422   
 

 

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

Invesco Macro Long/Short Fund

      Shares      Value  

United States–(continued)

      

Celgene Corp. (a)

      78       $     6,798   

CenturyLink Inc.

      182         7,142   

Charles Schwab Corp. (The)

      224         6,216   

Chesapeake Energy Corp.

      216         5,696   

Chevron Corp.

      53         6,850   

Chubb Corp. (The)

      73         6,330   

Cigna Corp.

      72         6,483   

Cisco Systems, Inc.

      272         6,863   

Citigroup Inc.

      141         6,896   

City Holding Co.

      289         12,037   

CME Group Inc. -Class A

      93         6,876   

Coca-Cola Co. (The)

      166         6,522   

Cognizant Technology Solutions Corp. -Class A (a)

      131         6,426   

Colgate-Palmolive Co.

      95         6,023   

Columbia Banking System, Inc.

      509         12,974   

Comcast Corp. -Class A

      128         6,877   

Community Bank System, Inc.

      372         13,106   

Comtech Telecommunications Corp.

      440         14,872   

CONMED Corp.

      251         9,789   

ConocoPhillips

      79         6,518   

Consolidated Edison, Inc.

      115         6,450   

Corning Inc.

      329         6,465   

Costco Wholesale Corp.

      55         6,465   

Cousins Properties, Inc.

      1,108         13,717   

Covidien PLC

      74         6,402   

Cracker Barrel Old Country Store, Inc.

      128         12,411   

Crown Castle International Corp.

      91         6,750   

CSX Corp.

      216         6,463   

Cubic Corp.

      262         11,491   

Cummins Inc.

      44         6,133   

CVB Financial Corp.

      808         12,354   

CVS Caremark Corp.

      83         6,338   

Danaher Corp.

      84         6,206   

Deere & Co.

      68         5,787   

Delta Air Lines, Inc.

      168         6,293   

Devon Energy Corp.

      85         6,418   

DiamondRock Hospitality Co.

      935         11,463   

Dime Community Bancshares, Inc.

      911         13,774   

DIRECTV (a)

      79         6,798   

Discover Financial Services

      110         6,717   

Dollar General Corp. (a)

      109         6,020   

Dominion Resources, Inc.

      92         6,223   

Dow Chemical Co. (The)

      132         6,741   

Duke Energy Corp.

      92         6,636   

E. I. du Pont de Nemours and Co.

      96         6,174   

EastGroup Properties, Inc.

      222         13,844   

Eaton Corp. PLC

      81         5,502   

eBay Inc. (a)

      135         7,128   

Ecolab Inc.

      58         6,295   

Edison International

      123         6,740   

El Paso Electric Co.

      382         14,077   

Eli Lilly and Co.

      110         6,717   

EMC Corp.

      254         7,442   

EMCOR Group, Inc.

      255         10,437   

Emerson Electric Co.

      97         6,174   

Ensign Group, Inc. (The)

      554         18,243   

Entergy Corp.

      83         6,045   
      Shares      Value  

United States–(continued)

      

EOG Resources, Inc.

      57       $     6,238   

EPR Properties

      254         13,691   

Equity Residential

      111         7,176   

Exelon Corp.

      194         6,030   

Express Scripts Holding Co. (a)

      98         6,826   

Exterran Holdings Inc.

      275         11,619   

Exxon Mobil Corp.

      67         6,629   

F.N.B. Corp.

      1,069         13,149   

Facebook Inc. -Class A (a)

      103         7,483   

FedEx Corp.

      46         6,756   

First Financial Bancorp.

      882         14,412   

FirstEnergy Corp.

      194         6,055   

Ford Motor Co.

      410         6,978   

Forward Air Corp.

      296         13,252   

Franklin Resources, Inc.

      121         6,552   

Franklin Street Properties Corp.

      1,030         12,504   

Freeport-McMoRan Inc.

      197         7,332   

General Dynamics Corp.

      59         6,889   

General Electric Co.

      250         6,288   

General Mills, Inc.

      117         5,868   

General Motors Co.

      182         6,155   

Geo Group Inc. (The)

      371         12,766   

Getty Realty Corp.

      633         11,628   

Gilead Sciences, Inc. (a)

      86         7,873   

Glacier Bancorp, Inc.

      465         12,313   

Goldman Sachs Group, Inc. (The)

      38         6,569   

Google Inc. -Class A (a)

      12         6,955   

Government Properties Income Trust

      541         12,632   

Greatbatch, Inc. (a)

      251         12,427   

Haemonetics Corp. (a)

      372         13,232   

Halliburton Co.

      95         6,554   

Haynes International, Inc.

      230         11,454   

HCP, Inc.

      171         7,102   

Health Care REIT, Inc.

      108         6,872   

Healthcare Realty Trust, Inc.

      512         12,646   

Healthcare Services Group, Inc.

      438         11,449   

Hershey Co. (The)

      67         5,906   

Hess Corp.

      72         7,127   

Hewlett-Packard Co.

      206         7,336   

Hillenbrand, Inc.

      422         12,681   

Home Depot, Inc. (The)

      84         6,791   

Honeywell International Inc.

      67         6,153   

Horace Mann Educators Corp.

      430         12,320   

Humana Inc.

      53         6,235   

Iconix Brand Group, Inc. (a)

      288         12,162   

Illinois Tool Works Inc.

      74         6,095   

Illumina, Inc. (a)

      38         6,077   

Independent Bank Corp.

      372         13,582   

Infinity Property & Casualty Corp.

      181         11,722   

Ingersoll-Rand PLC

      108         6,349   

Inland Real Estate Corp.

      1,199         12,398   

Innophos Holdings, Inc.

      218         13,174   

Integra LifeSciences Holdings Corp. (a)

      258         12,234   

Intel Corp.

      221         7,490   

Intercontinental Exchange, Inc.

      34         6,535   

International Business Machines Corp.

      36         6,900   

International Paper Co.

      139         6,603   

Interval Leisure Group, Inc.

      566         11,988   
 

 

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

Invesco Macro Long/Short Fund

      Shares      Value  

United States–(continued)

      

Intuit Inc.

      77       $ 6,312   

Intuitive Surgical, Inc. (a)

      17         7,778   

J & J Snack Foods Corp.

      140         12,613   

Johnson & Johnson

      63         6,306   

Johnson Controls, Inc.

      136         6,425   

JPMorgan Chase & Co.

      108         6,228   

Kaiser Aluminum Corp.

      227         17,529   

Kaman Corp.

      325         13,003   

Kellogg Co.

      105         6,282   

Kimberly-Clark Corp.

      59         6,128   

Kinder Morgan Inc.

      185         6,656   

Knight Transportation, Inc.

      550         13,178   

Kraft Foods Group, Inc.

      106         5,680   

Kroger Co. (The)

      145         7,102   

Laclede Group, Inc. (The)

      374         17,571   

Landauer, Inc.

      284         12,255   

Las Vegas Sands Corp.

      89         6,573   

Lexington Realty Trust

      1,235         13,511   

Lockheed Martin Corp.

      40         6,679   

Lorillard, Inc.

      102         6,169   

Lowe’s Cos., Inc.

      145         6,938   

LyondellBasell Industries N.V. -Class A

      70         7,438   

Macy’s, Inc.

      110         6,357   

Magellan Health, Inc. (a)

      243         13,997   

Marathon Oil Corp.

      179         6,936   

Marathon Petroleum Corp.

      70         5,844   

Marsh & McLennan Cos., Inc.

      129         6,549   

MasterCard, Inc. -Class A

      91         6,748   

MB Financial, Inc.

      443         11,934   

McDonald’s Corp.

      67         6,336   

McGraw Hill Financial, Inc.

      76         6,097   

McKesson Corp.

      35         6,715   

Mead Johnson Nutrition Co.

      74         6,767   

Medtronic, Inc.

      107         6,606   

Merck & Co., Inc.

      118         6,695   

MetLife, Inc.

      119         6,259   

Micrel, Inc.

      1,208         12,636   

Micron Technology, Inc. (a)

      210         6,416   

Microsoft Corp.

      156         6,733   

MKS Instruments, Inc.

      434         13,793   

Mondelez International Inc. -Class A

      177         6,372   

Monsanto Co.

      53         5,994   

Morgan Stanley

      207         6,694   

Mosaic Co. (The)

      127         5,856   

Motorola Solutions, Inc.

      95         6,050   

Mueller Industries, Inc.

      438         12,190   

National Oilwell Varco Inc.

      84         6,807   

National Penn Bancshares, Inc.

      1,279         13,174   

National Presto Industries, Inc.

      188         12,051   

Navigators Group, Inc. (The) (a)

      231         14,045   

NBT Bancorp Inc.

      582         13,601   

Netflix Inc. (a)

      15         6,341   

New Jersey Resources Corp.

      267         13,638   

NextEra Energy, Inc.

      71         6,666   

NIKE, Inc. -Class B

      84         6,479   

Noble Energy, Inc.

      85         5,652   

Norfolk Southern Corp.

      63         6,405   

Northern Trust Corp.

      94         6,288   

 

      Shares      Value  

United States–(continued)

      

Northrop Grumman Corp.

      52       $ 6,410   

Northwest Bancshares, Inc.

      1,132         14,037   

Northwest Natural Gas Co.

      433         18,714   

NorthWestern Corp.

      373         17,240   

Nucor Corp.

      124         6,227   

Occidental Petroleum Corp.

      62         6,058   

Old National Bancorp

      899         12,029   

Omnicom Group Inc.

      88         6,159   

Oracle Corp.

      168         6,786   

Oritani Financial Corp.

      1,117         16,532   

PACCAR Inc.

      94         5,853   

Papa John’s International, Inc.

      294         12,257   

Parkway Properties, Inc.

      636         13,184   

PepsiCo, Inc.

      77         6,784   

Pfizer Inc.

      224         6,429   

PG&E Corp.

      142         6,343   

Philip Morris International Inc.

      75         6,151   

Phillips 66

      78         6,327   

Piedmont Natural Gas Co., Inc.

      505         17,518   

Pinnacle Financial Partners, Inc.

      341         12,617   

Pioneer Natural Resources Co.

      29         6,422   

PNC Financial Services Group, Inc. (The)

      77         6,357   

Pool Corp.

      216         11,828   

Post Properties, Inc.

      279         15,122   

PPG Industries, Inc.

      32         6,348   

PPL Corp.

      194         6,400   

Praxair, Inc.

      51         6,535   

Precision Castparts Corp.

      25         5,720   

Priceline Group Inc. (The) (a)

      6         7,455   

ProAssurance Corp.

      379         16,536   

Procter & Gamble Co. (The)

      81         6,263   

Prologis, Inc.

      150         6,122   

Provident Financial Services, Inc.

      712         11,898   

Prudential Financial, Inc.

      73         6,349   

PS Business Parks, Inc.

      166         13,695   

Public Service Enterprise Group Inc.

      173         6,084   

Public Storage

      38         6,521   

QUALCOMM, Inc.

      83         6,117   

Raytheon Co.

      65         5,900   

Regeneron Pharmaceuticals, Inc. (a)

      23         7,273   

Regis Corp.

      843         11,743   

Reynolds American Inc.

      106         5,920   

RLI Corp.

      324         13,848   

RTI International Metals, Inc. (a)

      480         11,933   

Safety Insurance Group, Inc.

      265         13,253   

salesforce.com, inc. (a)

      108         5,859   

Samsonite International S.A.

      2,700         8,413   

SanDisk Corp.

      66         6,053   

Saul Centers, Inc.

      275         13,109   

Schlumberger Ltd.

      65         7,045   

SEACOR Holdings Inc. (a)

      168         12,761   

Selective Insurance Group, Inc.

      572         12,750   

Sempra Energy

      66         6,581   

Seventy Seven Energy Inc. (a)

      18         404   

Simmons First National Corp. -Class A

      303         12,008   

Simon Property Group, Inc.

      41         6,896   

South Jersey Industries, Inc.

      282         15,107   

Southern Co. (The)

      153         6,623   
 

 

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

Invesco Macro Long/Short Fund

      Shares      Value  

United States–(continued)

      

Southwest Airlines Co.

      245       $ 6,929   

Southwest Gas Corp.

      297         14,710   

Sovran Self Storage, Inc.

      166         12,736   

Spectra Energy Corp.

      168         6,874   

St. Jude Medical, Inc.

      92         5,997   

Starbucks Corp.

      83         6,447   

State Street Corp.

      92         6,480   

Stepan Co.

      265         12,752   

Sterling Bancorp

      1,203         14,316   

Steven Madden, Ltd. (a)

      360         11,466   

Stryker Corp.

      80         6,381   

SunTrust Banks, Inc.

      158         6,012   

Superior Industries International, Inc.

      613         11,469   

Sysco Corp.

      177         6,317   

T. Rowe Price Group Inc.

      81         6,290   

Tanger Factory Outlet Centers, Inc.

      412         14,276   

Target Corp.

      114         6,793   

Teledyne Technologies Inc. (a)

      154         14,045   

TeleTech Holdings, Inc. (a)

      487         13,407   

Texas Instruments Inc.

      140         6,475   

Texas Roadhouse, Inc.

      529         13,161   

Thermo Fisher Scientific, Inc.

      52         6,318   

Time Inc. (a)

      11         265   

Time Warner Cable Inc.

      49         7,110   

Time Warner Inc.

      89         7,389   

TJX Cos., Inc. (The)

      121         6,448   

Tompkins Financial Corp.

      252         11,209   

Toro Co. (The)

      210         12,459   

Transocean Ltd.

      158         6,374   

Travelers Cos., Inc. (The)

      76         6,807   

TreeHouse Foods, Inc. (a)

      166         12,201   

TrustCo Bank Corp NY

      1,903         12,541   

Twenty-First Century Fox, Inc. -Class A

      194         6,146   

Tyco International Ltd.

      145         6,257   

U.S. Bancorp

      151         6,346   

UIL Holdings Corp.

      391         13,728   

UMB Financial Corp.

      208         11,779   

Union Pacific Corp.

      68         6,685   

United Bankshares, Inc.

      458         14,693   

United Parcel Service, Inc. -Class B

      65         6,311   

United Stationers Inc.

      314         12,114   

United Technologies Corp.

      54         5,678   

UnitedHealth Group Inc.

      81         6,565   

Urstadt Biddle Properties Inc. -Class A

      718         14,712   

Valero Energy Corp.

      117         5,943   

Ventas, Inc.

      100         6,350   

Veritiv Corp. (a)

      2         80   

Verizon Communications Inc.

      136         6,857   

Vertex Pharmaceuticals Inc. (a)

      102         9,069   

VF Corp.

      107         6,556   

Viacom Inc. -Class B

      78         6,448   

ViewPoint Financial Group Inc.

      507         12,746   

Visa Inc. -Class A

      32         6,752   

Vornado Realty Trust

      66         6,997   

Wal-Mart Stores, Inc.

      83         6,107   

Walgreen Co.

      90         6,189   

Walt Disney Co. (The)

      79         6,785   

Waste Management, Inc.

      156         7,003   

 

      Shares      Value  

United States–(continued)

      

WD-40 Co.

      160       $ 10,682   

WellPoint, Inc.

      63         6,918   

Wells Fargo & Co.

      133         6,770   

West Pharmaceutical Services, Inc.

      280         11,410   

Western Digital Corp.

      73         7,288   

Weyerhaeuser Co.

      217         6,796   

Whole Foods Market, Inc.

      164         6,268   

Williams Cos., Inc. (The)

      115         6,512   

Wintrust Financial Corp.

      332         15,381   

Xcel Energy, Inc.

      205         6,314   

Yahoo! Inc. (a)

      196         7,019   

Yum! Brands, Inc.

      79         5,482   

Zimmer Holdings, Inc.

      68         6,804   

Zoetis Inc.

      217         7,141   
                3,204,055   

Total Common Stocks & Other Equity Interests
(Cost $10,897,836)

   

      11,363,087   

Money Market Funds–16.23%

  

   

Liquid Assets Portfolio –Institutional
Class (g)

      1,138,968         1,138,968   

Premier Portfolio –Institutional Class (g)

      1,138,967         1,138,967   

Total Money Market Funds
(Cost $2,277,935)

               2,277,935   

TOTAL INVESTMENTS–97.21%
(Cost $13,175,771)

               13,641,022   

OTHER ASSETS LESS LIABILITIES–2.79%

  

      391,600   

NET ASSETS–100.00%

             $ 14,032,662   

Investment Abbreviations:

 

ADR

 

    — American Depositary Receipt

CPO

 

    — Certificates of Ordinary Participation

Ctfs.

 

    — Certificates

GDR

 

    — Global Depositary Receipt

REGS

 

    — Regulation S
REIT    — Real Estate Investment Trust

Notes to Schedule of Investments:

 

(a)  Non-income producing security.
(b)  Each unit represents one common share and two preferred shares.
(c)  Each CPO represents two Series A shares and one Series B share.
(d)  Each unit represents one Series B share, two Series D-B shares and two Series D-L shares.
(e)  Each CPO represents twenty-five A shares, twenty-two B shares, thirty-five L shares and thirty-five D shares.
(f)  Security purchased or received in transaction exempt from registration under the Securities Act of 1933, as amended (the “1933 Act”). The security may be resold pursuant to an exemption from registration under the 1933 Act, typically to qualified institutional buyers. The value of this security at July 31, 2014 represented less than 1% of the Fund’s Net Assets.
(g)  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 Macro Long/Short 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 Macro Long/Short 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 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

 

Invesco Macro Long/Short Fund

 

E. Forward Foreign Currency Contracts – (continued)

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.

F. Futures Contracts – The Fund may enter into futures contracts to manage exposure to interest rate, equity and market price movements and/or currency risks. A futures contract is an agreement between two parties to purchase or sell a specified underlying security, currency or commodity (or delivery of a cash settlement price, in the case of an index future) for a fixed price at a future date. The Fund currently invests only in exchange-traded futures and they are standardized as to maturity date and underlying financial instrument. Initial margin deposits required upon entering into futures contracts are satisfied by the segregation of specific securities or cash as collateral at the futures commission merchant (broker). During the period the futures contracts are open, changes in the value of the contracts are recognized as unrealized gains or losses by recalculating the value of the contracts on a daily basis. Subsequent or variation margin payments are received or made depending upon whether unrealized gains or losses are incurred. These amounts are reflected as receivables or payables on the Statement of Assets and Liabilities. When the contracts are closed or expire, the Fund recognizes a realized gain or loss equal to the difference between the proceeds from, or cost of, the closing transaction and the Fund’s basis in the contract. The net realized gain (loss) and the change in unrealized gain (loss) on futures contracts held during the period is included on the Statement of Operations. The primary risks associated with futures contracts are market risk and the absence of a liquid secondary market. If the Fund were unable to liquidate a futures contract and/or enter into an offsetting closing transaction, the Fund would continue to be subject to market risk with respect to the value of the contracts and continue to be required to maintain the margin deposits on the futures contracts. Futures contracts have minimal counterparty risk since the exchange’s clearinghouse, as counterparty to all exchange-traded futures, guarantees the futures against default. Risks may exceed amounts recognized in the Statement of Assets and Liabilities.
G. Collateral – To the extent the Fund has designated or segregated a security as collateral and that security is subsequently sold, it is the Fund’s practice to replace such collateral no later than the next business day.

NOTE 2 — 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.

 

Invesco Macro Long/Short Fund

 

During the period December 17, 2013 (commencement date) through to July 31, 2014, there were transfers from Level 1 to Level 2 of $2,830,284 and from Level 2 to Level 1 of $280,945, due to foreign fair value adjustments.

 

      Level 1      Level 2      Level 3      Total  

Australia

    $ 9,072       $ 478,368       $ —       $ 487,440   

Austria

      —         19,991         —         19,991   

Belgium

      —         45,412         —         45,412   

Brazil

      137,303         —         —         137,303   

Chile

      56,746         —         —         56,746   

China

      24,229         174,619         —         198,848   

Colombia

      46,351         —         —         46,351   

Czech Republic

      6,529         6,531         —         13,060   

Denmark

      —         58,950         —         58,950   

Finland

      7,070         43,853         —         50,923   

France

      51,895         283,090         —         334,985   

Germany

      148,871         98,891         —         247,762   

Greece

      —         5,548         —         5,548   

Hong Kong

      36,135         304,837         —         340,972   

Hungary

      12,122         —         —         12,122   

India

      7,017         —         —         7,017   

Indonesia

      —         7,691         9,400         17,091   

Ireland

      37,157         13,474         —         50,631   

Italy

      —         99,950         —         99,950   

Japan

      12,667         1,632,929         —         1,645,596   

Luxembourg

      —         14,988         —         14,988   

Macau

      —         9,717         —         9,717   

Malaysia

      134,409         147,786         —         282,195   

Mexico

      51,903         —         —         51,903   

Netherlands

      7,432         86,511         —         93,943   

New Zealand

      —         25,413         —         25,413   

Norway

      —         50,338         —         50,338   

Philippines

      —         8,084         —         8,084   

Poland

      —         11,763         —         11,763   

Portugal

      —         7,413         —         7,413   

Russia

      —         19,978         —         19,978   

Singapore

      6,653         165,823         —         172,476   

South Africa

      70,557         96,144         —         166,701   

South Korea

      49,932         745,807         —         795,739   

Spain

      —         124,419         —         124,419   

Sweden

      19,381         150,213         —         169,594   

Switzerland

      16,211         251,590         —         267,801   

Taiwan

      7,284         455,178         —         462,462   

Thailand

      7,888         —         —         7,888   

United Kingdom

      133,840         1,405,679         —         1,539,519   

United States

      5,481,990         —         —         5,481,990   
       6,580,644         7,050,978         9,400         13,641,022   

Futures Contracts*

      23,185         —         —         23,185   

Total Investments

    $ 6,603,829       $ 7,050,978       $ 9,400       $ 13,664,207   

* Unrealized appreciation.

 

Invesco Macro Long/Short Fund

 

NOTE 3 — Derivative Investments

Value of Derivative Investments at Period-End

The table below summarizes the value of the Fund’s derivative investments, detailed by primary risk exposure, held as of July 31, 2014:

 

     Value  
Risk Exposure/ Derivative Type    Assets      Liabilities  

Currency risk

      

Futures contracts (a)

    $ 19,317       $ (4,775 ) 

Market risk

      

Futures contracts (a)

      65,910         (57,267 ) 

Total

    $ 85,227       $ (62,042 ) 

 

(a) Includes cumulative appreciation (depreciation) of futures contracts.

Effect of Derivative Investments for the Period December 17, 2013 (Commencement Date) through July 31, 2014

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

 

     Location of Gain (Loss)        
      Futures Contracts     

 

Realized Gain (Loss)

      

Currency risk

      $(10,572)        

Market risk

      (319,530)        

Change in Unrealized Appreciation

      

Currency risk

      14,542        

Market risk

      8,643        

Total

      $(306,917)        

The table below summarizes the average notional value of futures contracts outstanding during the period.

 

      Futures Contracts  

Average notional value

      $4,974,894   

 

Invesco Macro Long/Short Fund

 

Open Futures Contracts at Period-End(a)

  
              
Futures Contracts    Type of
Contract		   

Number of

Contracts

   

Expiration

Month

   

Notional

Value

   

Unrealized

Appreciation

(Depreciation)

  

Australian Dollar

    Short    6    Septemeber-2014    $(555,900)      $3,341   

British Pound Sterling

    Short    8    Septemeber-2014    (843,800)      (4,775)   

Euro

    Short    5    Septemeber-2014    (837,000)      8,735   

Japanese Yen

    Short    7    Septemeber-2014    (850,850)      7,241   

Subtotal - Currency Risk

                          $14,542   

Dow Jones EURO STOXX 50 Index

    Long    6    September-2014    250,562      (11,016)   

E-Mini S&P 500 Index

    Short    8    September-2014    (769,920)      1,424   

FTSE 100 Index

    Short    2    September-2014    (225,628)      2,812   

Hang Seng Index

    Long    6    August-2014    958,671      20,110   

Mini MSCI Emerging Markets Asia Index

    Short    1    September-2014    (52,730)      (222)   

MSCI Singapore Index

    Short    2    August-2014    (122,581)      (648)   

Russell 2000 Mini Index

    Short    8    September-2014    (893,360)      41,564   

SPI 200 Index

    Short    5    September-2014    (647,025)      (23,368)   

Tokyo Stock Price Index

    Short    4    September-2014    (502,625)      (22,013)   

Subtotal –Market Risk

                          $8,643   

Total Futures Contracts

                          $23,185   
(a)  Futures contracts collateralized by $300,000 cash held with Goldman, Sachs & Co., the futures commission merchant.

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 period December 17, 2013 (commencement date) through July 31, 2014 was $13,781,859 and $3,017,050, respectively. In a fund’s initial year of operations, the cost of investments for tax purposes will not reflect any tax adjustments until its fiscal year end reporting period.

 

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

Aggregate unrealized appreciation of investment securities

    $     795,891   

Aggregate unrealized (depreciation) of investment securities

      (330,640 ) 

Net unrealized appreciation of investment securities

    $     465,251   

Cost of investments is the same for financial reporting and tax purposes.

   

 

Invesco Macro Long/Short Fund

 

 
Invesco Pacific Growth Fund
Quarterly Schedule of Portfolio Holdings
July 31, 2014

 

 

 

LOGO         
invesco.com/us    MS-PGRO-QTR-1    7/14    Invesco Advisers, Inc.

Schedule of Investments

July 31, 2014

(Unaudited)

 

      Shares      Value  

Common Stocks & Other Equity Interests–98.69%

  

Australia–15.02%

  

Aurizon Holdings Ltd.

      79,854       $ 369,356   

Australia and New Zealand Banking Group Ltd.

      41,810         1,306,385   

Bank of Queensland Ltd.

      14,060         162,159   

BHP Billiton Ltd.

      33,405         1,187,662   

Brambles Ltd.

      15,124         131,340   

Commonwealth Bank of Australia

      23,448         1,808,901   

Computershare Ltd.

      28,702         347,110   

CSL Ltd.

      2,354         147,361   

CSR Ltd.

      79,081         275,081   

Hills Holdings Ltd.

      18,030         30,401   

Insurance Australia Group Ltd.

      62,609         363,949   

Macquarie Group Ltd.

      8,550         460,774   

Mount Gibson Iron Ltd.

      172,146         115,759   

National Australia Bank Ltd.

      24,363         790,877   

Platinum Asset Management Ltd.

      10,805         63,609   

Ramsay Health Care Ltd.

      7,940         353,110   

RCR Tomlinson Ltd.

      17,651         48,048   

Santos Ltd.

      31,590         424,260   

Slater & Gordon Ltd.

      22,163         101,158   

Sonic Healthcare Ltd.

      20,748         347,332   

Tassal Group Ltd.

      25,820         96,218   

Tatts Group Ltd.

      59,602         195,778   

Telstra Corp. Ltd.

      106,464         539,734   

Wesfarmers Ltd.

      7,940         321,634   

Western Areas Ltd.

      35,631         166,013   

Westpac Banking Corp.

      44,530         1,417,024   

Woodside Petroleum Ltd.

      15,128         593,519   

Woolworths Ltd.

      22,115         752,446   
                12,916,998   

China–8.21%

  

Bank of China Ltd. -Class H

      2,547,000         1,218,166   

China Resources Land Ltd.

      192,000         448,375   

CNOOC Ltd.

      160,000         283,892   

FIH Mobile Ltd. (a)

      691,000         388,394   

Great Wall Motor Co. Ltd. -Class H

      89,500         367,805   

Guangdong Investment Ltd.

      396,000         445,558   

Industrial and Commercial Bank of China Ltd. -Class H

      597,000         409,150   

Jiangsu Expressway Co. Ltd. -Class H

      318,000         386,962   

Minth Group Ltd.

      304,000         583,121   

Semiconductor Manufacturing International Corp. (a)

      5,066,000         467,626   

Tencent Holdings Ltd.

      85,500         1,382,367   

Tsingtao Brewery Co. Ltd. -Class H

      42,000         343,548   

Zhuzhou CSR Times Electric Co., Ltd. -Class H

      97,000         333,073   
                7,058,037   
      Shares      Value  

Hong Kong–5.95%

  

Cathay Pacific Airways Ltd.

      156,000       $ 295,688   

Cheung Kong (Holdings) Ltd.

      33,000         639,301   

Cheung Kong Infrastructure Holdings Ltd.

      54,000         380,691   

Hutchison Whampoa Ltd.

      45,000         612,925   

Kerry Logistics Network Ltd.

      450,500         737,651   

New World Development Co. Ltd.

      492,000         621,831   

Sun Hung Kai Properties Ltd.

      45,000         681,709   

Techtronic Industries Co. Ltd.

      183,500         552,418   

Yue Yuen Industrial (Holdings) Ltd.

      177,000         593,629   
                5,115,843   

India–4.85%

  

Axis Bank Ltd.

      167,450         1,079,722   

HCL Technologies Ltd.

      33,984         870,109   

IndusInd Bank Ltd.

      55,471         509,975   

Jammu & Kashmir Bank Ltd. (The)

      24,130         632,984   

Larsen & Toubro Ltd.

      43,755         1,081,377   
                4,174,167   

Indonesia–2.33%

  

PT Matahari Department Store Tbk

      588,400         729,794   

PT Telekomunikasi Indonesia Persero Tbk

      5,592,200         1,274,000   
                2,003,794   

Japan–40.23%

  

Amada Co., Ltd.

      51,000         497,289   

AOKI Holdings Inc.

      24,000         314,684   

Astellas Pharma Inc.

      86,400         1,159,986   

Canon Inc.

      20,400         667,696   

Casio Computer Co., Ltd. (b)

      11,200         187,964   

Chiba Bank, Ltd. (The)

      48,000         350,099   

Daicel Corp.

      75,000         753,569   

Daifuku Co., Ltd.

      30,600         423,977   

Daikin Industries, Ltd.

      12,100         834,884   

Daito Trust Construction Co., Ltd.

      5,900         712,384   

Daiwa House Industry Co., Ltd.

      21,000         427,412   

Denki Kagaku Kogyo Kabushiki Kaisha

      54,000         202,191   

East Japan Railway Co.

      11,500         924,470   

FamilyMart Co., Ltd.

      9,400         421,594   

Gulliver International Co., Ltd.

      53,000         489,102   

Hitachi Capital Corp.

      28,300         755,004   

Hitachi High-Technologies Corp.

      17,000         455,276   

Hitachi, Ltd.

      147,000         1,144,428   

Honda Motor Co., Ltd.

      31,600         1,096,466   

JGC Corp.

      13,000         394,722   

Kaneka Corp.

      35,000         210,629   

Komatsu Ltd.

      18,600         409,092   

Kyocera Corp.

      7,700         372,938   

Maeda Road Construction Co., Ltd.

      25,000         436,327   

Marubeni Corp.

      80,000         564,713   

Minebea Co., Ltd.

      17,000         201,834   

Mitsubishi Corp.

      33,100         698,197   
     
 

 

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

Invesco Pacific Growth Fund

      Shares      Value  

Japan–(continued)

  

Mitsubishi Estate Co. Ltd.

      39,000       $ 956,352   

Mitsubishi Heavy Industries, Ltd.

      121,000         789,747   

Mitsubishi UFJ Financial Group, Inc.

      261,900         1,550,363   

Nidec Corp.

      13,800         900,022   

Nifco Inc.

      17,000         561,077   

NH Foods Ltd.

      21,000         430,240   

Nissan Motor Co., Ltd.

      51,800         510,833   

Obayashi Corp.

      52,000         380,730   

Ono Pharmaceutical Co., Ltd.

      7,300         619,926   

ORIX Corp.

      79,900         1,298,987   

Relo Holdings, Inc.

      6,700         456,137   

Resorttrust, Inc.

      28,500         591,159   

Ricoh Co., Ltd.

      22,300         252,878   

Sanwa Holdings Corp.

      80,000         564,853   

SATO Holdings Corp.

      11,600         298,043   

Sekisui Chemical Co., Ltd.

      70,000         838,671   

Seven & I Holdings Co., Ltd.

      30,800         1,285,475   

Shimamura Co., Ltd.

      4,900         486,936   

Sumitomo Metal Mining Co., Ltd.

      23,000         383,881   

Sumitomo Mitsui Financial Group, Inc.

      34,500         1,412,455   

Suzuki Motor Corp.

      14,500         484,372   

Tokyu Fudosan Holdings, Corp.

      22,200         168,423   

Toshiba Corp.

      154,000         685,813   

Toyo Ink SC Holdings Co., Ltd.

      64,000         304,164   

Toyoda Gosei Co., Ltd.

      8,000         162,480   

Toyota Motor Corp.

      26,600         1,573,691   

Tsubakimoto Chain Co.

      74,000         633,155   

Yamaha Motor Co., Ltd.

      20,300         337,501   

Yaskawa Electric Corp.

      37,700         491,531   

Yellow Hat Ltd.

      3,200         70,347   
                34,587,169   

Malaysia–1.23%

  

Public Bank Berhad

      170,830         1,057,364   

Singapore–1.27%

  

Singapore Post Ltd.

      324,000         455,746   

United Overseas Bank Ltd.

      33,000         637,006   
         1,092,752   

South Korea–10.59%

  

AMOREPACIFIC Corp.

      337         579,113   

AMOREPACIFIC Group

      591         508,595   

Coway Co., Ltd.

      4,111         354,207   

Grand Korea Leisure Co., Ltd.

      12,600         520,799   

Green Cross Corp.

      4,194         497,880   

Halla Visteon Climate Control Corp.

      8,190         405,768   

Hanssem Co., Ltd.

      6,941         631,243   

Hyundai Mobis Co., Ltd.

      1,245         370,306   

KEPCO Plant Service & Engineering Co., Ltd.

      8,848         635,657   

Nongshim Co., Ltd.

      3,033         768,604   

ORION Corp.

      713         651,246   

Ottogi Corp.

      990         512,078   

Samchully Co., Ltd.

      4,217         686,984   

Samchuly Bicycle Co., Ltd.

      13,668         239,518   

Samsung Electronics Co., Ltd.

      787         1,025,494   

SK Telecom Co., Ltd.

      2,788         713,871   
         9,101,363   

 

      Shares      Value  

Taiwan–4.46%

  

China Development Financial Holding Corp.

      822,000       $ 270,604   

China Life Insurance Co., Ltd.

      338,140         322,371   

Grand Ocean Retail Group Ltd.

      87,000         196,243   

Hiwin Technologies Corp.

      19,350         207,271   

Hon Hai Precision Industry Co., Ltd.

      140,000         477,738   

Largan Precision Co. Ltd.

      4,000         309,521   

Nan Ya Plastics Corp.

      99,000         230,850   

San Shing Fastech Corp.

      75,600         221,612   

Synnex Technology International Corp.

      149,000         233,760   

Taiwan Semiconductor Manufacturing Co. Ltd.

      147,143         590,569   

Tong Hsing Electronic Industries, Ltd.

      46,000         237,512   

Toung Loong Textile Manufacturing Co., Ltd.

      13,000         38,490   

Unimicron Technology Corp.

      220,000         182,630   

Yungtay Engineering Co., Ltd.

      124,000         315,299   
         3,834,470   

Thailand–2.20%

  

Advanced Info Service PCL

      159,700         1,030,303   

Kasikornbank PCL -NVDR

      133,200         860,020   
         1,890,323   

United Kingdom–0.53%

  

Henderson Group PLC -CDI

      49,238         206,830   

Rio Tinto Ltd.

      4,038         246,092   
         452,922   

United States–1.82%

      

iShares MSCI All Country Asia ex
Japan ETF(b)

      24,300         1,567,107   

Total Common Stocks & Other Equity Interests
(Cost $72,853,193)

   

      84,852,309   

Money Market Funds–1.04%

  

Liquid Assets Portfolio –Institutional
Class (c)

      449,904         449,904   

Premier Portfolio –Institutional
Class (c)

      449,904         449,904   

Total Money Market Funds
(Cost $899,808)

               899,808   

TOTAL INVESTMENTS (excluding investments purchased with cash collateral from securities on loan)–99.73%
(Cost $73,753,001)

               85,752,117   

Investments Purchased with Cash Collateral from Securities on Loan

   

Money Market Funds–1.59%

  

Liquid Assets Portfolio - Institutional Class
(Cost $1,367,520)(c)(d)

      1,367,520         1,367,520   

TOTAL INVESTMENTS–101.32%
(Cost $75,120,521)

   

      87,119,637   

OTHER ASSETS LESS LIABILITIES–(1.32)%

  

      (1,138,812 ) 

NET ASSETS–100.00%

  

    $ 85,980,825   
 

 

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

 

Invesco Pacific Growth Fund

Investment Abbreviations:

CDI      —Chess Depositary Instruments

ETF      —Exchange-Traded Fund

NVDR  —Non-Voting Depositary Receipt

Notes to Schedule of Investments:

 

(a)  Non-income producing security.

 

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

 

(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

    $ 1,316,420    $(1,316,420)    $ —
  *Amount does not include excess collateral received.

 

    

 

 

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

Invesco Pacific 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.

 

Invesco Pacific Growth 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. 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.

 

Invesco Pacific Growth Fund

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 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.

 

    

Invesco Pacific Growth 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.

During the nine months ended July 31, 2014, there were transfers from Level 1 to Level 2 of $41,715,104, due to foreign fair value adjustments.

 

     Level 1      Level 2      Level 3      Total  

Australia

    $ 96,218       $ 12,820,780       $ —       $ 12,916,998   

China

      445,558         6,612,479         —         7,058,037   

Hong Kong

      —         5,115,843         —         5,115,843   

India

      —         4,174,167         —         4,174,167   

Indonesia

      —         2,003,794         —         2,003,794   

Japan

      —         34,587,169         —         34,587,169   

Malaysia

      1,057,364         —         —         1,057,364   

Singapore

      —         1,092,752         —         1,092,752   

South Korea

      497,880         8,603,483         —         9,101,363   

Taiwan

      221,612         3,612,858         —         3,834,470   

Thailand

      —         1,890,323         —         1,890,323   

United Kingdom

      —         452,922         —         452,922   

United States

      3,834,435         —         —         3,834,435   

   Total Investments

    $     6,153,067       $     80,966,570       $     —       $     87,119,637   

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 nine months ended July 31, 2014 was $42,809,216 and $48,975,675, 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

    $       11,333,542   

Aggregate unrealized (depreciation) of investment securities

      (1,200,572 ) 

Net unrealized appreciation of investment securities

    $ 10,132,970   

Cost of investments for tax purposes is $76,986,667.

   

 

Invesco Pacific Growth Fund

 
Invesco Premium Income Fund
Quarterly Schedule of Portfolio Holdings
July 31, 2014

 

 

 

LOGO         
invesco.com/us    PIN-QTR-1    7/14    Invesco Advisers, Inc.

Schedule of Investments(a)

July 31, 2014

(Unaudited)

      Principal
Amount		      Value  

U.S. Dollar Denominated Bonds and Notes–52.85%

  

Aerospace & Defense–0.83%

      

B/E Aerospace Inc., Sr. Unsec.
Notes, 5.25%, 04/01/22

    $ 23,000       $ 25,041   

Bombardier Inc. (Canada),
Sr. Unsec. Notes,
6.00%, 10/15/22(b)

      62,000         61,303   

7.75%, 03/15/20(b)

      171,000         186,604   

DigitalGlobe Inc., Sr. Unsec. Gtd.
Bonds, 5.25%, 02/01/21(b)

      85,000         83,300   

GenCorp Inc., Sec. Gtd. Global
Notes, 7.13%, 03/15/21

      165,000         176,962   

TransDigm Inc.,
Sr. Unsec. Gtd. Sub. Global Notes,
5.50%, 10/15/20

      92,000         91,655   

7.50%, 07/15/21

      26,000         28,633   

Sr. Unsec. Gtd. Sub. Notes,

6.00%, 07/15/22(b)

      135,000         136,012   

6.50%, 07/15/24(b)

      47,000         47,705   
                837,215   

Agricultural & Farm Machinery–0.12%

  

   

Titan International Inc., Sr. Sec.
Gtd. Global Notes,
6.88%, 10/01/20

      114,000         115,995   

Airlines–0.12%

      

American Airlines Pass Through
Trust, Series 2011-1, Class B,
Sec. Pass Through Ctfs.,
7.00%, 01/31/18(b)

      35,060         38,303   

US Airways Pass Through Trust,
Series 2012-1, Class B,
Sec. Pass Through Ctfs.,
8.00%, 10/01/19

      7,413         8,488   

Series 2012-1, Class C,

Sec. Pass Through Ctfs.,

9.13%, 10/01/15

      6,981         7,400   

Virgin Australia Pass Through
Trust (Australia), Series 2013-1,
Class B, Sec. Gtd. Pass Through
Ctfs., 6.00%, 10/23/20(b)

      62,102         65,362   
                119,553   

Alternative Carriers–0.51%

      

Level 3 Escrow II Inc., Sr. Unsec.
Gtd. Notes, 5.38%, 08/15/22(b)

      65,000         64,513   

Level 3 Financing Inc.,
Sr. Unsec. Gtd. Global Notes,
7.00%, 06/01/20

      33,000         34,980   

Sr. Unsec. Gtd. Notes,

6.13%, 01/15/21(b)

      390,000         409,500   
                508,993   

 

      Principal
Amount		      Value  

Apparel Retail–0.68%

      

Hot Topic, Inc., Sr. Sec. Gtd.
Notes, 9.25%, 06/15/21(b)

    $ 183,000       $ 203,359   

L Brands Inc.,
Sr. Unsec. Gtd. Global Notes,
5.63%, 02/15/22

      109,000         114,586   

Sr. Unsec. Gtd. Notes,

6.63%, 04/01/21

      52,000         57,785   

Men’s Wearhouse Inc. (The), Sr.
Unsec. Gtd. Notes,
7.00%, 07/01/22(b)

      253,000         262,487   

Neiman Marcus Group LTD LLC.,
Sr. Unsec. Gtd. Notes,
8.00%, 10/15/21(b)

      44,000         46,420   
                684,637   

Apparel, Accessories & Luxury Goods–0.22%

  

   

Levi Strauss & Co., Sr. Unsec.
Global Notes, 6.88%, 05/01/22

      122,000         132,370   

PVH Corp., Sr. Unsec. Global
Notes, 4.50%, 12/15/22

      73,000         70,810   

William Carter Co. (The),
Sr. Unsec. Gtd. Notes,
5.25%, 08/15/21(b)

      19,000         19,808   
                222,988   

Application Software–0.11%

      

Nuance Communications Inc.,
Sr. Unsec. Gtd. Notes,
5.38%, 08/15/20(b)

      110,000         111,925   

Asset Management & Custody Banks–0.10%

  

   

Signode Industrial Group Lux
S.A./Signode Industrial Group
U.S. Inc., Sr. Unsec. Notes,
6.38%, 05/01/22(b)

      99,000         98,505   

Auto Parts & Equipment–0.47%

      

CTP Transportation Products
LLC/CTP Finance Inc., Sr. Sec.
Notes, 8.25%, 12/15/19(b)

      84,000         90,720   

Dana Holding Corp., Sr. Unsec.
Notes, 5.38%, 09/15/21

      202,000         208,060   

Stackpole International Intermediate Co.
S.A./Stackpole International Powder
Metal (Canada), Sr. Sec. Gtd. Notes,
7.75%, 10/15/21(b)

      170,000         170,850   
                469,630   

Automotive Retail–0.10%

      

CST Brands, Inc., Sr. Unsec. Gtd.
Global Notes, 5.00%, 05/01/23

      99,000         98,258   

 

 

 

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

Invesco Premium Income Fund

      Principal
Amount		      Value  

Brewers–0.18%

      

Anadolu Efes Biracilik Ve Malt Sanayii
A.S. (Turkey), REGS, Sr. Unsec. Euro
Notes, 3.38%, 11/01/22(b)(j)

    $ 200,000       $ 178,800   

Broadcasting–0.51%

      

Central European Media
Enterprises Ltd. (Czech
Republic), Sr. Sec. Gtd. PIK
Global Notes, 15.00%, 12/01/17

      17,000         18,445   

Clear Channel Communications,
Inc., Sr. Unsec. Global Notes,
10.00%, 01/15/18

      134,000         122,610   

Clear Channel Worldwide
Holdings Inc., Series B,
Sr. Unsec. Gtd. Global Notes,
6.50%, 11/15/22

      98,000         103,145   

LIN Television Corp., Sr. Unsec. Gtd.
Global Notes, 6.38%, 01/15/21

      75,000         78,000   

Sinclair Television Group Inc., Sr. Unsec.
Gtd. Notes, 5.63%, 08/01/24(b)

      180,000         178,200   

Starz LLC/Starz Finance Corp.,
Sr. Unsec. Gtd. Global Notes,
5.00%, 09/15/19

      8,000         8,270   
                508,670   

Building Products–1.09%

      

Builders FirstSource Inc., Sr. Sec.
Notes, 7.63%, 06/01/21(b)

      200,000         208,000   

Building Materials Holding Corp.,
Sr. Sec. Notes,
9.00%, 09/15/18(b)

      120,000         129,300   

Gibraltar Industries Inc., Sr. Unsec.
Gtd. Sub. Global Notes,
6.25%, 02/01/21

      160,000         164,400   

Norbord Inc. (Canada), Sr. Sec.
Notes, 5.38%, 12/01/20(b)

      48,000         47,751   

Nortek Inc., Sr. Unsec. Gtd. Global
Notes, 8.50%, 04/15/21

      196,000         213,640   

USG Corp.,
Sr. Unsec. Gtd. Notes,
5.88%, 11/01/21(b)

      24,000         25,140   

7.88%, 03/30/20(b)

      57,000         62,273   

Sr. Unsec. Notes,

9.75%, 01/15/18

      212,000         249,100   
                1,099,604   

Cable & Satellite–1.74%

      

Altice S.A. (Luxembourg), Sr. Sec.
Gtd. Notes, 7.75%, 05/15/22(b)

      200,000         208,500   

CCO Holdings LLC/CCO Holdings
Capital Corp., Sr. Unsec. Gtd.
Global Notes, 5.25%, 03/15/21

      171,000         171,000   

DISH DBS Corp., Sr. Unsec. Gtd.
Global Notes, 5.13%, 05/01/20

      401,000         410,022   

Hughes Satellite Systems Corp.,
Sr. Sec. Gtd. Global Notes,
6.50%, 06/15/19

      82,000         90,405   

Sr. Unsec. Gtd. Global Notes,

7.63%, 06/15/21

      42,000         47,513   

 

      Principal
Amount		      Value  

Cable & Satellite–(continued)

      

Intelsat Jackson Holdings S.A.

(Luxembourg), Sr. Unsec. Gtd.

Global Bonds, 6.63%, 12/15/22

    $ 35,000       $ 35,438   

Intelsat Luxembourg S.A. (Luxembourg),
Sr. Unsec. Gtd. Global Bonds,
7.75%, 06/01/21

      225,000         230,625   

8.13%, 06/01/23

      139,000         144,560   

Numericable Group S.A. (France),
Sr. Sec. Bonds, 6.00%, 05/15/22(b)

      200,000         202,250   

VTR Finance B.V. (Chile),
Sr. Sec. Notes, 6.88%, 01/15/24(b)

      200,000         207,334   
                1,747,647   

Casinos & Gaming–0.63%

      

Boyd Gaming Corp., Sr. Unsec. Gtd.
Global Notes, 9.00%, 07/01/20

      55,000         59,812   

Caesars Entertainment Operating Co. Inc., Sr. Sec. Global Notes,
11.25%, 06/01/17

      130,000         114,887   

Caesars Entertainment Resort
Properties LLC, Sr. Sec. Gtd.
Notes, 8.00%, 10/01/20(b)

      43,000         44,613   

Caesars Growth Properties Holdings
LLC/Caesars Growth Properties
Finance Inc., Sec. Gtd. Notes,
9.38%, 05/01/22(b)

      23,000         23,345   

MGM Resorts International,
Sr. Unsec. Gtd. Global Notes,
6.63%, 12/15/21

      123,000         133,147   

6.75%, 10/01/20

      105,000         114,450   

Sr. Unsec. Gtd. Notes,

7.75%, 03/15/22

      87,000         100,050   

Wynn Las Vegas LLC/Wynn Las
Vegas Capital Corp., Sr. Unsec.
Global Notes, 5.38%, 03/15/22

      45,000         45,788   
                636,092   

Coal & Consumable Fuels–0.77%

  

   

Alpha Natural Resources Inc., Sec.
Gtd. Notes, 7.50%, 08/01/20(b)

      24,000         22,440   

Arch Coal Inc., Sec. Gtd. Notes,
8.00%, 01/15/19(b)

      73,000         70,810   

CONSOL Energy Inc.,
Sr. Unsec. Gtd. Global Notes,
6.38%, 03/01/21

      97,000         102,577   

Sr. Unsec. Gtd. Notes,

5.88%, 04/15/22(b)

      177,000         182,310   

Indo Energy Finance II B.V.
(Indonesia), Sr. Sec. Gtd. Notes,
6.38%, 01/24/23(b)

      300,000         253,500   

Peabody Energy Corp., Sr. Unsec.
Gtd. Notes, 6.50%, 09/15/20

      152,000         146,300   
                777,937   

Commodity Chemicals–0.21%

      

Braskem Finance Ltd. (Brazil),
Sr. Unsec. Gtd. Global Bonds,
6.45%, 02/03/24

      200,000         213,500   

 

 

 

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

Invesco Premium Income Fund

      Principal
Amount		      Value  

Communications Equipment–0.39%

  

Avaya Inc.,
Sec. Gtd. Notes,
10.50%, 03/01/21(b)

    $ 81,000       $ 71,888   

Sr. Sec. Gtd. Notes,

7.00%, 04/01/19(b)

      200,000         193,750   

9.00%, 04/01/19(b)

      126,000         129,937   
                395,575   

Construction & Engineering–0.15%

  

Dycom Investments Inc., Sr.
Unsec. Gtd. Sub. Global Notes,
7.13%, 01/15/21

      140,000         150,500   

Construction Machinery & Heavy Trucks–0.80%

  

Allied Specialty Vehicles, Inc., Sr.
Sec. Notes, 8.50%, 11/01/19(b)

      125,000         133,125   

Commercial Vehicle Group Inc., Sec. Gtd.
Global Notes, 7.88%, 04/15/19

      175,000         180,687   

Manitowoc Co. Inc. (The), Sr. Unsec. Gtd. Global Notes, 5.88%, 10/15/22

      72,000         77,580   

Meritor Inc.,
Sr. Unsec. Gtd. Notes,
6.25%, 02/15/24

      43,000         44,398   

6.75%, 06/15/21

      80,000         85,200   

Navistar International Corp., Sr. Unsec.
Gtd. Notes, 8.25%, 11/01/21

      97,000         100,880   

Oshkosh Corp., Sr. Unsec. Gtd.
Global Notes, 5.38%, 03/01/22

      179,000         183,922   
                805,792   

Construction Materials–0.49%

  

Cemex S.A.B. de C.V. (Mexico), Sr. Sec.
Gtd. Notes, 5.88%, 03/25/19(b)

      200,000         208,000   

CPG Merger Sub LLC, Sr. Unsec.
Gtd. Notes, 8.00%, 10/01/21(b)

      31,000         32,240   

Unifrax I LLC/Unifrax Holding Co.,
Sr. Unsec. Gtd. Notes,
7.50%, 02/15/19(b)

      115,000         117,875   

7.50%, 02/15/19(b)

      102,000         104,550   

US Concrete, Inc., Sr. Sec. Gtd.
Global Notes, 8.50%, 12/01/18

      30,000         32,325   
                494,990   

Consumer Finance–0.10%

  

Ally Financial Inc., Sr. Unsec. Gtd.
Global Notes, 8.00%, 03/15/20

      89,000         104,798   

Data Processing & Outsourced Services–0.62%

  

CoreLogic, Inc., Sr. Unsec. Gtd.
Global Notes, 7.25%, 06/01/21

      180,000         192,150   

First Data Corp.,
Sec. Gtd. Notes,
8.25%, 01/15/21(b)

      165,000         176,756   

Sr. Unsec. Gtd. Global Notes,

12.63%, 01/15/21

      83,000         98,978   

Sr. Unsec. Gtd. Sub. Global Notes,

11.75%, 08/15/21

      137,000         157,892   
                625,776   
      Principal
Amount		      Value  

Distillers & Vintners–0.14%

  

CEDC Finance Corp. International
Inc. (Poland), Sr. Sec. Gtd.
Global Notes, 10.00%,
04/30/18(c)

    $ 62,000       $ 60,450   

Constellation Brands Inc.,
Sr. Unsec. Gtd. Notes,
3.75%, 05/01/21

      70,000         68,600   

6.00%, 05/01/22

      8,000         8,850   
                137,900   

Diversified Banks–2.97%

  

Banco Davivienda S.A.
(Colombia), Unsec. Sub. Notes,
5.88%, 07/09/22(b)

      300,000         305,417   

Banco Inbursa S.A. Institucion de
Banca Multiple (Mexico), Sr.
Unsec. Notes, 4.13%, 06/06/24(b)

      500,000         493,408   

Banco Santander Mexico S.A.
Institucion de Banca Multiple
Grupo Financiero Santander
(Mexico), Unsec. Sub. Bonds,
5.95%, 01/30/24(b)

      300,000         319,125   

Bancolombia S.A. (Colombia),
Unsec. Sub. Global Notes,
5.13%, 09/11/22

      300,000         304,075   

Bank of Ceylon (Sri Lanka),
REGS, Sr. Unsec. Euro Notes,
6.88%, 05/03/17(b)

      200,000         213,250   

BBVA Bancomer S.A. (Mexico),
Unsec. Sub. Notes, 6.75%,
09/30/22(b)

      150,000         170,723   

Finansbank A.S. (Turkey), REGS,
Sr. Unsec. Euro Notes, 6.25%,
04/30/19(b)

      200,000         210,260   

Royal Bank of Scotland Group
PLC (The) (United Kingdom),
Unsec. Sub. Notes, 6.13%,
12/15/22

      118,000         127,265   

Siam Commercial Bank PLC (The)
(Thailand), Sr. Unsec. Notes,
3.50%, 04/07/19(b)

      210,000         210,853   

State Bank of India (India), Sr.
Unsec. Notes, 4.88%, 04/17/24(b)

      200,000         202,842   

Turkiye Is Bankasi (Turkey),
Unsec. Sub. Notes, 7.85%,
12/10/23(b)

      200,000         226,000   

Zenith Bank PLC (Nigeria), Sr.
Unsec. Notes, 6.25%, 04/22/19(b)

      200,000         199,097   
                2,982,315   

Diversified Chemicals–0.22%

  

Eagle Spinco Inc., Sr. Unsec. Gtd.
Global Notes, 4.63%, 02/15/21

      15,000         14,700   

OCP S.A. (Morocco), Sr. Unsec.
Notes, 5.63%, 04/25/24(b)

      200,000         210,000   
                224,700   
 

 

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

Invesco Premium Income Fund

      Principal
Amount		      Value  

Diversified Metals & Mining–1.16%

  

Cia Minera Ares SAC (Peru),
Sr.Unsec. Gtd. Notes,
7.75%, 01/23/21(b)

    $ 500,000       $ 543,750   

FMG Resources (August 2006)
Pty. Ltd. (Australia), Sr. Unsec.
Gtd. Notes, 6.88%, 04/01/22(b)

      200,000         213,750   

HudBay Minerals Inc. (Canada),
Sr. Unsec. Gtd. Global Notes,
9.50%, 10/01/20

      102,000         113,220   

Imperial Metals Corp. (Canada),
Sr. Unsec. Gtd. Notes,
7.00%, 03/15/19(b)

      78,000         79,869   

Magnetation LLC/ Mag Finance
Corp., Sr. Sec. Gtd. Notes,
11.00%, 05/15/18(b)

      200,000         217,000   
                1,167,589   

Electric Utilities–0.16%

  

Majapahit Holding B.V.
(Indonesia), Sr. Unsec. Gtd. Notes,
7.75%, 01/20/20(b)

      100,000         118,664   

RJS Power Holdings LLC,
Sr.Unsec. Gtd. Notes,
5.13%, 07/15/19(b)

      43,000         42,570   
                161,234   

Electrical Components & Equipment–0.05%

  

Sensata Technologies B.V.
(Netherlands), Sr. Unsec. Gtd.
Notes, 4.88%, 10/15/23(b)

      55,000         54,865   

Electronic Components–0.05%

  

Belden Inc., Sr. Unsec. Gtd. Sub.
Notes, 5.50%, 09/01/22(b)

      52,000         53,300   

Environmental & Facilities Services–0.12%

  

ADS Waste Holdings, Inc.,
Sr.Unsec. Gtd. Global Notes,
8.25%, 10/01/20

      38,000         41,040   

Darling Ingredients Inc., Sr. Unsec.
Gtd. Notes, 5.38%, 01/15/22(b)

      78,000         80,535   
                121,575   

Gas Utilities–0.40%

  

Ferrellgas L.P./Ferrellgas Finance Corp.,
Sr. Unsec. Global Notes,
6.50%, 05/01/21

      207,000         215,280   

Sr. Unsec. Notes,

6.75%, 01/15/22(b)

      30,000         31,575   

Suburban Propane Partners, L.P./Suburban Energy Finance Corp.,
Sr. Unsec. Global Notes,
5.50%, 06/01/24

      109,000         108,455   

7.38%, 08/01/21

      44,000         47,355   
                402,665   

 

      Principal
Amount		      Value  

Gold–0.27%

  

AngloGold Ashanti Holdings PLC
(South Africa), Sr. Unsec. Gtd.
Global Notes, 5.13%, 08/01/22

    $ 106,000       $ 104,647   

New Gold Inc. (Canada), Sr. Unsec. Notes,
6.25%, 11/15/22(b)

      159,000         168,985   
                273,632   

Health Care Equipment–0.11%

  

Universal Hospital Services Inc., Sec. Gtd. Global Notes, 7.63%, 08/15/20

      105,000         107,100   

Health Care Facilities–1.16%

  

Amsurg Corp., Sr. Unsec. Gtd. Notes,
5.63%, 07/15/22(b)

      61,000         61,762   

CHS/Community Health Systems Inc.,
Sr. Sec. Gtd. Notes,
5.13%, 08/01/21(b)

      31,000         31,465   

Sr. Unsec. Gtd. Notes,

6.88%, 02/01/22(b)

      233,470         242,809   

HCA Holdings, Inc., Sr. Unsec. Notes,
6.25%, 02/15/21

      97,000         102,820   

HCA, Inc.,
Sr. Sec. Gtd. Global Notes,
5.88%, 03/15/22

      160,000         170,800   

6.50%, 02/15/20

      45,000         49,163   

Sr. Unsec. Gtd. Global Notes,

7.50%, 02/15/22

      46,000         52,440   

LifePoint Hospitals, Inc.,
Sr. Unsec. Gtd. Notes,
5.50%, 12/01/21(b)

      23,000         23,690   

Tenet Healthcare Corp.,
Sr. Sec. Gtd. Global Notes,
6.00%, 10/01/20

      71,000         74,905   

Sr. Unsec. Global Notes,

6.75%, 02/01/20

      225,000         237,375   

8.13%, 04/01/22

      108,000         122,580   
                1,169,809   

Health Care Services–0.26%

  

DaVita HealthCare Partners Inc.,
Sr. Unsec. Gtd. Global Notes,
5.13%, 07/15/24

      74,000         73,260   

5.75%, 08/15/22

      29,000         30,595   

MPH Acquisition Holdings LLC,
Sr. Unsec. Gtd. Notes,
6.63%, 04/01/22(b)

      150,000         153,375   
                257,230   

Health Care Supplies–0.05%

  

Crimson Merger Sub, Inc.,
Sr.Unsec. Notes, 6.63%, 05/15/22(b)

      52,000         49,920   

Home Improvement Retail–0.06%

  

Hillman Group Inc. (The),
Sr.Unsec. Notes, 6.38%, 07/15/22(b)

      63,000         61,740   
 

 

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

Invesco Premium Income Fund

      Principal
Amount		      Value  

Homebuilding–0.78%

      

Ashton Woods USA LLC/Ashton Woods Finance Co., Sr. Unsec. Notes,
6.88%, 02/15/21(b)

    $ 218,000       $ 213,367   

Beazer Homes USA Inc., Sr. Unsec. Gtd. Global Notes, 7.50%, 09/15/21

      89,000         93,005   

K. Hovnanian Enterprises Inc.,
Sr. Sec. Gtd. Notes, 7.25%, 10/15/20(b)

      111,000         118,215   

Sr. Unsec. Gtd. Notes, 7.00%, 01/15/19(b)

      79,000         79,790   

7.50%, 05/15/16

      50,000         53,000   

KB Home, Sr. Unsec. Gtd. Notes,
7.00%, 12/15/21

      43,000         46,762   

7.50%, 09/15/22

      23,000         25,243   

Lennar Corp., Sr. Unsec. Gtd. Global Notes,
6.95%, 06/01/18

      105,000         117,075   

Ryland Group Inc. (The), Sr. Unsec. Gtd. Notes, 5.38%, 10/01/22

      33,000         32,753   
                779,210   

Hotels, Resorts & Cruise Lines–0.06%

  

   

Choice Hotels International, Inc., Sr. Unsec. Gtd. Notes, 5.75%, 07/01/22

      58,000         62,785   

Household Products–0.92%

      

Controladora Mabe S.A. de C.V. (Mexico), Sr. Unsec. Gtd. Notes, 7.88%, 10/28/19(b)

      318,000         359,340   

Reynolds Group Issuer Inc./LLC, Sr. Sec. Gtd. Global Notes, 5.75%, 10/15/20

      121,000         123,722   

Sr. Unsec. Gtd. Global Notes,

8.25%, 02/15/21

      250,000         265,625   

9.88%, 08/15/19

      160,000         173,200   
                921,887   

Hypermarkets & Super Centers–0.20%

  

   

Cencosud S.A. (Chile), REGS, Sr. Unsec. Gtd. Euro Notes, 4.88%, 01/20/23(b)

      200,000         199,570   

Independent Power Producers & Energy Traders–0.35%

  

AES Corp., Sr. Unsec. Global Notes,
7.38%, 07/01/21

      102,000         117,045   

8.00%, 10/15/17

      2,000         2,300   

Calpine Corp., Sr. Unsec. Global Notes, 5.38%, 01/15/23

      84,000         84,630   

NRG Energy Inc., Sr. Unsec. Gtd. Notes,
6.25%, 07/15/22(b)

      144,000         149,760   
                353,735   
      Principal
Amount		      Value  

Industrial Conglomerates–0.58%

      

Grupo KUO S.A.B De C.V. (Mexico),
Sr. Unsec. Gtd. Notes,

6.25%, 12/04/22(b)

    $ 400,000       $ 419,738   

Hutchison Whampoa International (10) Ltd. (Hong Kong), Unsec. Gtd. Sub. Notes, 6.00% (b)(d)

      159,000         166,552   
                586,290   

Industrial Machinery–0.18%

      

Waterjet Holdings, Inc., Sr. Sec. Gtd. Notes, 7.63%, 02/01/20(b)

      168,000         177,660   

Integrated Oil & Gas–1.39%

      

Ecopetrol S.A. (Colombia), Sr. Unsec. Global Notes, 5.88%, 05/28/45

      100,000         104,637   

Hiland Partners L.P./Hiland Partners Finance Corp., Sr. Unsec. Gtd. Notes, 5.50%, 05/15/22(b)

      50,000         50,000   

KazMunayGas National Co. JSC (Kazakhstan), REGS, Sr. Unsec. Euro Notes, 4.40%, 04/30/23(b)

      200,000         200,000   

Petrobras Global Finance B.V. (Brazil), Sr. Unsec. Gtd. Global Notes,
4.88%, 03/17/20

      200,000         204,628   

Petroleos de Venezuela S.A. (Venezuela), Sr. Unsec. Gtd. Notes,
8.50%, 11/02/17(b)

      106,000         98,845   

REGS, Sr. Unsec. Gtd. Euro Notes,

8.50%, 11/02/17(b)

      100,000         93,375   

9.00%, 11/17/21(b)

      265,000         226,575   

Series 2014, Sr. Unsec. Euro Bonds,

4.90%, 10/28/14

      135,000         134,838   

State Oil Co. of the Azerbaijan Republic (Azerbaijan), Sr. Unsec. Euro Notes, 5.45%, 02/09/17

      265,000         282,225   
                1,395,123   

Integrated Telecommunication Services–0.77%

  

Globo Comunicacao e Participacoes S.A. (Brazil), Sr. Sec. Euro Notes,
6.25% (b)(c)(d)

      359,000         377,420   

Telecom Italia S.p.A. (Italy), Sr. Unsec. Notes, 5.30%, 05/30/24(b)

      200,000         194,834   

Virgin Media Secured Finance PLC (United Kingdom), Sr. Sec. Gtd. Global Notes, 5.25%, 01/15/21

      200,000         205,500   
                777,754   

Internet Software & Services–0.50%

  

   

CyrusOne L.P./CyrusOne Finance Corp., Sr. Unsec. Gtd. Global Notes,
6.38%, 11/15/22

      281,000         298,562   

EarthLink Holdings Corp., Sr. Sec. Gtd. Global Notes, 7.38%, 06/01/20

      155,000         164,688   

Sr. Unsec. Gtd. Global Notes,

8.88%, 05/15/19

      38,000         38,665   
                501,915   

 

 

 

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

Invesco Premium Income Fund

      Principal    
Amount    		      Value    

Leisure Facilities–0.09%

  

Cedar Fair L.P./Canada’s Wonderland
Co./Magnum Management Corp., Sr.
Unsec. Gtd. Global Notes,
5.25%, 03/15/21

    $ 86,000       $ 87,720   

Marine–0.14%

  

Navios Maritime Acquisition Corp./Navios Acquisition Finance U.S. Inc., Sr. Sec. Gtd. Mortgage Notes, 8.13%, 11/15/21(b)

      140,000         144,200   

Metal & Glass Containers–0.42%

  

Ball Corp., Sr. Unsec. Gtd. Notes, 5.00%, 03/15/22

      75,000         75,188   

Berry Plastics Corp., Sec. Gtd. Notes, 5.50%, 05/15/22

      345,000         345,431   
                420,619   

Movies & Entertainment–0.18%

  

AMC Entertainment Inc., Sr. Unsec. Gtd. Sub. Global Notes,
5.88%, 02/15/22

      70,000         71,400   

DreamWorks Animation SKG, Inc., Sr. Unsec. Gtd. Notes,
6.88%, 08/15/20(b)

      101,000         107,060   
                178,460   

Multi-Sector Holdings–0.30%

  

SUAM Finance B.V. (Colombia), Sr. Unsec. Gtd. Notes,
4.88%, 04/17/24(b)

      300,000         303,326   

Oil & Gas Drilling–0.38%

      

Parker Drilling Co., Sr. Unsec. Gtd.

Global Notes, 7.50%, 08/01/20

      165,000         177,375   

Sr. Unsec. Gtd. Notes,

6.75%, 07/15/22(b)

      7,000         7,263   

Pioneer Energy Services Corp., Sr. Unsec. Gtd. Notes,
6.13%, 03/15/22(b)

      105,000         108,675   

Precision Drilling Corp. (Canada), Sr. Unsec. Gtd. Global Notes,
6.50%, 12/15/21

      42,000         45,045   

Sr. Unsec. Gtd. Notes,

5.25%, 11/15/24(b)

      34,000         34,010   

Summit Midstream Holdings LLC/Summit Midstream Finance Corp., Sr.Unsec. Gtd. Notes,
5.50%, 08/15/22

      12,000         12,060   
                384,428   

Oil & Gas Equipment & Services–0.45%

  

Bristow Group, Inc., Sr. Unsec. Gtd. Notes, 6.25%, 10/15/22

      82,000         87,637   

Exterran Partners L.P./EXLP Finance Corp., Sr. Unsec. Gtd. Global Notes, 6.00%, 04/01/21

      176,000         178,200   

Sr. Unsec. Gtd. Notes,

6.00%, 10/01/22(b)

      59,000         59,738   
      Principal    
Amount    		      Value    

Oil & Gas Equipment & Services–(continued)

  

Gulfmark Offshore Inc., Sr. Unsec. Global Notes, 6.38%, 03/15/22

    $ 82,000       $ 83,025   

Key Energy Services, Inc., Sr. Unsec. Gtd. Notes, 6.75%, 03/01/21

      39,000         39,975   
                448,575   

Oil & Gas Exploration & Production–3.47%

  

Approach Resources Inc., Sr. Unsec. Gtd. Global Notes,
7.00%, 06/15/21

      100,000         103,500   

Athlon Holdings L.P./Athlon Finance Corp., Sr. Unsec. Gtd. Notes,
6.00%, 05/01/22(b)

      66,000         66,660   

Baytex Energy Corp. (Canada), Sr. Unsec. Gtd. Notes,
5.63%, 06/01/24(b)

      104,000         103,199   

Berry Petroleum Co. LLC, Sr. Unsec. Notes, 6.38%, 09/15/22

      83,000         85,075   

6.75%, 11/01/20

      55,000         57,338   

Chaparral Energy Inc., Sr. Unsec. Gtd. Global Notes, 7.63%, 11/15/22

      113,000         118,933   

Chesapeake Energy Corp., Sr. Unsec. Gtd. Global Notes, 6.88%, 11/15/20

      101,000         114,635   

Denbury Resources Inc., Sr. Unsec. Gtd. Sub. Notes, 5.50%, 05/01/22

      77,000         75,845   

Energy XXI Gulf Coast Inc., Sr. Unsec. Gtd. Global Notes,
7.50%, 12/15/21

      173,000         183,380   

EV Energy Partners L.P./EV Energy Finance Corp., Sr. Unsec. Gtd. Global Notes, 8.00%, 04/15/19

      135,000         140,906   

EXCO Resources, Inc., Sr. Unsec. Gtd. Notes, 8.50%, 04/15/22

      145,000         148,987   

Halcon Resources Corp., Sr. Unsec. Gtd. Global Notes, 9.75%, 07/15/20

      146,000         155,855   

Laredo Petroleum Inc., Sr. Unsec. Gtd. Global Notes, 7.38%, 05/01/22

      8,000         8,860   

Lonestar Resources America Inc., Sr. Unsec. Notes, 8.75%, 04/15/19(b)

      69,000         69,518   

Pertamina Persero PT (Indonesia), REGS, Sr. Unsec. Medium-Term Euro Notes, 4.30%, 05/20/23(b)

      250,000         241,250   

Petroleos Mexicanos (Mexico), Sr. Unsec. Gtd. Global Bonds,
5.50%, 06/27/44

      159,000         164,448   

Sr. Unsec. Gtd. Global Notes,

6.50%, 06/02/41

      159,000         185,330   

Sr. Unsec. Gtd. Globlal Notes,

3.50%, 01/30/23

      318,000         307,352   

Sr. Unsec. Gtd. Notes,

6.38%, 01/23/45(b)

      117,000         135,744   

QEP Resources Inc., Sr. Unsec. Global Notes, 5.25%, 05/01/23

      73,000         73,456   

Sr. Unsec. Notes, 5.38%, 10/01/22

      19,000         19,214   

Range Resources Corp., Sr. Unsec. Gtd. Sub. Notes, 5.00%, 08/15/22

      108,000         111,780   

Rex Energy Corp., Sr. Unsec. Gtd. Notes, 6.25%, 08/01/22(b)

      25,000         24,750   
 

 

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

Invesco Premium Income Fund

      Principal
Amount		      Value  

Oil & Gas Exploration & Production–(continued)

  

Rice Energy Inc., Sr. Unsec. Gtd. Notes, 6.25%, 05/01/22(b)

    $ 256,000       $ 257,920   

Rosetta Resources, Inc., Sr. Unsec. Gtd. Notes, 5.88%, 06/01/22

      167,000         169,922   

Sanchez Energy Corp., Sr. Unsec. Gtd. Notes, 6.13%, 01/15/23(b)

      68,000         69,360   

SandRidge Energy Inc., Sr. Unsec. Gtd. Global Notes, 7.50%, 03/15/21

      125,000         130,312   

SM Energy Co., Sr. Unsec. Global Notes, 6.50%, 11/15/21

      86,000         92,665   

Whiting Petroleum Corp., Sr. Unsec. Gtd. Notes, 5.75%, 03/15/21

      61,000         67,100   
                3,483,294   

Oil & Gas Refining & Marketing–0.30%

  

Calumet Specialty Products Partners L.P./Calumet Finance Corp., Sr. Unsec. Gtd. Notes, 6.50%, 04/15/21(b)

      294,000         300,615   

Oil & Gas Storage & Transportation–1.69%

  

Access Midstream Partners L.P./ACMP Finance Corp., Sr. Unsec. Gtd. Global Notes, 4.88%, 05/15/23

      67,000         69,345   

Atlas Pipeline Partners L.P./Atlas Pipeline Finance Corp., Sr. Unsec. Gtd. Global Notes, 6.63%, 10/01/20

      227,000         240,052   

Crestwood Midstream Partners L.P./Crestwood Midstream Finance Corp., Sr. Unsec. Gtd. Global Notes, 6.00%, 12/15/20

      243,000         253,327   

Energy Transfer Equity L.P., Sr. Sec. Gtd. Notes, 7.50%, 10/15/20

      105,000         118,913   

GNL Quintero S.A. (Chile), Sr. Unsec. Notes, 4.63%, 07/31/29(b)

      200,000         202,750   

MarkWest Energy Partners L.P./MarkWest Energy Finance Corp.,
Sr. Unsec. Gtd. Notes,
5.50%, 02/15/23

      55,000         56,925   

6.50%, 08/15/21

      86,000         92,020   

NGL Energy Partners L.P./NGL Energy Finance Corp., Sr. Unsec. Gtd. Notes, 6.88%, 10/15/21(b)

      154,000         164,588   

Penn Virginia Resource Partners L.P./Penn Virginia Resource Finance Corp., Sr. Unsec. Gtd. Global Notes,
6.50%, 05/15/21

      78,000         83,070   

Regency Energy Partners L.P./Regency Energy Finance Corp.,
Sr. Unsec. Gtd. Global Notes,
5.75%, 09/01/20

      29,000         30,450   

Sr. Unsec. Gtd. Notes,
6.50%, 07/15/21

      76,000         80,940   

Targa Resources Partners L.P./Targa Resources Partners Finance Corp., Sr. Unsec. Gtd. Global Notes,
6.38%, 08/01/22

      57,000         60,990   

Teekay Offshore Partners L.P./Teekay Offshore Finance Corp. (Bermuda), Sr. Unsec. Global Notes, 6.00%, 07/30/19

      44,000         44,880   
      Principal
Amount		      Value  

Oil & Gas Storage & Transportation–(continued)

  

Tesoro Logistics L.P./Tesoro Logistics Finance Corp.,

      

Sr. Unsec. Gtd. Global Notes,
5.88%, 10/01/20

    $ 157,000       $ 161,710   

6.13%, 10/15/21

      34,000         35,020   
                1,694,980   

Other Diversified Financial Services–2.03%

  

Corp Financiera de Desarrollo S.A. (Peru), Unsec. Sub. Notes, 5.25%, 07/15/29(b)

      300,000         306,000   

Infinity Acquisition LLC / Infinity Acquisition Finance Corp., Sr. Sec. Notes, 7.25%, 08/01/22(b)

      60,000         60,017   

InRetail Shopping Malls (Peru), Sr. Unsec. Gtd. Notes, 6.50%, 07/09/21(b)

      200,000         209,000   

Odebrecht Oil & Gas Finance Ltd. (Brazil), Sr. Unsec. Gtd. Notes, 7.00% (b)(d)

      425,000         426,488   

Rio Oil Finance Trust (Brazil), Series 2014-1, Sr. Sec. Notes,
6.25%, 07/06/24(b)

      500,000         523,805   

Trust F/1401 (Mexico), Sr. Unsec. Notes, 5.25%, 12/15/24(b)

      302,000         319,274   

Unifin Financiera S.A. de C.V. (Mexico), Sr. Unsec. Gtd. Bonds,
6.25%, 07/22/19(b)

      200,000         197,000   
                2,041,584   

Packaged Foods & Meats–1.25%

  

Chiquita Brands International Inc., Sr. Unsec. Conv. Notes, 4.25%, 08/15/16

      115,000         115,503   

Chiquita Brands International Inc./Chiquita Brands LLC, Sr. Sec. Gtd. Global Notes, 7.88%, 02/01/21

      22,000         23,733   

Diamond Foods Inc., Sr. Unsec. Gtd. Notes, 7.00%, 03/15/19(b)

      290,000         301,600   

FAGE Dairy Industry S.A./FAGE USA Dairy Industry, Inc. (Greece), Sr. Unsec. Gtd. Notes, 9.88%, 02/01/20(b)

      100,000         107,000   

JBS S.A. (Brazil),
Sr. Unsec. Notes, 10.50%, 08/04/16 (Acquired 08/30/13;
Cost $109,375)(b)

      100,000         113,750   

REGS,
Sr. Unsec. Euro Notes,
10.50%, 08/04/16(b)

      100,000         114,268   

MHP S.A. (Ukraine), Sr. Unsec. Gtd. Notes, 8.25%, 04/02/20(b)

      200,000         184,000   

Post Holdings Inc.,
Sr. Unsec. Gtd. Global Notes,
7.38%, 02/15/22

      111,000         117,521   

Sr. Unsec. Gtd. Notes,
6.00%, 12/15/22(b)

      71,000         70,290   

Smithfield Foods Inc.,
Sr. Unsec. Notes,
5.88%, 08/01/21(b)

      29,000         30,378   

6.63%, 08/15/22

      74,000         80,197   
                1,258,240   
 

 

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

Invesco Premium Income Fund

      Principal    
Amount    		      Value    

Paper Products–0.19%

  

Neenah Paper Inc., Sr. Unsec. Gtd. Notes, 5.25%, 05/15/21(b)

    $ 20,000       $ 20,250   

PH Glatfelter Co., Sr. Unsec. Gtd. Global Notes, 5.38%, 10/15/20

      165,000         172,013   
                192,263   

Personal Products–0.22%

  

Albea Beauty Holdings S.A. (France), Sr. Sec. Gtd. Notes,
8.38%, 11/01/19(b)

      200,000         218,049   

Pharmaceuticals–0.47%

  

Salix Pharmaceuticals Ltd., Sr. Unsec. Gtd. Notes, 6.00%, 01/15/21(b)

      50,000         53,000   

Valeant Pharmaceuticals International, Inc., Sr. Unsec. Gtd. Notes, 5.63%, 12/01/21(b)

      140,000         140,875   

6.38%, 10/15/20(b)

      115,000         119,600   

6.75%, 08/15/21(b)

      62,000         65,255   

7.25%, 07/15/22(b)

      58,000         62,060   

7.50%, 07/15/21(b)

      32,000         34,800   
                475,590   

Railroads–0.57%

  

Transnet SOC Ltd. (South Africa), Sr. Unsec. Notes, 4.00%, 07/26/22(b)

      300,000         286,409   

Transnet SOC Ltd. (South Africa), REGS, Sr. Unsec. Euro Notes, 4.00%, 07/26/22(b)

      300,000         287,100   
                573,509   

Real Estate Development–0.76%

  

AV Homes, Inc., Sr. Unsec. Notes, 8.50%, 07/01/19(b)

      60,000         61,050   

Country Garden Holdings Co. Ltd. (China), Sr. Unsec. Gtd. Notes, 7.88%, 05/27/19(b)

      200,000         209,750   

REGS, Sr. Unsec. Gtd. Euro Notes,

7.50%, 01/10/23(b)

      200,000         197,750   

Longfor Porperties Co. Ltd. (China),
Sr. Unsec. Gtd. Euro Notes,
6.75%, 01/29/23

      300,000         292,073   
                760,623   

Regional Banks–0.49%

  

Banco Internacional del Peru SAA (Peru), Unsec. Sub. Notes, 6.63%, 03/19/29(b)

      300,000         319,423   

Synovus Financial Corp., Sr. Unsec. Global Notes, 7.88%, 02/15/19

      147,000         167,947   
                487,370   

Renewable Electricity–0.50%

  

Greenko Dutch B.V. (India), Sr. Sec. Gtd. Notes, 8.00%, 08/01/19(b)

      500,000         500,000   

Security & Alarm Services–0.08%

  

ADT Corp. (The), Sr. Unsec. Global Notes, 6.25%, 10/15/21

      75,000         78,375   

 

      Principal    
Amount    		      Value    

Semiconductor Equipment–0.50%

  

Amkor Technology Inc., Sr. Unsec. Global Notes, 6.38%, 10/01/22

    $ 349,000       $ 363,833   

6.63%, 06/01/21

      39,000         40,755   

Entegris Inc., Sr. Unsec. Gtd. Notes, 6.00%, 04/01/22(b)

      96,000         99,120   
                503,708   

Semiconductors–0.79%

  

Advanced Micro Devices, Inc., Sr. Unsec. Notes, 6.75%, 03/01/19(b)

      181,000         187,335   

7.00%, 07/01/24(b)

      17,000         17,000   

Freescale Semiconductor Inc., Sr. Sec. Gtd. Notes, 6.00%, 01/15/22(b)

      262,000         273,790   

Micron Technology Inc., Sr. Unsec. Notes, 5.88%, 02/15/22(b)

      95,000         100,700   

NXP B.V./NXP Funding LLC (Netherlands), Sr. Unsec. Gtd. Notes, 5.75%, 02/15/21(b)

      200,000         210,000   
                788,825   

Sovereign Debt–7.08%

  

Argentina Bonar Bonds (Argentina), Series X, Sr. Unsec. Bonds, 7.00%, 04/17/17

      450,000         412,875   

Banco Nacional de Desenvolvimento Economico e Social (Brazil), Sr. Unsec. Notes, 5.75%, 09/26/23(b)

      200,000         215,447   

Chile Government International Bond (Chile), Sr. Unsec. Global Notes, 3.25%, 09/14/21

      212,000         218,890   

Dominican Republic International Bond (Dominican Repubic), Sr. Unsec. Bonds, 7.45%, 04/30/44(b)

      100,000         107,000   

Sr. Unsec. Notes,

9.04%, 01/23/18(b)

      219,194         242,758   

Guatemala Government Bond (Guatemala), Sr. Unsec. Bonds, 8.13%, 10/06/19(b)(e)

      159,000         206,700   

Honduras Government International Bond (Honduras), REGS, Sr. Unsec. Euro Notes, 7.50%, 03/15/24(b)

      200,000         206,500   

Hungary Government International Bond (Hungary), Sr. Unsec. Global Notes, 4.00%, 03/25/19

      200,000         206,094   

5.38%, 02/21/23

      80,000         85,600   

5.38%, 03/25/24

      200,000         212,000   

7.63%, 03/29/41

      186,000         237,615   

Indonesia Government International Bond (Indonesia), Sr. Unsec. Notes, 4.63%, 04/15/43(b)

      265,000         241,812   

REGS, Sr. Unsec. Euro Notes,

3.75%, 04/25/22(b)

      265,000         261,687   
 

 

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

Invesco Premium Income Fund

      Principal
Amount		      Value  

Sovereign Debt–(continued)

  

Ivory Coast Government International Bond (Ivory Coast), Unsec. Bonds, 5.38%, 07/23/24(b)

    $ 200,000       $ 195,500   

Kenya Government International Bond (Kenya), Sr. Unsec. Notes,
6.88%, 06/24/24(b)

      200,000         212,690   

Lebanon Government International Bond (Lebanon), REGS, Sr. Unsec. Euro Bonds, 6.00%, 01/27/23(b)

      500,000         505,625   

MDC-GMTN B.V. (United Arab Emirates), Sr. Unsec. Gtd. Bonds, 3.25%, 04/28/22(b)

      200,000         201,500   

Mexico Government International Bond (Mexico), Sr. Unsec. Global Notes, 3.63%, 03/15/22

      138,000         141,648   

Pakistan Government International Bond (Pakistan), Unsec. Bonds,
7.25%, 04/15/19(b)

      200,000         209,000   

Peruvian Government International Bond (Peru), Sr. Unsec. Global Bonds,
8.75%, 11/21/33

      212,000         324,360   

Poland Government International Bond (Poland), Sr. Unsec. Global Notes, 3.00%, 03/17/23

      106,000         102,953   

Sr. Unsec. Global Notes,

5.00%, 03/23/22

      146,000         162,972   

Republic of Angola Via Northern Lights III B.V. (Angola), REGS, Sr. Unsec. Euro Notes, 7.00%, 08/16/19(b)

      318,000         345,825   

Republic of Serbia (Serbia), Sr. Unsec. Bonds, 4.88%, 02/25/20(b)

      250,000         256,250   

Romanian Government International Bond (Romania), Sr. Unsec. Notes,
4.38%, 08/22/23(b)

      356,000         368,051   

4.88%, 01/22/24(b)

      106,000         113,287   

6.75%, 02/07/22(b)

      84,000         100,485   

Sri Lanka Government International Bond (Sri Lanka), REGS, Unsec. Euro Notes, 7.40%, 01/22/15(b)

      318,000         327,540   

Ukraine Government International Bond (Ukraine), REGS, Sr. Unsec. Euro Notes, 6.75%, 11/14/17(b)

      305,000         291,809   

Venezuela Government International Bond (Venezuela), REGS,
Sr. Unsec. Euro Bonds,
6.00%, 12/09/20(b)

      116,500         88,540   

11.75%, 10/21/26(b)

      159,000         151,686   

11.95%, 08/05/31(b)

      169,600         161,544   
                7,116,243   

Specialized Finance–1.03%

  

Aircastle Ltd.,
Sr. Unsec. Global Notes,
7.63%, 04/15/20

      189,000         218,059   

Sr. Unsec. Notes,

5.13%, 03/15/21

      85,000         85,744   

CIT Group Inc., Sr. Unsec. Global Notes, 5.00%, 08/15/22

      204,000         211,140   
      Principal
Amount		      Value  

Specialized Finance–(continued)

  

Fly Leasing Ltd. (Ireland), Sr. Unsec. Gtd. Global Notes, 6.75%, 12/15/20

    $ 200,000       $ 213,500   

International Lease Finance Corp.,
Sr. Unsec. Global Notes,
5.88%, 08/15/22

      63,000         67,252   

Sr. Unsec. Notes,

8.25%, 12/15/20

      201,000         242,205   
                1,037,900   

Specialized REIT’s–0.27%

  

Crown Castle International Corp.,
Sr. Unsec. Global Notes,
5.25%, 01/15/23

      50,000         50,625   

Sr. Unsec. Notes,

4.88%, 04/15/22

      156,000         156,000   

Weyerhaeuser Real Estate Co., Sr. Unsec. Notes, 5.88%, 06/15/24(b)

      60,000         60,825   
                267,450   

Specialty Chemicals–0.14%

  

Chemtura Corp., Sr. Unsec. Gtd. Notes, 5.75%, 07/15/21

      62,000         63,240   

PolyOne Corp., Sr. Unsec. Notes,
7.38%, 09/15/20

      72,000         77,400   
                140,640   

Specialty Stores–0.52%

  

Michaels Stores Inc., Sr. Unsec. Gtd. Sub. Notes, 5.88%, 12/15/20(b)

      342,000         339,862   

Outerwall, Inc., Sr. Unsec. Gtd. Global Notes, 6.00%, 03/15/19

      123,000         126,690   

Sally Holdings LLC/Sally Capital Inc., Sr. Unsec. Gtd. Global Bonds,
5.50%, 11/01/23

      56,000         58,100   
                524,652   

Steel–1.33%

  

ArcelorMittal (Luxembourg),
Sr. Unsec. Global Notes,
6.00%, 03/01/21

      200,000         212,000   

6.75%, 02/25/22

      97,000         105,518   

Evraz Group S.A. (Russia), REGS, Sr. Unsec. Euro Notes, 6.50%, 04/22/20(b)

      200,000         178,750   

Steel Dynamics Inc., Sr. Unsec. Gtd. Global Notes, 6.38%, 08/15/22

      144,000         154,080   

SunCoke Energy Partners L.P./SunCoke Energy Partners Finance Corp.,
Sr. Unsec. Gtd. Notes,
7.38%, 02/01/20(b)

      242,000         255,008   

7.38%, 02/01/20(b)

      35,000         36,881   

United States Steel Corp., Sr. Unsec. Global Notes, 7.50%, 03/15/22

      76,000         82,080   

Vale Overseas Ltd. (Brazil), Sr. Unsec. Gtd. Global Notes, 4.38%, 01/11/22

      212,000         217,392   

Walter Energy, Inc.,
Sr. Sec. Gtd. Notes,
9.50%, 10/15/19(b)

      74,000         73,630   

Sr. Unsec. Gtd. Global Notes,

8.50%, 04/15/21

      43,000         21,500   
                1,336,839   
 

 

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

Invesco Premium Income Fund

     Principal
Amount		     Value  

Technology Distributors–0.06%

  

Anixter Inc., Sr. Unsec. Gtd. Global Notes, 5.63%, 05/01/19

   $ 52,000      $ 55,250   

Trucking–0.00%

  

Hertz Corp. (The), Sr. Unsec. Gtd. Global Notes, 5.88%, 10/15/20

     4,000        4,100   

Wireless Telecommunication Services–3.30%

  

America Movil S.A.B. de C.V. (Mexico), Sr. Unsec. Global Notes, 4.38%, 07/16/42

     200,000        186,805   

Digicel Ltd. (Jamaica), Sr. Unsec. Notes, 6.00%, 04/15/21(b)

     200,000        205,500   

SBA Communications Corp., Sr. Unsec. Global Notes,
5.63%, 10/01/19

     44,000        45,980   

Sr. Unsec. Notes,

4.88%, 07/15/22(b)

     170,000        164,050   

Sistema JSEC via Sistema International Funding S.A (Russia), Sr. Unsec. Loan Participation Notes,
6.95%, 05/17/19(b)

     200,000        202,000   

Sprint Communications Inc., Sr. Unsec. Global Notes,
6.00%, 11/15/22

     121,000        120,093   

7.00%, 08/15/20

     6,000        6,360   

Sr. Unsec. Gtd. Notes,

7.00%, 03/01/20(b)

     17,000        19,210   

9.00%, 11/15/18(b)

     200,000        237,000   

Sprint Corp., Sr. Unsec. Gtd. Notes, 7.25%, 09/15/21(b)

     79,000        84,530   

7.88%, 09/15/23(b)

     268,000        289,440   

T-Mobile USA, Inc., Sr. Unsec. Gtd. Global Notes,
6.25%, 04/01/21

     143,000        149,435   

6.63%, 04/01/23

     280,000        294,700   

Sr. Unsec. Gtd. Notes,

6.63%, 04/28/21

     66,000        70,290   

6.84%, 04/28/23

     183,000        194,437   

Vimpel Communications via VIP Finance Ireland Ltd. OJSC (Russia), REGS, Sr. Unsec. Euro Loan Participation Notes,
7.75%, 02/02/21(b)

     200,000        207,250   

VimpelCom Holdings B.V. (Russia), REGS, Sr. Unsec. Gtd. Euro Notes, 5.95%, 02/13/23(b)

     450,000        420,750   

Wind Acquisition Finance S.A. (Italy), Sr. Unsec. Gtd. Notes,
7.38%, 04/23/21(b)

     400,000        421,500   
              3,319,330   

Total U.S. Dollar Denominated Bonds and Notes (Cost $51,963,537)

   

     53,115,640   
     Shares     Value  

Preferred Stocks–28.65%

  

Asset Management & Custody Banks–0.69%

  

Affiliated Managers Group Inc., 6.38% Sr. Unsec. Pfd.

     3,100      $ 77,996   

Apollo Investment Corp., 6.88%
Sr. Unsec. Pfd.

     2,700        67,041   

Ares Capital Corp., 7.00% Sr. Unsec. Pfd.

     6,800        173,060   

Bank of New York Mellon Corp. (The), 5.20% Pfd.

     5,300        122,748   

State Street Corp.,
Series C, 5.25% Pfd.

     4,500        103,545   

Series D, 5.90% Pfd.

     5,800        150,409   
              694,799   

Cable & Satellite–0.06%

  

Comcast Corp., 5.00% Sr. Unsec. Gtd. Pfd.

     2,600        64,870   

Consumer Finance–1.29%

  

Ally Financial Inc., Series A, 8.50% Pfd.

     11,300        306,569   

Capital One Financial Corp., Series B, 6.00% Pfd.

     7,900        191,259   

Capital One Financial Corp., Series C, 6.25% Pfd.

     4,300        105,049   

Discover Financial Services, Series B, 6.50% Pfd.

     5,200        132,184   

GMAC Capital Trust I, Series 2, 8.13% Jr. Sub. Gtd. Pfd.

     17,200        467,496   

Navient LLC, 6.00% Sr. Unsec. Pfd.

     4,200        92,358   
              1,294,915   

Diversified Banks–9.78%

  

BAC Capital Trust VIII, 6.00% Jr. Unsec. Sub. Gtd. Pfd.

     5,500        139,480   

Bank of America Corp., Series 3,
6.38% Pfd.

     18,300        458,781   

Bank of America Corp., Series D,
6.20% Pfd.

     16,500        412,830   

Bank of America Corp., Series I, 6.63% Pfd.

     15,451        392,919   

Barclays Bank PLC (United Kingdom), Series 4, 7.75% Pfd.

     17,900        461,283   

Barclays Bank PLC (United Kingdom), Series 5, 8.13% Pfd.

     24,200        624,118   

Citigroup Inc., Series J, 7.13% Pfd.

     9,300        253,983   

Citigroup Inc., Series K, 6.88% Pfd.

     14,400        386,928   

Citigroup Inc., Series L, 6.88% Pfd.

     7,500        189,600   

Countrywide Capital V, 7.00%
Jr. Sub. Gtd. Pfd.

     9,600        243,936   

HSBC Holdings PLC (United Kingdom), Series 2, 8.00% Jr. Unsec. Sub. Pfd.

     57,400        1,553,818   

JPMorgan Chase & Co., Series O,
5.50% Pfd.

     8,600        194,102   

JPMorgan Chase & Co., Series P,
5.45% Pfd.

     11,600        260,188   

JPMorgan Chase & Co., Series T,
6.70% Pfd.

     7,700        196,196   

JPMorgan Chase & Co., Series W,
6.30% Pfd.

     3,000        74,460   

JPMorgan Chase Capital XXIX, 6.70%
Jr. Sub. Gtd. Pfd.

     7,200        183,672   
 

 

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

Invesco Premium Income Fund

      Shares      Value  

Diversified Banks–(continued)

  

Lloyds Banking Group PLC (United Kingdom), 7.75% Sr. Unsec. Pfd.

      5,900       $ 156,822   

RBS Capital Funding Trust VII (Netherlands), Series G, 6.08% Jr. Unsec. Sub. Gtd. Pfd.

      15,602         373,200   

Royal Bank of Scotland Group PLC (The) (United Kingdom),
Series L, 5.75% Jr. Sub. Pfd.

      19,001         441,963   

Series S, 6.60% Jr. Sub. Pfd.

      14,800         363,044   

Royal Bank of Scotland Group PLC (The) (United Kingdom), Series T, 7.25% Jr. Sub. Pfd.

      16,400         412,788   

Santander Finance Preferred SAU (Spain), Series 10, 10.50% Jr. Sub. Gtd. Pfd.

      6,800         174,216   

US Bancorp, Series F, 6.50% Pfd.

      18,700         530,332   

Wells Fargo & Co., 5.20% Pfd.

      14,800         334,924   

Wells Fargo & Co., 5.85% Pfd.

      11,300         289,280   

Wells Fargo & Co., 6.63% Pfd.

      6,100         168,177   

Wells Fargo & Co., Series J, 8.00% Pfd.

      4,800         140,640   

Wells Fargo & Co., Series O, 5.13% Pfd.

      13,000         294,190   

Wells Fargo & Co., Series P, 5.25% Pfd.

      5,400         125,010   
                9,830,880   

Diversified Capital Markets–1.34%

  

Deutsche Bank Contingent Capital Trust III (Germany), 7.60% Jr. Unsec. Sub. Gtd. Pfd.

      21,200         582,576   

Deutsche Bank Contingent Capital Trust V (Germany), 8.05% Jr. Unsec. Sub. Gtd. Pfd.

      20,900         584,155   

KKR Financial Holdings LLC, Series A, 7.38% Pfd.

      3,400         87,040   

KKR Financial Holdings LLC, 8.38% Sr. Unsec. Pfd.

      3,200         89,664   
                1,343,435   

Diversified REIT’s–0.43%

  

PS Business Parks, Inc., Series S, 6.45% Pfd.

      6,300         155,925   

Vornado Realty L.P., 7.88% Sr. Unsec. Pfd.

      4,100         104,386   

Vornado Realty Trust, Series J, 6.88% Pfd.

      6,600         175,758   
                436,069   

Electric Utilities–1.23%

  

Alabama Power Co., 5.63% Pfd.

      3,500         86,188   

BGE Capital Trust II, 6.20% Jr. Unsec. Sub. Gtd. Pfd.

      2,300         57,500   

Duke Energy Corp., 5.13% Jr. Unsec. Sub. Pfd.

      4,500         105,255   

Entergy Louisiana LLC, 5.25% Sr. Sec. First Mortgage Pfd.

      2,300         55,200   

Entergy Mississippi Inc., 6.00% Sr. Sec. First Mortgage Pfd.

      4,300         108,102   

Entergy Texas Inc., 5.63% Sr. Sec. Pfd.

      3,400         85,204   

Interstate Power & Light Co., Series D, 5.10% Pfd.

      1,800         44,442   

NextEra Energy Capital Holdings Inc., 5.00% Jr. Unsec. Sub. Gtd. Pfd.

      4,500         94,455   

NextEra Energy Capital Holdings Inc.,
Series G, 5.70% Jr. Unsec. Sub. Gtd. Pfd.

      3,600         87,084   

NextEra Energy Capital Holdings Inc.,
Series H, 5.63% Jr. Unsec. Sub. Gtd. Pfd.

      7,200         169,128   
      Shares      Value  

Electric Utilities–(continued)

  

Pacific Gas & Electric Co., Series A, 6.00% Pfd.

      1,000       $ 27,250   

PPL Capital Funding, Inc., Series B, 5.90% Jr. Unsec. Sub. Gtd. Pfd.

      4,100         97,252   

SCE Trust I, 5.63% Jr. Unsec. Sub. Pfd.

      7,900         183,675   

SCE Trust III, 5.75% Jr. Unsec. Sub. Pfd.

      1,300         33,657   
                1,234,392   

Health Care REIT’s–0.19%

  

Health Care REIT, Inc., Series J, 6.50% Pfd.

      2,600         66,872   

Senior Housing Properties Trust, 5.63% Sr. Unsec. Pfd.

      3,200         73,856   

Ventas Realty L.P. / Ventas Capital Corp., 5.45% Sr. Unsec. Gtd. Pfd.

      2,300         54,763   
                195,491   

Hotel and Resort REIT’s–0.07%

  

Hospitality Properties Trust, Series D, 7.13% Pfd.

      2,600         66,248   

Industrial Conglomerates–0.47%

  

General Electric Capital Corp.,
4.70% Sr. Unsec. Pfd.

      5,400         124,038   

4.88% Sr. Unsec. Pfd.

      7,500         177,300   

4.88% Sr. Unsec. Pfd.

      7,200         173,592   
                474,930   

Industrial Machinery–0.17%

  

Stanley Black & Decker Inc., 5.75% Jr. Unsec. Sub. Pfd.

      6,800         167,076   

Integrated Telecommunication Services–0.76%

  

Qwest Corp.,
6.13% Sr. Unsec. Pfd.

      5,000         117,500   

7.00% Sr. Unsec. Pfd.

      3,600         92,628   

7.00% Sr. Unsec. Pfd.

      4,500         115,830   

7.38% Sr. Unsec. Pfd.

      6,800         178,228   

7.50% Sr. Unsec. Pfd.

      5,400         142,560   

Verizon Communications Inc., 5.90% Sr. Unsec. Pfd.

      4,500         114,941   
                761,687   

Investment Banking & Brokerage–2.67%

  

BGC Partners Inc., 8.13% Sr. Unsec. Pfd.

      1,000         27,170   

Charles Schwab Corp. (The), Series B, 6.00% Pfd.

      4,400         111,496   

Goldman Sachs Group Inc. (The), Series K, 6.38% Pfd.

      8,700         222,633   

Goldman Sachs Group, Inc. (The), 6.50% Sr. Unsec. Pfd.

      5,400         142,560   

Goldman Sachs Group, Inc. (The), Series I, 5.95% Pfd.

      15,000         361,350   

Goldman Sachs Group, Inc. (The), Series J, 5.50% Pfd.

      12,600         301,896   
 

 

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

Invesco Premium Income Fund

      Shares      Value  

Investment Banking & Brokerage–(continued)

  

Morgan Stanley, 6.88% Pfd.

      12,600       $ 335,286   

Morgan Stanley Capital Trust III,
6.25% Jr. Unsec. Sub. Gtd. Pfd.

      16,400         414,756   

Morgan Stanley Capital Trust VI,
6.60% Jr. Unsec. Sub. Gtd. Pfd.

      6,800         171,700   

Morgan Stanley, Series E, 7.13% Pfd.

      12,600         347,256   

Morgan Stanley, Series G, 6.63% Pfd.

      3,400         85,986   

Raymond James Financial Inc., 6.90%
Sr. Unsec. Pfd.

      3,200         84,640   

Stifel Financial Corp., 6.70% Sr. Unsec. Pfd.

      2,900         74,240   
                2,680,969   

Life & Health Insurance–1.38%

  

Aegon N.V. (Netherlands),
6.38% Jr. Unsec. Sub. Pfd.

      5,500         140,195   

8.00% Unsec. Sub. Pfd.

      9,300         263,469   

Aflac Inc., 5.50% Jr. Unsec. Sub. Pfd.

      4,500         108,720   

MetLife Inc., Series B, 6.50% Pfd.

      9,900         252,648   

Principal Financial Group Inc., Series B, 6.52% Pfd.

      2,300         58,397   

Protective Life Corp., 6.25% Sr. Unsec. Sub. Pfd.

      4,900         125,244   

Prudential Financial Inc., 5.75% Jr. Unsec. Sub. Pfd.

      5,400         135,000   

Prudential Financial,Inc., 5.70% Jr. Unsec. Sub. Pfd.

      5,900         145,140   

Prudential PLC (United Kingdom),
6.75% Jr. Unsec. Sub. Pfd.

      5,000         127,450   

Torchmark Corp., 5.88% Jr. Unsec. Sub. Pfd.

      1,100         27,291   
                1,383,554   

Multi-Line Insurance–0.38%

  

American Financial Group Inc., 6.38% Sr. Unsec. Pfd.

      4,400         112,552   

Aviva PLC (United Kingdom), 8.25% Sr. Unsec. Sub. Pfd.

      3,600         101,880   

Hartford Financial Services Group Inc. (The), 7.88% Jr. Sub. Pfd.

      4,600         136,758   

Kemper Corp., 7.38% Unsec. Sub. Pfd.

      1,200         31,068   
                382,258   

Multi-Utilities–0.40%

  

Dominion Resources Inc., Series A,
8.38% Jr. Unsec. Sub. Pfd.

      6,200         159,340   

DTE Energy Co., 6.50% Jr. Unsec. Sub. Pfd.

      4,300         112,402   

Integrys Energy Group, Inc., 6.00% Jr. Unsec. Sub. Pfd.

      3,600         92,628   

SCANA Corp., 7.70% Jr. Unsec. Sub. Pfd.

      1,400         36,064   
                400,434   

Office REIT’s–0.44%

  

Alexandria Real Estate Equities Inc.,
Series E, 6.45% Pfd.

      1,200         30,324   

Boston Properties, Inc., 5.25% Pfd.

      1,800         42,300   

Digital Realty Trust, Inc., Series F, 6.63% Pfd.

      2,000         48,360   

Digital Realty Trust, Inc., Series G, 5.88% Pfd.

      2,300         50,876   

Digital Realty Trust, Inc., Series H, 7.38% Pfd.

      3,100         79,205   
      Shares      Value  

Office REIT’s–(continued)

  

Equity Commonwealth, 5.75% Sr. Unsec. Pfd.

      4,100       $ 90,856   

Kilroy Realty Corp., Series G, 6.88% Pfd.

      900         23,346   

Kilroy Realty Corp., Series H, 6.38% Pfd.

      900         22,239   

SL Green Realty Corp., Series I, 6.50% Pfd.

      2,100         52,521   
                440,027   

Office Services & Supplies–0.12%

  

Pitney Bowes Inc.,
5.25% Sr. Unsec. Pfd.

      800         20,752   

6.70% Sr. Unsec. Pfd.

      4,100         105,329   
                126,081   

Oil & Gas Refining & Marketing–0.10%

  

NuStar Logistics L.P., 7.63% Jr. Unsec. Sub. Gtd. Pfd.

      3,600         96,912   

Other Diversified Financial Services–1.34%

  

Citigroup Capital XIII, 7.88% Jr. Sub. Pfd.

      11,966         324,159   

ING Groep NV (Netherlands),
6.38% Jr. Unsec. Sub. Pfd.

      23,100         586,278   

7.38% Jr. Unsec. Sub. Pfd.

      17,100         438,102   
                1,348,539   

Property & Casualty Insurance–1.10%

  

Allstate Corp. (The), 5.10% Unsec. Sub. Pfd.

      4,300         107,285   

Allstate Corp. (The), 5.63% Pfd.

      2,800         68,488   

Allstate Corp. (The), Series C, 6.75% Pfd.

      3,200         84,640   

Allstate Corp. (The), Series E, 6.63% Pfd.

      6,200         160,704   

Allstate Corp. (The), Series F, 6.25% Pfd.

      2,200         55,770   

Arch Capital Group Ltd., Series C,
6.75% Pfd.

      2,900         78,300   

Argo Group U.S. Inc., 6.50% Sr. Unsec. Gtd. Pfd.

      1,300         31,616   

Aspen Insurance Holdings Ltd.,
5.95% Pfd.

      2,300         57,224   

7.25% Pfd.

      2,900         75,458   

Assured Guaranty Municipal Holdings Inc., 6.25% Sr. Unsec. Gtd. Pfd.

      3,900         94,146   

Axis Capital Holdings Ltd., Series C,
6.88% Pfd.

      5,400         139,860   

Hanover Insurance Group, Inc. (The),
6.35% Jr. Unsec. Sub. Pfd.

      1,600         38,912   

Selective Insurance Group, Inc.,
5.88% Sr. Unsec. Pfd.

      1,600         38,912   

W. R. Berkley Corp., 5.63% Jr. Unsec. Sub. Pfd.

      3,200         73,800   
                1,105,115   

Regional Banks–1.91%

  

BB&T Corp., 5.85% Pfd.

      6,800         167,416   

BB&T Corp., Series E, 5.63% Pfd.

      13,000         306,280   

City National Corp., Series C, 5.50% Pfd.

      2,500         56,300   

Cullen/Frost Bankers, Inc., 5.38% Pfd.

      1,400         32,550   

Fifth Third Bancorp, Series I, 6.63% Pfd.

      4,100         110,331   

First Horizon National Corp., Series A, 6.20% Pfd.

      900         21,420   
 

 

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

Invesco Premium Income Fund

          Shares              Value      

Regional Banks–(continued)

  

First Niagara Financial Group Inc.,
Series B, 8.63% Pfd.

      3,200       $ 92,640   

First Republic Bank,

      

5.50% Pfd.

      1,800         40,590   

7.00% Pfd.

      1,800         48,780   

First Republic Bank, Series A, 6.70% Pfd.

      2,100         55,062   

First Republic Bank, Series B, 6.20% Pfd.

      2,200         54,890   

FirstMerit Corp.,
Series A, 5.88% Pfd.

      900         21,141   

FNB Corp., 7.25% Pfd.

      1,000         27,300   

PNC Financial Services Group, Inc. (The), Series P, 6.13% Pfd.

      13,400         364,882   

Regions Financial Corp.,
Series A, 6.38% Pfd.

      4,500         111,465   

Regions Financial Corp.,
Series B, 6.38% Pfd.

      3,400         86,530   

SunTrust Banks Inc., Series E, 5.88% Pfd.

      4,100         96,965   

TCF Financial Corp., 7.50% Pfd.

      1,200         31,476   

TCF Financial Corp., Series B, 6.45% Pfd.

      1,200         29,400   

Texas Capital Bancshares, Inc.,
Series A, 6.50% Pfd.

      2,400         59,160   

Webster Financial Corp.,
Series E, 6.40% Pfd.

      1,100         27,115   

Zions Bancorp.,
Series F, 7.90% Pfd.

      2,872         80,272   
                1,921,965   

Reinsurance–0.59%

      

Endurance Specialty Holdings Ltd.,
Series A, 7.75% Pfd.

      1,800         47,088   

Endurance Specialty Holdings Ltd.,
Series B, 7.50% Pfd.

      2,100         55,125   

Maiden Holdings Ltd., Series A, 8.25% Pfd.

      4,600         118,726   

Montpelier Re Holdings Ltd., (Bermuda), Series A, 8.88% Pfd.

      1,400         38,094   

PartnerRe Ltd.,
Series E, 7.25% Pfd.

      5,800         153,816   

Reinsurance Group of America, Inc.,
6.20% Sr. Unsec. Sub. Pfd.

      3,600         97,560   

RenaissanceRe Holdings Ltd., Series E, 5.38% Pfd.

      3,600         82,008   
                592,417   

Retail REIT’s–0.63%

      

DDR Corp., Class J, 6.50% Pfd.

      3,200         80,544   

Glimcher Realty Trust, 6.88% Pfd.

      2,000         50,540   

Kimco Realty Corp., Series I, 6.00% Pfd.

      6,700         164,552   

National Retail Properties Inc.,
Series D, 6.63% Pfd.

      5,200         130,780   

Realty Income Corp., Series E, 6.75% Pfd.

      2,000         52,540   

Realty Income Corp., Series F, 6.63% Pfd.

      3,600         93,672   

Regency Centers Corp., Series 6, 6.63% Pfd.

      2,300         59,570   
                632,198   

Specialized REIT’s–0.82%

      

EPR Properties,
Series F, 6.63% Pfd.

      1,100         27,060   

Public Storage,
Series Q, 6.50% Pfd.

      18,400         487,600   

Public Storage,
    Series Y, 6.38% Pfd.

      12,200         310,246   
                824,906   
          Shares              Value      

Thrifts & Mortgage Finance–0.03%

  

Astoria Financial Corp., Series C, 6.50% Pfd.

      1,200       $ 29,364   

Wireless Telecommunication Services–0.26%

  

Telephone & Data Systems Inc., 7.00% Sr. Unsec. Pfd.

      7,600         189,468   

United States Cellular Corp., 6.95% Sr. Unsec. Pfd.

      3,100         77,593   
                267,061   

Total Preferred Stocks
(Cost $27,391,483)

               28,796,592   

 

         Principal    
    Amount    		         

U.S. Treasury Securities–9.01%

  

   

U.S. Treasury Bills–0.10%

  

   

0.07%, 11/13/14(f)

         $ 100,000         99,991   

U.S. Treasury STRIPS–8.91%

  

   

3.53%, 02/15/43(f)(g)

           700,000         262,281   

3.97%, 02/15/43(f)(g)

           2,600,000         974,188   

3.98%, 02/15/43(f)(g)

           15,900,000         5,957,531   

4.11%, 02/15/43(f)(g)

           4,700,000         1,761,031   
                     8,955,031   

Total U.S. Treasury Securities
(Cost $7,833,660)

   

      9,055,022   

Non-U.S. Dollar Denominated Bonds & Notes–1.95%(h)

  

Auto Parts & Equipment–0.17%

  

Autodis S.A. (France), Sr. Sec. Gtd. Notes, 6.50%, 02/01/19(b)

    EUR      126,000         173,594   

Broadcasting–0.10%

         

CET 21 spol sro (Czech Republic), REGS, Sr. Sec. Gtd. Euro Notes, 9.00%, 11/01/17(b)

    EUR      70,000         98,995   

Hotels, Resorts & Cruise Lines–0.10%

  

   

Thomas Cook Group PLC (United Kingdom), Sr. Unsec. Gtd. Medium-Term Euro Notes, 7.75%, 06/22/17

    GBP      57,000         103,565   

Internet Software & Services–0.14%

  

   

Adria Bidco B.V. (Serbia), REGS, Sr. Sec. Gtd. Euro Notes, 7.88%, 11/15/20(b)

    EUR      100,000         142,258   

Other Diversified Financial Services–0.51%

  

   

Cabot Financial Luxembourg S.A. (United Kingdom), REGS, Sr. Sec. Gtd. Euro Notes, 10.38%, 10/01/19(b)

    GBP      100,000         192,877   

Financiere Gaillon 8 SAS (France), Sr. Unsec. Notes,
7.00%, 09/30/19(b)

    EUR      100,000         127,865   
 

 

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

Invesco Premium Income Fund

           

    Principal    

    Amount    

      Value  

Other Diversified Financial Services–(continued)

  

Lowell Group Financing PLC (United Kingdom), REGS, Sr. Sec. Gtd. Euro Notes, 10.75%, 04/01/19(b)

    GBP      100,000       $ 187,812   
                     508,554   

Publishing–0.16%

  

Johnston Press Bond PLC (United Kingdom), Sr. Sec. Notes, 8.63%, 06/01/19(b)

    GBP      100,000         165,443   

Sovereign Debt–0.59%

  

Mexican Bonos (Mexico),
Series M,
Sr. Unsec. Bonds,
7.75%, 05/29/31

    MXN      5,030,000         428,612   

Unsec. Bonds,

8.00%, 06/11/20

    MXN      1,850,000         160,913   
                     589,525   

Specialized Finance–0.18%

  

HSS Financing PLC (United Kingdom), REGS, Sr. Sec. Gtd. Euro Notes, 6.75%, 08/01/19(b)

    GBP      100,000         176,206   

Total Non-U.S. Dollar Denominated Bonds & Notes
(Cost $1,994,698)

   

      1,958,140   
         Shares             

Money Market Funds–6.50%

  

Liquid Assets Portfolio –Institutional Class (i)

     3,267,994         3,267,994   

Premier Portfolio –Institutional Class (i)

     3,267,994         3,267,994   

Total Money Market Funds
(Cost $6,535,988)

   

      6,535,988   

TOTAL INVESTMENTS–98.96%
(Cost $95,719,366)

   

      99,461,382   

OTHER ASSETS LESS LIABILITIES–1.04%

  

      1,048,563   

NET ASSETS–100.00%

             $ 100,509,945   

Investment Abbreviations:

 

Conv. — Convertible
Ctfs. — Certificates
EUR — Euro
GBP — British Pound
Gtd. — Guaranteed
Jr. — Junior
MXN — Mexican Peso
Pfd. — Preferred
PIK — Payment in Kind
REGS — Regulation S
REIT — Real Estate Investment Trust
Sec. — Secured
Sr. — Senior
STRIPS — Separately Traded Registered Interest and Principal Security
Sub. — Subordinated
Unsec. — Unsecured

Notes to Schedule of Investments:

 

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

 

(b)  Security purchased or received in a transaction exempt from registration under the Securities Act of 1933, as amended (the “1933 Act”). The security may be resold pursuant to an exemption from registration under the 1933 Act, typically to qualified institutional buyers. The aggregate value of these securities at July 31, 2014 was $31,724,287, which represented 31.56% of the Fund’s Net Assets.

 

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

 

(d)  Perpetual bond with no specified maturity date.

 

(e)  Security has an irrevocable call by the issuer or mandatory put by the holder. Maturity date reflects such call or put.

 

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

 

(g)  All or a portion of the value was pledged as collateral to cover margin requirements for open futures contracts. See Note 1F and Note 3.

 

(h)  Foreign denominated security. Principal amount is denominated in currency indicated.

 

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

 

(j)  All or a portion of this security is Payment-in-Kind.

 

Issuer    Cash Rate      PIK Rate  

Central European Media Enterprises Ltd.

      —         15.0 % 
 

 

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

Invesco Premium 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.

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.

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.

Swap agreements are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service are valued based on a model which may include end of day net present values, spreads, ratings, industry, and company performance.

Foreign securities’ (including foreign exchange contracts) 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 Premium Income 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. Bond premiums and discounts are amortized and/or accreted for financial reporting purposes.

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

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

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

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

F. Futures Contracts – The Fund may enter into futures contracts to manage exposure to interest rate, equity and market price movements and/or currency risks. A futures contract is an agreement between two parties to purchase or sell a specified underlying security, currency or commodity (or delivery of a cash settlement price, in the case of an index future) for a fixed price at a future date. The Fund currently invests only in exchange-traded futures and they are standardized as to maturity date and underlying financial instrument. Initial margin deposits required upon entering into futures contracts are satisfied by the segregation of specific securities or cash as collateral at the futures commission merchant (broker). During the period the futures contracts are open, changes in the value of the contracts are recognized as unrealized gains or losses by recalculating the value of the contracts on a daily basis. Subsequent or variation margin payments are received or made depending upon whether unrealized gains or losses are incurred. These amounts are reflected as receivables or payables on the Statement of Assets and Liabilities. When the contracts are closed or expire, the Fund recognizes a realized gain or loss equal to the difference between the proceeds from, or cost of, the closing transaction and the Fund’s basis in the contract. The net realized gain (loss) and the change in unrealized gain (loss) on futures contracts held during the period is included on the Statement of Operations. The primary risks associated with futures contracts are market risk and the absence of a liquid secondary market. If the Fund were unable to liquidate a futures contract and/or enter into an offsetting closing transaction, the Fund would continue to be subject to market risk with respect to the value of the contracts and continue to be required to maintain the margin deposits on the futures contracts. Futures contracts have minimal counterparty risk since the exchange’s clearinghouse, as counterparty to all exchange-traded futures, guarantees the futures against default. Risks may exceed amounts recognized in the Statement of Assets and Liabilities.
G. Swap Agreements – The Fund may enter into various swap transactions, including interest rate, total return, index, currency exchange rate and credit default swap contracts (“CDS”) for investment purposes or to manage interest rate, currency or credit risk. Such transactions are agreements between two parties (“Counterparties”). A swap agreement may be negotiated bilaterally and traded over-the-counter (OTC) between two parties (‘uncleared/OTC”) or, in some instances, must be transacted through a future commission merchant (FCM) and cleared through a clearinghouse that serves as a central Counterparty (“centrally cleared swap”). These agreements may contain among other conditions, events of default and termination events, and various covenants and representations such as provisions that require the Fund to maintain a pre-determined level of net assets, and/or provide limits regarding the decline of the Fund’s NAV over specific periods of time. If the Fund were to trigger such provisions and have open derivative positions at that time, the Counterparty may be able to terminate such agreement and request immediate payment in an amount equal to the net liability positions, if any.

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

In a centrally cleared swap, the Fund’s ultimate Counterparty is a central clearinghouse. The Fund initially will enter into centrally cleared swaps through an executing broker. When a Fund enters into a centrally cleared swap, it must deliver to the central Counterparty (via the FCM) an amount referred to as “initial margin.” Initial margin requirements are determined by the central Counterparty, but an FCM may require additional initial margin above the amount required by the central Counterparty. Initial margin deposits required upon entering into centrally cleared swaps are satisfied by cash or securities as collateral at the FCM. Securities deposited as initial margin are designated on the Schedule of Investments and cash deposited is recorded on the Statement of Assets and Liabilities. During the term of a cleared swap agreement, a “variation margin” amount may be required

 

Invesco Premium Income Fund

G. Swap Agreements – (continued)

to be paid by the Fund or may be received by the Fund, based on the daily change in price of the underlying reference instrument subject to the swap agreement and is recorded as a receivable or payable for variation margin in the Statement of Assets and Liabilities until the centrally cleared swap is terminated at which time a realized gain or loss is recorded.

A CDS is an agreement between Counterparties to exchange the credit risk of an issuer. A buyer of a CDS is said to buy protection by paying a fixed payment over the life of the agreement and in some situations an upfront payment to the seller of the CDS. If a defined credit event occurs (such as payment default or bankruptcy), the Fund as a protection buyer would cease paying its fixed payment, the Fund would deliver eligible bonds issued by the reference entity to the seller, and the seller would pay the full notional value, or the “par value”, of the referenced obligation to the Fund. A seller of a CDS is said to sell protection and thus would receive a fixed payment over the life of the agreement and an upfront payment, if applicable. If a credit event occurs, the Fund as a protection seller would cease to receive the fixed payment stream, the Fund would pay the buyer “par value” or the full notional value of the referenced obligation, and the Fund would receive the eligible bonds issued by the reference entity. In turn, these bonds may be sold in order to realize a recovery value. Alternatively, the seller of the CDS and its Counterparty may agree to net the notional amount and the market value of the bonds and make a cash payment equal to the difference to the buyer of protection. If no credit event occurs, the Fund receives the fixed payment over the life of the agreement. As the seller, the Fund would effectively add leverage to its portfolio because, in addition to its total net assets, the Fund would be subject to investment exposure on the notional amount of the CDS. In connection with these agreements, cash and securities may be identified as collateral in accordance with the terms of the respective swap agreements to provide assets of value and recourse in the event of default under the swap agreement or bankruptcy/insolvency of a party to the swap agreement. If a Counterparty becomes bankrupt or otherwise fails to perform its obligations due to financial difficulties, the Fund may experience significant delays in obtaining any recovery in a bankruptcy or other reorganization proceeding. The Fund may obtain only limited recovery or may obtain no recovery in such circumstances. The Fund’s maximum risk of loss from Counterparty risk, either as the protection seller or as the protection buyer, is the value of the contract. The risk may be mitigated by having a master netting arrangement between the Fund and the Counterparty and by the designation of collateral by the Counterparty to cover the Fund’s exposure to the Counterparty.

Implied credit spreads represent the current level at which protection could be bought or sold given the terms of the existing CDS contract and serve as an indicator of the current status of the payment/performance risk of the CDS. An implied spread that has widened or increased since entry into the initial contract may indicate a deteriorating credit profile and increased risk of default for the reference entity. A declining or narrowing spread may indicate an improving credit profile or decreased risk of default for the reference entity. Alternatively, credit spreads may increase or decrease reflecting the general tolerance for risk in the credit markets.

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

Changes in the value of centrally cleared and OTC swap agreements are recognized as unrealized gains (losses) in the Statement of Operations by “marking to market” on a daily basis to reflect the value of the swap agreement at the end of each trading day. Payments received or paid at the beginning of the agreement are reflected as such on the Statement of Assets and Liabilities and may be referred to as upfront payments. The Fund accrues for the fixed payment stream and amortizes upfront payments, if any, on swap agreements on a daily basis with the net amount, recorded as a component of realized gain (loss) on the Statement of Operations. A liquidation payment received or made at the termination of a swap agreement is recorded as realized gain (loss) on the Statement of Operations. The Fund segregates liquid securities having a value at least equal to the amount of the potential obligation of a Fund under any swap transaction. Entering into these agreements involves, to varying degrees, lack of liquidity and elements of credit, market, and Counterparty risk in excess of amounts recognized on the Statement of Assets and Liabilities. Such risks involve the possibility that a swap is difficult to sell or liquidate; the Counterparty does not honor its obligations under the agreement and unfavorable interest rates and market fluctuations. It is possible that developments in the swaps market, including potential government regulation, could adversely affect the Fund’s ability to terminate existing swap agreements or to realize amounts to be received under such agreements.

The maximum potential amount of future payments (undiscounted) that the Fund as a seller of protection could be required to make under a credit default swap agreement would be an amount equal to the notional amount of the agreement. Notional amounts of each individual credit default swap agreement outstanding as of July 31, 2014 for which the Fund is the seller of protection are disclosed in the Notes to Schedule of Investments. These potential amounts would be partially offset by any recovery values of the respective referenced obligations, upfront payments received upon entering into the agreement, or net amounts received from the settlement of buy protection credit default swap agreements entered into by the Fund for the same referenced entity or entities.

 

Invesco Premium Income Fund

H. Other Risks – The Fund may invest in lower-quality debt securities, i.e., “junk bonds”. Investments in lower-rated securities or unrated securities of comparable quality tend to be more sensitive to economic conditions than higher rated securities. Junk bonds involve a greater risk of default by the issuer because such securities are generally unsecured and are often subordinated to other creditors’ claim.
I. Leverage Risk – Leverage exists when a Fund can lose more than it originally invests because it purchases or sells an instrument or enters into a transaction without investing an amount equal to the full economic exposure of the instrument or transaction.
J. Collateral – To the extent the Fund has designated or segregated a security as collateral and that security is subsequently sold, it is the Fund’s practice to replace such collateral no later than the next business day.

NOTE 2 — 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

    $         34,907,242         $ 425,338         $ —         $ 35,332,580   

U.S. Treasury Securities

      —           9,055,022           —           9,055,022   

Corporate Debt Securities

      —           45,999,397           —           45,999,397   

Foreign Debt Securities

      —           1,368,615           —           1,368,615   

Foreign Sovereign Debt Securities

      —           7,705,768           —           7,705,768   
     $ 34,907,242         $         64,554,140         $ —         $ 99,461,382   

Forward Foreign Currency Contracts*

      —           5,408           —           5,408   

Futures*

      (22,554)           —           —           (22,554)   

Swap Agreements*

      —           (25,752)           —           (25,752)   

Total Investments

    $ 34,884,688         $ 64,533,796         $             —         $         99,418,484   

* Unrealized appreciation (depreciation).

 

Invesco Premium Income Fund

NOTE 3 — Derivative Investments

Value of Derivative Investments at Period-End

The table below summarizes the value of the Fund’s derivative investments, detailed by primary risk exposure, held as of July 31, 2014:

 

     Value
Risk Exposure/ Derivative Type    Assets          Liabilities

Credit risk:

         

Swap agreements (a)

    $—         $(25,752)

Currency risk:

         

Forward foreign currency contracts

    20,727         (15,319)

Interest rate risk:

         

Futures contracts (b)

    59,216         —

Market risk:

         

Futures contracts (b)

    95,780         (177,550)

Total

    $175,723         $(218,621)

 

(a) Includes cumulative appreciation (depreciation) of centrally cleared swap agreements.
(b)  Includes cumulative appreciation (depreciation) of futures contracts.

Effect of Derivative Investments for the nine months ended July 31, 2014

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

 

     Location of Gain (Loss)
      Futures   Forward Foreign
Currency Contracts		   Swap Agreements

Realized Gain (Loss):

       

Credit risk

    $—   $—   $254,784

Currency risk

    —   (192,943)   —

Interest rate risk

    201,759   —   —

Market risk

    43,301   —   —

Change in Unrealized Appreciation (Depreciation):

       

Credit risk

    —   —   (279,627)

Currency risk

    —   107,889   —

Index rate risk

    (67,180)   —   —

Market risk

    (274,764)   —   —

Total

    $(96,884)   $(85,054)   $(24,843)

The table below summarizes the average notional value of futures contracts, forward foreign currency contracts and swap agreements outstanding during the period.

 

      Futures    Forward Foreign
Currency Contracts		    Swap
Agreements

Average notional value

    $21,947,038    $5,381,118    $6,508,889

 

Invesco Premium Income Fund

Open Futures Contracts at Period-End  
Futures Contracts      Type of
Contract		      Number of
Contracts		      Expiration
Month		      Notional
Value		      Unrealized
Appreciation
(Depreciation)		  

Australian 10 Year Bonds

      Long      2      September-2014      $224,694        $5,296   

Canada 10 Year Bonds

      Long      10      September-2014      1,255,618        18,938   

Euro Bonds

      Long      6      September-2014      1,188,863        25,034   

Long Gilt

      Long      4      September-2014      747,400        5,484   

U.S. Treasury Long Bonds

      Long      4      September-2014      549,625        4,464   

Subtotal - Interest Rate Risk

                                    $59,216   

Dow Jones Eurostoxx 50

      Long      50      September-2014      2,088,014        (94,353)   

E-Mini S&P 500 Index

      Long      16      September-2014      1,539,840        (1,082)   

FTSE 100 Index

      Long      9      September-2014      1,015,326        (3,123)   

Hang Seng Index

      Long      10      August-2014      1,597,786        36,020   

Russell 2000 Index Mini

      Long      14      September-2014      1,563,380        (78,992)   

Tokyo Stock Price Index

      Long      11      September-2014      1,382,219        59,760   

Subtotal – Market Risk

                                    $(81,770)   

Total Futures Contracts

                                    $(22,554)   

 

Open Forward Foreign Currency Contracts at Period-End  
                                  

 

 

 Unrealized

Appreciation

(Depreciation)

   

  

  

Settlement
Date		           Contract to           Notional        
   Counterparty        Deliver           Receive           Value        
09/02/14    Citigroup Global Markets Inc.        EUR           940,871           USD           1,280,304        $     1,259,913        $ 20,391  
09/02/14    Citigroup Global Markets Inc.        USD           762,628           EUR           565,232           756,897          (5,731)  
09/02/14    RBC Capital Markets Corp.        GBP           531,398           USD          887,331          896,887          (9,556)  
10/24/14    RBC Capital Markets Corp.        CAD           23,459           USD          21,806          21,470          336  
10/24/14    RBC Capital Markets Corp.        USD           35,868           CAD           39,155           35,836           (32)   
        Total forward foreign currency contracts - Currency Risk                               $ 5,408   

Currency Abbreviations:

CAD — Canadian Dollar

EUR — Euro

GBP — British Pound Sterling

USD — U.S. Dollar

 

Invesco Premium Income Fund

        Open Centrally Cleared Credit Default Swap Agreements at Period-End

 

  

  Counterparty/

  Clearinghouse

      Reference Entity   

Buy/

Sell

Protection

   

(Pay)/

Receive

Fixed
Rate

      Expiration
Date		      Implied
Credit
Spread(a)		   

Notional

Value

      Upfront
Payments		     

Unrealized

Appreciation

(Depreciation)

  

  Credit Suisse

  Securities

  (USA)

  LLC/CME

   

Markit CDX North America,

High Yield Index

    Sell      5.00%         06/20/2019       3.42%      $1,980,000         $139,788         $(25,752)   

   Total Credit Default Swap Agreements – Credit Risk

  

      $(25,752)   

Abbreviations:

CME – Chicago Mercantile Exchange

 

  (a)  Implied credit spreads represent the current level as of July 31, 2014 at which protection could be bought or sold given the terms of the existing credit default swap contract and serve as an indicator of the current status of the payment/performance risk of the credit default swap contract. An implied credit spread that has widened or increased since entry into the initial contract may indicate a deteriorating credit profile and increased risk of default for the reference entity. A declining or narrowing spread may indicate an improving credit profile or decreased risk of default for the reference entity. Alternatively, credit spreads may increase or decrease reflecting the general tolerance for risk in the credit markets generally.

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 nine months ended July 31, 2014 was $87,379,242 and $205,352,073, respectively. During the same period, purchases and sales of long-term U.S. Treasury obligations were $2,686,847 and $26,414,202, 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

    $

 

               3,511,850

 

   

 

 

Aggregate unrealized (depreciation) of investment securities

     

 

 (593,098)

 

   

 

 

Net unrealized appreciation of investment securities

 

    $

 

 2,918,752

 

   

 

 

Cost of investments for tax purposes is $96,542,630.

   

 

Invesco Premium Income Fund

 

 

Invesco Select Companies Fund

Quarterly Schedule of Portfolio Holdings

July 31, 2014

 

 

 

 

 

LOGO

 

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

 

 

Schedule of Investments(a)

July 31, 2014

(Unaudited)

 

      Shares          Value  

Common Stocks–74.92%

  

Aerospace & Defense–3.22%

      

Cubic Corp.

      1,033,123       $ 45,312,775   

Aluminum–0.00%

      

Cymat Technologies Ltd. (Canada)(b)

      249,750         43,522   

Apparel, Accessories & Luxury Goods–0.15%

  

Hampshire Group, Ltd. (b)(c)

      592,824         2,134,166   

Automotive Retail–2.51%

      

America’s Car-Mart, Inc. (b)(c)

      942,136         35,273,572   

Commodity Chemicals–1.43%

      

Chemtrade Logistics Income Fund (Canada)

      1,045,784         20,104,221   

Data Processing & Outsourced
Services–10.21%

   

   

Alliance Data Systems Corp. (b)

      347,156         91,055,547   

Global Payments Inc.

      758,587         52,547,322   
         143,602,869   

Education Services–3.61%

      

American Public Education Inc. (b)(c)

      1,423,005         50,801,278   

Electrical Components & Equipment–3.06%

  

Regal-Beloit Corp.

      611,538         42,985,006   

Health Care Supplies–7.87%

      

Alere, Inc. (b)

      1,978,539         79,141,560   

Cooper Cos., Inc. (The)

      196,102         31,548,890   
         110,690,450   

IT Consulting & Other Services–5.85%

  

Booz Allen Hamilton Holding Corp.

      3,702,160         82,336,038   

Life Sciences Tools & Services–3.96%

  

Charles River Laboratories International, Inc. (b)

      1,028,775         55,769,893   

Oil & Gas Equipment & Services–3.75%

  

ION Geophysical Corp. (b)(c)

      14,077,289         52,789,834   

Oil & Gas Exploration & Production–4.00%

  

Ultra Petroleum Corp. (b)

      2,453,956         56,244,672   

Other Diversified Financial Services–0.00%

  

Brompton Corp. (Canada) (Acquired
11/19/03-07/21/05; Cost $0)(b)(d)

      69,374         0   

Publishing–4.57%

      

John Wiley & Sons, Inc. -Class A

      1,070,433         64,322,319   

Real Estate Services–4.14%

      

FirstService Corp. (Canada)

      1,045,587         58,258,690   
      Shares          Value  

Semiconductors–9.35%

      

International Rectifier Corp. (b)(c)

      3,125,345       $ 77,633,570   

Microsemi Corp. (b)

      2,250,091         53,957,182   
         131,590,752   

Systems Software–5.31%

      

Rovi Corp. (b)

      3,194,588         74,657,522   

Trucking–1.93%

      

Con-way Inc.

      550,873         27,185,583   

Total Common Stocks
(Cost $735,136,355)

   

      1,054,103,162   

Money Market Funds–22.97%

  

Liquid Assets Portfolio –Institutional Class (e)

      161,601,176         161,601,176   

Premier Portfolio –Institutional Class (e)

      161,601,176         161,601,176   

Total Money Market Funds
(Cost $323,202,352)

   

      323,202,352   

 

  

TOTAL INVESTMENTS–97.89%
(Cost $1,058,338,707)

   

      1,377,305,514   

OTHER ASSETS LESS LIABILITIES–2.11%

  

      29,756,551   

NET ASSETS–100.00%

             $   1,407,062,065   

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 $218,632,420, which represented 15.54% of the Fund’s Net Assets. See Note 3.

 

(d)  Security purchased or received in transaction exempt from registration under the Securities Act of 1933, as amended (the “1933 Act”). The security may be resold pursuant to an exemption from registration under the 1933 Act, typically to qualified institutional buyers. The value of this security at July 31, 2014 represented less than 1% of the Fund’s Net Assets.

 

(e)  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 Select Companies 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 Select Companies 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. Bond premiums and discounts are amortized and/or accreted for financial reporting purposes.

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

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

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

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

 

Invesco Select Companies Fund

E. Forward Foreign Currency Contracts – (continued)

 

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

      $     1,377,305,514         $         —         $         0         $     1,377,305,514   

 

Invesco Select Companies 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 nine months ended July 31, 2014.

 

      Value
10/31/13		     

Purchases

at Cost

      Proceeds
from Sales		     Change in
Unrealized
Appreciation
(Depreciation)		     Realized Gain
(Loss)		     Value
07/31/14		      Dividend
Income		  

America’s Car Mart, Inc.

    $ 42,557,639       $ 469,482       $ —      $ (7,753,549 )    $ —      $ 35,273,572       $ —   

American Public Education, Inc.

      56,962,890         —         —        (6,161,612 )      —        50,801,278         —   

Hampshire Group, Ltd.

      2,489,861         —         —        (355,695 )      —        2,134,166         —   

International Rectifier Corp.(a)

      117,031,728         —         (37,290,003 )      (695,921 )      (1,412,234 )      77,633,570         —   

ION Geophysical Corp.

      51,472,907         11,989,092         —        (10,672,165 )      —        52,789,834         —   

MEGA Brands Inc. (a)

      29,402,694         —         (31,622,266 )      42,960,084        (40,740,512 )      —         —   

NCI, Inc. – Class A(a)

      3,861,283         —         (4,767,031 )      8,367,086        (7,461,338 )      —         —   

Total

    $   303,779,002       $   12,458,574       $   (73,679,300)      $   25,688,228      $   (49,614,084)      $   218,632,420       $         —   

 

(a)  As of July 31, 2014, this security is no longer considered an affiliate of the 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 nine months ended July 31, 2014 was $32,256,072 and $247,062,846, 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

    $ 353,386,939   

Aggregate unrealized (depreciation) of investment securities

      (38,313,141)   

Net unrealized appreciation of investment securities

    $ 315,073,798   
Cost of investments for tax purposes is $1,062,231,716.   

 

Invesco Select Companies Fund

 
Invesco Strategic Income Fund
Quarterly Schedule of Portfolio Holdings
July 31, 2014

 

 

 

LOGO         
invesco.com/us    STI-QTR-1    7/14    Invesco Advisers, Inc.

Schedule of Investments(a)

July 31, 2014

(Unaudited)

 

      Principal
Amount		      Value  

U.S. Dollar Denominated Bonds and Notes–36.01%

  

Aerospace & Defense–1.23%

      

Bombardier Inc. (Canada), Sr. Unsec. Notes, 6.00%, 10/15/22(b)

    $ 40,000       $ 39,550   

L-3 Communications Corp., Sr. Unsec. Gtd. Global Notes, 3.95%, 05/28/24

      250,000         247,979   

TransDigm Inc., Sr. Unsec. Gtd. Sub. Global Notes, 7.50%, 07/15/21

      25,000         27,531   
                315,060   

Agricultural & Farm Machinery–0.16%

  

Titan International Inc., Sr. Sec. Gtd. Global Notes, 6.88%, 10/01/20

      40,000         40,700   

Air Freight & Logistics–0.75%

      

Transnet SOC Ltd. (South Africa), Sr. Unsec. Notes, 4.00%, 07/26/22(b)

      200,000         190,939   

Alternative Carriers–0.68%

  

Level 3 Financing Inc., Sr. Unsec. Gtd. Notes, 6.13%, 01/15/21(b)

      165,000         173,250   

Auto Parts & Equipment–0.16%

  

Stackpole International Intermediate Co. S.A./Stackpole International Powder Metal (Canada), Sr. Sec. Gtd. Notes, 7.75%, 10/15/21(b)

      40,000         40,200   

Biotechnology–0.98%

  

Celgene Corp., Sr. Unsec. Global Notes, 3.63%, 05/15/24

      250,000         250,704   

Broadcasting–0.16%

  

Clear Channel Worldwide Holdings Inc., Series B, Sr. Unsec. Gtd. Global Notes, 6.50%, 11/15/22

      40,000         42,100   

Building Products–0.06%

  

Builders FirstSource Inc., Sr. Sec. Notes, 7.63%, 06/01/21(b)

      15,000         15,600   

Cable & Satellite–1.01%

  

CCO Holdings LLC/CCO Holdings Capital Corp., Sr. Unsec. Gtd. Notes, 6.50%, 04/30/21

      40,000         41,900   

DISH DBS Corp., Sr. Unsec. Gtd. Global Notes, 5.13%, 05/01/20

      165,000         168,712   

ViaSat Inc., Sr. Unsec. Gtd. Global Notes, 6.88%, 06/15/20

      45,000         48,713   
                259,325   
      Principal
Amount		      Value  

Casinos & Gaming–0.70%

  

MGM Resorts International, Sr. Unsec. Gtd. Global Notes, 6.75%, 10/01/20

    $     165,000       $ 179,850   

Communications Equipment–0.23%

  

Avaya Inc., Sr. Sec. Gtd. Notes,
7.00%, 04/01/19(b)

      60,000         58,125   

Construction Machinery & Heavy Trucks–0.49%

  

Allied Specialty Vehicles, Inc., Sr. Sec. Notes, 8.50%, 11/01/19(b)

      40,000         42,600   

Meritor Inc., Sr. Unsec. Gtd. Notes, 6.25%, 02/15/24

      40,000         41,300   

Navistar International Corp., Sr. Unsec. Gtd. Notes, 8.25%, 11/01/21

      40,000         41,600   
                125,500   

Data Processing & Outsourced Services–1.26%

  

Fidelity National Information Services, Inc., Sr. Unsec. Gtd. Global Notes, 3.88%, 06/05/24

      200,000         199,746   

First Data Corp., Sr. Unsec. Gtd. Sub. Global Notes, 11.75%, 08/15/21

      107,000         123,318   
                323,064   

Diversified Banks–4.09%

  

   

ABN AMRO Bank N.V. (Netherlands), Unsec. Sub. Medium-Term Euro Notes, 6.25%, 09/13/22(b)

      200,000         220,750   

BPCE S.A. (France), Unsec. Sub. Notes, 5.15%, 07/21/24(b)

      200,000         210,765   

Erste Group Bank AG (Austria), Unsec. Sub. Medium-Term Euro Notes, 6.38%, 03/28/23

      200,000         214,596   

Wells Fargo & Co., Unsec. Sub. Medium-Term Notes,
4.10%, 06/03/26

      200,000         201,108   

Zenith Bank PLC (Nigeria), Sr. Unsec. Notes, 6.25%, 04/22/19(b)

      200,000         199,097   
                1,046,316   

Diversified Metals & Mining–1.02%

  

Cia Minera Ares SAC (Peru), Sr. Unsec. Gtd. Notes, 7.75%, 01/23/21(b)

      200,000         217,500   

FMG Resources (August 2006) Pty. Ltd. (Australia), Sr. Unsec. Gtd. Notes, 6.88%, 04/01/22(b)

      40,000         42,750   
                260,250   
 

 

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

Invesco Strategic Income Fund

      Principal    
Amount    		      Value      

Diversified Support Services–0.59%

  

ERAC USA Finance LLC, Sr. Unsec. Gtd. Notes, 3.85%, 11/15/24(b)

    $ 150,000       $ 150,120   

Environmental & Facilities Services–0.16%

  

Darling Ingredients Inc., Sr. Unsec. Gtd. Notes, 5.38%, 01/15/22(b)

      40,000         41,300   

Gas Utilities–0.16%

  

Ferrellgas L.P./Ferrellgas Finance Corp., Sr. Unsec. Global Notes,
6.50%, 05/01/21

      40,000         41,600   

Gold–0.17%

  

New Gold Inc. (Canada), Sr. Unsec. Notes, 6.25%, 11/15/22(b)

      40,000         42,512   

Health Care Facilities–0.16%

  

Tenet Healthcare Corp., Sr. Unsec. Global Notes, 6.75%, 02/01/20

      40,000         42,200   

Health Care Services–0.24%

  

MPH Acquisition Holdings LLC, Sr. Unsec. Gtd. Notes, 6.63%, 04/01/22(b)

      60,000         61,350   

Independent Power Producers & Energy Traders–0.37%

  

AES Corp., Sr. Unsec. Global Notes, 7.38%, 07/01/21

      40,000         45,900   

Calpine Corp., Sr. Unsec. Global Notes, 5.38%, 01/15/23

      48,000         48,360   
                94,260   

Integrated Oil & Gas–1.54%

  

Ecopetrol S.A. (Colombia), Sr. Unsec. Global Notes, 5.88%, 05/28/45

      200,000         209,274   

Petroleos de Venezuela S.A. (Venezuela), Sr. Unsec. Gtd. Notes,
8.50%, 11/02/17(b)

      200,000         186,500   
                395,774   

Internet Software & Services–1.09%

  

Baidu Inc. (China), Sr. Unsec. Global Notes, 2.75%, 06/09/19

      200,000         199,776   

CyrusOne L.P./CyrusOne Finance Corp., Sr. Unsec. Gtd. Global Notes,
6.38%, 11/15/22

      75,000         79,687   
                279,463   

Investment Banking & Brokerage–1.59%

  

Goldman Sachs Group, Inc. (The), Series L, Jr. Unsec. Sub. Notes, 5.70% (c)

      200,000         205,740   

Morgan Stanley, Series H, Jr. Unsec. Sub. Global Bonds, 5.45% (c)

      200,000         200,500   
                406,240   
      Principal    
Amount    		      Value      

Multi-Utilities–0.97%

  

Enable Midstream Partners L.P., Sr. Unsec. Notes, 3.90%, 05/15/24(b)

    $ 250,000       $ 248,183   

Oil & Gas Drilling–0.41%

  

Parker Drilling Co., Sr. Unsec. Gtd. Notes, 6.75%, 07/15/22(b)

      40,000         41,500   

Pioneer Energy Services Corp., Sr. Unsec. Gtd. Notes, 6.13%, 03/15/22(b)

      40,000         41,400   

Precision Drilling Corp. (Canada), Sr. Unsec. Gtd. Notes, 5.25%, 11/15/24(b)

      22,000         22,007   
                104,907   

Oil & Gas Equipment & Services–0.65%

  

Exterran Partners L.P./EXLP Finance Corp., Sr. Unsec. Gtd. Global Notes, 6.00%, 04/01/21

      165,000         167,062   

Oil & Gas Exploration & Production–3.62%

  

Approach Resources Inc., Sr. Unsec. Gtd. Global Notes, 7.00%, 06/15/21

      40,000         41,400   

Baytex Energy Corp. (Canada), Sr. Unsec. Gtd. Notes, 5.63%, 06/01/24(b)

      22,000         21,831   

Berry Petroleum Co. LLC, Sr. Unsec. Notes, 6.75%, 11/01/20

      40,000         41,700   

Chaparral Energy Inc., Sr. Unsec. Gtd. Global Notes, 8.25%, 09/01/21

      40,000         43,200   

Continental Resources Inc., Sr. Unsec. Gtd. Global Notes, 5.00%, 09/15/22

      250,000         268,413   

EXCO Resources, Inc., Sr. Unsec. Gtd. Notes, 8.50%, 04/15/22

      40,000         41,100   

Halcon Resources Corp., Sr. Unsec. Gtd. Global Notes, 9.75%, 07/15/20

      165,000         176,137   

MEG Energy Corp. (Canada), Sr. Unsec. Gtd. Notes, 6.50%, 03/15/21(b)

      40,000         41,500   

Rice Energy Inc., Sr. Unsec. Gtd. Notes, 6.25%, 05/01/22(b)

      40,000         40,300   

Sanchez Energy Corp., Sr. Unsec. Gtd. Notes, 6.13%, 01/15/23(b)

      39,000         39,780   

SandRidge Energy Inc., Sr. Unsec. Gtd. Global Notes, 7.50%, 03/15/21

      165,000         172,013   
                927,374   

Oil & Gas Refining & Marketing–0.16%

  

Calumet Specialty Products Partners L.P./Calumet Finance Corp., Sr. Unsec. Gtd. Notes, 6.50%, 04/15/21(b)

      40,000         40,900   
 

 

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

Invesco Strategic Income Fund

      Principal    
Amount    		      Value    

Oil & Gas Storage & Transportation–1.15%

  

   

Atlas Pipeline Partners L.P./Atlas Pipeline Finance Corp., Sr. Unsec. Gtd. Global Notes, 6.63%, 10/01/20

    $ 40,000       $ 42,300   

Crestwood Midstream Partners L.P./Crestwood Midstream Finance Corp., Sr. Unsec. Gtd. Global Notes, 6.00%, 12/15/20

      40,000         41,700   

Fermaca Enterprises S de RL de C.V. (Mexico), Sr. Sec. Gtd. Notes, 6.38%, 03/30/38(b)

      200,000         211,000   
         295,000   

Packaged Foods & Meats–0.39%

  

   

Mead Johnson Nutrition Co., Sr. Unsec. Global Notes, 4.60%, 06/01/44

      100,000         101,147   

Pharmaceuticals–0.16%

  

   

Valeant Pharmaceuticals International, Inc., Sr. Unsec. Gtd. Notes, 5.63%, 12/01/21(b)

      40,000         40,250   

Regional Banks–1.20%

  

   

Banco Internacional del Peru SAA (Peru), Unsec. Sub. Notes, 6.63%, 03/19/29(b)

      100,000         106,474   

Fifth Third Bancorp, Series J, Jr. Unsec. Sub. Bonds, 4.90% (c)

      200,000         200,000   
         306,474   

Renewable Electricity–0.79%

  

   

Oglethorpe Power Corp., Sr. Sec. First Mortgage Bonds, 4.55%, 06/01/44

      200,000         202,318   

Semiconductor Equipment–0.16%

  

   

Amkor Technology Inc., Sr. Unsec. Global Notes, 6.38%, 10/01/22

      40,000         41,700   

Semiconductors–1.19%

  

   

Freescale Semiconductor Inc., Sr. Sec. Gtd. Notes, 6.00%, 01/15/22(b)

      125,000         130,625   

Micron Technology Inc., Sr. Unsec. Notes, 5.88%, 02/15/22(b)

      40,000         42,400   

NXP B.V./NXP Funding LLC (Netherlands), Sr. Unsec. Gtd. Notes, 5.75%, 02/15/21(b)

      125,000         131,250   
         304,275   

Sovereign Debt–0.84%

  

   

Dominican Republic International Bond (Dominican Republic), Sr. Unsec. Bonds, 7.45%, 04/30/44(b)

      200,000         214,000   

Specialized Finance–0.77%

  

   

Aircastle Ltd., Sr. Unsec. Global Notes, 7.63%, 04/15/20

      40,000         46,150   
      Principal    
Amount    		      Value    

Specialized Finance–(continued)

  

   

International Lease Finance Corp., Sr. Unsec. Notes, 8.25%, 12/15/20

    $ 125,000       $ 150,625   
         196,775   

Steel–1.38%

  

   

ArcelorMittal (Luxembourg), Sr. Unsec. Global Notes, 6.00%, 03/01/21

      165,000         174,900   

Evraz Group S.A. (Russia), REGS, Sr. Unsec. Euro Notes, 6.50%, 04/22/20(b)

      200,000         178,750   
         353,650   

Technology Hardware, Storage & Peripherals–0.78%

  

Seagate HDD Cayman, Sr. Unsec. Gtd. Bonds, 4.75%, 01/01/25(b)

      200,000         200,750   

Wireless Telecommunication Services–2.34%

  

Bharti Airtel International Netherlands B.V. (India), Sr. Unsec. Gtd. Bonds, 5.35%, 05/20/24(b)

      200,000         210,689   

Intelsat Luxembourg S.A. (Luxembourg), Sr. Unsec. Gtd. Global Bonds, 7.75%, 06/01/21

      165,000         169,125   

Sprint Corp., Sr. Unsec. Gtd. Notes, 7.88%, 09/15/23(b)

      165,000         178,200   

T-Mobile USA, Inc., Sr. Unsec. Gtd. Notes, 6.63%, 04/28/21

      40,000         42,600   
         600,614   

Total U.S. Dollar Denominated Bonds and Notes
(Cost $9,193,960)

   

      9,221,181   

Asset-Backed Securities–20.10%

  

   

BAMLL Commercial Mortgage Securities Trust, Series 2014-ICTS, Class C, Floating Rate Pass Through Ctfs., 1.56%, 06/15/28(b)(d)

      200,000         200,223   

Banc of America Commercial Mortgage Trust, Series 2006-2, Class AJ, Variable Rate Pass Through Ctfs.,
5.95%, 05/10/45(d)

      290,000         308,235   

Banc of America Funding Trust, Series 2006-3, Class 5A5, Pass Through Ctfs., 5.50%, 03/25/36

      240,806         230,744   

Bear Sterns Commercial Mortgage Securities Trust, Series 2007-T28, Class AJ, Variable Rate Pass Through Ctfs., 6.14%, 09/11/42(d)

      105,000         114,993   

Chase Mortgage Finance Trust, Series 2005-A1, Class 3A1, Floating Rate Pass Through Ctfs., 2.53%, 12/25/35(d)

      203,429         187,465   
 

 

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

Invesco Strategic Income Fund

      Principal    
Amount    		      Value    

Citigroup Mortgage Loan Trust, Series 2006-AR2, Class 1A2, Floating Rate Pass Through Ctfs.,
2.64%, 03/25/36(d)

    $ 209,107       $ 196,970   

Dryden XI-Leveraged Loan CDO, Series 2006-11A, Class A3, Floating Rate Pass Through Ctfs.,
0.61%, 04/12/20(b)(d)

      500,000         484,741   

Gallatin CLO III, 2007-1 Ltd., Series 2007-1A, Class A2L, Floating Rate Pass Through Ctfs.,
0.57%, 05/15/21(b)(d)

      200,000         193,307   

GSAA Home Equity Trust, Series 2007-7, Class A4, Floating Rate Pass Through Ctfs., 0.43%, 07/25/37(d)

      265,938         230,044   

Hamlet II Ltd. (Cayman Islands), Series 2006-2A, Class A2B, Floating Rate Pass Through Ctfs.,
0.55%, 05/11/21(b)(d)

      500,000         476,880   

JP Morgan Mortgage Trust, Series 2005-A1, Class IB2, Floating Rate Pass Through Ctfs., 2.85%, 02/25/35(d)

      206,753         189,113   

Series 2006-A2, Class 1A1,

Floating Rate Pass Through Ctfs.,

2.79%, 04/25/36(d)

      131,310         118,309   

Series 2007-A4, Class 3A1,

Floating Rate Pass Through Ctfs.,

5.25%, 06/25/37(d)

      264,605         243,999   

LSTAR Commercial Mortgage Trust, Series 2014-2, Class A2, Pass Through Ctfs., 2.77%, 01/20/41(b)

      425,000         427,020   

Seneca Park CLO Ltd. (Cayman Islands), Series 2014-1A, Class E, Floating Rate Pass Through Ctfs., 4.92%, 07/17/26(b)(d)

      250,000         228,240   

Symphony CLO XIV Ltd., Series 2014-14A, Class E, Floating Rate Pass Through Ctfs., 4.83%, 07/14/26(b)(d)

      250,000         225,783   

Wells Fargo Mortgage Backed Securities Trust, Series 2005-AR12, Class 2A11, Floating Rate Pass Through Ctfs., 2.62%, 06/25/35(d)

      239,038         238,847   

Series 2005-AR14, Class A1,

Floating Rate Pass Through Ctfs.,

5.36%, 08/25/35(d)

      201,831         208,188   

Series 2005-AR2, Class 2A2,

Floating Rate Pass Through Ctfs.,

2.61%, 03/25/35(d)

      193,059         198,018   

Series 2005-AR7, Class 1A1,

Floating Rate Pass Through Ctfs.,

5.06%, 05/25/35(d)

      234,542         237,196   

Series 2007-7, Class A1,

Pass Through Ctfs.,

6.00%, 06/25/37

      210,676         208,798   

Total Asset-Backed Securities
(Cost $5,109,000)

   

      5,147,113   
                
Shares		      Value  

Common Stocks–15.02%

  

Mutual Funds–15.02%

         

Invesco Floating Rate Fund - Class R6
(Cost $3,854,336)(e)

      483,611       $ 3,844,710   
          Principal    
Amount    		         

Non-U.S. Dollar Denominated Bonds & Notes–12.66%(f)

  

Diversified Banks–0.55%

  

HSBC Capital Funding L.P. (United Kingdom), Jr. Unsec. Gtd. Sub. Euro Notes,
5.13% (c)

    EUR      100,000         141,237   

Life & Health Insurance–0.69%

  

Delta Lloyd Levensverzekering N.V. (Netherlands), Unsec. Sub. Euro Notes, 9.00%, 08/29/42

    EUR      100,000         176,735   

Sovereign Debt–11.42%

  

Brazil Notas do Tesouro Nacional (Brazil), Series F, Unsec. Notes, 10.00%, 01/01/23

    BRL      800,000         323,107   

Colombia Government International Bond (Colombia), Sr. Unsec. Global Bonds, 4.38%, 03/21/23

    COP      530,000,000         255,185   

Italy Buoni Poliennali del Tesoro (Italy), Sr. Unsec. Euro Bonds, 4.50%, 03/01/24

    EUR      600,000         933,666   

Mexican Bonos (Mexico), Series M, Sr. Unsec. Bonds, 7.75%, 11/23/34

    MXN      6,000,000         511,160   

Portugal Obrigacoes do Tesouro OT (Portugal), Sr. Unsec. Euro Notes, 4.75%, 06/14/19(b)

    EUR      600,000         899,821   
                     2,922,939   

Total Non-U.S. Dollar Denominated Bonds & Notes
(Cost $3,263,388)

   

      3,240,911   

Municipal Obligations–6.68%

  

Houston (City of), Texas (United Airlines, Inc. Terminal E); Series 2014, Ref. Airport System Special Facilities RB, 5.00%, 07/01/29

         $ 250,000         253,288   

Iowa (State of) Finance Authority (Iowa Fertilizer Co.); Series 2013, Midwestern Disaster Area RB, 5.25%, 12/01/25

           250,000         264,457   

M-S-R Energy Authority; Series 2009 B, Gas RB, 6.50%, 11/01/39

           250,000         326,330   

New York Liberty Development Corp. (Goldman Sachs Headquarters); Series 2005, RB, 5.25%, 10/01/35

           250,000         289,825   
 

 

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

Invesco Strategic Income Fund

     

Principal

Amount

     Value  

Municipal Obligations–(continued)

  

Salt Verde Financial Corp.;
Series 2007, Sr. Gas RB,
5.00%, 12/01/37

    $ 250,000      $ 273,655   

Texas Municipal Gas Acquisition & Supply Corp. I; Series 2008 D, Sr. Lien Gas Supply RB, 6.25%, 12/15/26

      250,000        303,640   

Total Municipal Obligations
(Cost $1,709,080)

   

     1,711,195   

U.S. Treasury Securities–4.00%

  

U.S. Treasury Bills–0.31%

  

0.04%, 11/13/14(g)(h)(i)

      80,000        79,993   

U.S. Treasury Notes–3.69%

  

1.63%, 06/30/19

      950,000        944,470   

Total U.S. Treasury Securities
(Cost $1,027,475)

   

     1,024,463   

U.S. Government Sponsored Agency Mortgage-Backed Securities–2.38%

   

Collateralized Mortgage Obligations–2.38%

  

Freddie Mac Structured Agency Credit Risk Debt Notes, Series 2014-DN1, Class M2, Floating Rate Pass Through Ctfs., 2.36%, 02/25/24 (Cost $620,027)(d)

      600,000        609,870   
     Shares        

Money Market Funds–2.11%

  

Liquid Assets Portfolio – Institutional
Class (j)

      270,057        270,057   

Premier Portfolio – Institutional Class (j)

      270,057        270,057   

Total Money Market Funds
(Cost $540,114)

   

     540,114   

Swaptions Purchased-0.04%

    (Cost $9,620)(k)

  

  

     9,667   

TOTAL INVESTMENTS–99.00%
(Cost $25,327,000)

   

     25,349,224   

OTHER ASSETS LESS LIABILITIES–1.00%

  

     255,526   

NET ASSETS–100.00%

            $ 25,604,750   
Investment Abbreviations:
BRL           —Brazilian Real
COP           —Colombian Peso
Ctfs.           —Certificates
EUR           —Euro
Gtd.           —Guaranteed
Jr.           —Junior
MXN           —Mexican Peso
RB           —Revenue Bonds
REGS           —Regulation S
Sec.           —Secured
Sr.           —Senior
Sub.           —Subordinated
Unsec.           —Unsecured

Notes to Schedule of Investments:

 

(a)  Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s.
(b)  Security purchased or received in a transaction exempt from registration under the Securities Act of 1933, as amended (the “1933 Act”). The security may be resold pursuant to an exemption from registration under the 1933 Act, typically to qualified institutional buyers. The aggregate value of these securities at July 31, 2014 was $7,250,712, which represented 28.32% of the Fund’s Net Assets.
(c)  Perpetual bond with no specified maturity date.
(d)  Interest or dividend rate is redetermined periodically. Rate shown is the rate in effect on July 31, 2014.
(e)  Invesco Floating Rate Fund and the Fund are affiliated by either having the same investment adviser or an investment adviser under common control with the Fund’s investment adviser. The value of this security as of July 31, 2014 represented 15.02% of the Fund’s Net Assets. See Note 4.
(f)  Foreign denominated security. Principal amount is denominated in currency indicated.
(g)  Security traded on a discount basis. The interest rate shown represents the discount rate at the time of purchase by the Fund.
(h)  All or a portion of the value was pledged as collateral to cover margin requirements for open futures contracts. See Note 1F and Note 3.
(i)  All or a portion of the value was designated as collateral for open swap agreements. See Note 1H and Note 3.
(j)  The money market fund and the Fund are affiliated by having the same investment adviser.
(k)  The table below details swaptions purchased.
 

 

Open Over-The-Counter Swaptions Purchased  
Description   

Type of

Contract

    Counterparty   

Exercise

Rate

  

Pay/Receive

Exercise Rate

   

Floating Rate

Index

   

Expiration

Date

    Notional Value*      Value      

5 Years Interest Rate Swap

    Put    Deutsche Bank    2.3%   Pay    3 Month USD
BBA LIBOR		    10/30/14      $    3,700,000         $9,667   

Total Swaptions Purchased (Cost $9,620) — Interest Rate Risk

  

      $9,667   
* Notional Value is calculated by multiplying the Number of Contracts by the Strike Price by the Multiplier.

 

Abbreviations:
  BBA    —   British Banker’s Association    LIBOR   —    London Interbank Offered Rate    USD   —    U.S. Dollar

 

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

Invesco Strategic 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.

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.

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.

Swap agreements are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service are valued based on a model which may include end of day net present values, spreads, ratings, industry, and company performance.

Foreign securities’ (including foreign exchange contracts) 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 Strategic Income 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. Paydown gains and losses on mortgage and asset-backed securities are recorded as adjustments to interest income. Dividend income (net of withholding tax, if any) is recorded on the ex-dividend date. Bond premiums and discounts are amortized and/or accreted for financial reporting purposes.

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

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

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

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

 

Invesco Strategic Income Fund

E. Forward Foreign Currency Contracts – (continued)

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.

F. Futures Contracts – The Fund may enter into futures contracts to manage exposure to interest rate, equity and market price movements and/or currency risks. A futures contract is an agreement between two parties to purchase or sell a specified underlying security, currency or commodity (or delivery of a cash settlement price, in the case of an index future) for a fixed price at a future date. The Fund currently invests only in exchange-traded futures and they are standardized as to maturity date and underlying financial instrument. Initial margin deposits required upon entering into futures contracts are satisfied by the segregation of specific securities or cash as collateral at the futures commission merchant (broker). During the period the futures contracts are open, changes in the value of the contracts are recognized as unrealized gains or losses by recalculating the value of the contracts on a daily basis. Subsequent or variation margin payments are received or made depending upon whether unrealized gains or losses are incurred. These amounts are reflected as receivables or payables on the Statement of Assets and Liabilities. When the contracts are closed or expire, the Fund recognizes a realized gain or loss equal to the difference between the proceeds from, or cost of, the closing transaction and the Fund’s basis in the contract. The net realized gain (loss) and the change in unrealized gain (loss) on futures contracts held during the period is included on the Statement of Operations. The primary risks associated with futures contracts are market risk and the absence of a liquid secondary market. If the Fund were unable to liquidate a futures contract and/or enter into an offsetting closing transaction, the Fund would continue to be subject to market risk with respect to the value of the contracts and continue to be required to maintain the margin deposits on the futures contracts. Futures contracts have minimal counterparty risk since the exchange’s clearinghouse, as counterparty to all exchange-traded futures, guarantees the futures against default. Risks may exceed amounts recognized in the Statement of Assets and Liabilities.
G. Put Options Purchased and Written – The Fund may purchase and write put options including options on securities indexes and/or futures contracts. By purchasing a put option, the Fund obtains the right (but not the obligation) to sell the option’s underlying instrument at a fixed strike price. In return for this right, the Fund pays an option premium. The option’s underlying instrument may be a security, securities index, or a futures contract.

Additionally, the Fund may enter into an option on a swap agreement, also called a “swaption,” is an option that gives the buyer the right, but not the obligation, to enter into a swap on a future date in exchange for paying a market-based premium. A receiver swaption gives the owner the right to receive the total return of a specified asset, reference rate or index. Swaptions also include options that allow an existing swap to be terminated or extended by one of the counterparties.

Put options may be used by the Fund to hedge securities it owns by locking in a minimum price at which the Fund can sell. If security prices fall, the put option could be exercised to offset all or a portion of the Fund’s resulting losses. At the same time, because the maximum the Fund has at risk is the cost of the option, purchasing put options does not eliminate the potential for the Fund to profit from an increase in the value of the underlying portfolio securities. The Fund may write put options to earn additional income in the form of option premiums if it expects the price of the underlying instrument to remain stable or rise during the option period so that the option will not be exercised. The risk in this strategy is that the price of the underlying securities may decline by an amount greater than the premium received. Put options written are reported as a liability in the Statement of Assets and Liabilities. Realized and unrealized gains and losses on these contracts are included in the Statement of Operations. A risk in buying an option is that the Fund pays a premium whether or not the option is exercised. In addition, there can be no assurance that a liquid secondary market will exist for any option purchased.

H. Swap Agreements – The Fund may enter into various swap transactions, including interest rate, total return, index, currency exchange rate and credit default swap contracts (“CDS”) for investment purposes or to manage interest rate, currency or credit risk. Such transactions are agreements between two parties (“Counterparties”). A swap agreement may be negotiated bilaterally and traded over-the-counter (OTC) between two parties (‘uncleared/OTC”) or, in some instances, must be transacted through a future commission merchant (FCM) and cleared through a clearinghouse that serves as a central Counterparty (“centrally cleared swap”). These agreements may contain among other conditions, events of default and termination events, and various covenants and representations such as provisions that require the Fund to maintain a pre-determined level of net assets, and/or provide limits regarding the decline of the Fund’s NAV over specific periods of time. If the Fund were to trigger such provisions and have open

 

Invesco Strategic Income Fund

H. Swap Agreements – (continued)

derivative positions at that time, the Counterparty may be able to terminate such agreement and request immediate payment in an amount equal to the net liability positions, if any.

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

In a centrally cleared swap, the Fund’s ultimate Counterparty is a central clearinghouse. The Fund initially will enter into centrally cleared swaps through an executing broker. When a Fund enters into a centrally cleared swap, it must deliver to the central Counterparty (via the FCM) an amount referred to as “initial margin.” Initial margin requirements are determined by the central Counterparty, but an FCM may require additional initial margin above the amount required by the central Counterparty. Initial margin deposits required upon entering into centrally cleared swaps are satisfied by cash or securities as collateral at the FCM. Securities deposited as initial margin are designated on the Schedule of Investments and cash deposited is recorded on the Statement of Assets and Liabilities. During the term of a cleared swap agreement, a “variation margin” amount may be required to be paid by the Fund or may be received by the Fund, based on the daily change in price of the underlying reference instrument subject to the swap agreement and is recorded as a receivable or payable for variation margin in the Statement of Assets and Liabilities until the centrally cleared swap is terminated at which time a realized gain or loss is recorded.

A CDS is an agreement between Counterparties to exchange the credit risk of an issuer. A buyer of a CDS is said to buy protection by paying a fixed payment over the life of the agreement and in some situations an upfront payment to the seller of the CDS. If a defined credit event occurs (such as payment default or bankruptcy), the Fund as a protection buyer would cease paying its fixed payment, the Fund would deliver eligible bonds issued by the reference entity to the seller, and the seller would pay the full notional value, or the “par value”, of the referenced obligation to the Fund. A seller of a CDS is said to sell protection and thus would receive a fixed payment over the life of the agreement and an upfront payment, if applicable. If a credit event occurs, the Fund as a protection seller would cease to receive the fixed payment stream, the Fund would pay the buyer “par value” or the full notional value of the referenced obligation, and the Fund would receive the eligible bonds issued by the reference entity. In turn, these bonds may be sold in order to realize a recovery value. Alternatively, the seller of the CDS and its Counterparty may agree to net the notional amount and the market value of the bonds and make a cash payment equal to the difference to the buyer of protection. If no credit event occurs, the Fund receives the fixed payment over the life of the agreement. As the seller, the Fund would effectively add leverage to its portfolio because, in addition to its total net assets, the Fund would be subject to investment exposure on the notional amount of the CDS. In connection with these agreements, cash and securities may be identified as collateral in accordance with the terms of the respective swap agreements to provide assets of value and recourse in the event of default under the swap agreement or bankruptcy/insolvency of a party to the swap agreement. If a Counterparty becomes bankrupt or otherwise fails to perform its obligations due to financial difficulties, the Fund may experience significant delays in obtaining any recovery in a bankruptcy or other reorganization proceeding. The Fund may obtain only limited recovery or may obtain no recovery in such circumstances. The Fund’s maximum risk of loss from Counterparty risk, either as the protection seller or as the protection buyer, is the value of the contract. The risk may be mitigated by having a master netting arrangement between the Fund and the Counterparty and by the designation of collateral by the Counterparty to cover the Fund’s exposure to the Counterparty.

Implied credit spreads represent the current level at which protection could be bought or sold given the terms of the existing CDS contract and serve as an indicator of the current status of the payment/performance risk of the CDS. An implied spread that has widened or increased since entry into the initial contract may indicate a deteriorating credit profile and increased risk of default for the reference entity. A declining or narrowing spread may indicate an improving credit profile or decreased risk of default for the reference entity. Alternatively, credit spreads may increase or decrease reflecting the general tolerance for risk in the credit markets.

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

Changes in the value of centrally cleared and OTC swap agreements are recognized as unrealized gains (losses) in the Statement of Operations by “marking to market” on a daily basis to reflect the value of the swap agreement at the end of each trading day. Payments received or paid at the beginning of the agreement are reflected as such on the Statement of Assets and Liabilities and may be referred to as upfront payments. The Fund accrues for the fixed payment stream and amortizes upfront payments, if any, on swap agreements on a daily basis with the net amount, recorded as a component of realized gain (loss) on the Statement of Operations. A liquidation payment received or made at the termination of a swap agreement is recorded as realized gain (loss) on the Statement of Operations. The Fund segregates liquid securities having a value at least equal to the amount of the potential obligation of a Fund under any swap transaction. Entering into these agreements involves, to varying degrees, lack of liquidity and elements of credit, market, and Counterparty risk in excess of amounts recognized on the Statement of Assets and Liabilities. Such risks involve the possibility that a swap is difficult to sell or liquidate; the Counterparty does not honor its

 

Invesco Strategic Income Fund

H. Swap Agreements – (continued)

obligations under the agreement and unfavorable interest rates and market fluctuations. It is possible that developments in the swaps market, including potential government regulation, could adversely affect the Fund’s ability to terminate existing swap agreements or to realize amounts to be received under such agreements.

The maximum potential amount of future payments (undiscounted) that the Fund as a seller of protection could be required to make under a credit default swap agreement would be an amount equal to the notional amount of the agreement. Notional amounts of each individual credit default swap agreement outstanding as of July 31, 2014 for which the Fund is the seller of protection are disclosed in the Notes to Schedule of Investments. These potential amounts would be partially offset by any recovery values of the respective referenced obligations, upfront payments received upon entering into the agreement, or net amounts received from the settlement of buy protection credit default swap agreements entered into by the Fund for the same referenced entity or entities.

I. Leverage Risk – Leverage exists when a Fund can lose more than it originally invests because it purchases or sells an instrument or enters into a transaction without investing an amount equal to the full economic exposure of the instrument or transaction.
J. Collateral – To the extent the Fund has designated or segregated a security as collateral and that security is subsequently sold, it is the Fund’s practice to replace such collateral no later than the next business day.

NOTE 2 — 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

    $ 4,384,824         $ —         $ —         $ 4,384,824   

U.S. Treasury Securities

      —           1,024,463           —           1,024,463   

U.S. Government Sponsored Agency Securities

      —           609,870           —           609,870   

Corporate Debt Securities

      —           9,007,181           —           9,007,181   

Asset-Backed Securities

      —           5,147,113           —           5,147,113   

Municipal Obligations

      —           1,711,195           —           1,711,195   

Foreign Debt Securities

      —           317,972           —           317,972   

Foreign Sovereign Debt Securities

      —           3,136,939           —           3,136,939   

Swaptions Purchased

      —           9,667           —           9,667   
       4,384,824           20,964,400           —           25,349,224   

Forward Foreign Currency Contracts*

      —           46,781           —           46,781   

Futures*

      (4,181)           —           —           (4,181)   

Swap Agreements*

      —           14,113           —           14,113   

Total Investments

    $         4,380,643         $         21,025,294         $             —         $         25,405,937   

* Unrealized appreciation (depreciation).

 

Invesco Strategic Income Fund

NOTE 3 — Derivative Investments

Value of Derivative Investments at Period-End

The table below summarizes the value of the Fund’s derivative investments, detailed by primary risk exposure, held as of July 31, 2014:

 

       Value  
Risk Exposure/ Derivative Type      Assets                Liabilities          

Credit risk:

          

Swap agreements (a)

        $14,113           $          —   

Currency risk:

          

Forward foreign currency contracts (a)

        84,105           (37,324)   

Interest rate risk:

          

Futures contracts (a)

        21           (4,202)   

Swaptions purchased (b)

        9,667           —   

Total

        $107,906           $(41,526)   

 

(a)  Includes cumulative appreciation (depreciation) of swap agreements, forward foreign currency contracts and futures contracts.

 

(b)  Swaptions purchased at value as reported in the Schedule of Investments.

Effect of Derivative Investments for the period May 2, 2014 (commencement date) July 31, 2014

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

 

     Location of Gain (Loss) on Statement of Operations(a)  
      Futures              Forward Foreign    
Currency Contracts    		      Swap Agreements  

Realized Gain (Loss):

         

Credit risk

      $       —         $       —         $(5,398)   

Currency risk

      —         17,280         —   

Interest rate risk

      (5,142)         —         —   

Change in Unrealized Appreciation (Depreciation):

         

Credit risk

      —         —         14,113   

Currency risk

      —         46,781         —   

Interest rate risk

      (4,181)         —         —   

Total

      $(9,323)         $64,061         $  8,715   
(a)  Swaptions purchased are included in the net realized gain (loss) from investment securities and net change in unrealized appreciation (depreciation) on investment securities.

The table below summarizes the average notional value of futures contracts, forward foreign currency contracts, swap agreements and swaptions purchased outstanding during the period.

 

      Futures    Forward Foreign
Currency Contracts		    Swap Agreements    Swaptions
Purchased		     

Average notional value

    $1,628,203    $5,022,778    $2,533,333    $3,900,000    

 

Invesco Strategic Income Fund

Open Forward Foreign Currency Contracts at Period-End  
                                                    

Unrealized

Appreciation

(Depreciation)

  

Settlement

Date

           Contract to        Notional       
   Counterparty      Deliver        Receive        Value       
08/08/14    Citigroup Global Markets Inc.      USD        197,716         JPY        20,000,000         $ 194,445        $ (3,271)   
08/08/14    Deutsche Banc      JPY        77,109,750         USD        750,000           749,683          317   
08/21/14    Citigroup Global Markets Inc.      MXN        1,250,000         USD        95,920           94,396          1,524   
08/21/14    Deutsche Banc      AUD        400,000         USD        372,864           371,150           1,714   
08/21/14    Deutsche Banc      USD        198,802         MXN        2,581,370           194,937           (3,865)   
09/12/14    Deutsche Banc      CHF        353,488         USD        400,000           389,060           10,940   
09/12/14    Deutsche Banc      NOK        2,374,472         USD        393,307           377,102          16,205   
09/12/14    Deutsche Banc      USD        400,000         NOK        2,374,472           377,102          (22,898)   
10/07/14    Citigroup Global Markets Inc.      EUR        1,753,324         USD        2,394,252           2,348,159           46,093   
10/07/14    Citigroup Global Markets Inc.      NZD        230,000         USD        199,622          194,048          5,574   
10/07/14    Citigroup Global Markets Inc.      USD        201,338         NZD        230,000          194,048          (7,290)   
10/07/14    Deutsche Banc      EUR        175,000         USD        236,108           234,370           1,738   
  Total forward foreign currency contracts – Currency Risk                    $ 46,781   

 

Currency Abbreviations:
AUD — Australian Dollar    JPY — Japanese Yen    NZD — New Zealand Dollar
CHF — Swiss Franc    MXN — Mexican New Peso    USD — U.S. Dollar
EUR — Euro    NOK — Norwegian Krone   

 

Open Futures Contracts at Period-End  
Futures Contracts      Type of
Contract		      Number of
Contracts		      Expiration
Month		      Notional
Value		        Unrealized
Appreciation
(Depreciation)		  

U.S. Treasury 5 Year Notes

      Short      12      September-2014        $  (1,426,031)           $        21   

U.S. Treasury 10 Year Notes

      Short      6      September-2014        (747,656)           (2,575)   

U.S. Treasury Ultra Bonds

      Short      1      September-2014        (150,844)           (1,627)   

Total Futures Contracts – Interest Rate Risk

                                 $(4,181)   

 

Invesco Strategic Income Fund

Open Centrally Cleared Credit Default Swap Agreements at Period-End  

Counterparty/

Clearinghouse

    Reference
Entity		   

Buy/Sell

Protection

   

(Pay)/

Receive

Fixed
Rate

    Expiration
Date		    Implied
Credit
Spread(a)		   

Notional

Value

    Upfront
Payments		     

Unrealized

Appreciation

  

Credit Suisse

Securities

(USA)

LLC/CME

    CDX North
America
Investment
Grade –
Series 22		    Buy    (1.00)%    06/20/2019    0.64%    $(3,800,000)      $(77,698)         $14,113   

Total Credit Default Swap Agreements – Credit Risk

           $(77,698)         $14,113   

Abbreviations:

CME – Chicago Mercantile Exchange

 

(a) Implied credit spreads represent the current level as of July 31, 2014 at which protection could be bought or sold given the terms of the existing credit default swap contract and serve as an indicator of the current status of the payment/performance risk of the credit default swap contract. An implied credit spread that has widened or increased since entry into the initial contract may indicate a deteriorating credit profile and increased risk of default for the reference entity. A declining or narrowing spread may indicate an improving credit profile or decreased risk of default for the reference entity. Alternatively, credit spreads may increase or decrease reflecting the general tolerance for risk in the credit markets generally.

NOTE 4 — Investments in Affiliates

The Fund’s Adviser and the adviser for Invesco Floating Rate Fund are subsidiaries of Invesco Ltd. and therefore, Invesco Floating Rate Fund is considered to be affiliated with the Fund. The following is a summary of the transactions in, and earnings from, investments in Invesco Floating Rate Fund for the period May 2, 2014 (commencement date) to July 31, 2014.

 

      Value
05/02/14		      Purchases
at Cost		    Proceeds
from Sales		    Change in
Unrealized
Appreciation
(Depreciation)		    Realized
Gain		    Value
07/31/14		    Dividend
Income

Invesco Floating Rate Fund

    $ -       $    5,051,381    $    (1,198,500)    $    (9,626)    $    1,455    $  3,844,710    $    51,381

NOTE 5 — 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 period May 2, 2014 (commencement date) to July 31, 2014 was $27,620,587 and $3,920,497, respectively. During the same period, purchases and sales of long-term U.S. Treasury obligations were $947,484 and $0, respectively. In a fund’s initial year of operations, the cost of investments for tax purposes will not reflect any tax adjustments until its fiscal year end reporting period.

 

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

Aggregate unrealized appreciation of investment securities

    $             150,417   

Aggregate unrealized (depreciation) of investment securities

      (128,193)   

Net unrealized appreciation of investment securities

    $ 22,224   

Cost of investments is the same for tax and financial reporting purposes.

   

 

Invesco Strategic Income Fund

Item 2. Controls and Procedures.

 

  (a) As of August 20, 2014, an evaluation was performed under the supervision and with the participation of the officers of the Registrant, including the Principal Executive Officer (“PEO”) and Principal Financial Officer (“PFO”), to assess the effectiveness of the Registrant’s disclosure controls and procedures, as that term is defined in Rule 30a-3(c) under the Investment Company Act of 1940 (“Act”), as amended. Based on that evaluation, the Registrant’s officers, including the PEO and PFO, concluded that, as of August 20, 2014, the Registrant’s disclosure controls and procedures were reasonably designed so as to ensure: (1) that information required to be disclosed by the Registrant on Form N-Q is recorded, processed, summarized and reported within the time periods specified by the rules and forms of the Securities and Exchange Commission; and (2) that material information relating to the Registrant is made known to the PEO and PFO as appropriate to allow timely decisions regarding required disclosure.

 

  (b) There have been no changes in the Registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Act) that occurred during the Registrant’s last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the Registrant’s internal control over financial reporting.

Item 3. Exhibits.

Certifications of PEO and PFO as required by Rule 30a-2(a) under the Investment Company Act of 1940.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Registrant:    AIM Investment Funds (Invesco Investment Funds)

 

By:   

  /s/ Philip A. Taylor

     Philip A. Taylor
     Principal Executive Officer
Date:      September 29, 2014

Pursuant to the requirements of the Securities and Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.

 

By:   

  /s/ Philip A. Taylor

     Philip A. Taylor
     Principal Executive Officer
Date:      September 29, 2014

 

By:   

  /s/ Sheri Morris

     Sheri Morris
     Principal Financial Officer
Date:      September 29, 2014

EXHIBIT INDEX

Certifications of Principal Executive Officer (“PEO”) and Principal Financial Officer (“PFO”) as required by Rule 30a-2(a) under the Investment Company Act of 1940, as amended.