UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
Investment Company Act file number 811-05426
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)
Sheri Morris
11 Greenway Plaza, Suite 1000
Houston, Texas 77046
(Name and address of agent for service)
Registrant's telephone number, including area code: (713) 626-1919
Date of fiscal year end: August 31
Date of reporting period: 2/29/2020
Item 1. Report to Stockholders.
Semiannual Report | 2/29/2020 |
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Invesco
Oppenheimer
Capital Income
Fund*
Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the Fund's shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports from the Fund or from your financial intermediary, such as a broker-dealer or bank. Instead, the reports will be made available on the Fund's website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the Fund electronically by contacting your financial intermediary (such as a broker-dealer or bank) or, if you are a direct investor, by enrolling at invesco. com/edelivery.
You may elect to receive all future reports in paper free of charge. If you invest through a financial intermediary, you can contact your financial intermediary to request that you continue to receive paper copies of your shareholder reports. If you invest directly with the Fund, you can call 800 959 4246 to let the Fund know you wish to continue receiving paper copies of your shareholder reports. Your election to receive reports in paper will apply to all funds held with your financial intermediary or all funds held with the fund complex if you invest directly with the Fund.
*Prior to the close of business on May 24, 2019, the Fund's name was Oppenheimer Capital Income Fund. See Important Update on the following page for more information.
Important Update
On October 18, 2018, Massachusetts Mutual Life Insurance Company, an indirect corporate parent of OppenheimerFunds, Inc. and its subsidiaries OFI Global Asset Management, Inc., OFI SteelPath, Inc. and OFI Advisors, LLC, announced that it had entered into an agreement whereby Invesco Ltd., a global investment management company would acquire OppenheimerFunds and its subsidiaries (together, "OppenheimerFunds"). After the close of business on May 24, 2019 Invesco Ltd. completed the acquisition of OppenheimerFunds. This Fund was included in that acquisition and as of that date, became part of the Invesco family of funds. Please visit invesco.com for more information or call Invesco's Client Services team at 800-959-4246.
Table of Contents |
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Top Holdings and Allocations | 5 |
Fund Expenses | 8 |
Schedule of Investments | 10 |
Statement of Assets and Liabilities | 36 |
Statement of Operations | 38 |
Statement of Changes in Net Assets | 40 |
Financial Highlights | 41 |
Notes to Financial Statements | 53 |
Portfolio Proxy Voting Policies and Guidelines; Updates to |
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Schedule of Investments | 73 |
Invesco's Privacy Notice | 74 |
Class A Shares
AVERAGE ANNUAL TOTAL RETURNS AT 2/29/20 |
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| Class A Shares of the Fund |
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| Bloomberg | Custom Invesco |
| Without Sales | With Sales | Russell 3000 | Barclays U.S. | Oppenheimer |
| Charge | Charge | Index | Aggregate Bond | Capital Income |
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| Index | Index |
6-Month | -4.29% | -9.58% | 1.81% | 3.39% | 2.97% |
1-Year | -0.91 | -6.33 | 6.90 | 11.68 | 10.29 |
5-Year | 2.20 | 1.05 | 8.72 | 3.58 | 5.62 |
10-Year | 5.25 | 4.65 | 12.48 | 3.93 | 7.18 |
Performance quoted is past performance and cannot guarantee future results; current performance may be lower or higher. Visit invesco.com for the most recent month-end performance. Performance figures reflect reinvested distributions and changes in net asset value (NAV). Investment return and principal value will vary so that you may have a gain or a loss when you sell shares. Fund returns include changes in share price, reinvested distributions and a 5.50% maximum applicable sales charge except where "without sales charge" is indicated. Returns for periods of less than one year are cumulative and not annualized. As the result of a reorganization after the close of business on May 24, 2019, the returns of the Fund for periods on or prior to May 24, 2019 reflect performance of the Oppenheimer predecessor fund. Share class returns will differ from those of the predecessor fund because they have different expenses. Returns do not consider capital gains or income taxes on an individual's investment. See Fund
3 OPPENHEIMER INVESCO CAPITAL INCOME FUND
prospectus and summary prospectus for more information on share classes, sales charges and new fee agreements, if any. Fund literature is available at invesco.com.
4 OPPENHEIMER INVESCO CAPITAL INCOME FUND
Top Holdings and Allocations
TOP TEN HOLDINGS |
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Invesco Government & Agency | 13.3% | ||
Portfolio, Institutional Class |
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United States Treasury Bond, | 7.0 | ||
4.25% Unsec. Nts., 11/15/40 |
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Credit Suisse AG (London), 0.00%, | 1.9 | ||
3/25/20 |
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Royal Bank of Canada, 3.496%, | 1.1 | ||
4/7/20 |
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BNP Paribas Issuance BV, 23.87%, | 1.1 | ||
4/3/20 |
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Royal Bank of Canada, 18.61%, | 1.1 | ||
4/2/20 |
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Toronto-Dominion Bank (The), | 1.1 | ||
9.93%, 3/16/20 |
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Royal Bank of Canada, 9.12%, | 1.0 | ||
3/6/20 |
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Citigroup Global Markets | 0.9 | ||
Holdings, Inc. (United States), | |||
12.80%, 3/24/20 |
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Goldman Sachs & Co., 12.8%, | 0.9 | |
3/20/20 | ||
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Holdings and allocations are subject to change and are not buy/sell recommendations. Percentages are as of February 29, 2020, and are based on net assets.
For more current Fund holdings, please visit invesco.com.
PORTFOLIO ALLOCATION
Non-Convertible Corporate Bonds | 36.9% |
and Notes | |
Preferred Stocks | 21.9 |
Foreign Government Obligations | 16.8 |
Investment Companies | 14.9 |
U.S. Government Obligations | 7.0 |
Convertible Corporate Bonds and | 2.1 |
Notes | |
Asset-Backed Securities | 0.3 |
Mortgage-Backed Obligations |
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Agency | —* |
CMOs | 0.1 |
Non-Agency | —* |
* Less than 0.05%.
Portfolio holdings and allocations are subject to change and are not buy/sell recommendations. Percentages are as of February 29, 2020, and are based on the total market value of investments.
5 INVESCO OPPENHEIMER CAPITAL INCOME FUND
Share Class Performance
AVERAGE ANNUAL TOTAL RETURNS WITHOUT SALES CHARGE AS 2/29/20
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| Date | 6-Month | 1-Year | 5-Year | 10-Year |
Class A (OPPEX) | 12/1/70 | -4.29% | -0.91% | 2.20% | 5.25% | |
Class C (OPECX) | 11/1/95 | -4.67 | -1.74 | 1.41 | 4.41 | |
Class R (OCINX) | 3/1/01 | -4.41 | -1.20 | 1.92 | 4.95 | |
Class Y (OCIYX) | 1/28/11 | -4.19 | -0.80 | 2.42 | 4.701 | |
Class R5 | (CPIFX)2 | 5/24/19 | -4.13 | -0.75 | 2.23 | 5.27 |
Class R6 | (OCIIX) | 12/27/13 | -4.21 | -0.67 | 2.60 | 3.281 |
AVERAGE ANNUAL TOTAL RETURNS WITH SALES CHARGE AS OF 2/29/20 |
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| Inception |
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| Date | 6-Month | 1-Year | 5-Year | 10-Year |
Class A (OPPEX) | 12/1/70 | -9.58% | -6.33% | 1.05% | 4.65% | |
Class C (OPECX) | 11/1/95 | -5.61 | -2.70 | 1.41 | 4.41 | |
Class R (OCINX) | 3/1/01 | -4.41 | -1.20 | 1.92 | 4.95 | |
Class Y (OCIYX) | 1/28/11 | -4.19 | -0.80 | 2.42 | 4.701 | |
Class R5 | (CPIFX)2 | 5/24/19 | -4.13 | -0.75 | 2.23 | 5.27 |
Class R6 | (OCIIX) | 12/27/13 | -4.21 | -0.67 | 2.60 | 3.281 |
1.Shows performance since inception.
2.Class R5 shares' performance shown prior to the inception date (after the close of business on May 24, 2019) is that of the predecessor fund's Class A shares at net asset value (NAV) and includes the 12b-1 fees applicable to Class
A shares. Class A shares' performance reflects any applicable fee waivers and/or expense reimbursements.
Performance quoted is past performance and cannot guarantee future results; current performance may be lower or higher. Visit invesco.com for the most recent month-end performance. Performance figures reflect reinvested distributions and changes in net asset value (NAV). Investment return and principal value will vary so that you may have a gain or a loss when you sell shares. Performance shown at NAV does not include the applicable front-end sales charge, which would have reduced the performance. The current maximum initial sales charge for Class A shares is 5.50%, and the contingent deferred sales charge for Class C shares is 1% for the 1-year period. Class R, Class Y, Class R5 and Class R6 shares have no sales charge; therefore, performance is at NAV. Effective after the close of business on May 24, 2019, Class A, Class C, Class R, Class Y, and Class I shares of the predecessor fund were reorganized into Class A, Class C, Class R, Class Y, and Class R6 shares, respectively, of the Fund. Class R5 shares' performance shown prior to the inception date is that of the predecessor fund's Class A shares at NAV and includes the 12b-1 fees applicable to Class A shares. Class A shares' performance reflects any applicable fee waivers and/or expense reimbursements. Returns shown for Class A, Class C, Class R, Class Y, Class R5, and Class R6 shares are blended returns of the predecessor fund and the Fund. Share class returns will differ from those of the predecessor fund because of different expenses. See Fund prospectuses and summary prospectuses for more information on share classes, sales charges and new fee agreements, if any. Fund literature is available at invesco.com.
6 INVESCO OPPENHEIMER CAPITAL INCOME FUND
The Fund's performance is compared to the performance of the Russell 3000 Index, the Bloomberg Barclays U.S. Aggregate Bond Index and the Custom Invesco Oppenheimer Capital Income Index. The Russell 3000 Index measures the performance of the largest
3,000 U.S. companies, representing approximately 98% of the investable U.S. equity market. The Bloomberg Barclays U.S. Aggregate Bond Index is an index of U.S dollar-denominated, investment-grade U.S. corporate government and mortgage-backed securities. The Custom Invesco Oppenheimer Capital Income Index is a customized weighted index currently comprised of 35% Russell 3000 Index and 65% Bloomberg Barclays U.S. Aggregate Bond Index. The indices are unmanaged and cannot be purchased directly by investors. While index comparisons may be useful to provide a benchmark for the Fund's performance, it must be noted that the Fund's investments are not limited to the investments comprising the indices. Index performance includes reinvestment of income, but does not reflect transaction costs, fees, expenses or taxes. Index performance is shown for illustrative purposes only as a benchmark for the Fund's performance, and does not predict or depict performance of the Fund. The Fund's performance reflects the effects of the Fund's business and operating expenses.
The Morningstar 30-50% Equity Allocation Category Average is the average return of the mutual funds within the investment category as defined by Morningstar. Returns include the reinvestment of distributions but do not consider sales charges. The Morningstar 30-50% Equity Category Average performance is shown for illustrative purposes only and does not predict or depict the performance of the Fund.
Before investing, investors should carefully read the prospectus and/or summary prospectus and carefully consider the investment objectives, risks, charges and expenses. For this and more complete information about the fund(s), investors should ask their advisors for a prospectus/summary prospectus or visit invesco. com/fundprospectus.
Shares of Invesco funds are not deposits or obligations of any bank, are not guaranteed by any bank, are not insured by the FDIC or any other agency, and involve investment risks, including the possible loss of the principal amount invested.
7 INVESCO OPPENHEIMER CAPITAL INCOME FUND
Fund Expenses
Fund Expenses. As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, which may include sales charges (loads) on purchase payments and/or contingent deferred sales charges on redemptions; and (2) ongoing costs, including management fees; distribution and service fees; and other Fund expenses. These examples are intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The examples are based on an investment of $1,000.00 invested at the beginning of the period and held for the entire 6-month period ended February 29, 2020.
Actual Expenses. The first section of the table provides information about actual account values and actual expenses. You may use the information in this section for the class of shares you hold, together with the amount you invested, to estimate the expense that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600.00 account value divided by $1,000.00 = 8.60), then multiply the result by the number in the first section under the heading entitled "Expenses Paid During 6 Months Ended February 29, 2020" to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes. The second section of the table provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio for each class of shares, and an assumed rate of return of 5% per year for each class before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example for the class of shares you hold with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as front-end or contingent deferred sales charges (loads). Therefore, the "hypothetical" section of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
8 INVESCO OPPENHEIMER CAPITAL INCOME FUND
| Beginning | Ending | Expenses | |
| Account | Account | Paid During | |
| Value | Value | 6 Months Ended | |
Actual | September 1, 2019 | February 29, 2020 | February 29, 2020 | |
Class A | $ 1,000.00 | $ 957.10 | $ | 4.39 |
Class C | 1,000.00 | 953.30 |
| 8.14 |
Class R | 1,000.00 | 955.90 |
| 5.71 |
Class Y | 1,000.00 | 958.10 |
| 3.27 |
Class R5 | 1,000.00 | 958.70 |
| 2.78 |
Class R6 | 1,000.00 | 957.90 |
| 2.58 |
Hypothetical |
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(5% return before expenses) |
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Class A | 1,000.00 | 1,020.39 |
| 4.53 |
Class C | 1,000.00 | 1,016.56 |
| 8.41 |
Class R | 1,000.00 | 1,019.05 |
| 5.89 |
Class Y | 1,000.00 | 1,021.53 |
| 3.37 |
Class R5 | 1,000.00 | 1,022.03 |
| 2.87 |
Class R6 | 1,000.00 | 1,022.23 |
| 2.67 |
Expenses are equal to the Fund's annualized expense ratio for that class, multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period). Those annualized expense ratios, excluding indirect expenses from affiliated funds, based on the 6-month period ended February 29, 2020 are as follows:
Class | Expense Ratios |
Class A | 0.90% |
Class C | 1.67 |
Class R | 1.17 |
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Class Y | 0.67 |
Class R5 | 0.57 |
Class R6 | 0.53 |
The expense ratios reflect voluntary and/or contractual waivers and/or reimbursements of expenses by the Fund's Adviser. Some of these undertakings may be modified or terminated at any time, as indicated in the Fund's prospectus. The "Financial Highlights" tables in the Fund's financial statements, included in this report, also show the gross expense ratios, without such waivers or reimbursements and reduction to custodian expenses, if applicable.
9 INVESCO OPPENHEIMER CAPITAL INCOME FUND
SCHEDULE OF INVESTMENTS February 29, 2020 Unaudited
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| Shares |
| Value |
Preferred Stocks—21.9% |
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AEGON Funding Co. LLC, 5.10% |
| 153,400 | $ | 3,807,388 |
Allstate Corp. (The), 5.10% Non-Cum., Series H, Non-Vtg. | 187,700 |
| 4,765,703 | |
Allstate Corp. (The), 5.10% Sub. Debs., Non-Vtg. |
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[US0003M+316.5]1 |
| 80,200 |
| 2,089,210 |
Allstate Corp. (The), 5.625% Non-Cum., Series G, Non-Vtg. | 104,325 |
| 2,732,272 | |
American International Group, Inc., 5.85%, Series A, Non-Vtg. | 83,450 |
| 2,203,080 | |
Arch Capital Group Ltd., 5.25% Non-Cum., Non-Vtg. | 75,700 |
| 1,893,257 | |
Assured Guaranty Municipal Holdings, Inc., 6.25% Sr. Unsec. | 72,800 |
| 1,911,000 | |
AT&T, Inc., 5.00% |
| 198,000 |
| 4,926,240 |
AT&T, Inc., 5.35% Sr. Unsec. |
| 218,850 |
| 5,582,863 |
AT&T, Inc., 5.625% Sr. Unsec. |
| 137,450 |
| 3,579,198 |
Athene Holding Ltd., 6.35% Non-Cum., Series A, Non-Vtg. |
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[US0003M+425.3]1 |
| 141,550 |
| 3,872,808 |
Axis Capital Holdings Ltd., 5.50% Non-Cum., Series E | 111,250 |
| 2,782,362 | |
Bank of America Corp., 5.00% Non-Cum., Series LL, Non-Vtg. | 288,800 |
| 7,240,216 | |
Bank of America Corp., 5.875% Non-Cum., Series HH, Non-Vtg. | 171,400 |
| 4,528,388 | |
Bank of America Corp., 6.00% Non-Cum., Series EE, Non-Vtg. | 148,900 |
| 3,829,708 | |
Bank of America Corp., 6.00% Non-Cum., Series GG, Non-Vtg. | 212,700 |
| 5,617,407 | |
Bank of America Corp., 6.20% Non-Cum., Series CC, Non-Vtg. | 182,375 |
| 4,685,214 | |
Bank of America Corp., 5.375% Non-Cum., Series KK, Non-Vtg. | 298,175 |
| 7,669,061 | |
Bank of New York Mellon Corp. (The), 5.20% Non-Cum. | 96,525 |
| 2,408,299 | |
Brighthouse Financial, Inc., 6.60% Non-Cum., Series A | 70,300 |
| 1,844,672 | |
Capital One Financial Corp., 5.00% |
| 245,800 |
| 6,061,428 |
Capital One Financial Corp., 5.20% Non-Cum., Series G, Non-Vtg. | 148,875 |
| 3,751,650 | |
Capital One Financial Corp., 6.00% Non-Cum., Series H | 156,600 |
| 4,032,450 | |
Capital One Financial Corp., 6.20% Non-Cum., Non-Vtg. | 82,575 |
| 2,105,662 | |
Charles Schwab Corp. (The), 5.95% Non-Cum., Series D, Non-Vtg. | 123,950 |
| 3,169,402 | |
Charles Schwab Corp. (The), 6.00% Non-Cum., Series C, Non-Vtg. | 99,375 |
| 2,534,063 | |
Citigroup, Inc., 6.30% Non-Cum., Series S, Non-Vtg. | 170,125 |
| 4,365,407 | |
Citigroup, Inc., 6.875% Non-Cum., Series K, Non-Vtg. |
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[US0003M+413]1 |
| 243,775 |
| 6,545,359 |
Citigroup, Inc., 7.125% Non-Cum., Series J, Non-Vtg. |
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[US0003M+404]1 |
| 156,600 |
| 4,273,614 |
Citizens Financial Group, Inc., 5.00% |
| 74,400 |
| 1,830,984 |
CMS Energy Corp., 5.875% Jr. Sub. |
| 103,475 |
| 2,705,871 |
Deutsche Bank Contingent Capital Trust II, 6.550% | 82,200 |
| 2,072,262 | |
Diversified Healthcare Trust, 5.625% |
| 101,825 |
| 2,323,646 |
Dominion Energy, Inc., 5.25% Cum. Jr. Sub., Series A | 132,950 |
| 3,323,750 | |
Duke Energy Corp., 5.125% Jr. Sub. |
| 78,525 |
| 1,969,407 |
Duke Energy Corp., 5.625% Jr. Sub. |
| 83,475 |
| 2,192,888 |
Duke Energy Corp., 5.75% Cum., Series A, Non-Vtg. | 164,850 |
| 4,424,574 | |
eBay, Inc., 6.00% Sr. Unsec. |
| 124,775 |
| 3,217,947 |
Enbridge, Inc., 6.375% Sub., Series B [US0003M+359.3]1 | 99,000 |
| 2,510,640 | |
Energy Transfer Operating LP, 7.60% Cum., Series E |
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[US0003M+516.1]1 |
| 131,650 |
| 3,070,078 |
Enstar Group Ltd., 7.00% [US0003M+401.5]1 | 67,100 |
| 1,811,700 | |
Equitable Holdings, Inc., 5.25%2 |
| 130,900 |
| 3,272,500 |
Fifth Third Bancorp, 6.625% Non-Cum., Non-Vtg. [US0003M+371]1 | 74,800 |
| 2,019,600 | |
Ford Motor Co., 6.00% |
| 131,300 |
| 3,229,980 |
10 | INVESCO OPPENHEIMER CAPITAL INCOME FUND |
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| Shares |
| Value |
Preferred Stocks (Continued) |
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Ford Motor Co., 6.20% Sr. Unsec., Non-Vtg. | 123,075 | $ | 3,052,260 | |
Goldman Sachs Group, Inc. (The), 5.50% Non-Cum., Series J, Non- |
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Vtg. [US0003M+364]1 |
| 166,500 |
| 4,259,070 |
Goldman Sachs Group, Inc. (The), 6.30% Non-Cum., Series N, |
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Non-Vtg. |
| 112,875 |
| 2,913,304 |
Goldman Sachs Group, Inc. (The), 6.375% Non-Cum., Series K |
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[US0003M+355]1 |
| 143,575 |
| 3,853,553 |
Hartford Financial Services Group, Inc. (The), 7.875% Jr. Sub., Non- |
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Vtg. [US0003M+559.6]1 |
| 99,775 |
| 2,730,842 |
Huntington Bancshares, Inc., 6.25% Non-Cum., Non-Vtg. | 99,750 |
| 2,567,565 | |
JPMorgan Chase & Co., 4.75% Non-Cum., Series GG, Non-Vtg. | 148,500 |
| 3,737,745 | |
JPMorgan Chase & Co., 5.75% Non-Cum., Series DD, Non-Vtg. | 303,925 |
| 8,060,091 | |
JPMorgan Chase & Co., 6.00% Non-Cum., Series EE, Non-Vtg. | 250,675 |
| 6,703,049 | |
JPMorgan Chase & Co., 6.10% Non-Cum., Non-Vtg. | 238,450 |
| 6,054,245 | |
JPMorgan Chase & Co., 6.125% Non-Cum., Series Y, Non-Vtg. | 184,450 |
| 4,616,783 | |
JPMorgan Chase & Co., 6.15% Non-Cum., Series BB, Non-Vtg. | 283,025 |
| 7,180,344 | |
KeyCorp, 5.625% Non-Cum., Series G, Non-Vtg. | 74,000 |
| 1,907,720 | |
KeyCorp, 5.65% Non-Cum., Series F, Non-Vtg. | 70,300 |
| 1,799,680 | |
KeyCorp, 6.125% Non-Cum., Series E, Non-Vtg. [US0003M+389.2]1 | 83,475 |
| 2,229,617 | |
Legg Mason, Inc., 5.45% Jr. Sub., Non-Vtg. | 83,025 |
| 2,071,474 | |
MetLife, Inc., 5.625% Non-Cum., Series E | 131,725 |
| 3,445,926 | |
Morgan Stanley, 4.875% Non-Cum., Non-Vtg. | 82,600 |
| 2,055,088 | |
Morgan Stanley, 5.85% Non-Cum., Non-Vtg. [US0003M+349.1]1 | 193,450 |
| 5,138,032 | |
Morgan Stanley, 6.375% Non-Cum., Non-Vtg. [US0003M+370.8]1 | 223,350 |
| 6,070,653 | |
Morgan Stanley, 6.875% Non-Cum., Series F [US0003M+394]1 | 139,900 |
| 3,857,043 | |
Morgan Stanley, 7.125% Non-Cum., Non-Vtg. [US0003M+432]1 | 74,400 |
| 2,065,344 | |
New York Community Bancorp, Inc., 6.375% Non-Cum., Series A, |
|
|
| |
Non-Vtg. [US0003M+382.1]1 |
| 85,025 |
| 2,262,515 |
NextEra Energy Capital Holdings, Inc., 5.00% Jr. Sub. | 83,425 |
| 2,068,940 | |
NextEra Energy Capital Holdings, Inc., 5.25% Jr. Sub., Non-Vtg. | 115,375 |
| 2,910,911 | |
NextEra Energy Capital Holdings, Inc., 5.65% Jr. Sub., Series N, |
|
|
| |
Non-Vtg. |
| 125,150 |
| 3,276,427 |
NiSource, Inc., 6.50% Cum., Series B, Non-Vtg. [H15T5Y+363.2]1 | 82,575 |
| 2,170,897 | |
PartnerRe Ltd., 7.25% Cum., Series H, Non-Vtg. | 88,375 |
| 2,331,333 | |
PNC Financial Services Group, Inc. (The), 5.375% | 79,300 |
| 1,984,879 | |
PNC Financial Services Group, Inc. (The), 6.125% Non-Cum., Series |
|
|
| |
P, Non-Vtg. [US0003M+406.7]1 |
| 249,075 |
| 6,622,904 |
Prudential Financial, Inc., 5.625% Jr. Sub. | 94,525 |
| 2,459,540 | |
Prudential Financial, Inc., 5.70% Jr. Sub. | 116,575 |
| 2,929,530 | |
Prudential Financial, Inc., 5.75% Jr. Sub. | 93,675 |
| 2,375,598 | |
Prudential plc, 6.75% Non-Cum., Jr. Sub., Non-Vtg. | 69,500 |
| 1,806,305 | |
Public Storage, 4.90% Cum., Series E, Non-Vtg. | 115,350 |
| 2,866,447 | |
Public Storage, 4.95% Cum., Series D, Non-Vtg. | 96,975 |
| 2,418,557 | |
Public Storage, 5.125% Cum., Series C, Non-Vtg. | 73,250 |
| 1,859,818 | |
Public Storage, 5.40% Cum., Series B, Non-Vtg. | 80,600 |
| 2,041,598 | |
QVC, Inc., 6.25% |
| 82,600 |
| 1,975,792 |
Qwest Corp., 6.125% Nts. |
| 100,200 |
| 2,326,644 |
Qwest Corp., 6.50% Sr. Unsec., Non-Vtg. | 159,475 |
| 3,892,785 | |
Qwest Corp., 6.625% Sr. Unsec. |
| 92,425 |
| 2,271,807 |
11 | INVESCO OPPENHEIMER CAPITAL INCOME FUND |
|
|
|
SCHEDULE OF INVESTMENTS Unaudited / Continued
|
| Shares |
| Value |
Preferred Stocks (Continued) |
|
|
|
|
Qwest Corp., 6.75% Sr. Unsec. |
| 148,875 | $ | 3,696,566 |
Qwest Corp., 6.875% Sr. Unsec. |
| 82,200 |
| 2,041,026 |
Regions Financial Corp., 5.70% Non-Cv., Series C, Non-Vtg. |
|
|
|
|
[US0003M+314.8]1 |
| 82,250 |
| 2,255,295 |
Regions Financial Corp., 6.375% Non-Cum., Non-Vtg. |
|
|
|
|
[US0003M+353.6]1 |
| 85,875 |
| 2,341,811 |
Regions Financial Corp., 6.375% Non-Cum., Series A |
| 80,600 |
| 2,047,240 |
Reinsurance Group of America, Inc., 5.75% Sub. Debs., Non-Vtg. |
|
|
|
|
[US0003M+404]1 |
| 74,475 |
| 1,949,011 |
SCE Trust VI, 5.00% Jr. Sub., Non-Vtg. |
| 104,300 |
| 2,396,814 |
Sempra Energy, 5.75% Jr. Sub. |
| 124,375 |
| 3,231,573 |
Southern Co. (The), 5.25% Jr. Sub. |
| 138,625 |
| 3,472,556 |
Southern Co. (The), 5.25% Jr. Sub. |
| 76,475 |
| 1,921,052 |
Southern Co. (The), 6.25% Jr. Sub. |
| 159,875 |
| 4,057,628 |
State Street Corp., 5.35% Non-Cum., Series G, Non-Vtg. |
|
|
|
|
[US0003M+370.9]1 |
| 100,200 |
| 2,694,378 |
State Street Corp., 5.90% Non-Cum., Series D, Non-Vtg. |
|
|
|
|
[US0003M+310.8]1 |
| 123,925 |
| 3,223,289 |
Synchrony Financial, 5.625% |
| 122,700 |
| 3,082,224 |
Truist Financial Corp., 5.625% |
| 182,050 |
| 4,611,327 |
US Bancorp, 5.50% Non-Cum., Series K |
| 110,875 |
| 2,991,408 |
US Bancorp, 6.50% Non-Cum., Series F, Non-Vtg. |
|
|
|
|
[US0003M+446.8]1 |
| 244,550 |
| 6,492,803 |
VEREIT, Inc., 6.70% Cum., Non-Vtg. |
| 142,725 |
| 3,568,125 |
Vornado Realty Trust, 5.40% Cum., Series L, Non-Vtg. |
| 144,775 |
| 3,619,375 |
Wells Fargo & Co., 5.125% Non-Cum., Series O, Non-Vtg. |
| 105,950 |
| 2,611,668 |
Wells Fargo & Co., 5.20% Non-Cum., Non-Vtg. |
| 123,125 |
| 3,068,275 |
Wells Fargo & Co., 5.25% Non-Cum., Series P, Non-Vtg. |
| 101,800 |
| 2,534,820 |
Wells Fargo & Co., 5.50% Non-Cum., Series S, Non-Vtg. |
| 279,325 |
| 7,038,990 |
Wells Fargo & Co., 5.625% Non-Cum., Non-Vtg. |
| 145,200 |
| 3,695,340 |
Wells Fargo & Co., 5.70% Non-Cum., Non-Vtg. |
| 162,400 |
| 4,100,600 |
Wells Fargo & Co., 5.85% Non-Cum., Series Q, Non-Vtg. |
|
|
|
|
[US0003M+309]1 |
| 157,075 |
| 4,035,257 |
Wells Fargo & Co., 6.00% Non-Cum., Series T, Non-Vtg. |
| 130,875 |
| 3,287,580 |
Wells Fargo & Co., 6.00% Non-Cum., Series V |
| 162,325 |
| 4,129,548 |
Wells Fargo & Co., 6.625% Non-Cum., Non-Vtg. [US0003M+369]1 |
| 136,575 |
| 3,746,252 |
Total Preferred Stocks (Cost $405,284,423) |
|
|
| 391,947,694 |
|
| Principal Amount |
|
|
Asset-Backed Securities—0.3% |
|
|
|
|
Apidos CLO XV, Series 2013-15A, Cl. CRR, 3.669% [US0003M+185], |
|
|
|
|
4/20/311,3 | $ | 878,000 |
| 858,266 |
Bain Capital Credit CLO, Series 2019-1A, Cl. C, 4.569% [US0003M+275], |
|
|
|
|
4/18/321,3 |
| 815,000 |
| 798,700 |
Bain Capital Credit CLO Ltd., Series 2019-3A, Cl. C, 4.73% |
|
|
|
|
[US0003M+285], 10/21/321,3 |
| 579,000 |
| 583,231 |
GMACM Home Equity Loan Trust, Series 2007-HE2, Cl. A2, 6.054%, |
|
|
|
|
12/25/374 |
| 4,749 |
| 4,784 |
Magnetite XXIII Ltd., Series 2019-23A, Cl. C, 4.27% [US0003M+240], |
|
|
|
|
10/25/321,3 |
| 881,000 |
| 883,488 |
12 INVESCO OPPENHEIMER CAPITAL INCOME FUND
|
|
| Principal Amount | Value | |
| Asset-Backed Securities (Continued) |
|
|
| |
| Neuberger Berman Loan Advisers CLO 34 Ltd., Series 2019-34A, Cl. C1, |
|
|
| |
| 4.45% [US0003M+260], 1/20/331,3 | $ | 880,000 $ | 885,633 | |
Octagon Investment Partners XVII Ltd., Series 2013-1A, Cl. CR2, 3.494% |
|
|
| ||
[US0003M+170], 1/25/311,3 |
| 844,140 |
| 813,413 | |
| Sonic Capital LLC, Series 2020-1A, Cl. A2I, 3.845%, 1/20/503 | 1,096,000 |
| 1,131,079 | |
| Total Asset-Backed Securities (Cost $5,912,611) |
|
| 5,958,594 | |
|
|
|
| ||
| Mortgage-Backed Obligations—0.0% |
|
|
| |
Banc of America Funding Trust, Series 2007-1, Cl. 1A3, 6.00%, 1/25/37 | 98,016 |
| 97,435 | ||
Federal Home Loan Mortgage Corp., Interest-Only Stripped Mtg.-Backed Security: |
| ||||
Series 183, Cl. IO, 99.999%, 4/1/275 |
| 50,255 |
| 7,580 | |
| Series 243, Cl. 6, 0.00%, 12/15/325,6 |
| 53,493 |
| 9,074 |
| Federal Home Loan Mortgage Corp., Principal-Only Stripped Mtg.-Backed |
|
|
| |
| Security, Series 176, Cl. PO, 4.127%, 6/1/267 | 15,245 |
| 14,559 | |
| Federal Home Loan Mortgage Corp., Real Estate Mtg. Investment Conduit Multiclass Pass-Through Certificates: | ||||
| Series 3010, Cl. WB, 4.50%, 7/15/20 |
| 660 |
| 660 |
| Series 3645, Cl. EH, 3.00%, 12/15/20 |
| 208 |
| 208 |
| Federal Home Loan Mortgage Corp., Real Estate Mtg. Investment Conduit Multiclass Pass-Through Certificates, | ||||
| Interest-Only Stripped Mtg.-Backed Security: |
|
|
| |
| Series 3424, Cl. EI, 0.00%, 4/15/385,6 |
| 60,308 |
| 10,774 |
| Series 3606, Cl. SN, 19.70%, 12/15/395 | 203,382 |
| 36,852 | |
| Federal National Mortgage Assn. Pool, 5.50%, 1/1/38 | 1 |
| 1 | |
| Federal National Mortgage Assn., Interest-Only Stripped Mtg.-Backed Security: |
|
|
| |
| Series 222, Cl. 2, 99.999%, 6/25/235 |
| 69,904 |
| 5,972 |
| Series 252, Cl. 2, 99.999%, 11/25/235 |
| 59,310 |
| 5,352 |
| Series 303, Cl. IO, 99.999%, 11/25/295 |
| 46,248 |
| 9,547 |
| Series 308, Cl. 2, 99.999%, 9/25/305 |
| 115,328 |
| 23,986 |
| Federal National Mortgage Assn., Real Estate Mtg. Investment Conduit Multiclass Pass-Through Certificates: | ||||
| Series 2003-130, Cl. CS, 10.847% [US0001M+1,410], 12/25/331 | 6,976 |
| 7,219 | |
| Series 2009-113, Cl. DB, 3.00%, 12/25/20 | 1,422 |
| 1,422 | |
| Series 2009-36, Cl. FA, 2.567% [US0001M+94], 6/25/371 | 70,050 |
| 71,280 | |
| Series 2010-43, Cl. KG, 3.00%, 1/25/21 | 3,048 |
| 3,053 | |
| Series 2011-3, Cl. EL, 3.00%, 5/25/20 |
| 98 |
| 98 |
| Federal National Mortgage Assn., Real Estate Mtg. Investment Conduit Multiclass Pass-Through Certificates, Interest- | ||||
| Only Stripped Mtg.-Backed Security: |
|
|
|
|
| Series 2001-15, Cl. SA, 99.999%, 3/17/315 | 469 |
| 36 | |
| Series 2001-65, Cl. S, 85.768%, 11/25/315 | 106,924 |
| 20,364 | |
| Series 2001-81, Cl. S, 83.867%, 1/25/325 | 26,341 |
| 5,197 | |
| Series 2002-47, Cl. NS, 62.721%, 4/25/325 | 68,013 |
| 14,512 | |
| Series 2002-51, Cl. S, 63.244%, 8/25/325 | 62,446 |
| 13,333 | |
| Series 2002-60, Cl. SM, 46.909%, 8/25/325 | 81,975 |
| 14,654 | |
| Series 2002-7, Cl. SK, 62.591%, 1/25/325 | 26,025 |
| 5,066 | |
| Series 2002-75, Cl. SA, 59.905%, 11/25/325 | 126,992 |
| 25,078 | |
| Series 2002-77, Cl. BS, 48.947%, 12/18/325 | 54,994 |
| 12,146 | |
| Series 2002-77, Cl. SH, 66.706%, 12/18/325 | 36,339 |
| 6,729 | |
| Series 2002-9, Cl. MS, 63.686%, 3/25/325 | 36,233 |
| 7,866 | |
| Series 2002-90, Cl. SN, 47.497%, 8/25/325 | 42,212 |
| 8,149 | |
| Series 2002-90, Cl. SY, 53.541%, 9/25/325 | 21,015 |
| 3,982 | |
| Series 2003-33, Cl. SP, 55.244%, 5/25/335 | 118,155 |
| 27,751 | |
13 | INVESCO OPPENHEIMER CAPITAL INCOME FUND |
|
SCHEDULE OF INVESTMENTS Unaudited / Continued
|
|
| Principal Amount |
| Value |
| Mortgage-Backed Obligations (Continued) |
|
|
|
|
| Federal National Mortgage Assn., Real Estate Mtg. Investment Conduit Multiclass Pass-Through Certificates, Interest- | ||||
| Only Stripped Mtg.-Backed Security: (Continued) |
|
|
|
|
| Series 2004-56, Cl. SE, 23.494%, 10/25/335 | $ | 157,193 | $ | 34,059 |
Series 2005-52, Cl. JH, 37.101%, 5/25/355 |
| 542,284 |
| 84,439 | |
| Series 2005-93, Cl. SI, 20.726%, 10/25/355 |
| 260,594 |
| 52,045 |
| Series 2008-55, Cl. SA, 0.00%, 7/25/385,6 |
| 55,858 |
| 9,244 |
| Series 2009-8, Cl. BS, 0.00%, 2/25/245,6 |
| 1,825 |
| 112 |
| Federal National Mortgage Assn., Real Estate Mtg. Investment Conduit |
|
|
|
|
| Multiclass Pass-Through Certificates, Principal-Only Stripped Mtg.-Backed |
|
|
|
|
| Security, Series 1993-184, Cl. M, 5.135%, 9/25/237 |
| 28,483 |
| 27,627 |
| FREMF Mortgage Trust, Series 2012-K23, Cl. C, 3.656%, 10/25/453,4 |
| 30,000 |
| 31,189 |
| Multifamily Connecticut Avenue Securities Trust, Series 2019-01, Cl. M10, |
|
|
|
|
| 4.877% [US0001M+325], 10/15/491,3 |
| 187,000 |
| 195,347 |
| Total Mortgage-Backed Obligations (Cost $714,299) |
|
|
| 903,997 |
|
|
|
|
| |
| U.S. Government Obligation—7.0% |
|
|
|
|
United States Treasury Bond, 4.25% Unsec. Nts., 11/15/408 (Cost |
|
|
|
| |
$109,264,633) |
| 84,000,000 |
| 124,807,265 | |
|
|
|
|
|
|
| Foreign Government Obligations—16.8% |
|
|
|
|
| Angola—0.4% |
|
|
|
|
| Republic of Angola: |
|
|
|
|
| 8.25% Sr. Unsec. Nts., 5/9/283 |
| 2,480,000 |
| 2,554,906 |
| 9.375% Sr. Unsec. Nts., 5/8/483 |
| 2,420,000 |
| 2,471,829 |
| 9.50% Sr. Unsec. Nts., 11/12/253 |
| 1,940,000 |
| 2,168,125 |
|
|
|
|
| 7,194,860 |
|
|
|
|
|
|
| Bolivia—0.2% |
|
|
|
|
| Plurinational State of Bolivia, 4.50% Sr. Unsec. Nts., 3/20/283 |
| 4,649,000 |
| 4,522,814 |
|
|
|
|
|
|
| Brazil—0.2% |
|
|
|
|
| Federative Republic of Brazil, 5.625% Sr. Unsec. Nts., 1/7/41 |
| 3,060,000 |
| 3,621,319 |
|
|
|
|
|
|
| Colombia—1.0% |
|
|
|
|
| Republic of Colombia: |
|
|
|
|
| 3.875% Sr. Unsec. Nts., 4/25/27 |
| 1,780,000 |
| 1,920,349 |
| 4.50% Sr. Unsec. Nts., 1/28/26 |
| 516,000 |
| 571,142 |
| 4.50% Sr. Unsec. Nts., 3/15/29 |
| 1,640,000 |
| 1,855,410 |
| 5.00% Sr. Unsec. Nts., 6/15/45 |
| 2,230,000 |
| 2,700,385 |
| 5.20% Sr. Unsec. Nts., 5/15/49 |
| 510,000 |
| 643,077 |
| 5.625% Sr. Unsec. Nts., 2/26/44 |
| 2,560,000 |
| 3,304,819 |
| 6.125% Sr. Unsec. Nts., 1/18/41 |
| 2,670,000 |
| 3,616,662 |
| 7.375% Sr. Unsec. Nts., 9/18/37 |
| 2,410,000 |
| 3,569,053 |
|
|
|
|
| 18,180,897 |
|
|
|
|
|
|
| Croatia—0.3% |
|
|
|
|
| Croatia Government International Bond, 6.00% Sr. Unsec. Nts., |
|
|
|
|
1/26/243 |
| 3,535,000 |
| 4,047,246 |
14 INVESCO OPPENHEIMER CAPITAL INCOME FUND
|
|
|
| Principal Amount |
| Value |
Croatia (Continued) |
|
|
|
|
| |
Republic of Croatia, 5.50% Sr. Unsec. Nts., 4/4/233 | $ | 454,000 | $ | 500,630 | ||
|
|
|
|
|
| 4,547,876 |
|
|
|
|
|
| |
Dominican Republic—0.9% |
|
|
|
|
| |
Dominican Republic: |
|
|
|
|
| |
5.95% | Sr. Unsec. Nts., 1/25/273 |
|
| 2,128,000 |
| 2,333,581 |
6.00% | Sr. Unsec. Nts., 7/19/283 |
|
| 2,370,000 |
| 2,625,622 |
6.40% | Sr. Unsec. Nts., 6/5/493 |
|
| 1,935,000 |
| 2,055,347 |
6.50% | Sr. Unsec. Nts., 2/15/483 |
|
| 3,100,000 |
| 3,343,149 |
6.85% | Sr. Unsec. Nts., 1/27/453 |
|
| 2,810,000 |
| 3,142,802 |
7.45% | Sr. Unsec. Nts., 4/30/443 |
|
| 2,890,000 |
| 3,441,802 |
|
|
|
|
|
| 16,942,303 |
|
|
|
|
|
| |
Ecuador—0.6% |
|
|
|
|
| |
Republic of Ecuador: |
|
|
|
|
| |
7.875% Sr. Unsec. Nts., 1/23/283 |
|
| 1,207,000 |
| 854,384 | |
7.95% | Sr. Unsec. Nts., 6/20/243 |
|
| 1,420,000 |
| 1,056,728 |
8.75% | Sr. Unsec. Nts., 6/2/233 |
|
| 460,000 |
| 362,255 |
8.875% Sr. Unsec. Nts., 10/23/273 |
|
| 1,720,000 |
| 1,247,615 | |
9.65% | Sr. Unsec. Nts., 12/13/263 |
|
| 2,480,000 |
| 1,875,525 |
10.75% Sr. Unsec. Nts., 3/28/223 |
|
| 4,511,000 |
| 3,745,582 | |
10.75% Sr. Unsec. Nts., 1/31/293 |
|
| 2,250,000 |
| 1,713,617 | |
|
|
|
|
|
| 10,855,706 |
|
|
|
|
|
| |
Egypt—0.1% |
|
|
|
|
| |
Arab Republic of Egypt, 8.70% Sr. Unsec. Nts., 3/1/493 |
| 1,100,000 |
| 1,188,395 | ||
|
|
|
|
|
| |
Ghana—0.4% |
|
|
|
|
| |
Republic of Ghana: |
|
|
|
|
| |
7.625% Sr. Unsec. Nts., 5/16/293 |
|
| 503,000 |
| 509,916 | |
8.125% Sr. Unsec. Nts., 3/26/323 |
|
| 2,590,000 |
| 2,640,490 | |
8.627% Sr. Unsec. Nts., 6/16/493 |
|
| 566,000 |
| 563,170 | |
8.95% | Sr. Unsec. Nts., 3/26/513 |
|
| 2,580,000 |
| 2,616,672 |
|
|
|
|
|
| 6,330,248 |
|
|
|
|
|
| |
Hungary—0.1% |
|
|
|
|
| |
Hungary, 7.625% Sr. Unsec. Nts., 3/29/41 |
| 1,000,000 |
| 1,713,764 | ||
|
|
|
|
|
| |
Indonesia—1.2% |
|
|
|
|
| |
Perusahaan Penerbit SBSN Indonesia III, 4.55% Sr. Unsec. Nts., |
|
|
|
| ||
3/29/263 |
|
| 2,370,000 |
| 2,649,678 | |
Republic of Indonesia: |
|
|
|
|
| |
5.25% | Sr. Unsec. Nts., 1/17/423 |
|
| 2,815,000 |
| 3,538,964 |
5.95% | Sr. Unsec. Nts., 1/8/463 |
|
| 420,000 |
| 581,483 |
6.625% Sr. Unsec. Nts., 2/17/373 |
|
| 2,550,000 |
| 3,602,543 | |
6.75% | Sr. Unsec. Nts., 1/15/443 |
|
| 2,340,000 |
| 3,498,350 |
7.75% | Sr. Unsec. Nts., 1/17/383 |
|
| 2,320,000 |
| 3,608,990 |
| 15 | INVESCO OPPENHEIMER CAPITAL INCOME FUND |
|
|
SCHEDULE OF INVESTMENTS Unaudited / Continued
|
|
| Principal Amount |
| Value |
Indonesia (Continued) |
|
|
|
| |
Republic of Indonesia: (Continued) |
|
|
|
| |
8.50% | Sr. Unsec. Nts., 10/12/353 | $ | 2,130,000 | $ | 3,455,480 |
|
|
|
|
| 20,935,488 |
|
|
|
|
| |
Kazakhstan—0.4% |
|
|
|
| |
Republic of Kazakhstan: |
|
|
|
| |
4.875% Sr. Unsec. Nts., 10/14/443 |
| 2,683,000 |
| 3,455,921 | |
6.50% | Sr. Unsec. Nts., 7/21/453 |
| 2,247,000 |
| 3,430,942 |
|
|
|
|
| 6,886,863 |
|
|
|
|
| |
Lithuania—0.4% |
|
|
|
| |
Republic of Lithuania: |
|
|
|
| |
6.125% Sr. Unsec. Nts., 3/9/213 |
| 4,416,000 |
| 4,616,217 | |
6.625% Sr. Unsec. Nts., 2/1/223 |
| 3,140,000 |
| 3,439,964 | |
|
|
|
|
| 8,056,181 |
|
|
|
|
| |
Mexico—0.8% |
|
|
|
| |
United Mexican States: |
|
|
|
| |
3.75% | Sr. Unsec. Nts., 1/11/28 |
| 250,000 |
| 267,813 |
5.55% | Sr. Unsec. Nts., 1/21/45 |
| 500,000 |
| 644,222 |
5.75% | Sr. Unsec. Nts., 10/12/2110 |
| 2,900,000 |
| 3,660,365 |
6.05% | Sr. Unsec. Nts., 1/11/40 |
| 2,610,000 |
| 3,509,654 |
6.75% | Sr. Unsec. Nts., 9/27/34 |
| 1,680,000 |
| 2,436,601 |
8.30% | Sr. Unsec. Nts., 8/15/31 |
| 40,000 |
| 62,674 |
Series M20, 4.75% Sr. Unsec. Nts., 3/8/44 |
| 3,110,000 |
| 3,608,953 | |
|
|
|
|
| 14,190,282 |
|
|
|
|
| |
Mongolia—0.0% |
|
|
|
| |
Mongolia, 8.75% Sr. Unsec. Nts., 3/9/243 |
| 656,000 |
| 730,678 | |
|
|
|
|
| |
Morocco—0.2% |
|
|
|
| |
Kingdom of Morocco, 5.50% Sr. Unsec. Nts., 12/11/423 |
| 2,880,000 |
| 3,669,129 | |
|
|
|
|
| |
Nigeria—0.3% |
|
|
|
| |
Federal Republic of Nigeria: |
|
|
|
| |
7.875% Sr. Unsec. Nts., 2/16/323 |
| 2,470,000 |
| 2,494,384 | |
8.747% Sr. Unsec. Nts., 1/21/313 |
| 2,350,000 |
| 2,556,078 | |
9.248% Sr. Unsec. Nts., 1/21/493 |
| 736,000 |
| 794,003 | |
|
|
|
|
| 5,844,465 |
|
|
|
|
| |
Oman—1.0% |
|
|
|
| |
Sultanate of Oman: |
|
|
|
| |
4.75% | Sr. Unsec. Nts., 6/15/263 |
| 2,310,000 |
| 2,256,616 |
5.375% Sr. Unsec. Nts., 3/8/273 |
| 2,660,000 |
| 2,657,114 | |
5.625% Sr. Unsec. Nts., 1/17/283 |
| 3,350,000 |
| 3,350,566 | |
6.00% | Sr. Unsec. Nts., 8/1/293 |
| 3,310,000 |
| 3,340,154 |
6.50% | Sr. Unsec. Nts., 3/8/473 |
| 3,610,000 |
| 3,388,902 |
16 INVESCO OPPENHEIMER CAPITAL INCOME FUND
|
|
| Principal Amount |
| Value |
Oman (Continued) |
|
|
|
| |
Sultanate of Oman: (Continued) |
|
|
|
| |
6.75% | Sr. Unsec. Nts., 1/17/483 | $ | 2,464,000 | $ | 2,335,973 |
|
|
|
|
| 17,329,325 |
|
|
|
|
| |
Pakistan—0.3% |
|
|
|
| |
Islamic Republic of Pakistan: |
|
|
|
| |
6.875% Sr. Unsec. Nts., 12/5/273 |
| 2,600,000 |
| 2,742,870 | |
8.25% | Sr. Unsec. Nts., 4/15/243 |
| 1,640,000 |
| 1,847,963 |
|
|
|
|
| 4,590,833 |
|
|
|
|
| |
Panama—0.3% |
|
|
|
| |
Republic of Panama: |
|
|
|
| |
4.00% | Sr. Unsec. Nts., 9/22/24 |
| 3,725,000 |
| 4,034,212 |
6.70% | Sr. Unsec. Nts., 1/26/36 |
| 990,000 |
| 1,437,673 |
7.125% Sr. Unsec. Nts., 1/29/26 |
| 100,000 |
| 127,036 | |
|
|
|
|
| 5,598,921 |
|
|
|
|
| |
Philippines—0.2% |
|
|
|
| |
Republic of the Philippines: |
|
|
|
| |
4.20% | Sr. Unsec. Nts., 1/21/24 |
| 100,000 |
| 108,701 |
6.375% Sr. Unsec. Nts., 1/15/32 |
| 2,941,000 |
| 4,139,745 | |
|
|
|
|
| 4,248,446 |
|
|
|
|
| |
Poland—0.5% |
|
|
|
| |
Republic of Poland: |
|
|
|
| |
3.00% | Sr. Unsec. Nts., 3/17/23 |
| 485,000 |
| 505,249 |
3.25% | Sr. Unsec. Nts., 4/6/26 |
| 4,260,000 |
| 4,614,453 |
4.00% | Sr. Unsec. Nts., 1/22/24 |
| 3,055,000 |
| 3,330,500 |
|
|
|
|
| 8,450,202 |
|
|
|
|
| |
Qatar—1.1% |
|
|
|
| |
State of Qatar: |
|
|
|
| |
4.00% | Sr. Unsec. Nts., 3/14/293 |
| 1,640,000 |
| 1,859,596 |
4.50% | Sr. Unsec. Nts., 4/23/283 |
| 904,000 |
| 1,048,640 |
4.625% Sr. Unsec. Nts., 6/2/463 |
| 570,000 |
| 711,870 | |
4.817% Sr. Unsec. Nts., 3/14/493 |
| 2,700,000 |
| 3,449,852 | |
5.103% Sr. Unsec. Nts., 4/23/483 |
| 2,560,000 |
| 3,404,117 | |
5.75% | Sr. Unsec. Nts., 1/20/423 |
| 2,330,000 |
| 3,313,677 |
6.40% | Sr. Unsec. Nts., 1/20/403 |
| 2,290,000 |
| 3,420,825 |
9.75% | Sr. Unsec. Nts., 6/15/303 |
| 1,140,000 |
| 1,895,074 |
|
|
|
|
| 19,103,651 |
|
|
|
|
| |
Romania—0.4% |
|
|
|
| |
Romania: |
|
|
|
| |
4.375% Sr. Unsec. Nts., 8/22/233 |
| 833,000 |
| 893,120 | |
5.125% Sr. Unsec. Nts., 6/15/483 |
| 2,940,000 |
| 3,503,222 | |
6.125% Sr. Unsec. Nts., 1/22/443 |
| 2,610,000 |
| 3,486,553 | |
|
|
|
|
| 7,882,895 |
| 17 | INVESCO OPPENHEIMER CAPITAL INCOME FUND |
|
|
SCHEDULE OF INVESTMENTS Unaudited / Continued
|
|
|
| Principal Amount |
| Value |
Russia—0.9% |
|
|
|
| ||
Russian Federation: |
|
|
|
| ||
4.25% | Sr. Unsec. Nts., 6/23/273 | $ | 2,200,000 | $ | 2,429,130 | |
4.375% | Sr. Unsec. Nts., 3/21/293 |
| 2,800,000 |
| 3,115,734 | |
4.75% | Sr. Unsec. Nts., 5/27/263 |
| 2,200,000 |
| 2,477,873 | |
5.10% | Sr. Unsec. Nts., 3/28/353 |
| 2,200,000 |
| 2,652,098 | |
5.25% | Sr. Unsec. Nts., 6/23/473 |
| 200,000 |
| 258,868 | |
5.625% | Sr. Unsec. Nts., 4/4/423 |
| 1,400,000 |
| 1,852,715 | |
5.875% | Sr. Unsec. Nts., 9/16/433 |
| 400,000 |
| 549,690 | |
12.75% | Sr. Unsec. Nts., 6/24/283 |
| 1,901,000 |
| 3,272,697 | |
|
|
|
|
|
| 16,608,805 |
|
|
|
|
| ||
Saudi Arabia—1.1% |
|
|
|
| ||
Kingdom of Saudi Arabia: |
|
|
|
| ||
3.625% | Sr. Unsec. Nts., 3/4/283 |
| 2,590,000 |
| 2,781,994 | |
4.375% | Sr. Unsec. Nts., 4/16/293 |
| 333,000 |
| 380,019 | |
4.50% | Sr. Unsec. Nts., 10/26/463 |
| 2,960,000 |
| 3,401,685 | |
4.625% | Sr. Unsec. Nts., 10/4/473 |
| 2,900,000 |
| 3,395,288 | |
5.00% | Sr. Unsec. Nts., 4/17/493 |
| 2,860,000 |
| 3,542,625 | |
5.25% | Sr. Unsec. Nts., 1/16/503 |
| 2,680,000 |
| 3,443,955 | |
KSA Sukuk Ltd., 4.303% Sr. Unsec. Nts., 1/19/293 |
| 3,050,000 |
| 3,452,271 | ||
|
|
|
|
|
| 20,397,837 |
|
|
|
|
| ||
Slovakia—0.3% |
|
|
|
| ||
Slovakia Republic, 4.375% Sr. Unsec. Nts., 5/21/223 |
| 4,438,000 |
| 4,699,496 | ||
|
|
|
|
| ||
South Africa—0.4% |
|
|
|
| ||
Republic of South Africa: |
|
|
|
| ||
5.375% | Sr. Unsec. Nts., 7/24/44 |
| 1,000,000 |
| 954,390 | |
5.875% | Sr. Unsec. Nts., 6/22/30 |
| 3,200,000 |
| 3,469,552 | |
6.25% | Sr. Unsec. Nts., 3/8/41 |
| 2,380,000 |
| 2,555,882 | |
|
|
|
|
|
| 6,979,824 |
|
|
|
|
| ||
Sri Lanka—0.8% |
|
|
|
| ||
Democratic Socialist Republic of Sri Lanka: |
|
|
|
| ||
6.125% | Sr. Unsec. Nts., 6/3/253 |
| 1,155,000 |
| 1,115,011 | |
6.20% | Sr. Unsec. Nts., 5/11/273 |
| 2,740,000 |
| 2,507,578 | |
6.35% | Sr. Unsec. Nts., 6/28/243 |
| 560,000 |
| 558,642 | |
6.75% | Sr. Unsec. Nts., 4/18/283 |
| 2,680,000 |
| 2,466,270 | |
6.825% | Sr. Unsec. Nts., 7/18/263 |
| 1,260,000 |
| 1,219,258 | |
6.85% | Sr. Unsec. Nts., 11/3/253 |
| 710,000 |
| 703,196 | |
7.55% | Sr. Unsec. Nts., 3/28/303 |
| 3,290,000 |
| 3,092,600 | |
7.85% | Sr. Unsec. Nts., 3/14/293 |
| 3,200,000 |
| 3,096,540 | |
|
|
|
|
|
| 14,759,095 |
|
|
|
|
| ||
Trinidad & Tobago—0.2% |
|
|
|
| ||
Republic of Trinidad & Tobago, 4.50% Sr. Unsec. Nts., 8/4/263 |
| 3,200,000 |
| 3,353,144 |
18 INVESCO OPPENHEIMER CAPITAL INCOME FUND
|
|
|
| Principal Amount |
| Value |
Tunisia—0.3% |
|
|
|
|
| |
Republic of Tunisia, 5.75% Sr. Unsec. Nts., 1/30/253 | $ | 4,941,000 | $ | 4,642,885 | ||
|
|
|
|
|
| |
Turkey—0.7% |
|
|
|
|
| |
Republic of Turkey: |
|
|
|
|
| |
4.875% | Sr. Unsec. Nts., 10/9/26 |
|
| 326,000 |
| 306,147 |
5.75% Sr. Unsec. Nts., 3/22/24 |
|
| 1,890,000 |
| 1,905,574 | |
6.00% Sr. Unsec. Nts., 3/25/27 |
|
| 1,890,000 |
| 1,875,730 | |
7.375% | Sr. Unsec. Nts., 2/5/25 |
|
| 2,490,000 |
| 2,651,962 |
7.625% | Sr. Unsec. Nts., 4/26/29 |
|
| 2,430,000 |
| 2,604,515 |
8.00% Sr. Unsec. Nts., 2/14/34 |
|
| 470,000 |
| 519,796 | |
11.875% Sr. Unsec. Nts., 1/15/30 |
|
| 1,920,000 |
| 2,652,722 | |
|
|
|
|
|
| 12,516,446 |
|
|
|
|
|
| |
UAE—0.3% |
|
|
|
|
| |
RAK Capital, 3.094% Sr. Unsec. Nts., 3/31/253 |
| 4,543,000 |
| 4,639,539 | ||
|
|
|
|
|
| |
Uruguay—0.5% |
|
|
|
|
| |
Oriental Republic of Uruguay: |
|
|
|
|
| |
4.125% | Sr. Unsec. Nts., 11/20/45 |
|
| 477,000 |
| 540,653 |
4.375% | Sr. Unsec. Nts., 1/23/31 |
|
| 2,340,000 |
| 2,698,605 |
4.975% | Sr. Unsec. Nts., 4/20/55 |
|
| 490,000 |
| 608,063 |
7.625% | Sr. Unsec. Nts., 3/21/36 |
|
| 2,300,000 |
| 3,564,298 |
7.875% | Sr. Unsec. Nts., 1/15/33 |
|
| 1,430,000 |
| 2,197,349 |
|
|
|
|
|
| 9,608,968 |
Total Foreign Government Obligations (Cost $296,881,450) |
|
|
| 300,821,580 | ||
|
|
|
|
| ||
Non-Convertible Corporate Bonds and Notes—36.8% |
|
|
|
| ||
Consumer Discretionary—7.2% |
|
|
|
|
| |
Auto Components—0.4% |
|
|
|
|
| |
Adient Global Holdings Ltd., 4.875% Sr. Unsec. Nts., 8/15/263 |
| 1,401,000 |
| 1,211,900 | ||
Dana, Inc.: |
|
|
|
|
| |
5.375% | Sr. Unsec. Nts., 11/15/27 |
|
| 1,171,000 |
| 1,185,637 |
5.50% Sr. Unsec. Nts., 12/15/24 |
|
| 956,000 |
| 968,710 | |
Panther BF Aggregator 2 LP/Panther Finance Co., Inc., 8.50% Sr. |
|
|
|
| ||
Unsec. Nts., 5/15/273 |
|
| 2,317,000 |
| 2,361,834 | |
Tenneco, Inc., 5.00% Sr. Unsec. Nts., 7/15/26 |
| 1,838,000 |
| 1,585,321 | ||
|
|
|
|
|
| 7,313,402 |
|
|
|
|
|
| |
Automobiles—0.3% |
|
|
|
|
| |
Ford Motor Credit Co. LLC: |
|
|
|
|
| |
5.113% | Sr. Unsec. Nts., 5/3/29 |
|
| 1,950,000 |
| 1,965,110 |
5.596% | Sr. Unsec. Nts., 1/7/22 |
|
| 879,000 |
| 927,705 |
JB Poindexter & Co., Inc., 7.125% Sr. Unsec. Nts., 4/15/263 |
| 3,211,000 |
| 3,398,530 | ||
|
|
|
|
|
| 6,291,345 |
|
|
|
|
|
| |
Distributors—0.2% |
|
|
|
|
| |
Core & Main Holdings LP, 9.375% PIK Rate, 8.625% Cash Rate, |
|
|
|
| ||
8.625% | Sr. Unsec. Nts., 9/15/243,9 |
|
| 3,500,000 |
| 3,641,453 |
| 19 | INVESCO OPPENHEIMER CAPITAL INCOME FUND |
|
|
SCHEDULE OF INVESTMENTS Unaudited / Continued
|
| Principal Amount |
| Value |
Diversified Consumer Services—0.2% |
|
|
|
|
ServiceMaster Co. LLC (The): |
|
|
|
|
5.125% Sr. Unsec. Nts., 11/15/243 | $ | 1,772,000 | $ | 1,831,070 |
7.45% Sr. Unsec. Nts., 8/15/27 |
| 1,460,000 |
| 1,675,857 |
|
|
|
| 3,506,927 |
|
|
|
|
|
Entertainment—0.3% |
|
|
|
|
AMC Entertainment Holdings, Inc., 5.75% Sr. Sub. Nts., 6/15/25 |
| 2,468,000 |
| 1,987,764 |
Netflix, Inc., 5.875% Sr. Unsec. Nts., 11/15/28 |
| 3,185,000 |
| 3,586,788 |
|
|
|
| 5,574,552 |
|
|
|
|
|
Hotels, Restaurants & Leisure—0.9% |
|
|
|
|
1011778 B.C. ULC/New Red Finance, Inc., 5.00% Sec. Nts., |
|
|
|
|
10/15/253 |
| 3,009,000 |
| 3,029,055 |
Boyd Gaming Corp.: |
|
|
|
|
4.75% Sr. Unsec. Nts., 12/1/273 |
| 350,000 |
| 347,042 |
6.00% Sr. Unsec. Nts., 8/15/26 |
| 348,000 |
| 358,457 |
6.375% Sr. Unsec. Nts., 4/1/26 |
| 540,000 |
| 563,949 |
Cirsa Finance International Sarl, 7.875% Sr. Sec. Nts., 12/20/233 |
| 406,000 |
| 425,240 |
Codere Finance 2 Luxembourg SA, 7.625% Sr. Sec. Nts., 11/1/213 |
| 360,000 |
| 315,256 |
IRB Holding Corp., 6.75% Sr. Unsec. Nts., 2/15/263 |
| 1,940,000 |
| 1,930,974 |
Melco Resorts Finance Ltd., 5.625% Sr. Unsec. Nts., 7/17/273 |
| 469,000 |
| 491,639 |
MGM China Holdings Ltd., 5.875% Sr. Unsec. Nts., 5/15/263 |
| 389,000 |
| 394,592 |
MGM Resorts International: |
|
|
|
|
4.625% Sr. Unsec. Nts., 9/1/26 |
| 2,662,000 |
| 2,774,663 |
7.75% Sr. Unsec. Nts., 3/15/22 |
| 309,000 |
| 338,905 |
Scientific Games International, Inc., 7.00% Sr. Unsec. Nts., 5/15/283 |
| 1,620,000 |
| 1,581,485 |
Studio City Finance Ltd., 7.25% Sr. Unsec. Nts., 2/11/243 |
| 1,373,000 |
| 1,441,080 |
Wynn Las Vegas LLC/Wynn Las Vegas Capital Corp., 5.50% Sr. |
|
|
|
|
Unsec. Nts., 3/1/253 |
| 2,157,000 |
| 2,121,927 |
|
|
|
| 16,114,264 |
|
|
|
|
|
Household Durables—0.7% |
|
|
|
|
Ashton Woods USA LLC/Ashton Woods Finance Co., 9.875% Sr. |
|
|
|
|
Unsec. Nts., 4/1/273 |
| 2,000,000 |
| 2,270,695 |
Beazer Homes USA, Inc.: |
|
|
|
|
5.875% Sr. Unsec. Nts., 10/15/27 |
| 870,000 |
| 883,072 |
6.75% Sr. Unsec. Nts., 3/15/25 |
| 717,000 |
| 735,222 |
KB Home, 4.80% Sr. Unsec. Nts., 11/15/29 |
| 1,250,000 |
| 1,315,625 |
Lennar Corp.: |
|
|
|
|
5.25% Sr. Unsec. Nts., 6/1/26 |
| 1,292,000 |
| 1,427,463 |
5.375% Sr. Unsec. Nts., 10/1/22 |
| 1,366,000 |
| 1,451,801 |
8.375% Sr. Unsec. Nts., 1/15/21 |
| 97,000 |
| 101,433 |
Mattamy Group Corp., 5.25% Sr. Unsec. Nts., 12/15/273 |
| 1,372,000 |
| 1,423,450 |
Meritage Homes Corp., 6.00% Sr. Unsec. Nts., 6/1/25 |
| 426,000 |
| 480,138 |
Taylor Morrison Communities, Inc.: |
|
|
|
|
5.75% Sr. Unsec. Nts., 1/15/283 |
| 904,000 |
| 1,001,386 |
6.625% Sr. Unsec. Nts., 7/15/273 |
| 1,100,000 |
| 1,195,557 |
20 INVESCO OPPENHEIMER CAPITAL INCOME FUND
|
|
|
| Principal Amount |
| Value |
Household Durables (Continued) |
|
|
|
|
| |
Taylor Morrison Communities, Inc./Taylor Morrison Holdings II, Inc., |
|
|
|
| ||
5.875% Sr. Unsec. Nts., 4/15/233 |
| $ | 740,000 | $ | 793,957 | |
|
|
|
|
|
| 13,079,799 |
|
|
|
|
| ||
Interactive Media & Services—0.4% |
|
|
|
| ||
Cable Onda SA, 4.50% Sr. Unsec. Nts., 1/30/303 |
| 395,000 |
| 402,643 | ||
Cumulus Media New Holdings, Inc., 6.75% Sr. Sec. Nts., 7/1/263 |
| 2,754,000 |
| 2,865,052 | ||
Diamond Sports Group LLC/Diamond Sports Finance Co.: |
|
|
|
| ||
5.375% Sr. Sec. Nts., 8/15/263 |
|
| 2,771,000 |
| 2,560,110 | |
6.625% Sr. Unsec. Nts., 8/15/273 |
|
| 1,737,000 |
| 1,410,184 | |
|
|
|
|
|
| 7,237,989 |
|
|
|
|
|
| |
Internet & Catalog Retail—0.1% |
|
|
|
|
| |
Prosus NV, 3.68% Sr. Unsec. Nts., 1/21/303 |
| 200,000 |
| 207,382 | ||
QVC, Inc., 5.45% Sr. Sec. Nts., 8/15/34 |
|
| 976,000 |
| 984,253 | |
|
|
|
|
|
| 1,191,635 |
|
|
|
|
| ||
Leisure Equipment & Products—0.1% |
|
|
|
| ||
Mattel, Inc., 6.75% Sr. Unsec. Nts., 12/31/253 |
| 1,486,000 |
| 1,564,810 | ||
|
|
|
|
|
| |
Media—2.5% |
|
|
|
|
| |
Altice Financing SA, 7.50% Sr. Sec. Nts., 5/15/263 |
| 1,909,000 |
| 2,012,850 | ||
AMC Networks, Inc.: |
|
|
|
|
| |
4.75% | Sr. Unsec. Nts., 8/1/25 |
|
| 1,737,000 |
| 1,734,890 |
5.00% | Sr. Unsec. Nts., 4/1/24 |
|
| 1,066,000 |
| 1,073,995 |
CCO Holdings LLC/CCO Holdings Capital Corp.: |
|
|
|
| ||
4.50% | Sr. Unsec. Nts., 8/15/303 |
|
| 199,000 |
| 201,612 |
5.75% | Sr. Unsec. Nts., 9/1/23 |
|
| 960,000 |
| 970,920 |
5.75% | Sr. Unsec. Nts., 2/15/263 |
|
| 5,437,000 |
| 5,662,907 |
Charter Communications Operating LLC/Charter Communications |
|
|
|
| ||
Operating Capital, 5.375% Sr. Sec. Nts., 4/1/38 |
| 1,276,000 |
| 1,467,568 | ||
Clear Channel Worldwide Holdings, Inc., 9.25% Sr. Sub. Nts., |
|
|
|
| ||
2/15/243 |
|
| 2,159,000 |
| 2,298,439 | |
CSC Holdings LLC: |
|
|
|
|
| |
5.50% | Sr. Unsec. Nts., 5/15/263 |
|
| 790,000 |
| 819,765 |
6.50% | Sr. Unsec. Nts., 2/1/293 |
|
| 3,371,000 |
| 3,718,634 |
7.75% | Sr. Unsec. Nts., 7/15/253 |
|
| 659,000 |
| 695,238 |
10.875% Sr. Unsec. Nts., 10/15/253 |
|
| 1,446,000 |
| 1,589,263 | |
DISH DBS Corp., 5.875% Sr. Unsec. Nts., 11/15/24 |
| 4,332,000 |
| 4,452,495 | ||
Gray Television, Inc., 7.00% Sr. Unsec. Nts., 5/15/273 |
| 1,922,000 |
| 2,088,445 | ||
Hughes Satellite Systems Corp., 7.625% Sr. Unsec. Nts., 6/15/21 |
| 696,000 |
| 734,197 | ||
iHeartCommunications, Inc., 8.375% Sr. Unsec. Nts., 5/1/27 |
| 2,963,000 |
| 3,223,151 | ||
Intelsat Jackson Holdings SA: |
|
|
|
|
| |
5.50% | Sr. Unsec. Nts., 8/1/23 |
|
| 2,729,000 |
| 2,352,630 |
8.00% | Sr. Sec. Nts., 2/15/243 |
|
| 340,000 |
| 349,209 |
Meredith Corp., 6.875% Sr. Unsec. Nts., 2/1/26 |
| 3,794,000 |
| 3,815,047 | ||
Telenet Finance Luxembourg Notes Sarl, 5.50% Sr. Sec. Nts., 3/1/283 |
| 384,000 |
| 407,424 | ||
TV Azteca SAB de CV, 8.25% Sr. Unsec. Nts., 8/9/243 |
| 672,000 |
| 609,561 | ||
UPC Holding BV, 5.50% Sr. Sec. Nts., 1/15/283 |
| 369,000 |
| 374,886 | ||
| 21 | INVESCO OPPENHEIMER CAPITAL INCOME FUND |
|
|
SCHEDULE OF INVESTMENTS Unaudited / Continued
|
| Principal Amount |
| Value |
Media (Continued) |
|
|
|
|
Virgin Media Finance plc, 6.00% Sr. Unsec. Nts., 10/15/243 | $ | 762,000 | $ | 780,962 |
Virgin Media Secured Finance plc, 5.50% Sr. Sec. Nts., 8/15/263 |
| 683,000 |
| 704,439 |
VTR Finance BV, 6.875% Sr. Sec. Nts., 1/15/243 |
| 1,500,000 |
| 1,532,498 |
Ziggo Bond Co. BV, 5.125% Sr. Unsec. Nts., 2/28/303 |
| 222,000 |
| 221,584 |
Ziggo BV, 5.50% Sr. Sec. Nts., 1/15/273 |
| 934,000 |
| 963,785 |
|
|
|
| 44,856,394 |
|
|
|
|
|
Multiline Retail—0.1% |
|
|
|
|
Kohl's Corp., 5.55% Sr. Unsec. Nts., 7/17/45 |
| 1,116,000 |
| 1,197,466 |
|
|
|
|
|
Specialty Retail—0.8% |
|
|
|
|
Asbury Automotive Group, Inc., 4.75% Sr. Unsec. Nts., 3/1/303 |
| 464,000 |
| 473,280 |
Capitol Investment Merger Sub 2 LLC, 10.00% Sec. Nts., 8/1/243 |
| 2,783,000 |
| 2,798,070 |
eG Global Finance plc, 6.25% Sr. Sec. Nts., 10/30/253 | EUR | 100,000 |
| 107,673 |
Hillman Group, Inc. (The), 6.375% Sr. Unsec. Nts., 7/15/223 |
| 449,000 |
| 403,960 |
L Brands, Inc.: |
|
|
|
|
6.75% Sr. Unsec. Nts., 7/1/36 |
| 198,000 |
| 200,990 |
6.875% Sr. Unsec. Nts., 11/1/35 |
| 2,998,000 |
| 3,048,291 |
Lithia Motors, Inc.: |
|
|
|
|
4.625% Sr. Unsec. Nts., 12/15/273 |
| 916,000 |
| 939,981 |
5.25% Sr. Unsec. Nts., 8/1/253 |
| 338,000 |
| 353,350 |
Michaels Stores, Inc., 8.00% Sr. Unsec. Nts., 7/15/273 |
| 3,486,000 |
| 2,912,379 |
Murphy Oil USA, Inc., 5.625% Sr. Unsec. Nts., 5/1/27 |
| 1,431,000 |
| 1,516,363 |
Penske Automotive Group, Inc., 5.50% Sr. Sub. Nts., 5/15/26 |
| 2,185,000 |
| 2,270,980 |
|
|
|
| 15,025,317 |
|
|
|
|
|
Textiles, Apparel & Luxury Goods—0.2% |
|
|
|
|
Eagle Intermediate Global Holding BV/Ruyi US Finance LLC, 7.50% |
|
|
|
|
Sr. Sec. Nts., 5/1/253 |
| 2,482,000 |
| 1,744,635 |
William Carter Co. (The), 5.625% Sr. Unsec. Nts., 3/15/273 |
| 1,147,000 |
| 1,222,986 |
|
|
|
| 2,967,621 |
|
|
|
|
|
Consumer Staples—1.5% |
|
|
|
|
Beverages—0.1% |
|
|
|
|
Molson Coors Beverage Co., 5.00% Sr. Unsec. Nts., 5/1/42 |
| 976,000 |
| 1,106,075 |
|
|
|
|
|
Food & Staples Retailing—0.5% |
|
|
|
|
Albertsons Cos., Inc./Safeway, Inc./New Albertsons LP/Albertson's LLC: |
|
|
| |
4.625% Sr. Unsec. Nts., 1/15/273 |
| 1,348,000 |
| 1,330,274 |
6.625% Sr. Unsec. Nts., 6/15/24 |
| 1,370,000 |
| 1,411,086 |
7.50% Sr. Unsec. Nts., 3/15/263 |
| 2,509,000 |
| 2,792,833 |
Kraft Heinz Foods Co., 6.875% Sr. Unsec. Nts., 1/26/39 |
| 976,000 |
| 1,167,771 |
Prosperous Ray Ltd., 4.625% Sr. Unsec. Nts., 11/12/233 |
| 1,750,000 |
| 1,908,594 |
Quatrim SASU, 5.875% Sr. Sec. Nts., 1/15/243 | EUR | 100,000 |
| 111,361 |
US Foods, Inc., 5.875% Sr. Unsec. Nts., 6/15/243 |
| 1,026,000 |
| 1,046,094 |
|
|
|
| 9,768,013 |
|
|
|
|
|
Food Products—0.6% |
|
|
|
|
B&G Foods, Inc., 5.25% Sr. Unsec. Nts., 4/1/25 |
| 1,745,000 |
| 1,726,808 |
22 INVESCO OPPENHEIMER CAPITAL INCOME FUND
|
|
| Principal Amount |
| Value |
Food Products (Continued) |
|
|
|
|
|
JBS USA LUX SA/JBS USA Food Co./JBS USA Finance, Inc., 5.50% Sr. |
|
|
|
| |
Unsec. Nts., 1/15/303 |
| $ | 2,451,000 | $ | 2,591,099 |
Kraft Heinz Foods Co., 5.00% Sr. Unsec. Nts., 6/4/42 |
| 1,175,000 |
| 1,181,727 | |
Pilgrim's Pride Corp., 5.875% Sr. Unsec. Nts., 9/30/273 |
| 1,044,000 |
| 1,083,829 | |
Post Holdings, Inc.: |
|
|
|
|
|
4.625% Sr. Unsec. Nts., 4/15/303 |
|
| 1,008,000 |
| 995,995 |
5.625% Sr. Unsec. Nts., 1/15/283 |
|
| 1,667,000 |
| 1,745,449 |
Simmons Foods, Inc., 5.75% Sec. Nts., 11/1/243 |
| 1,555,000 |
| 1,542,692 | |
TreeHouse Foods, Inc., 6.00% Sr. Unsec. Nts., 2/15/243 |
| 684,000 |
| 707,656 | |
|
|
|
|
| 11,575,255 |
|
|
|
|
|
|
Household Products—0.3% |
|
|
|
|
|
Energizer Holdings, Inc.: |
|
|
|
|
|
6.375% Sr. Unsec. Nts., 7/15/263 |
|
| 244,000 |
| 253,553 |
7.75% Sr. Unsec. Nts., 1/15/273 |
|
| 617,000 |
| 670,586 |
Reynolds Group Issuer, Inc./Reynolds Group Issuer LLC/Reynolds Group Issuer Luxembourg SA: |
|
| |||
5.125% Sr. Sec. Nts., 7/15/233 |
|
| 76,000 |
| 76,918 |
7.00% Sr. Unsec. Nts., 7/15/243 |
|
| 2,404,000 |
| 2,431,057 |
Spectrum Brands, Inc., 5.75% Sr. Unsec. Nts., 7/15/25 |
| 1,463,000 |
| 1,503,218 | |
|
|
|
|
| 4,935,332 |
|
|
|
|
|
|
Energy—4.2% |
|
|
|
|
|
Energy Equipment & Services—0.6% |
|
|
|
| |
Antero Midstream Partners LP/Antero Midstream Finance Corp., |
|
|
|
| |
5.75% Sr. Unsec. Nts., 1/15/283 |
|
| 2,514,000 |
| 1,732,083 |
Calfrac Holdings LP, 10.875% Sec. Nts., 3/15/263 |
| 104,500 |
| 94,572 | |
Diamond Offshore Drilling, Inc., 4.875% Sr. Unsec. Nts., 11/1/43 |
| 324,000 |
| 131,727 | |
Ensign Drilling, Inc., 9.25% Sr. Unsec. Nts., 4/15/243 |
| 985,000 |
| 887,741 | |
Oil & Gas Holding Co. BSCC (The), 7.50% Sr. Unsec. Nts., 10/25/273 |
| 1,000,000 |
| 1,148,858 | |
Precision Drilling Corp.: |
|
|
|
|
|
5.25% Sr. Unsec. Nts., 11/15/24 |
|
| 1,089,000 |
| 966,264 |
6.50% Sr. Unsec. Nts., 12/15/21 |
|
| 804 |
| 798 |
7.75% Sr. Unsec. Nts., 12/15/23 |
|
| 147,000 |
| 144,489 |
SESI LLC, 7.125% Sr. Unsec. Nts., 12/15/213 |
| 665,000 |
| 542,308 | |
Targa Resources Partners LP/Targa Resources Partners Finance Corp.: |
|
|
|
| |
5.125% Sr. Unsec. Nts., 2/1/25 |
|
| 1,217,000 |
| 1,224,618 |
5.50% Sr. Unsec. Nts., 3/1/303 |
|
| 1,839,000 |
| 1,822,357 |
Transocean, Inc.: |
|
|
|
|
|
7.50% Sr. Unsec. Nts., 4/15/31 |
|
| 1,573,000 |
| 939,907 |
8.00% Sr. Unsec. Nts., 2/1/273 |
|
| 666,000 |
| 558,608 |
Valaris plc, 7.75% Sr. Unsec. Nts., 2/1/26 |
| 2,014,000 |
| 800,515 | |
|
|
|
|
| 10,994,845 |
|
|
|
|
| |
Oil, Gas & Consumable Fuels—3.6% |
|
|
|
| |
Antero Midstream Partners LP/Antero Midstream Finance Corp., |
|
|
|
| |
5.375% Sr. Unsec. Nts., 9/15/24 |
|
| 1,419,000 |
| 1,074,892 |
Antero Resources Corp., 5.00% Sr. Unsec. Nts., 3/1/25 |
| 1,916,000 |
| 991,530 | |
Ascent Resources Utica Holdings LLC/ARU Finance Corp., 10.00% |
|
|
|
| |
Sr. Unsec. Nts., 4/1/223 |
|
| 1,758,000 |
| 1,502,586 |
23 | INVESCO OPPENHEIMER CAPITAL INCOME FUND |
|
|
SCHEDULE OF INVESTMENTS Unaudited / Continued
|
|
| Principal Amount |
| Value |
Oil, Gas & Consumable Fuels (Continued) |
|
|
|
| |
Calfrac Holdings LP, 8.50% Sr. Unsec. Nts., 6/15/263 | $ | 197,000 | $ | 52,702 | |
California Resources Corp., 8.00% Sec. Nts., 12/15/223 |
| 756,000 |
| 175,770 | |
Callon Petroleum Co.: |
|
|
|
| |
6.125% Sr. Unsec. Nts., 10/1/24 |
| 829,000 |
| 659,055 | |
6.375% Sr. Unsec. Nts., 7/1/26 |
| 783,000 |
| 611,012 | |
Calumet Specialty Products Partners LP/Calumet Finance Corp., |
|
|
|
| |
7.625% Sr. Unsec. Nts., 1/15/22 |
| 2,175,000 |
| 2,157,356 | |
Chesapeake Energy Corp.: |
|
|
|
| |
7.50% | Sr. Unsec. Nts., 10/1/26 |
| 100,000 |
| 30,285 |
11.50% Sec. Nts., 1/1/253 |
| 1,022,000 |
| 613,200 | |
Crestwood Midstream Partners LP/Crestwood Midstream Finance |
|
|
|
| |
Corp., 5.75% Sr. Unsec. Nts., 4/1/25 |
| 888,000 |
| 870,231 | |
Denbury Resources, Inc.: |
|
|
|
| |
5.50% | Sr. Sub. Nts., 5/1/22 |
| 195,000 |
| 107,693 |
9.00% | Sec. Nts., 5/15/213 |
| 1,082,000 |
| 949,184 |
eG Global Finance plc, 8.50% Sr. Sec. Nts., 10/30/253 |
| 382,000 |
| 399,031 | |
EnLink Midstream Partners LP, 5.60% Sr. Unsec. Nts., 4/1/44 |
| 534,000 |
| 412,512 | |
EP Energy LLC/Everest Acquisition Finance, Inc., 8.00% Sr. Sec. Nts., |
|
|
|
| |
11/29/243 |
| 766,000 |
| 325,550 | |
Genesis Energy LP/Genesis Energy Finance Corp.: |
|
|
|
| |
6.25% | Sr. Unsec. Nts., 5/15/26 |
| 2,478,000 |
| 2,076,186 |
7.75% | Sr. Unsec. Nts., 2/1/28 |
| 1,450,000 |
| 1,266,938 |
Gulfport Energy Corp.: |
|
|
|
| |
6.00% | Sr. Unsec. Nts., 10/15/24 |
| 1,402,000 |
| 469,670 |
6.625% Sr. Unsec. Nts., 5/1/23 |
| 2,646,000 |
| 1,389,970 | |
Hilcorp Energy I LP/Hilcorp Finance Co., 6.25% Sr. Unsec. Nts., |
|
|
|
| |
11/1/283 |
| 961,000 |
| 701,883 | |
Holly Energy Partners LP/Holly Energy Finance Corp., 5.00% Sr. |
|
|
|
| |
Unsec. Nts., 2/1/283 |
| 568,000 |
| 572,615 | |
KazMunayGas National Co. JSC, 6.375% Sr. Unsec. Nts., 10/24/483 |
| 1,000,000 |
| 1,318,749 | |
NGL Energy Partners LP/NGL Energy Finance Corp., 7.50% Sr. |
|
|
|
| |
Unsec. Nts., 4/15/263 |
| 2,876,000 |
| 2,451,423 | |
NuStar Logistics LP, 6.00% Sr. Unsec. Nts., 6/1/26 |
| 2,426,000 |
| 2,539,959 | |
Oasis Petroleum, Inc.: |
|
|
|
| |
6.25% | Sr. Unsec. Nts., 5/1/263 |
| 550,000 |
| 339,639 |
6.875% Sr. Unsec. Nts., 1/15/23 |
| 2,553,000 |
| 1,984,958 | |
Parkland Fuel Corp., 6.00% Sr. Unsec. Nts., 4/1/263 |
| 2,019,000 |
| 2,113,590 | |
PBF Holding Co. LLC/PBF Finance Corp., 6.00% Sr. Unsec. Nts., |
|
|
|
| |
2/15/283 |
| 1,345,000 |
| 1,331,550 | |
Pertamina Persero PT: |
|
|
|
| |
6.00% | Sr. Unsec. Nts., 5/3/423 |
| 2,180,000 |
| 2,728,251 |
6.50% | Sr. Unsec. Nts., 5/27/413 |
| 2,070,000 |
| 2,719,890 |
Petrobras Global Finance BV, 5.75% Sr. Unsec. Nts., 2/1/29 |
| 1,310,000 |
| 1,479,318 | |
Petroleos Mexicanos: |
|
|
|
| |
5.35% | Sr. Unsec. Nts., 2/12/28 |
| 2,810,000 |
| 2,750,561 |
5.95% | Sr. Unsec. Nts., 1/28/313 |
| 510,000 |
| 499,800 |
6.50% | Sr. Unsec. Nts., 3/13/27-1/23/29 |
| 5,180,000 |
| 5,387,643 |
6.625% Sr. Unsec. Nts., 6/15/35 |
| 3,355,000 |
| 3,368,202 | |
6.875% Sr. Unsec. Nts., 8/4/26 |
| 2,530,000 |
| 2,762,121 |
24 INVESCO OPPENHEIMER CAPITAL INCOME FUND
|
|
| Principal Amount |
| Value |
Oil, Gas & Consumable Fuels (Continued) |
|
|
|
| |
Petroliam Nasional Bhd, 7.625% Sr. Unsec. Nts., 10/15/263 | $ | 1,920,000 | $ | 2,581,120 | |
QEP Resources, Inc., 5.625% Sr. Unsec. Nts., 3/1/26 |
| 1,158,000 |
| 929,324 | |
Saudi Arabian Oil Co., 4.25% Sr. Unsec. Nts., 4/16/393 |
| 2,612,000 |
| 2,900,991 | |
SM Energy Co., 6.625% Sr. Unsec. Nts., 1/15/27 |
| 862,000 |
| 670,052 | |
Southwestern Energy Co.: |
|
|
|
|
|
7.50% Sr. Unsec. Nts., 4/1/26 |
|
| 877,000 |
| 670,927 |
7.75% Sr. Unsec. Nts., 10/1/27 |
|
| 640,000 |
| 486,416 |
Sunoco LP/Sunoco Finance Corp.: |
|
|
|
|
|
4.875% Sr. Unsec. Nts., 1/15/23 |
|
| 708,000 |
| 707,954 |
6.00% Sr. Unsec. Nts., 4/15/27 |
|
| 1,339,000 |
| 1,375,585 |
Targa Resources Partners LP/Targa Resources Partners Finance |
|
|
|
| |
Corp., 5.875% Sr. Unsec. Nts., 4/15/26 |
|
| 440,000 |
| 454,069 |
Whiting Petroleum Corp.: |
|
|
|
|
|
5.75% Sr. Unsec. Nts., 3/15/21 |
|
| 1,191,000 |
| 687,505 |
6.25% Sr. Unsec. Nts., 4/1/23 |
|
| 1,287,000 |
| 582,368 |
6.625% Sr. Unsec. Nts., 1/15/26 |
|
| 1,272,000 |
| 467,492 |
|
|
|
|
| 63,699,308 |
|
|
|
|
|
|
Financials—12.4% |
|
|
|
|
|
Capital Markets—3.1% |
|
|
|
|
|
Credit Suisse AG (London): |
|
|
|
|
|
0.00% Sr. Unsec. Nts., 3/13/20-3/25/203,10 |
| 42,249,000 |
| 34,752,350 | |
Credit Suisse Group AG, 5.10% [H15T5Y+329.3] Jr. Sub. Perpetual |
|
|
|
| |
Bonds1,3,11 |
|
| 364,000 |
| 361,725 |
Goldman Sachs & Co., 12.8%, 3/20/203 |
| 20,296,000 |
| 16,511,992 | |
MDGH-GMTN BV: |
|
|
|
|
|
3.75% Sr. Unsec. Nts., 4/19/293 |
|
| 1,740,000 |
| 1,925,769 |
4.50% Sr. Unsec. Nts., 11/7/283 |
|
| 1,180,000 |
| 1,368,425 |
MSCI, Inc., 5.25% Sr. Unsec. Nts., 11/15/243 |
| 130,000 |
| 133,833 | |
RegionalCare Hospital Partners Holdings, Inc., 8.25% Sr. Sec. Nts., |
|
|
|
| |
5/1/233 |
|
| 736,000 |
| 770,235 |
|
|
|
|
| 55,824,329 |
|
|
|
|
|
|
Commercial Banks—7.3% |
|
|
|
|
|
Barclays Bank plc: |
|
|
|
|
|
7.625% Sub. Nts., 11/21/22 |
|
| 401,000 |
| 447,063 |
34.73% Sr. Unsec. Nts., 3/10/203 |
|
| 20,672,000 |
| 15,473,792 |
Barclays plc, 7.875% [USSW5+677.2] Jr. Sub. Perpetual Bonds1,3,11 |
| 394,000 |
| 416,831 | |
BNP Paribas Issuance BV, 23.87%, 4/3/2012 |
| 19,794,000 |
| 19,794,000 | |
Citigroup Global Markets Holdings, Inc. (United States): |
|
|
|
| |
12.80% Sr. Unsec. Nts., 3/24/203 |
|
| 20,431,000 |
| 16,694,025 |
32.18% Sr. Unsec. Nts., 3/9/203 |
|
| 21,869,000 |
| 15,712,968 |
Credit Agricole SA, 8.125% [USSW5+618.5] Jr. Sub. Perpetual |
|
|
|
| |
Bonds1,3,11 |
|
| 1,139,000 |
| 1,347,876 |
Erste Group Bank AG, 6.50% [EUSA5+620.4] Jr. Sub. Perpetual |
|
|
|
| |
Bonds1,3,11 |
| EUR | 576,000 |
| 720,987 |
Royal Bank of Canada: |
|
|
|
|
|
3.496% Sr. Unsec. Nts., 4/7/203,12 |
|
| 20,165,000 |
| 20,274,494 |
18.61% Sr. Unsec. Nts., 4/2/203,12 |
|
| 20,665,000 |
| 19,000,719 |
25 | INVESCO OPPENHEIMER CAPITAL INCOME FUND |
|
|
SCHEDULE OF INVESTMENTS Unaudited / Continued
|
| Principal Amount |
| Value |
Commercial Banks (Continued) |
|
|
|
|
Royal Bank of Scotland Group plc: |
|
|
|
|
6.125% Sub. Nts., 12/15/22 | $ | 556,000 | $ | 606,810 |
8.625% [USSW5+759.8] Jr. Sub. Perpetual Bonds1,11 |
| 923,000 |
| 978,172 |
Societe Generale SA, 7.375% [USSW5+623.8] Jr. Sub. Perpetual |
|
|
|
|
Bonds1,3,11 |
| 476,000 |
| 498,503 |
Standard Chartered plc, 7.50% [USSW5+630.1] Jr. Sub. Perpetual |
|
|
|
|
Bonds1,3,11 |
| 403,000 |
| 422,519 |
Toronto-Dominion Bank (The), 9.93%, 3/16/20 |
| 21,660,000 |
| 18,764,678 |
|
|
|
| 131,153,437 |
|
|
|
|
|
Consumer Finance—0.5% |
|
|
|
|
Ally Financial, Inc.: |
|
|
|
|
5.125% Sr. Unsec. Nts., 9/30/24 |
| 2,182,000 |
| 2,421,813 |
8.00% Sr. Unsec. Nts., 3/15/20 |
| 537,000 |
| 538,289 |
Navient Corp.: |
|
|
|
|
5.00% Sr. Unsec. Nts., 3/15/27 |
| 618,000 |
| 599,275 |
7.25% Sr. Unsec. Nts., 1/25/22-9/25/23 |
| 4,152,000 |
| 4,462,899 |
8.00% Sr. Unsec. Nts., 3/25/20 |
| 443,000 |
| 445,310 |
|
|
|
| 8,467,586 |
|
|
|
|
|
Diversified Financial Services—0.6% |
|
|
|
|
eG Global Finance plc, 6.75% Sr. Sec. Nts., 2/7/253 |
| 2,336,000 |
| 2,288,310 |
JIC Zhixin Ltd., 3.00% Sr. Unsec. Nts., 11/24/223 |
| 2,570,000 |
| 2,641,361 |
Lions Gate Capital Holdings LLC, 6.375% Sr. Unsec. Nts., 2/1/243 |
| 2,910,000 |
| 2,859,046 |
LPL Holdings, Inc., 5.75% Sr. Unsec. Nts., 9/15/253 |
| 736,000 |
| 765,433 |
Tempo Acquisition LLC/Tempo Acquisition Finance Corp., 6.75% Sr. |
|
|
|
|
Unsec. Nts., 6/1/253 |
| 2,620,000 |
| 2,614,262 |
|
|
|
| 11,168,412 |
|
|
|
|
|
Insurance—0.0% |
|
|
|
|
AmWINS Group, Inc., 7.75% Sr. Unsec. Nts., 7/1/263 |
| 670,000 |
| 697,455 |
|
|
|
|
|
Real Estate Investment Trusts (REITs)—0.8% |
|
|
|
|
Equinix, Inc., 5.875% Sr. Unsec. Nts., 1/15/26 |
| 1,090,000 |
| 1,154,016 |
Iron Mountain US Holdings, Inc., 5.375% Sr. Unsec. Nts., 6/1/263 |
| 1,274,000 |
| 1,322,218 |
Iron Mountain, Inc.: |
|
|
|
|
5.25% Sr. Unsec. Nts., 3/15/283 |
| 1,575,000 |
| 1,633,511 |
5.75% Sr. Sub. Nts., 8/15/24 |
| 215,000 |
| 217,148 |
6.00% Sr. Unsec. Nts., 8/15/23 |
| 385,000 |
| 392,540 |
iStar, Inc., 4.75% Sr. Unsec. Nts., 10/1/24 |
| 2,556,000 |
| 2,614,417 |
MPT Operating Partnership LP/MPT Finance Corp., 5.00% Sr. Unsec. |
|
|
|
|
Nts., 10/15/27 |
| 2,468,000 |
| 2,581,614 |
Rayonier AM Products, Inc., 5.50% Sr. Unsec. Nts., 6/1/243 |
| 2,255,000 |
| 1,296,163 |
SBA Communications Corp., 4.875% Sr. Unsec. Nts., 9/1/24 |
| 758,000 |
| 780,585 |
Service Properties Trust, 4.95% Sr. Unsec. Nts., 10/1/29 |
| 976,000 |
| 1,030,633 |
VICI Properties LP/VICI Note Co., Inc.: |
|
|
|
|
3.50% Sr. Unsec. Nts., 2/15/253 |
| 410,000 |
| 411,404 |
3.75% Sr. Unsec. Nts., 2/15/273 |
| 412,000 |
| 409,682 |
26 INVESCO OPPENHEIMER CAPITAL INCOME FUND
|
|
| Principal Amount |
| Value |
Real Estate Investment Trusts (REITs) (Continued) |
|
|
|
| |
VICI Properties LP/VICI Note Co., Inc.: (Continued) |
|
|
|
| |
4.125% Sr. Unsec. Nts., 8/15/303 |
| $ | 612,000 | $ | 613,913 |
|
|
|
|
| 14,457,844 |
|
|
|
|
| |
Thrifts & Mortgage Finance—0.1% |
|
|
|
| |
Nationstar Mortgage Holdings, Inc., 6.00% Sr. Unsec. Nts., 1/15/273 |
| 813,000 |
| 827,435 | |
|
|
|
|
|
|
Health Care—2.1% |
|
|
|
|
|
Health Care Equipment & Supplies—0.0% |
|
|
|
| |
Teleflex, Inc., 4.875% Sr. Unsec. Nts., 6/1/26 |
| 106,000 |
| 110,807 | |
|
|
|
|
| |
Health Care Providers & Services—1.1% |
|
|
|
| |
Acadia Healthcare Co., Inc., 6.50% Sr. Unsec. Nts., 3/1/24 |
| 1,102,000 |
| 1,134,140 | |
Centene Corp.: |
|
|
|
|
|
4.625% Sr. Unsec. Nts., 12/15/293 |
|
| 612,000 |
| 655,972 |
5.25% Sr. Unsec. Nts., 4/1/253 |
|
| 797,000 |
| 822,903 |
5.375% Sr. Unsec. Nts., 6/1/26-8/15/263 |
| 990,000 |
| 1,043,528 | |
CHS/Community Health Systems, Inc.: |
|
|
|
|
|
6.625% Sr. Sec. Nts., 2/15/253 |
|
| 1,410,000 |
| 1,441,725 |
6.875% Sr. Unsec. Nts., 2/1/22 |
|
| 653,000 |
| 615,453 |
8.00% Sr. Sec. Nts., 3/15/263 |
|
| 1,165,000 |
| 1,205,279 |
Envision Healthcare Corp., 8.75% Sr. Unsec. Nts., 10/15/263 |
| 300,000 |
| 159,646 | |
Hadrian Merger Sub, Inc., 8.50% Sr. Unsec. Nts., 5/1/263 |
| 2,521,000 |
| 2,584,901 | |
HCA, Inc.: |
|
|
|
|
|
5.25% Sr. Sec. Nts., 4/15/25 |
|
| 821,000 |
| 933,447 |
5.375% Sr. Unsec. Nts., 2/1/25 |
|
| 541,000 |
| 599,203 |
5.875% Sr. Unsec. Nts., 2/15/26 |
|
| 2,366,000 |
| 2,675,307 |
7.50% Sr. Unsec. Nts., 2/15/22 |
|
| 239,000 |
| 264,568 |
Molina Healthcare, Inc., 4.875% Sr. Unsec. Nts., 6/15/253 |
| 870,000 |
| 885,586 | |
MPH Acquisition Holdings LLC, 7.125% Sr. Unsec. Nts., 6/1/243 |
| 1,767,000 |
| 1,648,099 | |
Surgery Center Holdings, Inc., 10.00% Sr. Unsec. Nts., 4/15/273 |
| 671,000 |
| 734,978 | |
Team Health Holdings, Inc., 6.375% Sr. Unsec. Nts., 2/1/253 |
| 925,000 |
| 511,446 | |
Tenet Healthcare Corp., 8.125% Sr. Unsec. Nts., 4/1/22 |
| 682,000 |
| 740,127 | |
|
|
|
|
| 18,656,308 |
|
|
|
|
| |
Life Sciences Tools & Services—0.1% |
|
|
|
| |
Charles River Laboratories International, Inc., 4.25% Sr. Unsec. Nts., |
|
|
|
| |
5/1/283 |
|
| 1,613,000 |
| 1,626,146 |
|
|
|
|
|
|
Pharmaceuticals—0.9% |
|
|
|
|
|
Bausch Health Americas, Inc., 9.25% Sr. Unsec. Nts., 4/1/263 |
| 1,819,000 |
| 2,035,770 | |
Bausch Health Cos., Inc.: |
|
|
|
|
|
5.50% Sr. Sec. Nts., 11/1/253 |
|
| 582,000 |
| 600,429 |
5.75% Sr. Sec. Nts., 8/15/273 |
|
| 393,000 |
| 418,781 |
5.875% Sr. Unsec. Nts., 5/15/233 |
|
| 15,000 |
| 15,066 |
6.125% Sr. Unsec. Nts., 4/15/253 |
|
| 1,083,000 |
| 1,106,918 |
9.00% Sr. Unsec. Nts., 12/15/253 |
|
| 4,486,000 |
| 5,006,197 |
Endo Dac/Endo Finance LLC/Endo Finco, Inc., 6.00% Sr. Unsec. Nts., |
|
|
|
| |
7/15/233 |
|
| 1,897,000 |
| 1,493,906 |
27 | INVESCO OPPENHEIMER CAPITAL INCOME FUND |
|
|
SCHEDULE OF INVESTMENTS Unaudited / Continued
|
| Principal Amount |
| Value |
Pharmaceuticals (Continued) |
|
|
|
|
HCA, Inc., 5.375% Sr. Unsec. Nts., 9/1/26 | $ | 1,084,000 | $ | 1,208,449 |
HLF Financing Sarl LLC/Herbalife International, Inc., 7.25% Sr. |
|
|
|
|
Unsec. Nts., 8/15/263 |
| 2,356,000 |
| 2,382,505 |
Par Pharmaceutical, Inc., 7.50% Sr. Sec. Nts., 4/1/273 |
| 1,999,000 |
| 2,115,991 |
|
|
|
| 16,384,012 |
|
|
|
|
|
Industrials—3.2% |
|
|
|
|
Aerospace & Defense—1.0% |
|
|
|
|
Bombardier, Inc.: |
|
|
|
|
5.75% Sr. Unsec. Nts., 3/15/223 |
| 575,000 |
| 587,524 |
7.50% Sr. Unsec. Nts., 3/15/253 |
| 2,861,000 |
| 2,832,390 |
7.875% Sr. Unsec. Nts., 4/15/273 |
| 1,469,000 |
| 1,461,692 |
8.75% Sr. Unsec. Nts., 12/1/213 |
| 275,000 |
| 291,712 |
Moog, Inc., 4.25% Sr. Unsec. Nts., 12/15/273 |
| 1,146,000 |
| 1,168,920 |
Spirit AeroSystems, Inc., 4.60% Sr. Unsec. Nts., 6/15/28 |
| 681,000 |
| 676,701 |
TransDigm UK Holdings plc, 6.875% Sr. Sub. Nts., 5/15/26 |
| 3,590,000 |
| 3,779,723 |
TransDigm, Inc.: |
|
|
|
|
6.25% Sr. Sec. Nts., 3/15/263 |
| 2,472,000 |
| 2,621,867 |
6.50% Sr. Sub. Nts., 7/15/24-5/15/25 |
| 733,000 |
| 753,737 |
Triumph Group, Inc.: |
|
|
|
|
5.25% Sr. Unsec. Nts., 6/1/22 |
| 924,000 |
| 908,118 |
7.75% Sr. Unsec. Nts., 8/15/25 |
| 2,972,000 |
| 2,950,943 |
|
|
|
| 18,033,327 |
|
|
|
|
|
Airlines—0.0% |
|
|
|
|
Air Canada, 7.75% Sr. Unsec. Nts., 4/15/213 |
| 840,000 |
| 878,136 |
|
|
|
|
|
Building Products—0.1% |
|
|
|
|
Builders FirstSource, Inc., 5.00% Sr. Unsec. Nts., 3/1/303 |
| 392,000 |
| 392,923 |
Standard Industries, Inc., 6.00% Sr. Unsec. Nts., 10/15/253 |
| 739,000 |
| 774,095 |
|
|
|
| 1,167,018 |
|
|
|
|
|
Commercial Services & Supplies—0.4% |
|
|
|
|
Brink's Co. (The), 4.625% Sr. Unsec. Nts., 10/15/273 |
| 1,764,000 |
| 1,812,197 |
GFL Environmental Inc., 7.00% Sr. Unsec. Nts., 6/1/263 |
| 601,000 |
| 633,513 |
GW B-CR Security Corp., 9.50% Sr. Unsec. Nts., 11/1/273 |
| 1,384,000 |
| 1,469,600 |
IAA, Inc., 5.50% Sr. Unsec. Nts., 6/15/273 |
| 738,000 |
| 782,723 |
Pitney Bowes, Inc., 5.20% Sr. Unsec. Nts., 4/1/23 |
| 451,000 |
| 452,315 |
Prime Security Services Borrower LLC/Prime Finance, Inc., 5.75% Sr. |
|
|
|
|
Sec. Nts., 4/15/263 |
| 1,132,000 |
| 1,179,401 |
Waste Pro USA, Inc., 5.50% Sr. Unsec. Nts., 2/15/263 |
| 1,529,000 |
| 1,494,869 |
|
|
|
| 7,824,618 |
|
|
|
|
|
Construction & Engineering—0.1% |
|
|
|
|
Valmont Industries, Inc., 5.00% Sr. Unsec. Nts., 10/1/44 |
| 980,000 |
| 1,129,825 |
|
|
|
|
|
Electrical Equipment—0.2% |
|
|
|
|
EnerSys: |
|
|
|
|
4.375% Sr. Unsec. Nts., 12/15/273 |
| 1,670,000 |
| 1,692,962 |
28 INVESCO OPPENHEIMER CAPITAL INCOME FUND
|
|
| Principal Amount |
| Value |
Electrical Equipment (Continued) |
|
|
|
|
|
EnerSys: (Continued) |
|
|
|
|
|
5.00% Sr. Unsec. Nts., 4/30/233 |
| $ | 1,290,000 | $ | 1,353,965 |
|
|
|
|
| 3,046,927 |
|
|
|
|
|
|
Machinery—0.7% |
|
|
|
|
|
Cleaver-Brooks, Inc., 7.875% Sr. Sec. Nts., 3/1/233 |
| 3,227,000 |
| 3,188,002 | |
EnPro Industries, Inc., 5.75% Sr. Unsec. Nts., 10/15/26 |
| 2,352,000 |
| 2,505,697 | |
Mueller Industries, Inc., 6.00% Sub. Nts., 3/1/27 |
| 2,299,000 |
| 2,328,536 | |
Titan International, Inc., 6.50% Sr. Sec. Nts., 11/30/23 |
| 3,542,000 |
| 2,666,825 | |
United Rentals North America, Inc., 5.25% Sr. Unsec. Nts., 1/15/30 |
| 1,626,000 |
| 1,713,560 | |
|
|
|
|
| 12,402,620 |
|
|
|
|
|
|
Professional Services—0.1% |
|
|
|
|
|
ASGN, Inc., 4.625% Sr. Unsec. Nts., 5/15/283 |
| 1,747,000 |
| 1,730,666 | |
Dun & Bradstreet Corp. (The), 10.25% Sr. Unsec. Nts., 2/15/273 |
| 804,000 |
| 903,977 | |
|
|
|
|
| 2,634,643 |
|
|
|
|
|
|
Road & Rail—0.2% |
|
|
|
|
|
Avis Budget Car Rental LLC/Avis Budget Finance, Inc.: |
|
|
|
| |
5.25% Sr. Unsec. Nts., 3/15/253 |
|
| 332,000 |
| 335,591 |
6.375% Sr. Unsec. Nts., 4/1/243 |
|
| 385,000 |
| 388,047 |
Kenan Advantage Group, Inc. (The), 7.875% Sr. Unsec. Nts., |
|
|
|
| |
7/31/233 |
|
| 3,600,000 |
| 3,556,494 |
|
|
|
|
| 4,280,132 |
|
|
|
|
| |
Trading Companies & Distributors—0.4% |
|
|
|
| |
AerCap Global Aviation Trust, 6.50% [US0003M+430] Jr. Sub. Nts., |
|
|
|
| |
6/15/451,3 |
|
| 1,561,000 |
| 1,682,134 |
BMC East LLC, 5.50% Sr. Sec. Nts., 10/1/243 |
| 1,225,000 |
| 1,265,321 | |
Herc Holdings, Inc., 5.50% Sr. Unsec. Nts., 7/15/273 |
| 1,910,000 |
| 1,986,257 | |
United Rentals North America, Inc.: |
|
|
|
|
|
5.50% Sr. Unsec. Nts., 5/15/27 |
|
| 163,000 |
| 170,747 |
5.875% Sr. Unsec. Nts., 9/15/26 |
|
| 780,000 |
| 822,880 |
6.50% Sr. Unsec. Nts., 12/15/26 |
|
| 637,000 |
| 680,411 |
|
|
|
|
| 6,607,750 |
|
|
|
|
|
|
Information Technology—0.8% |
|
|
|
|
|
Communications Equipment—0.3% |
|
|
|
| |
CommScope Technologies LLC, 6.00% Sr. Unsec. Nts., 6/15/253 |
| 1,470,000 |
| 1,385,475 | |
Hughes Satellite Systems Corp., 5.25% Sr. Sec. Nts., 8/1/26 |
| 2,472,000 |
| 2,716,969 | |
Level 3 Financing, Inc., 4.625% Sr. Unsec. Nts., 9/15/273 |
| 750,000 |
| 766,387 | |
|
|
|
|
| 4,868,831 |
|
|
|
|
| |
Electronic Equipment, Instruments, & Components—0.1% |
|
|
|
| |
Itron, Inc., 5.00% Sr. Unsec. Nts., 1/15/263 |
| 1,115,000 |
| 1,150,850 | |
MTS Systems Corp., 5.75% Sr. Unsec. Nts., 8/15/273 |
| 1,435,000 |
| 1,464,199 | |
|
|
|
|
| 2,615,049 |
29 | INVESCO OPPENHEIMER CAPITAL INCOME FUND |
|
|
SCHEDULE OF INVESTMENTS Unaudited / Continued
|
| Principal Amount |
| Value |
IT Services—0.1% |
|
|
|
|
Alliance Data Systems Corp., 4.75% Sr. Unsec. Nts., 12/15/243 | $ | 1,592,000 | $ | 1,566,130 |
Cardtronics, Inc./Cardtronics USA, Inc., 5.50% Sr. Unsec. Nts., |
|
|
|
|
5/1/253 |
| 911,000 |
| 936,430 |
Exela Intermediate LLC/Exela Finance, Inc., 10.00% Sr. Sec. Nts., |
|
|
|
|
7/15/233 |
| 359,000 |
| 122,060 |
Rackspace Hosting, Inc., 8.625% Sr. Unsec. Nts., 11/15/243 |
| 5,000 |
| 4,800 |
|
|
|
| 2,629,420 |
|
|
|
|
|
Software—0.1% |
|
|
|
|
Banff Merger Sub, Inc., 9.75% Sr. Unsec. Nts., 9/1/263 |
| 452,000 |
| 456,532 |
Camelot Finance SA, 4.50% Sr. Sec. Nts., 11/1/263 |
| 720,000 |
| 724,877 |
Castle US Holding Corp., 9.50% Sr. Unsec. Nts., 2/15/283 |
| 145,000 |
| 145,453 |
EIG Investors Corp., 10.875% Sr. Unsec. Nts., 2/1/24 |
| 60,000 |
| 62,837 |
|
|
|
| 1,389,699 |
|
|
|
|
|
Technology Hardware, Storage & Peripherals—0.2% |
|
|
|
|
Dell International LLC/EMC Corp.: |
|
|
|
|
7.125% Sr. Unsec. Nts., 6/15/243 |
| 1,188,000 |
| 1,244,430 |
8.10% Sr. Sec. Nts., 7/15/363 |
| 1,276,000 |
| 1,753,821 |
Presidio Holdings, Inc., 8.25% Sr. Unsec. Nts., 2/1/283 |
| 228,000 |
| 235,695 |
|
|
|
| 3,233,946 |
|
|
|
|
|
Materials—2.8% |
|
|
|
|
Chemicals—0.6% |
|
|
|
|
Chemours Co. (The), 7.00% Sr. Unsec. Nts., 5/15/25 |
| 1,049,000 |
| 980,380 |
Element Solutions, Inc., 5.875% Sr. Unsec. Nts., 12/1/253 |
| 1,312,000 |
| 1,321,853 |
GCP Applied Technologies, Inc., 5.50% Sr. Unsec. Nts., 4/15/263 |
| 1,058,000 |
| 1,103,332 |
Koppers, Inc., 6.00% Sr. Unsec. Nts., 2/15/253 |
| 1,230,000 |
| 1,214,613 |
Nufarm Australia Ltd./Nufarm Americas, Inc., 5.75% Sr. Unsec. Nts., |
|
|
|
|
4/30/263 |
| 983,000 |
| 971,054 |
OCI NV, 6.625% Sr. Sec. Nts., 4/15/233 |
| 874,000 |
| 908,523 |
Olin Corp., 5.625% Sr. Unsec. Nts., 8/1/29 |
| 1,906,000 |
| 1,926,299 |
Trinseo Materials Operating SCA/Trinseo Materials Finance, Inc., |
|
|
|
|
5.375% Sr. Unsec. Nts., 9/1/253 |
| 1,304,000 |
| 1,212,720 |
|
|
|
| 9,638,774 |
|
|
|
|
|
Construction Materials—0.0% |
|
|
|
|
Cemex SAB de CV, 5.45% Sr. Sec. Nts., 11/19/293 |
| 505,000 |
| 507,525 |
|
|
|
|
|
Containers & Packaging—0.3% |
|
|
|
|
Ardagh Packaging Finance plc/Ardagh Holdings USA, Inc., 6.00% |
|
|
|
|
Sr. Unsec. Nts., 2/15/253 |
| 1,147,000 |
| 1,198,615 |
Cascades, Inc./Cascades USA, Inc., 5.375% Sr. Unsec. Nts., 1/15/283 |
| 685,000 |
| 707,263 |
Flex Acquisition Co., Inc., 7.875% Sr. Unsec. Nts., 7/15/263 |
| 2,298,000 |
| 2,337,807 |
Trivium Packaging Finance BV: |
|
|
|
|
5.50% Sr. Sec. Nts., 8/15/263 |
| 372,000 |
| 386,183 |
8.50% Sr. Unsec. Nts., 8/15/273 |
| 380,000 |
| 400,197 |
|
|
|
| 5,030,065 |
30 INVESCO OPPENHEIMER CAPITAL INCOME FUND
|
|
|
| Principal Amount |
| Value |
Metals & Mining—1.6% |
|
|
|
|
| |
AK Steel Corp., 7.625% Sr. Unsec. Nts., 10/1/21 | $ | 459,000 | $ | 459,436 | ||
Corp. Nacional del Cobre de Chile: |
|
|
|
|
| |
4.25% | Sr. Unsec. Nts., 7/17/423 |
|
| 2,670,000 |
| 2,933,324 |
4.50% | Sr. Unsec. Nts., 8/1/473 |
|
| 2,340,000 |
| 2,681,961 |
4.875% Sr. Unsec. Nts., 11/4/443 |
|
| 105,000 |
| 126,154 | |
5.625% Sr. Unsec. Nts., 9/21/35-10/18/433 |
| 1,545,000 |
| 2,011,603 | ||
6.15% | Sr. Unsec. Nts., 10/24/363 |
|
| 1,390,000 |
| 1,895,522 |
First Quantum Minerals Ltd., 7.50% Sr. Unsec. Nts., 4/1/253 |
| 3,536,000 |
| 3,375,412 | ||
Freeport-McMoRan, Inc., 5.40% Sr. Unsec. Nts., 11/14/34 |
| 3,406,000 |
| 3,329,970 | ||
Hudbay Minerals, Inc., 7.625% Sr. Unsec. Nts., 1/15/253 |
| 2,501,000 |
| 2,414,503 | ||
Novelis Corp., 4.75% Sr. Unsec. Nts., 1/30/303 |
| 1,269,000 |
| 1,249,553 | ||
SunCoke Energy Partners LP/SunCoke Energy Partners Finance |
|
|
|
| ||
Corp., 7.50% Sr. Unsec. Nts., 6/15/253 |
|
| 3,627,000 |
| 3,273,331 | |
Taseko Mines Ltd., 8.75% Sr. Sec. Nts., 6/15/223 |
| 2,163,000 |
| 1,952,782 | ||
Teck Resources Ltd., 6.125% Sr. Unsec. Nts., 10/1/35 |
| 1,507,000 |
| 1,792,940 | ||
Vedanta Resources plc, 6.375% Sr. Unsec. Nts., 7/30/223 |
| 647,000 |
| 618,410 | ||
|
|
|
|
|
| 28,114,901 |
|
|
|
|
|
| |
Paper & Forest Products—0.3% |
|
|
|
|
| |
Mercer International, Inc., 5.50% Sr. Unsec. Nts., 1/15/26 |
| 941,000 |
| 889,927 | ||
Norbord, Inc., 5.75% Sr. Sec. Nts., 7/15/273 |
| 2,000,000 |
| 2,100,695 | ||
Schweitzer-Mauduit International, Inc., 6.875% Sr. Unsec. Nts., |
|
|
|
| ||
10/1/263 |
|
| 2,697,000 |
| 2,900,212 | |
|
|
|
|
|
| 5,890,834 |
|
|
|
|
| ||
Telecommunication Services—2.1% |
|
|
|
| ||
Diversified Telecommunication Services—1.2% |
|
|
|
| ||
Altice France SA, 7.375% Sr. Sec. Nts., 5/1/263 |
| 2,476,000 |
| 2,601,162 | ||
AT&T, Inc., 4.75% Sr. Unsec. Nts., 5/15/46 |
| 976,000 |
| 1,152,558 | ||
CenturyLink, Inc.: |
|
|
|
|
| |
6.45% | Sr. Unsec. Nts., Series S, 6/15/21 |
| 1,021,000 |
| 1,061,585 | |
7.50% | Sr. Unsec. Nts., Series Y, 4/1/24 |
|
| 1,879,000 |
| 2,109,957 |
Cincinnati Bell, Inc.: |
|
|
|
|
| |
7.00% | Sr. Unsec. Nts., 7/15/243 |
|
| 931,000 |
| 981,032 |
8.00% | Sr. Unsec. Nts., 10/15/253 |
|
| 110,000 |
| 118,502 |
CommScope, Inc.: |
|
|
|
|
| |
6.00% | Sr. Sec. Nts., 3/1/263 |
|
| 565,000 |
| 580,992 |
8.25% | Sr. Unsec. Nts., 3/1/273 |
|
| 1,128,000 |
| 1,139,957 |
Embarq Corp., 7.995% Sr. Unsec. Nts., 6/1/36 |
| 1,880,000 |
| 2,005,537 | ||
Frontier Communications Corp.: |
|
|
|
|
| |
10.50% Sr. Unsec. Nts., 9/15/22 |
|
| 4,142,000 |
| 1,891,080 | |
11.00% Sr. Unsec. Nts., 9/15/25 |
|
| 1,650,000 |
| 759,000 | |
Intelsat Jackson Holdings SA, 9.75% Sr. Unsec. Nts., 7/15/253 |
| 1,272,000 |
| 1,128,372 | ||
Level 3 Financing, Inc.: |
|
|
|
|
| |
5.25% | Sr. Unsec. Nts., 3/15/26 |
|
| 925,000 |
| 956,774 |
5.375% Sr. Unsec. Nts., 5/1/25 |
|
| 942,000 |
| 963,586 | |
Telecom Italia Capital SA: |
|
|
|
|
| |
6.375% Sr. Unsec. Nts., 11/15/33 |
|
| 190,000 |
| 220,595 | |
7.20% | Sr. Unsec. Nts., 7/18/36 |
|
| 1,515,000 |
| 1,879,888 |
| 31 | INVESCO OPPENHEIMER CAPITAL INCOME FUND |
|
|
SCHEDULE OF INVESTMENTS Unaudited / Continued
|
| Principal Amount |
| Value |
Diversified Telecommunication Services (Continued) |
|
|
|
|
T-Mobile USA, Inc., 6.50% Sr. Unsec. Nts., 1/15/26 | $ | 2,019,000 | $ | 2,129,338 |
|
|
|
| 21,679,915 |
|
|
|
|
|
Wireless Telecommunication Services—0.9% |
|
|
|
|
Intelsat Jackson Holdings SA, 8.50% Sr. Unsec. Nts., 10/15/243 |
| 1,659,000 |
| 1,455,084 |
Intelsat Luxembourg SA, 7.75% Sr. Unsec. Nts., 6/1/21 |
| 651,000 |
| 493,132 |
Oztel Holdings SPC Ltd., 5.625% Sr. Sec. Nts., 10/24/233 |
| 724,000 |
| 761,955 |
Sprint Capital Corp., 8.75% Sr. Unsec. Nts., 3/15/32 |
| 976,000 |
| 1,358,445 |
Sprint Communications, Inc., 11.50% Sr. Unsec. Nts., 11/15/21 |
| 502,000 |
| 574,449 |
Sprint Corp.: |
|
|
|
|
7.25% Sr. Unsec. Nts., 9/15/21 |
| 1,257,000 |
| 1,336,405 |
7.625% Sr. Unsec. Nts., 2/15/25-3/1/26 |
| 1,640,000 |
| 1,926,670 |
7.875% Sr. Unsec. Nts., 9/15/23 |
| 4,527,000 |
| 5,185,294 |
Ypso Finance Bis SA, 10.50% Sr. Sec. Nts., 5/15/27 |
| 1,629,000 |
| 1,854,502 |
|
|
|
| 14,945,936 |
|
|
|
|
|
Utilities—0.5% |
|
|
|
|
Electric Utilities—0.0% |
|
|
|
|
DPL, Inc., 4.35% Sr. Unsec. Nts., 4/15/293 |
| 958,000 |
| 896,081 |
|
|
|
|
|
Gas Utilities—0.1% |
|
|
|
|
AmeriGas Partners LP/AmeriGas Finance Corp., 5.875% Sr. Unsec. |
|
|
|
|
Nts., 8/20/26 |
| 1,152,000 |
| 1,197,354 |
Suburban Propane Partners LP/Suburban Energy Finance Corp., |
|
|
|
|
5.50% Sr. Unsec. Nts., 6/1/24 |
| 957,000 |
| 949,354 |
Superior Plus LP/Superior General Partner, Inc., 7.00% Sr. Unsec. |
|
|
|
|
Nts., 7/15/263 |
| 149,000 |
| 159,854 |
|
|
|
| 2,306,562 |
|
|
|
|
|
Independent Power and Renewable Electricity Producers—0.4% |
|
|
|
|
AES Corp., 5.50% Sr. Unsec. Nts., 4/15/25 |
| 530,000 |
| 543,467 |
Calpine Corp.: |
|
|
|
|
5.125% Sr. Unsec. Nts., 3/15/283 |
| 750,000 |
| 706,875 |
5.50% Sr. Unsec. Nts., 2/1/24 |
| 740,000 |
| 728,907 |
Enviva Partners LP/Enviva Partners Finance Corp., 6.50% Sr. Unsec. |
|
|
|
|
Nts., 1/15/263 |
| 1,380,000 |
| 1,438,678 |
NRG Energy, Inc.: |
|
|
|
|
5.25% Sr. Unsec. Nts., 6/15/293 |
| 1,595,000 |
| 1,660,778 |
6.625% Sr. Unsec. Nts., 1/15/27 |
| 898,000 |
| 937,934 |
7.25% Sr. Unsec. Nts., 5/15/26 |
| 397,000 |
| 421,574 |
|
|
|
| 6,438,213 |
Total Non-Convertible Corporate Bonds and Notes (Cost $702,564,013) |
|
|
| 659,206,320 |
|
|
|
|
|
Convertible Corporate Bonds and Notes—2.1% |
|
|
|
|
Colony Capital, Inc.: |
|
|
|
|
3.875% Cv. Sr. Unsec. Nts., 1/15/21 |
| 205,000 |
| 203,455 |
5.00% Cv. Sr. Unsec. Nts., 4/15/23 |
| 855,000 |
| 848,970 |
DISH Network Corp., 3.375% Cv. Sr. Unsec. Nts., 8/15/26 |
| 1,700,000 |
| 1,645,613 |
Royal Bank of Canada, 9.12%, 3/6/203 |
| 21,856,000 |
| 18,751,010 |
32 INVESCO OPPENHEIMER CAPITAL INCOME FUND
|
| Principal Amount |
| Value |
Convertible Corporate Bonds and Notes (Continued) |
|
|
|
|
Wells Fargo Bank NA, 38.70%, 3/17/20 | $ | 21,413,000 | $ | 16,298,529 |
Whiting Petroleum Corp., 1.25% Cv. Sr. Unsec. Nts., 4/1/20 |
| 195,000 |
| 175,988 |
Total Convertible Corporate Bonds and Notes (Cost $46,169,187) |
|
|
| 37,923,565 |
|
| Shares |
| Value |
Investment Companies—14.8% |
|
|
|
|
Alerian MLP Exchange Traded Fund |
| 2,301,200 | $ | 15,349,003 |
Invesco Government & Agency Portfolio, Institutional Class, 1.50%13 |
| 238,480,139 |
| 238,480,139 |
Invesco Senior Loan Exchange Traded Fund14 |
| 320,000 |
| 7,036,800 |
Vanguard Real Estate Exchange Traded Fund |
| 60,000 |
| 5,247,040 |
Total Investment Companies (Cost $271,670,281) |
|
|
| 266,112,982 |
|
|
|
|
|
Total Investments, at Value (Cost $1,838,460,897) |
| 99.7% |
| 1,787,681,997 |
Net Other Assets (Liabilities)
Net Assets
0.35,958,761
100.0% $ 1,793,640,758
Footnotes to Schedule of Investments
1.Represents the current interest rate for a variable or increasing rate security, which may be fixed for a predetermined period. The interest rate is, or will be as of an established date, determined as [Referenced Rate + Basis-point spread].
2.Non-income producing security.
3.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 February 29, 2020 was $662,319,620, which represented 36.93% of the Fund's Net Assets.
4.This interest rate resets periodically. Interest rate shown reflects the rate in effect at period end. The rate on this variable rate security is not based on a published reference rate and spread but is determined by the issuer or agent based on current market conditions.
5.Interest-Only Strips represent the right to receive the monthly interest payments on an underlying pool of mortgage loans. These securities typically decline in price as interest rates decline. Most other fixed income securities increase in price when interest rates decline. The principal amount of the underlying pool represents the notional amount on which current interest is calculated. The price of these securities is typically more sensitive to changes in prepayment rates than traditional mortgage-backed securities (for example, GNMA pass-throughs). Interest rates disclosed represent current yields based upon the current cost basis and estimated timing and amount of future cash flows.
These securities amount to $453,899 or 0.03% of the Fund's net assets at period end.
6.Interest rate is less than 0.0005%.
7.Principal-Only Strips represent the right to receive the monthly principal payments on an underlying pool of mortgage loans. The value of these securities generally increases as interest rates decline and prepayment rates rise. The price of these securities is typically more volatile than that of coupon-bearing bonds of the same maturity. Interest rates disclosed represent current yields based upon the current cost basis and estimated timing of future cash flows.
These securities amount to $42,186 or 0.00% of the Fund's net assets at period end.
8.All or a portion of the security position is held in accounts at a futures clearing merchant and pledged to cover margin requirements on open futures contracts and written options on futures, if applicable. The aggregate market value of such securities is $7,429,001. See Note 4 of the accompanying Notes.
9.Interest or dividend is paid-in-kind, when applicable.
10.Zero coupon bond reflects effective yield on the original acquisition date.
11.This bond has no contractual maturity date, is not redeemable and contractually pays an indefinite stream of interest.
12.All or a portion of the security position is when-issued or delayed delivery to be delivered and settled after period end. See Note 1 of the accompanying Notes.
33 INVESCO OPPENHEIMER CAPITAL INCOME FUND
SCHEDULE OF INVESTMENTS Unaudited / Continued
Footnotes to Schedule of Investments (continued)
13.The money market fund and the Fund are affiliated by having the same investment adviser. The rate shown is the
7-day SEC standardized yield as of February 29, 2020.
14.Is or was an affiliate, as defined in the Investment Company Act of 1940, as amended, at or during the reporting period, by virtue of the Fund owning at least 5% of the voting securities of the issuer or as a result of the Fund and the issuer having the same investment adviser. Transactions during the reporting period in which the issuer was an affiliate are as follows:
| Shares | Gross | Gross | Shares |
| August 31, 2019 | Additions | ReductionsFebruary 29, 2020 | |
Investment Company |
|
|
|
|
Invesco Oppenheimer Master Loan |
|
|
|
|
Fund | 15,497,138 | 22,837 | 15,519,975 | — |
Invesco Senior Loan Exchange |
|
|
|
|
Traded Fund | — | 320,000 | — | 320,000 |
|
|
|
|
|
|
|
|
|
|
| Change in |
|
|
|
|
|
|
|
| Realized |
|
| Unrealized |
|
|
|
|
| Value | Income |
| Gain (Loss) |
|
| Gain (Loss) |
Investment Company |
|
|
|
|
|
|
|
|
|
| |
Invesco Oppenheimer Master Loan |
|
|
|
|
|
|
|
| |||
Fund |
| $ |
| — $ | 4,758,300a,b$ |
| (27,147,151)a | $ | 21,948,394 | ||
Invesco Senior Loan Exchange |
|
|
| 7,036,800 |
|
|
|
|
|
| |
Traded Fund |
|
|
|
| 25,616 |
| — |
|
| (224,000) | |
Total |
|
| $ | 7,036,800 $ | 4,783,916 $ | (27,147,151) | $ | 21,724,394 | |||
|
|
|
| ||||||||
a. Represents the amount allocated to the fund from Invesco Oppenheimer Master Loan Fund. |
| ||||||||||
b. Net of expenses allocated to the Fund from Invesco Oppenheimer Master Loan Fund. |
|
|
| ||||||||
|
|
|
|
|
|
| |||||
Futures Contracts as of February 29, 2020 |
|
|
|
|
|
| |||||
|
|
|
|
|
|
|
|
|
|
| Unrealized |
|
| Expiration | NumberNotional Amount |
|
|
| Appreciation/ | ||||
Description | Buy/Sell |
|
| Date | of Contracts | (000's) | Value | (Depreciation) | |||
E-Mini Russell |
|
|
|
|
|
|
|
|
|
|
|
2000 Index | Buy | 3/20/20 | 540 | USD 44,910 | $ 39,822,300 | $ | (5,087,898) | ||||
Euro Stoxx 50 | Buy | 3/20/20 | 2,370 | EUR 97,168 | 86,706,219 |
|
| (10,461,869) | |||
FTSE 100 Index | Buy | 3/20/20 | 723 | GBP 68,814 | 60,518,830 |
|
| (8,295,183) | |||
Long Gilt | Buy | 6/26/20 | 920 | GBP 158,104 | 159,714,855 |
|
| 1,611,169 | |||
S&P 500 E-Mini |
|
|
|
|
|
|
|
|
|
|
|
Index | Buy | 3/20/20 | 622 | USD 99,558 | 91,776,100 |
|
| (7,781,407) | |||
Topix Index | Buy | 3/12/20 | 805 | JPY 127,430 | 111,913,360 |
|
| (15,516,449) | |||
United States |
|
|
|
|
|
|
|
|
|
|
|
Treasury Long |
|
|
|
|
|
|
|
|
|
|
|
Bonds | Buy | 6/19/20 | 530 | USD 88,249 | 90,232,500 |
|
| 1,983,162 | |||
United States |
|
|
|
|
|
|
|
|
|
|
|
Treasury Long |
|
|
|
|
|
|
|
|
|
|
|
Bonds | Sell | 6/19/20 | 220 | USD 36,671 | 37,455,000 |
|
| (784,227) | |||
United States |
|
|
|
|
|
|
|
|
|
|
|
Treasury Nts., 5 yr. | Buy | 6/30/20 | 279 | USD 33,934 | 34,247,250 |
|
| 313,311 | |||
United States, 10 |
|
|
|
|
|
|
|
|
|
|
|
yr. Ultra | Sell | 6/19/20 | 21 | USD 3,104 | 3,154,594 |
|
| (50,568) | |||
|
|
|
|
|
|
|
|
| $ | (44,069,959) | |
|
|
|
|
|
|
|
|
|
|
|
|
34 INVESCO OPPENHEIMER CAPITAL INCOME FUND
Over-the-Counter Total Return Swaps at February 29, 2020
|
| Pay/Receive |
|
| Notional |
|
|
| Unrealized | |
| Counter- | Total |
| Maturity | Amount |
|
|
| Appreciation/ | |
Reference Asset | party | Return* | Floating Rate | Date |
| (000's) |
| Value | (Depreciation) | |
Iboxx USD Liquid |
|
| Three-Month USD |
|
|
|
|
|
|
|
Level Loans Index | MSCO | Receive | BBA LIBOR | 6/20/20 | USD | 2,735 | $ | (49,352) | $ | (49,352) |
Iboxx USD Liquid |
|
| Three-Month USD |
|
|
|
|
|
|
|
Level Loans Index | MSCO | Receive | BBA LIBOR | 6/20/20 | USD | 4,265 |
| (102,318) |
| (102,318) |
Total Over-the-Counter Total Return Swaps |
|
|
|
| $ | (151,670) | $ | (151,670) | ||
|
|
|
|
|
|
|
|
|
|
|
*Fund will pay or receive the total return of the reference asset depending on whether the return is positive or negative. For contracts where the Fund has elected to receive the total return of the reference asset if positive, it will be responsible for paying the floating rate and the total return of the reference asset if negative. If the Fund has elected to pay the total return of the reference asset if positive, it will receive the floating rate and the total return of the reference asset if negative.
Glossary:
Counterparty Abbreviations
MSCO | Morgan Stanley Capital Services, Inc. |
Currency abbreviations indicate amounts reporting in currencies | |
EUR | Euro |
GBP | British Pound Sterling |
JPY | Japanese Yen |
Definitions |
|
BBA LIBOR | British Bankers' Association London - Interbank Offered Rate |
EUSA5 | EUR Swap Annual 5 Year |
FTSE 100 | United Kingdom 100 most highly capitalized companies on the London Stock Exchange |
H15T5Y | US Treasury Yield Curve Rate T Note Constant Maturity 5 Year |
MSCI | Morgan Stanley Capital International |
S&P | Standard & Poor's |
US0001M | ICE LIBOR USD 1 Month |
US0003M | ICE LIBOR USD 3 Month |
USSW5 | USD Swap Semi 30/360 5 Year |
See accompanying Notes to Financial Statements.
35 INVESCO OPPENHEIMER CAPITAL INCOME FUND
STATEMENT OF ASSETS AND LIABILITIES February 29, 2020 Unaudited
Assets |
|
|
Investments, at value—see accompanying schedule of investments: |
|
|
Unaffiliated companies (cost $1,592,719,958) | $ | 1,542,165,058 |
Affiliated companies (cost $245,740,939) |
| 245,516,939 |
|
| 1,787,681,997 |
Cash |
| 2,500,000 |
Cash—foreign currencies (cost $255,498) |
| 252,939 |
Receivables and other assets: |
|
|
Investments sold |
| 37,111,166 |
Interest and dividends |
| 19,593,140 |
Variation margin receivable - futures contracts |
| 15,076,087 |
Shares of beneficial interest sold |
| 466,446 |
Other |
| 314,109 |
Total assets |
| 1,862,995,884 |
|
|
|
Liabilities |
|
|
Swaps, at value |
| 151,670 |
Payables and other liabilities: |
|
|
Investments purchased |
| 62,818,309 |
Shares of beneficial interest redeemed |
| 4,052,430 |
Advisory fees |
| 852,199 |
Distribution and service plan fees |
| 431,121 |
Transfer and shareholder servicing agent fees |
| 419,653 |
Trustees' compensation |
| 240,642 |
Shareholder communications |
| 93,819 |
Administration fees |
| 1,454 |
Other |
| 293,829 |
Total liabilities |
| 69,355,126 |
|
|
|
Net Assets | $ | 1,793,640,758 |
|
|
|
|
|
|
Composition of Net Assets |
|
|
Shares of beneficial interest | $ | 1,957,419,364 |
Total accumulated loss |
| (163,778,606) |
Net Assets | $ | 1,793,640,758 |
|
|
|
36 INVESCO OPPENHEIMER CAPITAL INCOME FUND
Net Asset Value Per Share
Class A Shares: |
|
Net asset value and redemption price per share (based on net assets of $1,253,638,139 and |
|
129,971,777 shares of beneficial interest outstanding) | $9.65 |
Maximum offering price per share (net asset value plus sales charge of 5.50% of offering price) | $10.21 |
|
|
Class C Shares: |
|
Net asset value, redemption price (excludes applicable contingent deferred sales charge) and |
|
offering price per share (based on net assets of $186,970,904 and 20,087,916 shares of |
|
beneficial interest outstanding) | $9.31 |
|
|
Class R Shares: |
|
Net asset value, redemption price and offering price per share (based on net assets of |
|
$60,039,020 and 6,321,580 shares of beneficial interest outstanding) | $9.50 |
|
|
Class Y Shares: |
|
Net asset value, redemption price and offering price per share (based on net assets of |
|
$274,197,904 and 28,443,580 shares of beneficial interest outstanding) | $9.64 |
|
|
Class R5 Shares: |
|
Net asset value, redemption price and offering price per share (based on net assets of $9,565 |
|
and 992 shares of beneficial interest outstanding) | $9.64 |
|
|
Class R6 Shares: |
|
Net asset value, redemption price and offering price per share (based on net assets of |
|
$18,785,226 and 1,947,914 shares of beneficial interest outstanding) | $9.64 |
See accompanying Notes to Financial Statements.
37 INVESCO OPPENHEIMER CAPITAL INCOME FUND
STATEMENT OF
OPERATIONS For the Six Months Ended February 29, 2020 Unaudited
Investment Income |
|
|
Interest: |
|
|
Unaffiliated companies | $ | 39,045,978 |
Affiliated companies |
| 4,304,324 |
Dividends: |
|
|
Unaffiliated companies (net of foreign withholding taxes of $5,497) |
| 13,607,059 |
Affiliated companies |
| 2,029,098 |
|
|
|
Total investment income |
| 58,986,459 |
|
|
|
Expenses |
|
|
Advisory fees |
| 5,361,756 |
Administration fees |
| 148,537 |
Distribution and service plan fees: |
|
|
Class A |
| 1,579,590 |
Class C |
| 1,051,109 |
Class R |
| 164,841 |
Transfer and shareholder servicing agent fees: |
|
|
Class A |
| 950,686 |
Class C |
| 146,494 |
Class R |
| 45,944 |
Class Y |
| 236,622 |
Class R5 |
| 2 |
Class R6 |
| 1,287 |
Shareholder communications: |
|
|
Class A |
| 48,990 |
Class C |
| 7,536 |
Class R |
| 2,366 |
Class Y |
| 12,135 |
Class R6 |
| 2,592 |
Custodian fees and expenses |
| 80,796 |
Trustees' compensation |
| 26,396 |
Other |
| 151,851 |
Total expenses |
| 10,019,530 |
Less waivers and reimbursement of expenses |
| (373,784) |
Net expenses |
| 9,645,746 |
|
|
|
Net Investment Income |
| 49,340,713 |
38 INVESCO OPPENHEIMER CAPITAL INCOME FUND
Realized and Unrealized Gain (Loss) |
|
|
Net realized gain (loss) on: |
|
|
Investment transactions in: |
|
|
Unaffiliated companies | $ | (31,013,296) |
Affiliated companies |
| (27,147,151) |
Futures contracts |
| 15,691,603 |
Foreign currency transactions |
| (110,953) |
Forward currency exchange contracts |
| (505,833) |
Swap contracts |
| (3,088,010) |
Swaption contracts written |
| 144,100 |
Net realized loss |
| (46,029,540) |
Net change in unrealized appreciation/(depreciation) on: |
|
|
Investment transactions in: |
|
|
Unaffiliated companies |
| (79,566,976) |
Affiliated companies |
| 21,724,340 |
Translation of assets and liabilities denominated in foreign currencies |
| 64,017 |
Forward currency exchange contracts |
| 505,833 |
Futures contracts |
| (29,099,783) |
Swap contracts |
| 3,897,372 |
Net change in unrealized appreciation/(depreciation) |
| (82,475,197) |
|
|
|
Net Decrease in Net Assets Resulting from Operations | $ | (79,164,024) |
|
|
|
See accompanying Notes to Financial Statements.
39 INVESCO OPPENHEIMER CAPITAL INCOME FUND
STATEMENT OF CHANGES IN NET ASSETS
|
| Six Months Ended |
|
|
|
| February 29, 2020 |
| Year Ended |
|
| (Unaudited) |
| August 31, 2019 |
Operations |
|
|
|
|
Net investment income | $ | 49,340,713 | $ | 73,809,698 |
|
|
|
|
|
Net realized gain (loss) |
| (46,029,540) |
| (48,991,878) |
|
|
|
|
|
Net change in unrealized appreciation/(depreciation) |
| (82,475,197) |
| 27,269,556 |
Net increase (decrease) in net assets resulting from operations |
| (79,164,024) |
| 52,087,376 |
|
|
|
|
|
Dividends and/or Distributions to Shareholders |
|
|
|
|
Distributions to shareholders from distributable earnings: |
|
|
|
|
Class A |
| (23,947,789) |
| (37,806,888) |
Class C |
| (2,892,198) |
| (6,107,425) |
Class R |
| (1,059,700) |
| (1,762,727) |
Class Y |
| (6,514,867) |
| (14,068,645) |
Class R5 |
| (195) |
| (71) |
Class R6 |
| (1,075,415) |
| (3,892,761) |
Total distributions from distributable earnings |
|
|
|
|
| (35,490,164) |
| (63,638,517) | |
|
|
|
|
|
Beneficial Interest Transactions |
|
|
|
|
Net increase (decrease) in net assets resulting from beneficial interest |
|
|
|
|
transactions: |
|
|
|
|
Class A |
| (65,927,545) |
| (59,731,771) |
Class C |
| (25,680,390) |
| (95,709,202) |
Class R |
| (4,571,062) |
| (5,609,118) |
Class Y |
| (93,536,473) |
| (145,207,643) |
Class R5 |
| — |
| 10,000 |
Class R6 |
| (101,669,503) |
| (8,430,141) |
Total beneficial interest transactions |
|
|
|
|
| (291,384,973) |
| (314,677,875) | |
|
|
|
|
|
Net Assets |
|
|
|
|
Total decrease |
| (406,039,161) |
| (326,229,016) |
|
|
|
|
|
Beginning of period |
| 2,199,679,919 |
| 2,525,908,935 |
End of period | $ | 1,793,640,758 | $ | 2,199,679,919 |
|
|
|
|
|
See accompanying Notes to Financial Statements.
40 INVESCO OPPENHEIMER CAPITAL INCOME FUND
FINANCIAL HIGHLIGHTS
| Six Months |
|
|
|
|
|
| Ended |
|
|
|
|
|
| February 29, | Year Ended | Year Ended | Year Ended | Year Ended | Year Ended |
Class A | 2020 | August 31, | August 31, | August 31, | August 31, | August 31, |
(Unaudited) | 2019 | 2018 | 2017 | 2016 | 2015 | |
Per Share Operating Data |
|
|
|
|
|
|
Net asset value, beginning of |
|
|
|
|
|
|
period | $10.26 | $10.28 | $10.14 | $9.84 | $9.62 | $10.03 |
Income (loss) from investment |
|
|
|
|
|
|
operations: |
|
|
|
|
|
|
Net investment income1 | 0.25 | 0.32 | 0.28 | 0.26 | 0.25 | 0.25 |
Net realized and unrealized |
|
|
|
|
|
|
gain (loss) | (0.68) | (0.07) | 0.13 | 0.31 | 0.25 | (0.35) |
Total from investment |
|
|
|
|
|
|
operations | (0.43) | 0.25 | 0.41 | 0.57 | 0.50 | (0.10) |
Dividends and/or distributions |
|
|
|
|
|
|
to shareholders: |
|
|
|
|
|
|
Dividends from net investment |
|
|
|
|
|
|
income | (0.18) | (0.27) | (0.27) | (0.27) | (0.28) | (0.31) |
Net asset value, end of period | $9.65 | $10.26 | $10.28 | $10.14 | $9.84 | $9.62 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Return, at Net Asset |
|
|
|
|
|
|
Value2 | (4.29)% | 2.56% | 4.10% | 5.84% | 5.31% | (1.07)% |
|
|
|
|
|
|
|
Ratios/Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in |
|
|
|
|
|
|
thousands) | $1,253,638 | $1,399,233 | $1,462,785 | $1,584,024 | $1,723,245 | $1,735,068 |
Average net assets (in |
|
|
|
|
|
|
thousands) | $1,371,072 | $1,394,826 | $1,524,510 | $1,662,753 | $1,712,506 | $1,764,700 |
Ratios to average net assets:3 |
|
|
|
|
|
|
Net investment income4 | 4.84% | 3.20% | 2.79% | 2.63% | 2.66% | 2.54% |
Expenses excluding specific |
|
|
|
|
|
|
expenses listed below | 0.94% | 0.98% | 1.04%5 | 1.05%5 | 1.05%5 | 1.05%5 |
Interest and fees from |
|
|
|
|
|
|
borrowings | 0.00% | 0.00%6 | 0.00%6 | 0.00%6 | 0.00%6 | 0.00%6 |
Total expenses7 | 0.94% | 0.98% | 1.04%5 | 1.05%5 | 1.05%5 | 1.05%5 |
Expenses after payments, |
|
|
|
|
|
|
waivers and/or |
|
|
|
|
|
|
reimbursements and reduction |
|
|
|
|
|
|
to custodian expenses | 0.90% | 0.92% | 0.97%5 | 0.99%5 | 1.00%5 | 0.99%5 |
Portfolio turnover rate8 | 30% | 147%9 | 88%9 | 92%9 | 54%9 | 79%9 |
41 INVESCO OPPENHEIMER CAPITAL INCOME FUND
FINANCIAL HIGHLIGHTS Continued
1.Calculated based on the average shares outstanding during the period.
2.Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Does not include sales charges and is not annualized for periods less than one year, if applicable.
3.Annualized for periods less than one full year.
4.Includes the Fund's share of the allocated net investment income from Invesco Oppenheimer Master Loan Fund.
5.Includes the Fund's share of the allocated expenses from Invesco Oppenheimer Master Loan Fund.
6.Less than 0.005%.
7.Total expenses including indirect expenses from fund fees and expenses were as follows:
Six Months Ended February 29, 2020 | 1.01% |
Year Ended August 31, 2019 | 1.05% |
Year Ended August 31, 2018 | 1.06% |
Year Ended August 31, 2017 | 1.07% |
Year Ended August 31, 2016 | 1.07% |
Year Ended August 31, 2015 | 1.07% |
8.Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable.
9.The portfolio turnover rate excludes purchase and sale transactions of To Be Announced (TBA) mortgage-related securities as follows:
| Purchase Transactions | Sale Transactions |
Year Ended August 31, 2019 | $3,779,872,636 | $4,034,353,298 |
Year Ended August 31, 2018 | $4,932,579,131 | $5,044,273,340 |
Year Ended August 31, 2017 | $4,620,692,203 | $4,544,059,262 |
Year Ended August 31, 2016 | $4,212,529,231 | $4,192,313,269 |
Year Ended August 31, 2015 | $4,664,260,054 | $4,590,883,479 |
See accompanying Notes to Financial Statements.
42 INVESCO OPPENHEIMER CAPITAL INCOME FUND
| Six Months |
|
|
|
|
|
| Ended |
|
|
|
|
|
| February 29, | Year Ended | Year Ended | Year Ended | Year Ended | Year Ended |
Class C | 2020 | August 31, | August 31, | August 31, | August 31, | August 31, |
(Unaudited) | 2019 | 2018 | 2017 | 2016 | 2015 | |
Per Share Operating Data |
|
|
|
|
|
|
Net asset value, beginning of |
|
|
|
|
|
|
period | $9.90 | $9.93 | $9.81 | $9.52 | $9.32 | $9.74 |
Income (loss) from investment |
|
|
|
|
|
|
operations: |
|
|
|
|
|
|
Net investment income1 | 0.20 | 0.24 | 0.20 | 0.18 | 0.17 | 0.17 |
Net realized and unrealized |
|
|
|
|
|
|
gain (loss) | (0.66) | (0.07) | 0.11 | 0.30 | 0.24 | (0.35) |
Total from investment |
|
|
|
|
|
|
operations | (0.46) | 0.17 | 0.31 | 0.48 | 0.41 | (0.18) |
Dividends and/or distributions |
|
|
|
|
|
|
to shareholders: |
|
|
|
|
|
|
Dividends from net investment |
|
|
|
|
|
|
income | (0.13) | (0.20) | (0.19) | (0.19) | (0.21) | (0.24) |
Net asset value, end of period | $9.31 | $9.90 | $9.93 | $9.81 | $9.52 | $9.32 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Return, at Net Asset |
|
|
|
|
|
|
Value2 | (4.67)% | 1.76% | 3.24% | 5.13% | 4.47% | (1.89)% |
|
|
|
|
|
|
|
Ratios/Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in |
|
|
|
|
|
|
thousands) | $186,971 | $224,529 | $321,786 | $375,081 | $420,117 | $403,758 |
Average net assets (in |
|
|
|
|
|
|
thousands) | $211,090 | $286,522 | $350,563 | $400,146 | $413,522 | $369,218 |
Ratios to average net assets:3 |
|
|
|
|
|
|
Net investment income4 | 4.07% | 2.43% | 2.02% | 1.87% | 1.87% | 1.75% |
Expenses excluding specific |
|
|
|
|
|
|
expenses listed below | 1.71% | 1.75% | 1.80%5 | 1.81%5 | 1.82%5 | 1.81%5 |
Interest and fees from |
|
|
|
|
|
|
borrowings | 0.00% | 0.00%6 | 0.00%6 | 0.00%6 | 0.00%6 | 0.00%6 |
Total expenses7 | 1.71% | 1.75% | 1.80%5 | 1.81%5 | 1.82%5 | 1.81%5 |
Expenses after payments, |
|
|
|
|
|
|
waivers and/or |
|
|
|
|
|
|
reimbursements and reduction |
|
|
|
|
|
|
to custodian expenses | 1.67% | 1.69% | 1.73%5 | 1.75%5 | 1.76%5 | 1.75%5 |
Portfolio turnover rate8 | 30% | 147%9 | 88%9 | 92%9 | 54%9 | 79%9 |
43 INVESCO OPPENHEIMER CAPITAL INCOME FUND
FINANCIAL HIGHLIGHTS Continued
1.Calculated based on the average shares outstanding during the period.
2.Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Does not include sales charges and is not annualized for periods less than one year, if applicable.
3.Annualized for periods less than one full year.
4.Includes the Fund's share of the allocated net investment income from Invesco Oppenheimer Master Loan Fund.
5.Includes the Fund's share of the allocated expenses from Invesco Oppenheimer Master Loan Fund.
6.Less than 0.005%.
7.Total expenses including indirect expenses from fund fees and expenses were as follows:
Six Months Ended February 29, 2020 | 1.78% |
Year Ended August 31, 2019 | 1.82% |
Year Ended August 31, 2018 | 1.82% |
Year Ended August 31, 2017 | 1.83% |
Year Ended August 31, 2016 | 1.84% |
Year Ended August 31, 2015 | 1.83% |
8.Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable.
9.The portfolio turnover rate excludes purchase and sale transactions of To Be Announced (TBA) mortgage-related securities as follows:
| Purchase Transactions | Sale Transactions |
Year Ended August 31, 2019 | $3,779,872,636 | $4,034,353,298 |
Year Ended August 31, 2018 | $4,932,579,131 | $5,044,273,340 |
Year Ended August 31, 2017 | $4,620,692,203 | $4,544,059,262 |
Year Ended August 31, 2016 | $4,212,529,231 | $4,192,313,269 |
Year Ended August 31, 2015 | $4,664,260,054 | $4,590,883,479 |
See accompanying Notes to Financial Statements.
44 INVESCO OPPENHEIMER CAPITAL INCOME FUND
| Six Months |
|
|
|
|
|
| Ended |
|
|
|
|
|
| February 29, | Year Ended | Year Ended | Year Ended | Year Ended | Year Ended |
Class R | 2020 | August 31, | August 31, | August 31, | August 31, | August 31, |
(Unaudited) | 2019 | 2018 | 2017 | 2016 | 2015 | |
Per Share Operating Data |
|
|
|
|
|
|
Net asset value, beginning of |
|
|
|
|
|
|
period | $10.10 | $10.12 | $10.00 | $9.71 | $9.50 | $9.91 |
Income (loss) from investment |
|
|
|
|
|
|
operations: |
|
|
|
|
|
|
Net investment income1 | 0.23 | 0.29 | 0.25 | 0.23 | 0.23 | 0.22 |
Net realized and unrealized |
|
|
|
|
|
|
gain (loss) | (0.67) | (0.06) | 0.12 | 0.30 | 0.24 | (0.35) |
Total from investment |
|
|
|
|
|
|
operations | (0.44) | 0.23 | 0.37 | 0.53 | 0.47 | (0.13) |
Dividends and/or distributions |
|
|
|
|
|
|
to shareholders: |
|
|
|
|
|
|
Dividends from net investment |
|
|
|
|
|
|
income | (0.16) | (0.25) | (0.25) | (0.24) | (0.26) | (0.28) |
Net asset value, end of period | $9.50 | $10.10 | $10.12 | $10.00 | $9.71 | $9.50 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Return, at Net Asset |
|
|
|
|
|
|
Value2 | (4.41)% | 2.33% | 3.73% | 5.57% | 5.02% | (1.32)% |
|
|
|
|
|
|
|
Ratios/Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in |
|
|
|
|
|
|
thousands) | $60,039 | $68,438 | $74,277 | $51,324 | $31,806 | $27,151 |
Average net assets (in |
|
|
|
|
|
|
thousands) | $66,245 | $70,345 | $70,353 | $37,273 | $28,769 | $25,957 |
Ratios to average net assets:3 |
|
|
|
|
|
|
Net investment income4 | 4.57% | 2.93% | 2.53% | 2.33% | 2.39% | 2.28% |
Expenses excluding specific |
|
|
|
|
|
|
expenses listed below | 1.21% | 1.24% | 1.30%5 | 1.30%5 | 1.31%5 | 1.30%5 |
Interest and fees from |
|
|
|
|
|
|
borrowings | 0.00% | 0.00%6 | 0.00%6 | 0.00%6 | 0.00%6 | 0.00%6 |
Total expenses7 | 1.21% | 1.24% | 1.30%5 | 1.30%5 | 1.31%5 | 1.30%5 |
Expenses after payments, |
|
|
|
|
|
|
waivers and/or |
|
|
|
|
|
|
reimbursements and reduction |
|
|
|
|
|
|
to custodian expenses | 1.17% | 1.18% | 1.23%5 | 1.24%5 | 1.25%5 | 1.24%5 |
Portfolio turnover rate8 | 30% | 147%9 | 88%9 | 92%9 | 54%9 | 79%9 |
45 INVESCO OPPENHEIMER CAPITAL INCOME FUND
FINANCIAL HIGHLIGHTS Continued
1.Calculated based on the average shares outstanding during the period.
2.Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Does not include sales charges and is not annualized for periods less than one year, if applicable.
3.Annualized for periods less than one full year.
4.Includes the Fund's share of the allocated net investment income from Invesco Oppenheimer Master Loan Fund.
5.Includes the Fund's share of the allocated expenses from Invesco Oppenheimer Master Loan Fund.
6.Less than 0.005%.
7.Total expenses including indirect expenses from fund fees and expenses were as follows:
Six Months Ended February 29, 2020 | 1.28% |
Year Ended August 31, 2019 | 1.31% |
Year Ended August 31, 2018 | 1.32% |
Year Ended August 31, 2017 | 1.32% |
Year Ended August 31, 2016 | 1.33% |
Year Ended August 31, 2015 | 1.32% |
8.Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable
9.The portfolio turnover rate excludes purchase and sale transactions of To Be Announced (TBA) mortgage-related securities as follows:
| Purchase Transactions | Sale Transactions |
Year Ended August 31, 2019 | $3,779,872,636 | $4,034,353,298 |
Year Ended August 31, 2018 | $4,932,579,131 | $5,044,273,340 |
Year Ended August 31, 2017 | $4,620,692,203 | $4,544,059,262 |
Year Ended August 31, 2016 | $4,212,529,231 | $4,192,313,269 |
Year Ended August 31, 2015 | $4,664,260,054 | $4,590,883,479 |
See accompanying Notes to Financial Statements.
46 INVESCO OPPENHEIMER CAPITAL INCOME FUND
| Six Months |
|
|
|
|
|
| Ended |
|
|
|
|
|
| February 29, | Year Ended | Year Ended | Year Ended | Year Ended | Year Ended |
Class Y | 2020 | August 31, | August 31, | August 31, | August 31, | August 31, |
(Unaudited) | 2019 | 2018 | 2017 | 2016 | 2015 | |
Per Share Operating Data |
|
|
|
|
|
|
Net asset value, beginning of |
|
|
|
|
|
|
period | $10.25 | $10.27 | $10.14 | $9.84 | $9.62 | $10.03 |
Income (loss) from investment |
|
|
|
|
|
|
operations: |
|
|
|
|
|
|
Net investment income1 | 0.26 | 0.35 | 0.31 | 0.28 | 0.27 | 0.27 |
Net realized and unrealized |
|
|
|
|
|
|
gain (loss) | (0.68) | (0.07) | 0.11 | 0.31 | 0.25 | (0.35) |
Total from investment |
|
|
|
|
|
|
operations | (0.42) | 0.28 | 0.42 | 0.59 | 0.52 | (0.08) |
Dividends and/or distributions |
|
|
|
|
|
|
to shareholders: |
|
|
|
|
|
|
Dividends from net investment |
|
|
|
|
|
|
income | (0.19) | (0.30) | (0.29) | (0.29) | (0.30) | (0.33) |
Net asset value, end of period | $9.64 | $10.25 | $10.27 | $10.14 | $9.84 | $9.62 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Return, at Net Asset |
|
|
|
|
|
|
Value2 | (4.19)% | 2.79% | 4.25% | 6.21% | 5.47% | (0.82)% |
|
|
|
|
|
|
|
Ratios/Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in |
|
|
|
|
|
|
thousands) | $274,198 | $385,217 | $536,085 | $622,331 | $480,847 | $447,319 |
Average net assets (in |
|
|
|
|
|
|
thousands) | $340,504 | $457,175 | $598,353 | $534,372 | $453,299 | $401,249 |
Ratios to average net assets:3 |
|
|
|
|
|
|
Net investment income4 | 5.07% | 3.43% | 3.02% | 2.85% | 2.86% | 2.74% |
Expenses excluding specific |
|
|
|
|
|
|
expenses listed below | 0.71% | 0.75% | 0.80%5 | 0.81%5 | 0.82%5 | 0.82%5 |
Interest and fees from |
|
|
|
|
|
|
borrowings | 0.00% | 0.00%6 | 0.00%6 | 0.00%6 | 0.00%6 | 0.00%6 |
Total expenses7 | 0.71% | 0.75% | 0.80%5 | 0.81%5 | 0.82%5 | 0.82%5 |
Expenses after payments, |
|
|
|
|
|
|
waivers and/or |
|
|
|
|
|
|
reimbursements and reduction |
|
|
|
|
|
|
to custodian expenses | 0.67% | 0.69% | 0.73%5 | 0.75%5 | 0.76%5 | 0.76%5 |
Portfolio turnover rate8 | 30% | 147%9 | 88%9 | 92%9 | 54%9 | 79%9 |
47 INVESCO OPPENHEIMER CAPITAL INCOME FUND
FINANCIAL HIGHLIGHTS Continued
1.Calculated based on the average shares outstanding during the period.
2.Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Does not include sales charges and is not annualized for periods less than one year, if applicable.
3.Annualized for periods less than one full year.
4.Includes the Fund's share of the allocated net investment income from Invesco Oppenheimer Master Loan Fund.
5.Includes the Fund's share of the allocated expenses from Invesco Oppenheimer Master Loan Fund.
6.Less than 0.005%.
7.Total expenses including indirect expenses from fund fees and expenses were as follows:
Six Months Ended February 29, 2020 | 0.78% |
Year Ended August 31, 2019 | 0.82% |
Year Ended August 31, 2018 | 0.82% |
Year Ended August 31, 2017 | 0.83% |
Year Ended August 31, 2016 | 0.84% |
Year Ended August 31, 2015 | 0.84% |
8.Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable.
9.The portfolio turnover rate excludes purchase and sale transactions of To Be Announced (TBA) mortgage-related securities as follows:
| Purchase Transactions | Sale Transactions |
Year Ended August 31, 2019 | $3,779,872,636 | $4,034,353,298 |
Year Ended August 31, 2018 | $4,932,579,131 | $5,044,273,340 |
Year Ended August 31, 2017 | $4,620,692,203 | $4,544,059,262 |
Year Ended August 31, 2016 | $4,212,529,231 | $4,192,313,269 |
Year Ended August 31, 2015 | $4,664,260,054 | $4,590,883,479 |
See accompanying Notes to Financial Statements.
48 INVESCO OPPENHEIMER CAPITAL INCOME FUND
| Six Months |
|
| Ended | Period |
| February 29, | Ended |
Class R5 | 2020 | August 31, |
(Unaudited) | 20191 | |
Per Share Operating Data |
|
|
Net asset value, beginning of |
|
|
period | $10.25 | $10.08 |
Income (loss) from investment |
|
|
operations: |
|
|
Net investment income2 | 0.26 | 0.10 |
Net realized and unrealized |
|
|
gain (loss) | (0.67) | 0.14 |
Total from investment |
|
|
operations | (0.41) | 0.24 |
Dividends and/or distributions |
|
|
to shareholders: |
|
|
Dividends from net investment |
|
|
income | (0.20) | (0.07) |
Net asset value, end of period | $9.64 | $10.25 |
|
|
|
|
|
|
Total Return, at Net Asset |
|
|
Value3 | (4.13)% | 2.40% |
|
|
|
Ratios/Supplemental Data |
|
|
Net assets, end of period (in |
|
|
thousands) | $10 | $10 |
Average net assets (in |
|
|
thousands) | $10 | $10 |
Ratios to average net assets:4 |
|
|
Net investment income5 | 5.17% | 3.57% |
Expenses excluding specific |
|
|
expenses listed below | 0.61% | 0.60% |
Interest and fees from |
|
|
borrowings | 0.00% | 0.00% |
Total expenses6 | 0.61% | 0.60% |
Expenses after payments, |
|
|
waivers and/or |
|
|
reimbursements and reduction |
|
|
to custodian expenses | 0.57% | 0.54% |
Portfolio turnover rate7 | 30% | 147%8 |
49 INVESCO OPPENHEIMER CAPITAL INCOME FUND
FINANCIAL HIGHLIGHTS Continued
1.For the period from after the close of business on May 24, 2019 (inception of offering) to August 31, 2019.
2.Calculated based on the average shares outstanding during the period.
3.Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Does not include sales charges and is not annualized for periods less than one year, if applicable.
4.Annualized for periods less than one full year.
5.Includes the Fund's share of the allocated net investment income from Invesco Oppenheimer Master Loan Fund.
6.Total expenses including indirect expenses from fund fees and expenses were as follows:
Six Months Ended February 29, 2020 | 0.68% |
Period Ended August 31, 2019 | 0.67% |
7.Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable.
8.The portfolio turnover rate excludes purchase and sale transactions of To Be Announced (TBA) mortgage-related securities as follows:
| Purchase Transactions | Sale Transactions |
Year Ended August 31, 2019 | $3,779,872,636 | $4,034,353,298 |
See accompanying Notes to Financial Statements. |
|
|
50 INVESCO OPPENHEIMER CAPITAL INCOME FUND
| Six Months |
|
|
|
|
|
| Ended |
|
|
|
|
|
| February 29, | Year Ended | Year Ended | Year Ended | Year Ended | Year Ended |
Class R6 | 2020 | August 31, | August 31, | August 31, | August 31, | August 31, |
(Unaudited) | 2019 | 2018 | 2017 | 2016 | 2015 | |
Per Share Operating Data |
|
|
|
|
|
|
Net asset value, beginning of |
|
|
|
|
|
|
period | $10.26 | $10.27 | $10.14 | $9.84 | $9.62 | $10.03 |
Income (loss) from investment |
|
|
|
|
|
|
operations: |
|
|
|
|
|
|
Net investment income1 | 0.27 | 0.36 | 0.32 | 0.30 | 0.30 | 0.29 |
Net realized and unrealized |
|
|
|
|
|
|
gain (loss) | (0.69) | (0.06) | 0.12 | 0.31 | 0.24 | (0.35) |
Total from investment |
|
|
|
|
|
|
operations | (0.42) | 0.30 | 0.44 | 0.61 | 0.54 | (0.06) |
Dividends and/or distributions |
|
|
|
|
|
|
to shareholders: |
|
|
|
|
|
|
Dividends from net investment |
|
|
|
|
|
|
income | (0.20) | (0.31) | (0.31) | (0.31) | (0.32) | (0.35) |
Net asset value, end of period | $9.64 | $10.26 | $10.27 | $10.14 | $9.84 | $9.62 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Return, at Net Asset |
|
|
|
|
|
|
Value2 | (4.21)% | 3.05% | 4.44% | 6.29% | 5.78% | (0.65)% |
|
|
|
|
|
|
|
Ratios/Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in |
|
|
|
|
|
|
thousands) | $18,785 | $122,253 | $130,976 | $20,176 | $15,142 | $12,625 |
Average net assets (in |
|
|
|
|
|
|
thousands) | $74,652 | $125,754 | $105,548 | $16,342 | $14,088 | $12,629 |
Ratios to average net assets:3 |
|
|
|
|
|
|
Net investment income4 | 5.21% | 3.59% | 3.19% | 3.04% | 3.08% | 2.96% |
Expenses excluding specific |
|
|
|
|
|
|
expenses listed below | 0.57% | 0.59% | 0.63%5 | 0.62%5 | 0.63%5 | 0.62%5 |
Interest and fees from |
|
|
|
|
|
|
borrowings | 0.00% | 0.00%6 | 0.00%6 | 0.00%6 | 0.00%6 | 0.00%6 |
Total expenses7 | 0.57% | 0.59% | 0.63%5 | 0.62%5 | 0.63%5 | 0.62%5 |
Expenses after payments, |
|
|
|
|
|
|
waivers and/or |
|
|
|
|
|
|
reimbursements and reduction |
|
|
|
|
|
|
to custodian expenses | 0.53% | 0.53% | 0.57%5 | 0.56%5 | 0.57%5 | 0.56%5 |
Portfolio turnover rate8 | 30% | 147%9 | 88%9 | 92%9 | 54%9 | 79%9 |
51 INVESCO OPPENHEIMER CAPITAL INCOME FUND
FINANCIAL HIGHLIGHTS Continued
1.Calculated based on the average shares outstanding during the period.
2.Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Does not include sales charges and is not annualized for periods less than one year, if applicable.
3.Annualized for periods less than one full year.
4.Includes the Fund's share of the allocated net investment income from Invesco Oppenheimer Master Loan Fund.
5.Includes the Fund's share of the allocated expenses from Invesco Oppenheimer Master Loan Fund.
6.Less than 0.005%.
7.Total expenses including indirect expenses from fund fees and expenses were as follows:
Six Months Ended February 29, 2020 | 0.64% |
Year Ended August 31, 2019 | 0.66% |
Year Ended August 31, 2018 | 0.65% |
Year Ended August 31, 2017 | 0.64% |
Year Ended August 31, 2016 | 0.65% |
Year Ended August 31, 2015 | 0.64% |
8.Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable.
9.The portfolio turnover rate excludes purchase and sale transactions of To Be Announced (TBA) mortgage-related securities as follows:
| Purchase Transactions | Sale Transactions |
Year Ended August 31, 2019 | $3,779,872,636 | $4,034,353,298 |
Year Ended August 31, 2018 | $4,932,579,131 | $5,044,273,340 |
Year Ended August 31, 2017 | $4,620,692,203 | $4,544,059,262 |
Year Ended August 31, 2016 | $4,212,529,231 | $4,192,313,269 |
Year Ended August 31, 2015 | $4,664,260,054 | $4,590,883,479 |
See accompanying Notes to Financial Statements.
52 INVESCO OPPENHEIMER CAPITAL INCOME FUND
NOTES TO
FINANCIAL STATEMENTS February 29, 2020 Unaudited
Note 1 - Significant Accounting Policies
Invesco Oppenheimer Capital Income Fund (the "Fund") is a series portfolio of AIM Investment Funds (Invesco Investment Funds) (the "Trust"). The Trust is a Delaware statutory trust registered under the Investment Company Act of 1940, as amended (the "1940 Act"), as an open-end series management investment company authorized to issue an unlimited number of shares of beneficial interest. Information presented in these financial statements pertains only to the Fund. Matters affecting the Fund or each class will be voted on exclusively by the shareholders of such Fund or each class.
The Fund will seek to gain exposure to Regulation S securities primarily through investments in the Invesco Oppenheimer Capital Income Fund (Cayman) Ltd. (the "Subsidiary"), a wholly owned and controlled subsidiary by the Fund organized under the laws of the Cayman Islands. The Subsidiary was organized by the Fund to invest in Regulation S securities. The Fund may invest up to 25% of its total assets in the Subsidiary. Effective February 11, 2020, the Subsidiary liquidated and ceased operations. For the period September 1, 2019 through February 11, 2020 and for the year ended August 31,2019, the Subsidiary operations were consolidated on the Statement of Operations, Statement of Net Assets and the Financial Highlights.
The Fund's investment objective is to seek total return.
The Fund currently consists of six different classes of shares: Class A, Class C, Class R, Class Y, Class R5 and Class R6. Class Y shares are available only to certain investors. Class A shares are sold with a front-end sales charge unless certain waiver criteria are met and under certain circumstances load waived shares may be subject to contingent deferred sales charges ("CDSC"). Class C shares are sold with a CDSC. Class R, Class Y, Class R5 and Class R6 shares are sold at net asset value. Class C shares held for ten years after purchase are eligible for automatic conversion into Class A shares of the same Fund (the "Conversion Feature"). The automatic conversion pursuant to the Conversion Feature will generally occur at the end of the month following the tenth anniversary after a purchase of Class C shares.
The Fund is an investment company and accordingly follows the investment company accounting and reporting guidance in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 946, Financial Services – Investment Companies.
The following is a summary of the significant accounting policies followed by the Fund in the preparation of its financial statements.
A. Security Valuations - Securities, including restricted securities, are valued according to the following policy.
Debt obligations (including convertible securities) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. Pricing services generally value debt obligations assuming orderly transactions of institutional
53 INVESCO OPPENHEIMER CAPITAL INCOME FUND
NOTES TO
FINANCIAL STATEMENTS Unaudited / Continued
round lot size, but a fund may hold or transact in the same securities in smaller, odd lot sizes. Odd lots often trade at lower prices than institutional round lots. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.
A security listed or traded on an exchange (except convertible securities) is valued at its last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded, or lacking any sales or official closing price on a particular day, the security may be valued at the closing bid price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued by an independent pricing service they may be considered fair valued. Futures contracts are valued at the final settlement price set by an exchange on which they are principally traded. Listed options are valued at the mean between the last bid and asked prices from the exchange on which they are principally traded. Options not listed on an exchange are valued by an independent source at the mean between the last bid and asked prices. For purposes of determining net asset value ("NAV") per share, futures and option contracts generally are valued 15 minutes after the close of the customary trading session of the New York Stock Exchange ("NYSE").
Investments in open-end and closed-end registered investment companies that do not trade on an exchange are valued at the end-of-day net asset value per share. Investments in open-end and closed-end registered investment companies that trade on an exchange are valued at the last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded.
Swap agreements are fair valued using an evaluated quote, if available, provided by an independent pricing service. Evaluated quotes provided by the pricing service are valued based on a model which may include end-of-day net present values, spreads, ratings, industry, company performance and returns of referenced assets. Centrally cleared swap agreements are valued at the daily settlement price determined by the relevant exchange or clearinghouse.
Foreign securities' (including foreign exchange contracts) prices are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the NYSE. If market quotations are available and reliable for foreign exchange-traded equity securities, the securities will be valued at the market quotations. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become unreliable. If between the time trading ends on a particular security and the close of the customary trading session on the NYSE, events occur that the investment adviser determines are significant and make the closing price unreliable, the Fund may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith using procedures approved by the Board of Trustees. Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities' prices
54 INVESCO OPPENHEIMER CAPITAL INCOME FUND
meeting the approved degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economic upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.
Securities for which market prices are not provided by any of the above methods may be valued based upon quotes furnished by independent sources. The last bid price may be used to value equity securities. The mean between the last bid and asked prices is used to value debt obligations, including corporate loans.
Securities for which market quotations are not readily available or became unreliable are valued at fair value as determined in good faith by or under the supervision of the Trust's officers following procedures approved by the Board of Trustees. Issuer specific events, market trends, bid/asked quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security's fair value.
The Fund may invest in securities that are subject to interest rate risk, meaning the risk that the prices will generally fall as interest rates rise and, conversely, the prices will generally rise as interest rates fall. Specific securities differ in their sensitivity to changes in interest rates depending on their individual characteristics. Changes in interest rates may result in increased market volatility, which may affect the value and/or liquidity of certain Fund investments.
Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the issuer's assets, general economic conditions, interest rates, investor perceptions and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
B. Securities Transactions and Investment Income - Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income (net of withholding tax, if any) is recorded on the accrual basis from settlement date. Bond premiums and discounts are amortized and/or accreted over the lives of the respective securities. Pay-in-kind interest income and non-cash dividend income received in the form of securities in-lieu of cash are recorded at the fair value of the securities received. Paydown gains and losses on mortgage and asset-backed securities are recorded as adjustments to interest income. 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.
55 INVESCO OPPENHEIMER CAPITAL INCOME FUND
NOTES TO
FINANCIAL STATEMENTS Unaudited / Continued
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 transactions reported in the Statement of Operations and the Statement of Changes in Net Assets and the net realized and unrealized gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund's net asset value and, accordingly, they reduce the Fund's total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and the Statement of Changes in Net Assets, or the net investment income per share and the ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.
The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class.
C. Country Determination - For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues and the country that has the primary market for the issuer's securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization.
D. Distributions - Dividends and distributions to shareholders, which are determined in accordance with income tax regulations and may differ from accounting principles generally accepted in the United States of America ("GAAP"), are recorded on the ex-dividend date. Income distributions, if any, are declared and paid quarterly. Capital gain distributions,
if any, are declared and paid annually or at other times as determined necessary by the Adviser.
The tax character of distributions is determined as of the Fund's fiscal year end. Therefore, a portion of the Fund's distributions made to shareholders prior to the Fund's fiscal year end may ultimately be categorized as a tax return of capital.
E. Federal Income Taxes - The Fund intends to comply with the requirements of Subchapter M of the Internal Revenue Code of 1986, as amended (the "Internal Revenue Code"), necessary to qualify as a regulated investment company and to distribute substantially all of the Fund's taxable earnings to shareholders. As such, the Fund will not be subject to federal income taxes on otherwise taxable income (including net realized capital gain) that is distributed to shareholders. Therefore, no provision for federal income taxes is recorded in the financial statements.
The Fund recognizes the tax benefits of uncertain tax positions only when the position is more likely than not to be sustained. Management has analyzed the Fund's uncertain tax
56 INVESCO OPPENHEIMER CAPITAL INCOME FUND
positions and concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions. Management is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the next 12 months.
The Fund files tax returns in the U.S. Federal jurisdiction and certain other jurisdictions. Generally, the Fund is subject to examinations by such taxing authorities for up to three years after the filing of the return for the tax period.
F. Expenses - Fees provided for under the Rule 12b-1 plan of a particular class of the Fund are charged to the operations of such class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses attributable to Class R5 and Class R6 are allocated to each share class based on relative net assets. Sub-accounting fees attributable to Class R5 are charged to the operations of the class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses relating to all other classes are allocated among those classes based on relative net assets. All other expenses are allocated among the classes based on relative net assets.
G. Accounting Estimates - The financial statements are prepared on a basis in conformity with GAAP, which requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print.
H. Indemnifications - Under the Trust's organizational documents, each Trustee, officer, employee or other agent of the Trust, are indemnified against certain liabilities that may arise out of the performance of their duties to the Fund and/or the Subsidiary, respectively. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund's servicing agreements, that contain a variety of indemnification clauses. The Fund's maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote.
I. Foreign Currency Translations - Foreign currency is valued at the close of the NYSE based on quotations posted by banks and major currency dealers. Portfolio securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at the date of valuation. Purchases and sales of portfolio securities (net of foreign taxes withheld on disposition) and income items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. The Fund does not separately account for the portion of the results of operations resulting from changes in foreign exchange rates on investments and the fluctuations arising from changes in market prices of securities held. The combined results of changes in foreign exchange rates and the fluctuation of market prices on investments (net of estimated foreign tax withholding) are included with the net realized and unrealized gain or loss from investments in the Statement of Operations. Reported net realized foreign currency gains
57 INVESCO OPPENHEIMER CAPITAL INCOME FUND
NOTES TO
FINANCIAL STATEMENTS Unaudited / Continued
or losses arise from (1) sales of foreign currencies, (2) currency gains or losses realized between the trade and settlement dates on securities transactions, and (3) the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund's books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign currency gains and losses arise from changes in the fair values of assets and liabilities, other than investments in securities at fiscal period end, resulting from changes in exchange rates. The Fund may invest in foreign securities, which may be subject to foreign taxes on income, gains on investments or currency repatriation, a portion of which may be recoverable. Foreign taxes, if any, are recorded based on the tax regulations and rates that exist in the foreign markets in which the Fund invests and are shown in the Statement of Operations.
J. Forward Foreign Currency Contracts - The Fund may engage in foreign currency transactions either on a spot (i.e. for prompt delivery and settlement) basis, or through forward foreign currency contracts, to manage or minimize currency or exchange rate risk.
The Fund may also enter into forward foreign currency contracts for the purchase or sale of a security denominated in a foreign currency in order to "lock in" the U.S. dollar price of that security, or the Fund may also enter into forward foreign currency contracts that do not provide for physical settlement of the two currencies, but instead are settled by a single cash payment calculated as the difference between the agreed upon exchange rate and the spot rate at settlement based upon an agreed upon notional amount (non-deliverable forwards). The Fund will set aside liquid assets in an amount equal to the daily mark-to- market obligation for forward foreign currency contracts.
A forward foreign currency contract is an obligation between two parties ("Counterparties") to purchase or sell a specific currency for an agreed-upon price at a future date. The use of forward foreign currency contracts does not eliminate fluctuations in the price of the underlying securities the Fund owns or intends to acquire but establishes a rate of exchange in advance. Fluctuations in the value of these contracts are measured by the difference in the contract date and reporting date exchange rates and are recorded as unrealized appreciation (depreciation) until the contracts are closed. When the contracts are closed, realized gains (losses) are recorded. Realized and unrealized gains (losses) on the contracts are included in the Statement of Operations. The primary risks associated with forward foreign currency contracts include failure of the Counterparty to meet the terms of the contract and the value of the foreign currency changing unfavorably. These risks may be in excess of the amounts reflected in the Statement of Assets and Liabilities.
K. Futures - The Fund may enter into futures contracts to manage exposure to interest rate, equity and market price movements and/or currency risks. A futures contract is an agreement between Counterparties to purchase or sell a specified underlying security, currency or commodity (or delivery of a cash settlement price, in the case of an index future) for a fixed price at a future date. The Fund currently invests only in exchange-traded futures and they are standardized as to maturity date and underlying financial instrument. Initial margin deposits required upon entering into futures contracts are satisfied by the segregation of specific securities or cash as collateral at the futures commission merchant (broker). During the period the futures contracts are open, changes in the value of the
58 INVESCO OPPENHEIMER CAPITAL INCOME FUND
contracts are recognized as unrealized gains or losses by recalculating the value of the contracts on a daily basis. Subsequent or variation margin payments are received or made depending upon whether unrealized gains or losses are incurred. These amounts are reflected as receivables or payables on the Statement of Assets and Liabilities. When the contracts are closed or expire, the Fund recognizes a realized gain or loss equal to the difference between the proceeds from, or cost of, the closing transaction and the Fund's basis in the contract. The net realized gain (loss) and the change in unrealized gain (loss) on futures contracts held during the period is included on the Statement of Operations. The primary risks associated with futures contracts are market risk and the absence of a liquid secondary market. If the Fund were unable to liquidate a futures contract and/or enter into an offsetting closing transaction, the Fund would continue to be subject to market risk with respect to the value of the contracts and continue to be required to maintain the margin deposits on the futures contracts. Futures contracts have minimal Counterparty risk since the exchange's clearinghouse, as Counterparty to all exchange-traded futures, guarantees the futures against default. Risks may exceed amounts recognized in the Statement of Assets and Liabilities.
L. Swap Agreements - The Fund may enter into various swap transactions, including interest rate, total return, index, currency and credit default swap contracts ("CDS") for investment purposes or to manage interest rate, currency or credit risk. Such transactions are agreements between Counterparties. A swap agreement may be negotiated bilaterally and traded over-the-counter ("OTC") between two parties ("uncleared/OTC") or, in some instances, must be transacted through a future commission merchant ("FCM") and cleared through a clearinghouse that serves as a central Counterparty ("centrally cleared swap"). These agreements may contain among other conditions, events of default and termination events, and various covenants and representations such as provisions that require the Fund to maintain a pre-determined level of net assets, and/or provide limits regarding the decline of the Fund's NAV over specific periods of time. If the Fund were to trigger such provisions and have open derivative positions at that time, the Counterparty may be able to terminate such agreement and request immediate payment in an amount equal to the net liability positions, if any.
Interest rate, total return, index, and currency swap agreements are two-party contracts entered into primarily to exchange the returns (or differentials in rates of returns) earned or realized on particular predetermined investments or instruments. The gross returns to be exchanged or "swapped" between the parties are calculated with respect to a notional amount, i.e., the return on or increase in value of a particular dollar amount invested at a particular interest rate or return of an underlying asset, in a particular foreign currency, or in a "basket" of securities representing a particular index.
In a centrally cleared swap, the Fund's ultimate Counterparty is a central clearinghouse. The Fund initially will enter into centrally cleared swaps through an executing broker. When a fund enters into a centrally cleared swap, it must deliver to the central Counterparty (via the FCM) an amount referred to as "initial margin." Initial margin requirements are determined by the central Counterparty, but an FCM may require additional initial margin above the amount required by the central Counterparty. Initial margin deposits required
59 INVESCO OPPENHEIMER CAPITAL INCOME FUND
NOTES TO
FINANCIAL STATEMENTS Unaudited / Continued
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
60 INVESCO OPPENHEIMER CAPITAL INCOME FUND
indicate an improving credit profile or decreased risk of default for the reference entity. Alternatively, credit spreads may increase or decrease reflecting the general tolerance for risk in the credit markets.
An interest rate swap is an agreement between Counterparties pursuant to which the parties exchange a floating rate payment for a fixed rate payment based on a specified notional amount.
Changes in the value of centrally cleared and OTC swap agreements are recognized as unrealized gains (losses) in the Statement of Operations by "marking to market" on a daily basis to reflect the value of the swap agreement at the end of each trading day. Payments received or paid at the beginning of the agreement are reflected as such on the Statement of Assets and Liabilities and may be referred to as upfront payments. The Fund accrues for the fixed payment stream and amortizes upfront payments, if any, on swap agreements on a daily basis with the net amount, recorded as a component of realized gain (loss) on the Statement of Operations. A liquidation payment received or made at the termination of a swap agreement is recorded as realized gain (loss) on the Statement of Operations. The Fund segregates cash or liquid securities having a value at least equal to the amount of the potential obligation of a Fund under any swap transaction. Cash held as collateral is recorded as deposits with brokers on the Statement of Assets and Liabilities. Entering into these agreements involves, to varying degrees, lack of liquidity and elements of credit, market, and Counterparty risk in excess of amounts recognized on the Statement of Assets and Liabilities. Such risks involve the possibility that a swap is difficult to sell or liquidate; the Counterparty does not honor its obligations under the agreement and unfavorable interest rates and market fluctuations. It is possible that developments in the swaps market, including potential government regulation, could adversely affect the Fund's ability to terminate existing swap agreements or to realize amounts to be received under such agreements. A short position in a security poses more risk than holding the same security long. As there is no limit on how much the price of the security can increase, the Fund's exposure is unlimited.
M. Put Options Purchased and Written - The Fund may purchase and write put options including options on securities indexes, or foreign currency and/or futures contracts. By purchasing a put option, the Fund obtains the right (but not the obligation) to sell the option's underlying instrument at a fixed strike price. In return for this right, the Fund pays an option premium. The option's underlying instrument may be a security, securities index, or a futures contract.
Additionally, the Fund may enter into an option on a swap agreement, also called a "swaption". A swaption is an option that gives the buyer the right, but not the obligation, to enter into a swap on a future date in exchange for paying a market-based premium. A receiver swaption gives the owner the right to receive the total return of a specified asset, reference rate or index. Swaptions also include options that allow an existing swap to be terminated or extended by one of the Counterparties.
Put options may be used by the Fund to hedge securities it owns by locking in a minimum price at which the Fund can sell. If security prices fall, the put option could be exercised to offset all or a portion of the Fund's resulting losses. At the same time, because
61 INVESCO OPPENHEIMER CAPITAL INCOME FUND
NOTES TO
FINANCIAL STATEMENTS Unaudited / Continued
the maximum the Fund has at risk is the cost of the option, purchasing put options does not eliminate the potential for the Fund to profit from an increase in the value of the underlying portfolio securities. The Fund may write put options to earn additional income in the form of option premiums if it expects the price of the underlying instrument to remain stable or rise during the option period so that the option will not be exercised. The risk in this strategy
is that the price of the underlying securities may decline by an amount greater than the premium received. Put options written are reported as a liability in the Statement of Assets and Liabilities. Realized and unrealized gains and losses on put options purchased and put options written are included in the Statement of Operations as Net realized gain (loss) from and Change in net unrealized appreciation (depreciation) of Investment securities and Option contracts written, respectively. A risk in buying an option is that the Fund pays a premium whether or not the option is exercised. In addition, there can be no assurance that a liquid secondary market will exist for any option purchased.
N. Call Options Purchased and Written - The Fund may write call options and/or buy call options. A covered call option gives the purchaser of such option the right to buy, and the writer the obligation to sell, the underlying security or foreign currency at the stated exercise price during the option period. An uncovered call option exists without the ownership of the underlying security. Options written by the Fund normally will have expiration dates between three and nine months from the date written. The exercise price of a call option may be below, equal to, or above the current market value of the underlying security at the time the option is written.
Additionally, the Fund may enter into an option on a swap agreement, also called a "swaption". A swaption is an option that gives the buyer the right, but not the obligation, to enter into a swap on a future date in exchange for paying a market-based premium. A receiver swaption gives the owner the right to receive the total return of a specified asset, reference rate or index. Swaptions also include options that allow an existing swap to be terminated or extended by one of the Counterparties.
When the Fund writes a covered call option, an amount equal to the premium received by the Fund is recorded as an asset and an equivalent liability in the Statement of Assets and Liabilities. The amount of the liability is subsequently "marked-to-market" to reflect the current market value of the option written. If a written covered call option expires on the stipulated expiration date, or if the Fund enters into a closing purchase transaction, the Fund realizes a gain (or a loss if the closing purchase transaction exceeds the premium received when the option was written) without regard to any unrealized gain or loss on the underlying security, and the liability related to such option is extinguished. If a written covered call option is exercised, the Fund realizes a gain or a loss from the sale of the underlying security and the proceeds of the sale are increased by the premium originally received. Realized and unrealized gains and losses on call options written are included in the Statement of Operations as Net realized gain (loss) from and Change in net unrealized appreciation (depreciation) of Option contracts written. A risk in writing a covered call option is that the Fund gives up the opportunity for profit if the market price of the security increases and the option is exercised. The risk in writing an uncovered call option is that the Fund may incur significant losses if the value of the written security exceeds the exercise
62 INVESCO OPPENHEIMER CAPITAL INCOME FUND
price of the option.
When the Fund buys a call option, an amount equal to the premium paid by the Fund is recorded as an investment on the Statement of Assets and Liabilities. The amount of the investment is subsequently "marked-to-market" to reflect the current value of the option purchased. Realized and unrealized gains and losses on call options purchased are included in the Statement of Operations as Net realized gain (loss) from and Change in net unrealized appreciation (depreciation) of Investment securities. A risk in buying an option is that the Fund pays a premium whether or not the option is exercised. In addition, there can be no assurance that a liquid secondary market will exist for any option purchased.
O. Securities on a When-Issued or Delayed Delivery Basis - The Fund may purchase securities on a "when-issued" basis, and may purchase or sell securities on a "delayed delivery" basis, with payment and delivery scheduled for a future date. No income accrues to the Fund on the securities in connection with such transactions prior to the date the Fund actually takes delivery of the securities. These transactions are subject to market fluctuations and are subject to the risk that the value at delivery may be more or less than the trade date purchase price. Although the Fund will generally purchase these securities with the intention on acquiring such securities, they may sell such securities prior to the settlement date.
P. 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. The Fund will seek to gain exposure to Regulation S securities primarily through an investment in the Subsidiary. Regulation S securities may be relatively less liquid as a result of legal or contractual restrictions
on resale. The Fund is indirectly exposed to the risks associated with the Subsidiary's investments.
Q. Other Risks - The Fund may invest in lower-quality debt securities, i.e., "junk bonds". Investments in lower-rated securities or unrated securities of comparable quality tend to be more sensitive to economic conditions than higher rated securities. Junk bonds involve a greater risk of default by the issuer because such securities are generally unsecured and are often subordinated to other creditors' claim. The Fund will seek to gain exposure to Regulation S securities primarily through an investment in the Subsidiary. Regulation S securities may be relatively less liquid as a result of legal or contractual restrictions
on resale. The Fund is indirectly exposed to the risks associated with the Subsidiary's investments.
R. Leverage Risk - Leverage exists when the Fund can lose more than it originally invests because it purchases or sells an instrument or enters into a transaction without investing an amount equal to the full economic exposure of the instrument or transaction.
S. Collateral - To the extent the Fund has designated or segregated a security as collateral and that security is subsequently sold, it is the Fund's practice to replace such collateral no later than the next business day.
63 INVESCO OPPENHEIMER CAPITAL INCOME FUND
NOTES TO
FINANCIAL STATEMENTS Unaudited / Continued
Note 2 – Advisory Fees and Other Fees Paid to Affiliates
The Trust has entered into a master investment advisory agreement with Invesco Advisers, Inc. (the "Adviser" or "Invesco"). Under the terms of the investment advisory agreement, the Fund accrues daily and pays monthly an advisory fee to the Adviser based on the annual rate of the Fund's average daily net assets as follows:
Fee Schedule*
Up to $100 million | 0.75% |
Next $100 million | 0.70 |
Next $100 million | 0.65 |
Next $100 million | 0.60 |
Next $100 million | 0.55 |
Next $4.5 billion | 0.50 |
Over $5 billion | 0.48 |
*The advisory fee paid by the Fund shall be reduced by any amounts paid by the Fund under the administrative services agreement with the Adviser.
For the six months ended February 29, 2020, the effective advisory fee rate incurred by the Fund was 0.52%.
Under the terms of a master sub-advisory agreement between the Adviser and each of Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Canada Ltd. and separate sub-advisory agreements with Invesco Capital Management LLC, and Invesco Asset Management (India) Private Limited (collectively, the "Affiliated Sub-Advisers") the Adviser, not the Fund, will pay 40% of the fees paid to the Adviser to any such Affiliated Sub-Adviser(s) that provide(s) discretionary investment management services to the Fund based on the percentage of assets allocated to such Affiliated Sub-Adviser(s). Invesco has also entered into a Sub-Advisory Agreement with OppenheimerFunds, Inc. to provide discretionary management services to the Fund.
The Adviser has contractually agreed, through May 31, 2021, to waive advisory fees and/ or reimburse expenses of all shares to the extent necessary to limit the total annual fund operating expenses after fee waiver and/or expense reimbursement (excluding certain items discussed below) of Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares to 1.06%, 1.80%, 1.31%, 0.80%, 0.68% and 0.63%, respectively, of the Fund's average daily net assets (the "expense limits"). In determining the Adviser's obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause total annual fund operating expenses after fee waivers and/or expense reimbursement to exceed the numbers reflected above: (1) interest; (2) taxes; (3) dividend expenses on short sales; (4) extraordinary or non-routine items, including litigation expenses; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Unless Invesco continues the fee waiver agreement, it will terminate on May 31, 2021. During its term, the fee waiver agreement cannot be terminated or amended to increase the expense limits or reduce the advisory fee waiver without approval of the Board of Trustees.
Further, the Adviser has contractually agreed, through at least June 30, 2021, to waive the advisory fee payable by the Fund in an amount equal to 100% of the net advisory fees
64 INVESCO OPPENHEIMER CAPITAL INCOME FUND
the Adviser receives from the affiliated money market funds on investments by the Fund of uninvested cash in such affiliated money market funds.
For the six months ended February 29, 2020, the Adviser waived advisory fees of $373,784. The Trust has entered into a master administrative services agreement with Invesco
pursuant to which the Fund has agreed to pay Invesco for certain administrative costs incurred in providing accounting services to the Fund. For the six months ended February 29, 2020, expenses incurred under the agreement are shown in the Statement of Operations as Administration fees. Additionally, Invesco has entered into service agreements whereby JPMorgan Chase Bank serves as custodian to the Fund.
The Trust has entered into a transfer agency and service agreement with Invesco Investment Services, Inc. ("IIS") pursuant to which the Fund has agreed to pay IIS a fee for providing transfer agency and shareholder services to the Fund and reimburse IIS for certain expenses incurred by IIS in the course of providing such services. IIS may make payments to intermediaries that provide omnibus account services, sub-accounting services and/or networking services. All fees payable by IIS to intermediaries that provide omnibus account services or sub-accounting services are charged back to the Fund, subject to certain limitations approved by the Trust's Board of Trustees. For the six months ended February 29, 2020, expenses incurred under these agreements are shown in the Statement of Operations as Transfer and shareholder servicing agent fees.
The Trust has entered into master distribution agreements with Invesco Distributors, Inc. ("IDI") to serve as the distributor for the Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares of the Fund. The Trust has adopted plans pursuant to Rule 12b-1 under the 1940 Act with respect to the Fund's Class A, Class C and Class R shares (collectively the "Plan"). The Fund, pursuant to the Class A Plan, reimbursed IDI in an amount up to an annual rate of 0.25% of the average daily net assets of Class A shares. The Fund pursuant to the Class C and Class R Plan, pays IDI compensation at the annual rate of 1.00% of the average daily net assets of Class C and 0.50% of the average daily net assets of Class R shares. The fees are accrued daily and paid monthly. Of the Plan payments, up to 0.25% of the average daily net assets of each class of shares may be paid to furnish continuing personal shareholder services to customers who purchase and own shares of such classes. Any amounts not paid as a service fee under the Plan would constitute an asset-based sales charge. Rules of the Financial Industry Regulatory Authority ("FINRA") impose a cap on the total sales charges, including asset-based sales charges, that may be paid by any class of shares of the Fund plans.
Front-end sales commissions and CDSC (collectively, the "sales charges") are not recorded as expenses of the Fund. Front-end sales commissions are deducted from proceeds from the sales of Fund shares prior to investment in Class A shares of the Fund. CDSC are deducted from redemption proceeds prior to remittance to the shareholder. During the six months ended February 29, 2020, IDI advised the Fund that IDI retained $68,774 in front-end sales commissions from the sale of Class A shares and $163 and $2,676 from Class A and Class C shares, respectively, for CDSC imposed on redemptions by shareholders.
Certain officers and trustees of the Trust are officers and directors of the Adviser, IIS and/or IDI.
65 INVESCO OPPENHEIMER CAPITAL INCOME FUND
NOTES TO
FINANCIAL STATEMENTS Unaudited / Continued
Note 3 – Additional Valuation Information
GAAP defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, under current market conditions. GAAP establishes a hierarchy that prioritizes the inputs
to valuation methods, giving the highest priority to readily available unadjusted quoted prices in an active market for identical assets (Level 1) and the lowest priority to significant unobservable inputs (Level 3), generally when market prices are not readily available or are unreliable. Based on the valuation inputs, the securities or other investments are tiered into one of three levels. Changes in valuation methods may result in transfers in or out of an investment's assigned level:
Level 1 — Prices are determined using quoted prices in an active market for identical assets.
Level 2 — Prices are determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk, yield curves, loss severities, default rates, discount rates, volatilities and others.
Level 3 — Prices are determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Fund's own assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information.
The following is a summary of the tiered valuation input levels, as of February 29, 2020. The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
|
|
|
|
| Level 3— |
|
|
| Level 1— |
| Level 2— | Significant |
|
|
| Unadjusted |
| Other Significant | Unobservable |
|
|
| Quoted Prices |
| Observable Inputs | Inputs | Value |
Assets Table |
|
|
|
|
|
|
Investments, at Value: |
|
|
|
|
|
|
Preferred Stocks | $ | 391,947,694 | $ | — $ | — $ | 391,947,694 |
Asset-Backed Securities |
| — |
| 5,958,594 | — | 5,958,594 |
Mortgage-Backed Obligations |
| — |
| 903,997 | — | 903,997 |
U.S. Government Obligation |
| — |
| 124,807,265 | — | 124,807,265 |
Foreign Government Obligations |
| — |
| 300,821,580 | — | 300,821,580 |
Non-Convertible Corporate Bonds |
|
|
|
|
|
|
and Notes |
| — |
| 659,206,320 | — | 659,206,320 |
Convertible Corporate Bonds and |
|
|
|
|
|
|
Notes |
| — |
| 37,923,564 | — | 37,923,564 |
Investment Companies |
| 266,112,983 |
| — | — | 266,112,983 |
Total Investments, at Value |
| 658,060,677 |
| 1,129,621,320 | — | 1,787,681,997 |
66 INVESCO OPPENHEIMER CAPITAL INCOME FUND
|
|
|
|
|
| Level 3— |
|
|
| Level 1— |
| Level 2— |
| Significant |
|
|
| Unadjusted |
| Other Significant | Unobservable |
| |
|
| Quoted Prices |
| Observable Inputs |
| Inputs | Value |
Other Financial Instruments: |
|
|
|
|
|
|
|
Futures contracts | $ | 3,907,642 | $ | — |
| — $ | 3,907,642 |
Total Assets | $ | 661,968,319 | $ | 1,129,621,320 | $ | — $ | 1,791,589,639 |
Liabilities Table |
|
|
|
|
|
|
|
Other Financial Instruments: |
|
|
|
|
|
|
|
Swaps, at value | $ | — $ | (151,670) | $ | — $ | (151,670) | |
Futures contracts |
| (47,977,601) |
| — |
| — | (47,977,601) |
Total Liabilities | $ | (47,977,601) | $ | (151,670) | $ | — $ | (48,129,271) |
Forward currency exchange contracts and futures contracts, if any, are reported at their unrealized appreciation/depreciation at measurement date, which represents the change in the contract's value from trade date. All additional assets and liabilities included in the above table are reported at their market value at measurement date.
Note 4 - Derivative Investments
The Fund may enter into an International Swaps and Derivatives Association Master Agreement ("ISDA Master Agreement") under which a fund may trade OTC derivatives. An OTC transaction entered into under an ISDA Master Agreement typically involves a collateral posting arrangement, payment netting provisions and close-out netting provisions. These netting provisions allow for reduction of credit risk through netting of contractual obligations. The enforceability of the netting provisions of the ISDA Master Agreement depends on the governing law of the ISDA Master Agreement, among other factors. For financial reporting purposes, the Fund does not offset OTC derivative assets or liabilities that are subject to ISDA Master Agreements in the Statement of Assets and Liabilities.
Offsetting Assets and Liabilities
The table below reflects the Fund's exposure to Counterparties subject to either an ISDA Master Agreement or other agreement for OTC derivative liability transactions as of February 29, 2020:
|
| Gross Amounts Not Offset in the Statement of |
| ||
|
| Assets & Liabilities |
|
| |
| Gross Amounts |
|
|
|
|
| Not Offset in | Financial | Financial |
|
|
| the Statement | Instruments | Instruments |
|
|
| of Assets & | Available for | Collateral Cash Collateral |
| |
Counterparty | Liabilities* | Offset | Pledged** | Pledged** | Net Amount |
Morgan Stanley Capital
Services, Inc. $ (151,670) $– $ – $ – $ (151,670)
*OTC derivatives are reported gross on the Statement of Assets and Liabilities. Exchange traded options and margin related to centrally cleared swaps and futures, if any, are excluded from these reported amounts.
67 INVESCO OPPENHEIMER CAPITAL INCOME FUND
NOTES TO
FINANCIAL STATEMENTS Unaudited / Continued
**Reported collateral pledged within this table is limited to the net outstanding amount due from the Fund. The securities pledged as collateral by the Fund as reported on the Schedule of Investments may exceed these amounts.
Value of Derivative Instruments at Period-End
The table below summarizes the value of the Fund's derivative investments, detailed by primary risk exposure, held as of February 29, 2020:
| Asset Derivatives |
|
|
| Liability Derivatives |
|
|
Derivatives |
|
|
|
|
|
|
|
Not Accounted |
|
|
|
|
|
|
|
for as Hedging | Statement of Assets |
|
|
| Statement of Assets |
|
|
Instruments | and Liabilities Location |
| Value |
| and Liabilities Location |
| Value |
Credit contracts |
|
|
|
| Swaps, at value | $ | 151,670 |
Equity contracts | Futures contacts |
|
| Futures contacts |
| 47,142,806* | |
Interest rate contracts Futures contracts | $ | 3,907,642* |
| Futures contacts |
| 834,795* | |
Total |
| $ | 3,907,642 |
|
| $ | 48,129,271 |
|
|
|
|
|
|
|
|
*Includes only the current day's variation margin. Prior variation margin movements have been reflected in cash on the Statement of Assets and Liabilities upon receipt or payment.
Effect of Derivative Investments for the Six Months Ended February 29, 2020
The tables below summarize the gains (losses) on derivative investments, detailed by primary risk exposure, recognized in earnings during the period:
Amount of Realized Gain or (Loss) Recognized on Derivatives
Derivatives |
|
|
| Investment |
|
|
|
|
Not Accounted |
|
|
| transactions |
| Swaption |
|
|
for as Hedging |
|
|
| in unaffiliated |
| contracts |
| Futures |
Instruments |
|
|
| companies* |
| written |
| contracts |
Credit contracts | $ | (379,480) | $ | 144,100 | $ | — | ||
Equity contracts |
|
|
| — |
| — |
| 24,476,323 |
Forward currency |
|
|
|
|
|
|
|
|
exchange contracts |
|
|
| — |
| — |
| — |
Interest rate contracts |
|
|
| — |
| — |
| (8,784,720) |
Total | $ | (379,480) | $ | 144,100 | $ | 15,691,603 | ||
|
|
|
|
|
| |||
|
|
|
|
|
| |||
| Amount of Realized Gain or (Loss) Recognized on Derivatives |
|
| |||||
Derivatives |
|
|
| Forward |
|
|
|
|
Not Accounted |
|
|
| currency |
|
|
|
|
for as Hedging |
|
|
| exchange |
|
|
|
|
Instruments |
|
|
| contracts Swap contracts |
| Total | ||
Credit contracts | $ | — | $ | (3,088,010) | $ | (3,323,390) | ||
Equity contracts |
|
|
| — |
| — |
| 24,476,323 |
Forward currency |
|
|
|
|
|
|
|
|
exchange contracts |
|
|
| (505,833) |
| — |
| (505,833) |
Interest rate contracts |
|
|
| — |
| — |
| (8,784,720) |
Total | $ | (505,833) | $ | (3,088,010) | $ | 11,862,380 | ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
68 INVESCO OPPENHEIMER CAPITAL INCOME FUND
Amount of Change in Unrealized Gain or (Loss) Recognized on Derivatives
Derivatives |
|
|
| Forward |
|
|
|
|
Not Accounted |
|
|
| currency |
|
|
|
|
for as Hedging |
| Futures |
| exchange |
|
|
|
|
Instruments |
| contracts |
| contracts Swap contracts |
| Total | ||
Credit contracts | $ | — | $ | — | $ | 3,897,372 | $ | 3,897,372 |
Equity contracts |
| (32,325,228) |
| — |
| — |
| (32,325,228) |
Forward currency |
|
|
|
|
|
|
|
|
exchange contracts |
| — |
| 505,833 |
| — |
| 505,833 |
Interest rate contracts |
| 3,225,445 |
| — |
| — |
| 3,225,445 |
Total | $ | (29,099,783) | $ | 505,833 | $ | 3,897,372 | $ | (24,696,578) |
|
|
|
|
|
|
|
|
|
*Includes purchased option contracts and purchased swaption contracts, if any.
The table below summarizes the six months ended average notional value of futures contracts during the period.
|
| Forward |
|
|
|
|
|
|
|
|
|
| currency |
|
|
|
|
|
|
|
|
|
| exchange |
| Futures |
| Purchased |
| Written |
|
|
|
| contracts* |
| contracts |
| swaptions* |
| swaptions* |
| Swaps* |
|
|
|
|
|
|
|
|
|
|
|
Average |
|
|
|
|
|
|
|
|
|
|
notional |
|
|
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amount | $ | 74,593,141 | $ | 670,839,551 | $ | 29,000,000 | $ | 29,000,000 | $ | 6,147,001 |
*Summarizes the four month average notional value of swaptions purchased and written, the two month average notional value of forward currency exchange contracts and the five month average notional value of swaps.
Note 5 – Trustee and Officer Fees and Benefits
Certain Trustees have executed Deferred Compensation Agreement(s) pursuant to which they have the option to elect to defer receipt of all or a portion of the annual compensation they are entitled to receive from the Fund. For purposes of determining the amount owed to the Trustees under the plan(s), deferred amounts are treated as though equal dollar amounts had been invested in shares of the Fund or in other Invesco and/or Invesco Oppenheimer funds selected by the Trustees. The Fund purchases shares of the funds selected for deferral by the Trustees in amounts equal to his or her deemed investment, resulting in a Fund asset equal to the deferred compensation liability. Such assets are included as a component of "Other" within the asset section of the Statement of Assets and Liabilities. Deferral of Trustees' fees under the plan(s) will not affect the net assets of the Fund and will not materially affect the Fund's assets, liabilities or net investment income per share. Amounts will be deferred until distributed in accordance with the Deferred Compensation Agreement(s).
Note 6 – Cash Balances
The Fund is permitted to temporarily carry a negative or overdrawn balance in its account with JPMorgan Chase Bank, the custodian bank. Such balances, if any at period-end, are shown in
69 INVESCO OPPENHEIMER CAPITAL INCOME FUND
NOTES TO
FINANCIAL STATEMENTS Unaudited / Continued
the Statement of Assets and Liabilities under the payable caption Amount due custodian. To compensate the custodian bank for such overdrafts, the overdrawn Fund may either (1) leave funds as a compensating balance in the account so the custodian bank can be compensated by earning the additional interest; or (2) compensate by paying the custodian bank at a rate agreed upon by the custodian bank and Invesco, not to exceed the contractually agreed upon rate.
Note 7 – Tax Information
The amount and character of income and gains to be distributed are determined in accordance with income tax regulations, which may differ from GAAP. Reclassifications are made to the Fund's capital accounts to reflect income and gains available for distribution (or available capital loss carryforward) under income tax regulations. The tax character of distributions paid during the year and the tax components of net assets will be reported at the Fund's fiscal year-end.
Capital loss carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Fund to utilize. The ability to utilize capital loss carryforwards in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.
The Fund had a capital loss carryforward as of August 31, 2019,as follows:
Capital Loss Carryforward*
Expiration |
| Short-Term |
| Long-Term |
| Total |
Not subject to expiration | $ | 5,539,741 | $ | 62,405,249 | $ | 67,944,990 |
*Capital loss carryforward as of the date listed above is reduced for limitations, if any, to the extent required by the Internal Revenue Code and may be further the realization of net unrealized gains or losses as of the date of any reorganization.
Note 8 – Investment Transactions
The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Fund during the
six months ended February 29, 2020 was $435,181,314 and $914,494,426, respectively. During the same period, purchases and sales of U.S. Treasury obligations were $12,514,641 and $66,378,322, respectively. Cost of investments, including any derivatives, on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end.
Unrealized Appreciation (Depreciation) of Investments on a Tax Basis
Aggregate unrealized appreciation of investments | $ | 33,183,595 |
Aggregate unrealized (depreciation) of investments |
| (128,274,434) |
Net unrealized depreciation of investments | $ | (95,090,839) |
Cost of investments for tax purposes is $2,517,108,174.
70 INVESCO OPPENHEIMER CAPITAL INCOME FUND
Note 9 – Share Information
Transactions in shares of beneficial interest were as follows:
| Six Months Ended February 29, | Year Ended August 31, 20192 | ||||
|
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| 20201 | |||
| Shares |
| Shares |
|
| |
|
| Amount |
| Amount | ||
Class A |
|
|
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|
|
|
Sold | 2,982,805 | $ | 30,564,022 | 13,327,855 | $ | 134,521,469 |
Automatic Conversion |
|
|
|
|
|
|
Class C to Class A Shares | 630,614 |
| 6,463,003 | — |
| — |
Dividends and/or |
|
|
|
|
|
|
distributions reinvested | 2,244,032 |
| 22,905,945 | 3,599,019 |
| 36,109,839 |
Redeemed | (12,284,321) |
| (125,860,515) | (22,869,931) |
| (230,363,079) |
Net increase (decrease) | (6,426,870) | $ | (65,927,545) | (5,943,057) | $ | (59,731,771) |
|
|
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Class C |
|
|
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|
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Sold | 791,212 | $ | 7,832,655 | 2,808,855 | $ | 27,023,227 |
Dividends and/or |
|
|
|
|
|
|
distributions reinvested | 265,128 |
| 2,615,326 | 580,450 |
| 5,623,977 |
Automatic Conversion | (652,740) |
| (6,463,003) | — |
| — |
Class C to Class A Shares |
|
| ||||
(2,998,132) |
| (29,665,368) | (13,123,561) |
| (128,356,406) | |
Redeemed |
|
| ||||
Net increase (decrease) | (2,594,532) | $ | (25,680,390) | (9,734,256) | $ | (95,709,202) |
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Class R |
|
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Sold | 490,726 | $ | 4,963,681 | 1,195,767 | $ | 11,854,547 |
Dividends and/or |
|
|
|
|
|
|
distributions reinvested | 104,881 |
| 1,054,776 | 176,856 |
| 1,748,214 |
Redeemed | (1,049,467) |
| (10,589,519) | (1,934,253) |
| (19,211,879) |
Net increase (decrease) | (453,860) | $ | (4,571,062) | (561,630) | $ | (5,609,118) |
|
|
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|
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|
Class Y |
|
|
|
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Sold | 2,877,680 | $ | 29,478,779 | 9,269,769 | $ | 92,994,615 |
Dividends and/or |
|
|
|
|
|
|
distributions reinvested | 536,431 |
| 5,471,405 | 1,154,751 |
| 11,569,305 |
Redeemed | (12,543,818) |
| (128,486,657) | (25,049,046) |
| (249,771,563) |
Net increase (decrease) | (9,129,707) | $ | (93,536,473) | (14,624,526) | $ | (145,207,643) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class R53 |
|
|
|
|
|
|
Sold | — | $ | — | 992 | $ | 10,000 |
Dividends and/or |
|
|
|
|
|
|
distributions reinvested | — |
| — | — |
| — |
Redeemed | — |
| — | — |
| — |
Net increase (decrease) | — | $ | — | 992 | $ | 10,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class R6 |
|
|
|
|
|
|
Sold | 661,322 | $ | 6,814,615 | 2,776,304 | $ | 27,909,844 |
Dividends and/or |
|
|
|
|
|
|
distributions reinvested | 104,417 |
| 1,068,408 | 387,523 |
| 3,885,654 |
Redeemed | (10,737,371) |
| (109,552,526) | (3,993,033) |
| (40,225,639) |
Net increase (decrease) | (9,971,632) | $ | (101,669,503) | (829,206) | $ | (8,430,141) |
|
|
|
|
|
|
|
1.There are entities that are record owners of more than 5% of the outstanding shares of the Fund and own 6% of the outstanding shares of the Fund. IDI has an agreement with these entities to sell Fund shares. The Fund, Invesco
71 INVESCO OPPENHEIMER CAPITAL INCOME FUND
NOTES TO
FINANCIAL STATEMENTS Unaudited / Continued
and/or Invesco affiliates may make payments to these entities, which are considered to be related to the Fund, for providing services to the Fund, Invesco and/or Invesco affiliates, including but not limited to services such as securities brokerage, distribution, third party record keeping and account servicing. The Fund has no knowledge as to whether all or any portion of the shares owned of record by these entities are also owned beneficially.
2.There are entities that are record owners of more than 5% of the outstanding shares of the Fund and own 6% of the outstanding shares of the Fund. IDI has an agreement with these entities to sell Fund shares. The Fund, Invesco and/or Invesco affiliates may make payments to these entities, which are considered to be related to the Fund, for providing services to the Fund, Invesco and/or Invesco affiliates, including but not limited to services such as securities brokerage, distribution, third party record keeping and account servicing. The Fund has no knowledge as to whether all or any portion of the shares owned of record by these entities are also owned beneficially.
3.Commencement date after the close of business on May 24, 2019.
Note 10 - Subsequent Event
The Board of Trustees unanimously approved an Agreement and Plan of Reorganization (the "Agreement") pursuant to which Invesco Oppenheimer Capital Income Fund (the "Fund") would transfer all of its assets and liabilities to Invesco Multi-Asset Income Fund (the "Acquiring Fund").
The reorganization is expected to be consummated on April 17, 2020. Upon closing of the reorganization, shareholders of the Fund will receive a corresponding class of shares of the Acquiring Fund in exchange for their shares of the Fund and the Fund will liquidate and cease operations.
During the first quarter of 2020, the World Health Organization declared the Coronavirus (COVID-19) to be a public health emergency. COVID-19 has led to increased short-term market volatility and may have adverse long-term effects on U.S. and world economies and markets in general. COVID-19 may adversely impact the Funds' ability to achieve their investment objectives. Because of the uncertainties on valuation, the global economy and business operations, values reflected in these financial statements may materially differ from the value received upon actual sales of those investments.
The Coronavirus Aid, Relief, and Economic Security Act, commonly referred to as the "CARES Act," was signed into law on March 27, 2020 by President Trump. The Act is a $2 trillion stimulus package to help individuals, businesses and hospitals in response to the economic distress caused by the COVID-19 crisis. The Adviser is assessing the components of the Act and the impacts to the Fund should be immaterial.
72 INVESCO OPPENHEIMER CAPITAL INCOME FUND
PORTFOLIO PROXY VOTING POLICIES AND GUIDELINES; UPDATES TO SCHEDULE OF INVESTMENTS Unaudited
Go paperless with eDelivery
Visit invesco.com/edelivery to enjoy the convenience and security of anytime electronic access to your investment documents.
With eDelivery, you can elect to have any or all of the following materials delivered straight to your inbox to download, save and print from your own computer:
•Fund reports and prospectuses
•Quarterly statements
•Daily confirmations
•Tax forms
Invesco mailing information
Send general correspondence to Invesco Investment Services, Inc., P.O. Box 219078, Kansas City, MO 64121-9078.
Important notice regarding delivery of security holder documents
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact Invesco Investment Services, Inc. at 800 959 4246 or contact your financial institution. We will begin sending you individual copies for each account within 30 days after receiving your request.
Fund holdings and proxy voting information
The Fund provides a complete list of its holdings four times in each fiscal year, at the quarter ends. For the second and fourth quarters, the lists appear in the Fund's semiannual and annual reports to shareholders. For the first and third quarters, the Fund files the lists with the Securities and Exchange Commission (SEC) as an exhibit to its reports on Form N-PORT. The most recent list of portfolio holdings is available at invesco.com/completeqtrholdings. Shareholders can also look up the Fund's Forms N-PORT on the SEC website at sec.gov.
A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available without charge, upon request, from our Client Services department at 800 959 4246 or at invesco.com/proxyguidelines. The information is also available on the SEC website, sec.gov.
Information regarding how the Fund voted proxies related to its portfolio securities during the most recent 12-month period ended June 30 is available at invesco.com/proxysearch. The information is also available on the SEC website, sec.gov.
Invesco Advisers, Inc. is an investment adviser; it provides investment advisory services to individual and institutional clients and does not sell securities. Invesco Distributors, Inc. is the US distributor for Invesco Ltd.'s retail mutual funds, exchange-traded funds and institutional money market funds. Both are wholly owned, indirect subsidiaries of Invesco Ltd.
73 INVESCO OPPENHEIMER CAPITAL INCOME FUND
INVESCO'S PRIVACY NOTICE
Invesco recognizes the importance of protecting your personal and financial information when you visit our website located at www.invesco.com (the "Website"). The following information is designed to help you understand the information collection practices at this Website. We will not sell, share or rent your personally identifiable information to others in contravention of this Privacy Policy. When we refer to ourselves as "we" or "Invesco" in this Privacy Policy, we mean our entire company including our affiliates, such as subsidiaries.
By visiting this Website, you are accepting the practices described in this Privacy Policy. If you do not agree to this policy, you may not use this Website. This Privacy Policy is subject to change without notice, from time to time in our sole discretion. You acknowledge that by accessing the Website after we have posted changes to this Privacy Policy, you are agreeing to this Privacy Policy as modified. Please review
the Terms of Use1 to learn of other terms and conditions applicable to your use of the Website.
Please note that this Privacy Policy is not an exclusive statement of our privacy principles across all products and services. Other privacy principles or policies may apply depending on the products or services you obtain from Invesco, or the jurisdiction in which you transact with Invesco.
This Privacy Policy was last updated on May 6, 2018.
Information We Collect and Use
We collect personal information you choose to submit to the Website in order to process transactions requested by you and meet our contractual obligations. For example, you can choose to provide your name, contact information, social security number, or tax identification number in connection with accessing your account, or you can choose to provide your personal information when you fill out a secure account question form. Any information collected about you from the Website can, from time to time, be associated with other identifying information we have about you.
In addition, we may gather information about you automatically through your use of the Website, e.g. your IP address, how you navigate the Website, the organization from which you are accessing the Website, and the websites that you access before and after you visit the Website.
When you access the Website, we may also collect information such as unique device identifiers, your screen resolution and other device settings, information about your location, and analytical information about how you use the device from which you are viewing the Website. Where applicable, we may ask your permission before collecting certain information, such as precise geolocation information.
From time to time, we use or augment the personal information we have about you with information obtained from third parties. For example, we use third party information to confirm contact or financial information or to better understand your interests by associating demographic information from third parties with the information you have provided.
How We Use Personal Information
We use your personal information to respond to your inquiries and provide the products and services you request. We also use your information from time to time to deliver the content and services we believe
1NTD
74 INVESCO OPPENHEIMER CAPITAL INCOME FUND
you will find the most relevant and to provide customer service and support.
We also use the information you provide to further develop and improve our products and services. We aggregate and/or de-identify data about visitors to the Website for various business purposes including product and service development and improvement activities.
How We Share Personal Information
We collaborate with other companies and individuals to perform services for us and on our behalf and we collaborate with our affiliates, other companies and individuals with respect to particular products or services ("Providers"). Examples of Providers include data analysis firms, customer service and support providers, email and SMS vendors, and web-hosting and development companies. Some Providers collect information for us or on our behalf on our Website. These Providers can be provided with access to personal information needed to perform their functions.
We reserve the right to disclose your personal information as required by law, when we believe disclosure is necessary to comply with a regulatory requirement, judicial proceeding, court order or legal process served on us, to protect the safety, rights or property of our customers, the public or Invesco or to enforce the Terms of Use.
If we sell or transfer a business unit (such as a subsidiary) or an asset (such as a website) to another company, we will share your personal information with such company. You will receive notice of such an event and the new entity will inform you of any changes to the practices in this Privacy Policy. If the new entity wishes to make additional use of your information, you have the right to decline such use at that time.
We occasionally disclose aggregate or de-identified data that is not personally identifiable with third parties.
Cookies and Other Tools
Invesco and its Providers collect information about you by using cookies, tracking pixels and other technologies. We use this information to better understand, customize and improve user experience with our websites, services and offerings as well as to manage our advertising. For example, we use web analytics services that use these technologies to gather information to help us understand how visitors engage with and navigate our Website, e.g., how and when pages in a site are visited and by how many visitors. We are also able to offer our visitors a more customized, relevant experience on our sites using these technologies by delivering content and functionality based on your preferences and interests.
Depending on their purpose, some cookies will only operate for the length of a single browsing session, while others have a longer life span to ensure that they fulfill their longer-term purposes. Your web browser can be set to allow you to control whether you will accept cookies or reject cookies, to notify you each time a cookie is sent to your browser, or to delete cookies that have already been set. If your browser is set to reject cookies, certain aspects of the Website that are cookie-enabled will not recognize you when you return to the website, and some Website functionality may be lost. The "Help" section of your browser may tell you how to prevent your browser from accepting cookies. To find out more about cookies, visit www.aboutcookies.org.
75 INVESCO OPPENHEIMER CAPITAL INCOME FUND
INVESCO'S PRIVACY NOTICE Continued
Security
No data transmission over the internet can be 100% secure, so Invesco cannot ensure or warrant the security of any information you submit to us on this Website. However, Invesco seeks to protect your personal information from unauthorized access or use when you transact business on our Website using technical, administrative and procedural measures. Invesco makes no representation as to the reasonableness, efficacy, or appropriateness of the measures we use to safeguard such information.
Users are responsible for maintaining the secrecy of their own passwords. If you have reason to believe that your interaction with us is no longer secure (for example, if you feel that the security of any account you might have with us has been compromised), please immediately notify us by contacting us as specified below.
Transfer of Data to Other Countries
Any information you provide to Invesco through use of the Website may be stored and processed, transferred between and accessed from the United States, Canada and other countries which do not guarantee the same level of protection of personal information as the one in which you reside. However, Invesco will handle your personal information in accordance with this Privacy Policy regardless of where your personal information is stored/accessed.
Children's Privacy
We are committed to protecting the privacy of children. We do not knowingly collect personal information from children under the age of 18. If you are under the age of 18, do not provide us with any personal information.
Contact Us
Please contact us if you have any questions or concerns about your personal information or require assistance in managing your choices.
Invesco Ltd.
1555 Peachtree St. NE Atlanta, GA 30309 By phone:
(404)439-3236 By fax:
(404)962-8288 By email: Anne.Gerry@invesco.com
Please update your account information by logging in or contact us by email or telephone as specified above to update your account information whenever such information ceases to be complete or accurate.
You may also contact us to:
76 INVESCO OPPENHEIMER CAPITAL INCOME FUND
•Request that we amend, rectify, delete or update the personal data we hold about you;
•Where possible (e.g. in relation to marketing) amend or update your choices around processing;
•Request a copy of personal data held by us.
Disclaimer
Where the Website contains links to third-party websites/content/services that are not owned or controlled by Invesco, Invesco is not responsible for how these properties operate or treat your personal information so we recommend that you read the privacy policies and terms associated with these third party properties carefully.
77 INVESCO OPPENHEIMER CAPITAL INCOME FUND
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Explore High-Conviction Investing with Invesco
Go paperless with eDelivery
Visit invesco.com/edelivery to enjoy the convenience and security of anytime electronic access to your investment documents.
With eDelivery, you can elect to have any or all of the following materials delivered straight to your inbox to download, save and print from your own computer:
�Fund reports and prospectuses
�Quarterly statements
�Daily confirmations
�Tax forms
Invesco mailing information
Send general correspondence to Invesco Investment Services, Inc., P.O. Box 219078, Kansas City, MO 64121-9078.
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Invesco Distributors, Inc. | O-CAPI-SAR-1 04272020 |
Item 2. Code of Ethics.
Not required for a semiannual report
Item 3. Audit Committee Financial Expert.
Not applicable.
Item 4. Principal Accountant Fees and Services.
On May 24, 2019, certain investment advisor subsidiaries of Invesco Ltd. assumed management responsibility from Oppenheimer Funds, Inc. ("OFI") for 83 open-end mutual funds and 20 exchange-traded funds (collectively, the "Oppenheimer Funds"). Assumption of management responsibility for the Oppenheimer Funds was accomplished through the reorganization of each Oppenheimer Fund into a new Invesco shell fund (collectively, the "New Invesco Funds") that did not have pre-existing assets (together, the "Reorganizations"). The Reorganizations were part of the acquisition by Invesco Ltd. (together with its subsidiaries, "Invesco") of the asset management business of OFI (including the Oppenheimer Funds) from Massachusetts Mutual Life Insurance Company ("MassMutual"), which was also consummated on May 24, 2019 (the "Acquisition"). Subsequent to the Acquisition, MassMutual became a significant shareholder of Invesco, and the Invesco Ltd. board of directors expanded by one director with the addition of a director selected by MassMutual.
Prior to the consummation of the Acquisition and the Reorganizations on May 24, 2019, PricewaterhouseCoopers LLC ("PwC") completed an independence assessment to evaluate the services and relationships with OFI and its affiliates, which became affiliates of Invesco upon the closing of the Acquisition. The assessment identified the following relationship and services that are inconsistent with the auditor independence rules under Rule 2-01 of Regulation S-X ("Rule 2- 01") if provided to an affiliate of an audit client. A retired PwC partner who receives a benefit from PwC that is not fully funded, served as a member of Audit Committee of the Boards of Trustees of certain Oppenheimer Funds prior to the Acquisition (the "Pre-Reorganization Relationship"). Additionally, PwC provided certain non-audit services including, expert legal services to one Oppenheimer Fund, custody of client assets in connection with payroll services, a non-audit service performed pursuant to a success-based fee, non-audit services in which PwC acted as an advocate on behalf of a MassMutual foreign affiliate and certain employee activities undertaken in connection with the provision of non-audit services for MassMutual and certain MassMutual foreign affiliates (collectively, the "Pre-Reorganization Services").
PwC and the Audit Committees of the New Invesco Funds each considered the impact that the Pre-Reorganization Relationship and Services have on PwC's independence with respect to the New Invesco Funds. On the basis of the nature of the relationship and services performed, and in particular the mitigating factors described below, PwC concluded that a reasonable investor, possessing knowledge of all the relevant facts and circumstances regarding the Pre- Reorganization Relationship and Services, would conclude that the Pre-Reorganization Relationship and Services do not impair PwC's ability to exhibit the requisite objectivity and impartiality to report on the financial statements of the New Invesco Funds for the years ending May 31, 2019 – April 30, 2020 ("PwC's Conclusion").
The Audit Committees of the Boards of Trustees of the New Invesco Funds, based upon PwC's Conclusion and the concurrence of Invesco, considered the relevant facts and circumstances including the mitigating factors described below and, after careful consideration, concluded that PwC is capable of exercising objective and impartial judgment in connection with its audits of the financial statements of the New Invesco Funds that the respective Boards of Trustees oversee.
Mitigating factors that PwC and the Audit Committees considered in reaching their respective conclusions included, among others, the following factors:
∙none of the Pre-Reorganization Relationship or Services created a mutuality of interest between PwC and the New Invesco Funds;
∙PwC will not act in a management or employee capacity for the New Invesco Funds or their affiliates during any portion of PwC's professional engagement period;
∙other than the expert legal services, Pre-Reorganization Services that have been provided to OFI, MassMutual and their affiliates do not have any impact on the financial statements of the New Invesco Funds;
∙as it relates to the expert legal services, while the service provided by PwC related to litigation involving one Oppenheimer Fund, the impact of the litigation on the Oppenheimer Fund's financial statements was based upon OFI's decision, and OFI management represented that the PwC service was not considered a significant component of its decision;
∙while certain employees of OFI who were involved in the financial reporting process of the Oppenheimer Funds will be employed by Invesco subsequent to the Reorganizations, existing officers of other Invesco Funds will serve as Principal Executive Officer and Principal Financial Officer or equivalent roles for the New Invesco Funds, and are ultimately responsible for the accuracy of all financial statement assertions for the entirety of the financial reporting periods for the New Invesco Funds;
∙the Pre-Reorganization Services giving rise to the lack of independence were provided to, or entered into with, OFI, MassMutual and their affiliates at a time when PwC had no independence restriction with respect to these entities;
∙with the exception of the expert legal service provided to one Oppenheimer Fund, none of the Pre- Reorganization Services affected the operations or financial reporting of the New Invesco Funds;
∙the Pre-Reorganization Services provided by PwC to OFI, MassMutual and their affiliates were performed by persons who were not, and will not be, part of the audit engagement team for the New Invesco Funds; and
∙the fees associated with the Pre-Reorganization Services were not material to MassMutual, Invesco or PwC.
Item 5. Audit Committee of Listed Registrants
Not applicable.
Item 6. Schedule of Investments.
Investments in securities of unaffiliated issuers is included as part of the reports to stockholders filed under Item 1 of this Form.
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
Not applicable.
Item 8. Portfolio Managers of Closed-End Management Investment Companies.
Not applicable.
Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.
Not applicable.
Item 10. Submission of Matters to a Vote of Security Holders.
None
Item 11. Controls and Procedures.
(a)As of April 14, 2020, an evaluation was performed under the supervision and with the participation of the officers of the Registrant, including the PEO and PFO, to assess the effectiveness of the Registrant's disclosure controls and procedures, as that term is defined in Rule 30a-3(c) under the Investment Company Act of 1940 (the "Act"), as amended. Based on that evaluation, the Registrant's officers, including the PEO and PFO, concluded that, as of April 14, 2020, the Registrant's disclosure controls and procedures were reasonably designed to ensure: (1) that information required to be disclosed by the Registrant on Form N-CSR is recorded, processed, summarized and reported within the time periods specified by the rules and forms of the Securities and Exchange Commission; and (2) that material information relating to the Registrant is made known to the PEO and PFO as appropriate to allow timely decisions regarding required disclosure.
(b)There have been no changes in the Registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the Act) that occurred during the period covered by this report that have materially affected, or are reasonably likely to materially affect, the
Registrant's internal control over financial reporting.
Item 12. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies.
Not applicable.
Item 13. Exhibits.
13(a) (1) Not applicable.
13(a) (3) Not applicable.
13(a) (4) Not applicable.
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/ Sheri Morris |
| Sheri Morris |
| Principal Executive Officer |
Date: | May 6, 2020 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By: | /s/ Sheri Morris |
| Sheri Morris |
| Principal Executive Officer |
Date: | May 6, 2020 |
By: | /s/ Kelli Gallegos |
| Kelli Gallegos |
| Principal Financial Officer |
Date: | May 6, 2020 |