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 | �� | 811-06463 |
AIM International Mutual Funds (Invesco International Mutual 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: | 10/31 | |||
Date of reporting period: | 04/30/20 |
Item 1. | Reports to Stockholders. |
| ||||
Semiannual Report to Shareholders | April 30, 2020 | |||
Invesco Asia Pacific Growth Fund | ||||
Nasdaq: | ||||
A: ASIAX ∎ C: ASICX ∎ Y: ASIYX ∎ R6: ASISX |
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.
For the most current month-end Fund performance and commentary, please visit invesco.com/performance.
Unless otherwise noted, all data provided by Invesco.
This report must be accompanied or preceded by a currently effective Fund prospectus, which contains more complete information, including sales charges and expenses. Investors should read it carefully before investing.
NOT FDIC INSURED | MAY LOSE VALUE | NO BANK GUARANTEE
Bruce Crockett | Dear Fellow Shareholders: As independent chair of the Invesco Funds Board, I can assure you that the members of the Board are strong advocates for the interests of investors in Invesco’s mutual funds. We work hard to represent your interests through oversight of the quality of the investment management services your funds receive and other matters important to your investment. This includes but is not limited to: monitoring how the portfolio management teams of the Invesco funds are performing in light of changing economic and market conditions; assessing each portfolio management team’s investment performance within the context of the investment strategy described in the fund’s prospectus; and monitoring for potential conflicts of interests that may impact the nature of the services that your funds receive. We believe one of the most important services we provide our fund shareholders is the annual review of the funds’ advisory and sub-advisory contracts with Invesco Advisers and its affiliates. This review is required by the Investment Company Act of 1940 and focuses on the nature and quality of the services Invesco provides as the adviser to the Invesco funds and the reasonableness of the fees that it charges for | |
those services. Each year, we spend months carefully reviewing information received from Invesco and a variety of independent sources, such as performance and fee data prepared by Lipper Inc. (a subsidiary of Broadridge Financial Solutions, Inc.), an independent, third-party firm widely recognized as a leader in its field. We also meet with our independent legal counsel and other independent advisers to review and help us assess the information that we have received. Our goal is to assure that you receive quality investment management services for a reasonable fee. | ||
On behalf of the Board, we look forward to continuing to represent your interests and serving your needs. |
Sincerely,
Bruce L. Crockett
Independent Chair
Invesco Funds Board of Trustees
Andrew Schlossberg | Dear Shareholders: This semiannual report includes information about your Fund, including performance data and a complete list of its investments as of the close of the reporting period. Invesco’s efforts to help investors achieve their financial objectives include providing timely information about the markets, the economy and investing. Our website, invesco.com/us, offers a wide range of market insights and investment perspectives. On the website, you’ll find detailed information about our funds, including performance, holdings and portfolio manager commentaries. You can access information about your account by completing a simple, secure online registration. To do so, select “Log In” on the right side of the homepage, and then select “Register for Individual Account Access.” In addition to the resources accessible on our website, you can obtain timely updates to help you stay informed by connecting with Invesco on Twitter, LinkedIn or Facebook. You can access our blog at blog.invesco.us.com. Our goal is to provide you with information you want, when and where you want it. | |
For questions about your account, feel free to contact an Invesco client services representative at 800 959 4246. | ||
All of us at Invesco look forward to serving your investment management needs. Thank you for investing with us. |
Sincerely,
Andrew Schlossberg
Head of the Americas,
Senior Managing Director, Invesco Ltd.
2 Invesco Asia Pacific Growth Fund
Performance summary
| ||
Fund vs. Indexes | ||
Cumulative total returns, October 31, 2019 to April 30, 2020, at net asset value (NAV). Performance shown does not include applicable contingent deferred sales charges (CDSC) or front-end sales charges, which would have reduced performance. | ||
Class A Shares | -6.02% | |
Class C Shares | -6.36 | |
Class Y Shares | -5.89 | |
Class R6 Shares | -5.81 | |
MSCI All Country Asia Pacific ex-Japan Indexq (Broad Market/Style-Specific Index) | -7.50 | |
Lipper Pacific ex-Japan Funds Index∎ (Peer Group Index) | -4.47 | |
Source(s): qRIMES Technologies Corp.; ∎Lipper Inc. | ||
The MSCI All Country Asia Pacific ex-Japan Index is an unmanaged index considered representative of Asia Pacific region stock markets, excluding Japan. The index is computed using the net return, which withholds applicable taxes for nonresident investors. | ||
The Lipper Pacific ex-Japan Funds Index is an unmanaged index considered representative of Pacific region ex-Japan funds tracked by Lipper. | ||
The Fund is not managed to track the performance of any particular index, including the index(es) described here, and consequently, the performance of the Fund may deviate significantly from the performance of the index(es). | ||
A direct investment cannot be made in an index. Unless otherwise indicated, index results include reinvested dividends, and they do not reflect sales charges. Performance of the peer group, if applicable, reflects fund expenses; performance of a market index does not.
|
For more information about your Fund |
Read the most recent quarterly commentary from your Fund’s portfolio managers by visiting invesco.com/us. Click on “Products” and select “Mutual Funds.” Use the “Product Finder” to locate your Fund; then click on its name to access its product detail page. There, you can learn more about your Fund’s investment strategies, holdings and performance. Also, visit blog.invesco.us.com, where many of Invesco’s investment professionals share their insights about market and economic news and trends.
|
3 Invesco Asia Pacific Growth Fund
Average Annual Total Returns |
| |||
As of 4/30/20, including maximum applicable sales charges |
| |||
Class A Shares | ||||
Inception (11/3/97) | 8.00 | % | ||
10 Years | 5.80 | |||
5 Years | 1.58 | |||
1 Year | -11.52 | |||
Class C Shares | ||||
Inception (11/3/97) | 7.92 | % | ||
10 Years | 5.61 | |||
5 Years | 1.97 | |||
1 Year | -7.91 | |||
Class Y Shares | ||||
Inception (10/3/08) | 9.81 | % | ||
10 Years | 6.66 | |||
5 Years | 3.00 | |||
1 Year | -6.11 | |||
Class R6 Shares | ||||
10 Years | 6.54 | % | ||
5 Years | 3.01 | |||
1 Year
|
| -5.92
|
|
Class R6 shares incepted on April 4, 2017. Performance shown prior to that date is that of Class A shares and includes the 12b-1 fees applicable to Class A shares.
The performance data quoted represent past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/ performance for the most recent month-end performance. Performance figures reflect reinvested distributions, changes in net asset value and the effect of the maximum sales charge unless otherwise stated. Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares. Investment return and principal value will fluctuate so that you may have a gain or loss when you sell shares.
Class A share performance reflects the maximum 5.50% sales charge, and Class C share performance reflects the applicable contingent deferred sales charge (CDSC) for the period involved. The CDSC on Class C shares is 1% for the first year after purchase. Class Y shares and Class R6 shares do not have a front-end sales charge or a CDSC; therefore, performance is at net asset value.
The performance of the Fund’s share classes will differ primarily due to different sales charge structures and class expenses.
Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information.
4 Invesco Asia Pacific Growth Fund
Liquidity Risk Management Program
The Securities and Exchange Commission has adopted Rule 22e-4 under the Investment Company Act of 1940 (the “Liquidity Rule”) in order to promote effective liquidity risk management throughout the open-end investment company industry, thereby reducing the risk that funds will be unable to meet their redemption obligations and mitigating dilution of the interests of fund shareholders. The Fund has adopted and implemented a liquidity risk management program in accordance with the Liquidity Rule (the “Program”). The Program is reasonably designed to assess and manage the Fund’s liquidity risk, which is the risk that the Fund could not meet redemption requests without significant dilution of remaining investors’ interests in the Fund. The Board of Trustees of the Fund (the “Board”) has appointed Invesco Advisers, Inc. (“Invesco”), the Fund’s investment adviser, as the Program’s administrator, and Invesco has delegated oversight of the Program to the Liquidity Risk Management Committee (the “Committee”), which is composed of senior representatives from relevant business groups at Invesco.
As required by the Liquidity Rule, the Program includes policies and procedures providing for an assessment, no less frequently than annually, of the Fund’s liquidity risk that takes into account, as relevant to the Fund’s liquidity risk: (1) the Fund’s investment strategy and liquidity of portfolio investments during both normal and reasonably foreseeable stressed conditions; (2) short-term and long-term cash flow projections for the Fund during both normal and reasonably foreseeable stressed conditions; and (3) the Fund’s holdings of cash and cash equivalents and any borrowing arrangements. The Liquidity Rule also requires the classification of the Fund’s investments into categories that reflect the assessment of their relative liquidity under current market conditions. The Fund classifies its investments into one of four categories defined in the Liquidity Rule: “Highly Liquid,” “Moderately Liquid,” “Less Liquid” and “Illiquid.” Funds that are not invested primarily in “Highly Liquid Investments” that are assets (cash or investments that are reasonably expected to be convertible into cash within three business days without significantly changing the market value of the investment) are required to establish a “Highly Liquid Investment Minimum” (“HLIM”), which is the minimum percentage of net assets that must be invested in Highly Liquid Investments. Funds with HLIMs have procedures for addressing HLIM shortfalls, including reporting to the Board and the SEC (on a non-public basis) as required by the Program and the Liquidity Rule. In addition, the Fund may not acquire an investment if, immediately after the acquisition, over 15% of the Fund’s net assets would consist of “Illiquid Investments” that are assets (an investment that cannot reasonably be expected to be sold or disposed of in current market conditions in seven calendar days or less without the sale or disposition significantly changing the market value of the investment). The Liquidity Rule and the Program also require reporting to the Board and the SEC (on a non-public basis) if a Fund’s holdings of Illiquid Investments exceed 15% of the Fund’s assets.
At a meeting held on March 30-April 1, 2020, the Committee presented a report to the Board that addressed the operation of the Program and assessed the Program’s adequacy and effectiveness of implementation (the “Report”). The Report covered the period from December 1, 2018 through December 31, 2019 (the “Program Reporting Period”).
The Report stated, in relevant part, that during the Program Reporting Period:
∎ | The Program, as adopted and implemented, remained reasonably designed to assess and manage the Fund’s liquidity risk and was operated effectively to achieve that goal; |
∎ | The Fund’s investment strategy remained appropriate for an open-end fund; |
∎ | The Fund was able to meet requests for redemption without significant dilution of remaining investors’ interests in the Fund; |
∎ | The Fund did not breach the 15% limit on Illiquid Investments; and |
∎ | The Fund primarily held Highly Liquid Investments and therefore has not adopted an HLIM. |
5 Invesco Asia Pacific Growth Fund
April 30, 2020
(Unaudited)
Shares | Value | |||||
Common Stocks & Other Equity Interests-92.67% | ||||||
Australia-1.69% | ||||||
CSL Ltd. | 52,753 | $ 10,456,477 | ||||
China-39.34% | ||||||
Alibaba Group Holding Ltd., | 151,098 | 30,623,032 | ||||
Angel Yeast Co. Ltd., A Shares | 2,881,100 | 14,993,965 | ||||
China Mengniu Dairy Co. Ltd.(a) | 6,579,000 | 23,165,032 | ||||
Henan Shuanghui Investment & Development Co. Ltd., A Shares | 2,283,324 | 13,083,922 | ||||
Industrial & Commercial Bank of China Ltd., H Shares | 10,736,000 | 7,206,920 | ||||
JD.com, Inc., ADR(a) | 333,188 | 14,360,403 | ||||
Kweichow Moutai Co. Ltd., A Shares | 25,427 | 4,499,384 | ||||
Meituan Dianping, B Shares(a) | 1,145,700 | 15,219,375 | ||||
Minth Group Ltd. | 1,656,000 | 3,891,642 | ||||
New Oriental Education & Technology Group, Inc., ADR(a) | 69,514 | 8,874,157 | ||||
Qingdao Port International Co. Ltd., H Shares(b) | 6,409,000 | 3,440,665 | ||||
Shanghai International Airport Co. Ltd., A Shares | 1,024,830 | 10,117,270 | ||||
Sunny Optical Technology Group Co. Ltd. | 926,800 | 12,841,831 | ||||
Tencent Holdings Ltd. | 520,200 | 27,598,225 | ||||
Wuliangye Yibin Co. Ltd., A Shares | 1,212,460 | 23,342,791 | ||||
Yum China Holdings, Inc.(a) | 629,031 | 30,482,842 | ||||
243,741,456 | ||||||
Hong Kong-8.23% | ||||||
CK Asset Holdings Ltd. | 3,560,160 | 22,011,143 | ||||
Hongkong Land Holdings Ltd. | 1,093,700 | 4,595,139 | ||||
Swire Properties Ltd. | 8,678,600 | 24,386,735 | ||||
50,993,017 | ||||||
India-1.03% | ||||||
HDFC Bank Ltd., ADR | 147,455 | 6,392,174 | ||||
Indonesia-6.73% | ||||||
PT Bank Central Asia Tbk | 8,897,400 | 15,448,863 | ||||
PT Bank Mandiri (Persero) Tbk | 17,146,000 | 5,133,243 | ||||
PT Pakuwon Jati Tbk | 285,495,700 | 7,219,567 | ||||
PT Telekomunikasi Indonesia (Persero) Tbk | 59,061,100 | 13,880,804 | ||||
41,682,477 | ||||||
Macau-2.81% | ||||||
Galaxy Entertainment Group Ltd. | 2,740,000 | 17,399,527 | ||||
Malaysia-4.23% | ||||||
Bursa Malaysia Bhd. | 11,494,850 | 15,847,688 | ||||
Heineken Malaysia Bhd. | 948,500 | 5,261,400 |
Shares | Value | |||||
Malaysia-(continued) | ||||||
Public Bank Bhd. | 1,347,600 | $ 5,114,745 | ||||
26,223,833 | ||||||
Philippines-4.16% | ||||||
BDO Unibank, Inc. | 4,880,040 | 9,691,962 | ||||
SM Investments Corp. | 581,086 | 9,465,731 | ||||
SM Prime Holdings, Inc. | 11,141,400 | 6,648,449 | ||||
25,806,142 | ||||||
Singapore-5.13% | ||||||
Keppel REIT | 26,543,700 | 19,744,248 | ||||
United Overseas Bank Ltd. | 843,800 | 12,054,979 | ||||
31,799,227 | ||||||
South Korea-5.86% | ||||||
NAVER Corp. | 53,315 | 8,679,942 | ||||
Samsung Electronics Co. Ltd. | 669,920 | 27,605,465 | ||||
36,285,407 | ||||||
Taiwan-4.30% | ||||||
Taiwan Semiconductor Manufacturing Co. Ltd. | 2,651,464 | 26,645,802 | ||||
Thailand-1.14% | ||||||
Central Pattana PCL, Foreign Shares | 3,818,800 | 5,698,258 | ||||
Thai Stanley Electric PCL, Foreign Shares | 350,400 | 1,395,508 | ||||
7,093,766 | ||||||
United States-5.79% | ||||||
Amcor PLC, CDI | 1,162,299 | 10,549,688 | ||||
Broadcom, Inc. | 93,153 | 25,302,218 | ||||
35,851,906 | ||||||
Vietnam-2.23% | ||||||
Vietnam Dairy Products JSC | 3,262,542 | 13,789,603 | ||||
Total Common Stocks & Other Equity Interests |
| 574,160,814 | ||||
Money Market Funds-6.92% | ||||||
Invesco Government & Agency Portfolio, Institutional Class, 0.20%(c)(d) | 14,884,958 | 14,884,958 | ||||
Invesco Liquid Assets Portfolio, | 10,951,482 | 10,958,053 | ||||
Invesco Treasury Portfolio, | 17,011,381 | 17,011,381 | ||||
Total Money Market Funds |
| 42,854,392 | ||||
TOTAL INVESTMENTS IN SECURITIES-99.59% (Cost $493,564,434) |
| 617,015,206 | ||||
OTHER ASSETS LESS LIABILITIES-0.41% |
| 2,556,968 | ||||
NET ASSETS-100.00% | $619,572,174 |
Investment Abbreviations:
ADR | - | American Depositary Receipt | ||
CDI | - | CREST Depository Interest | ||
REIT | - | Real Estate Investment Trust |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
6 Invesco Asia Pacific Growth Fund
Notes to Schedule of Investments:
(a) | Non-income producing security. |
(b) | Security purchased or received in a transaction exempt from registration under the Securities Act of 1933, as amended (the “1933 Act”). The security may be resold pursuant to an exemption from registration under the 1933 Act, typically to qualified institutional buyers. The value of this security at April 30, 2020 represented less than 1% of the Fund’s Net Assets. |
(c) | Affiliated issuer. The issuer and/or the Fund is a wholly-owned subsidiary of Invesco Ltd., or is affiliated by having an investment adviser that is under common control of Invesco Ltd. The table below shows the Fund’s transactions in, and earnings from, its investments in affiliates for the six months ended April 30, 2020. |
Value October 31, 2019 | Purchases at Cost | Proceeds from Sales | Change in Unrealized Appreciation | Realized Gain (Loss) | Value April 30, 2020 | Dividend Income | ||||||||||||||||||||
Investments in Affiliated Money Market Funds: |
| |||||||||||||||||||||||||
Invesco Government & Agency Portfolio, Institutional Class | $27,069,917 | $28,025,100 | $ (40,210,059 | ) | $ - | $ - | $14,884,958 | $155,170 | ||||||||||||||||||
Invesco Liquid Assets Portfolio, Institutional Class | 19,342,717 | 20,639,975 | (29,023,728 | ) | 717 | (1,628 | ) | 10,958,053 | 131,718 | |||||||||||||||||
Invesco Treasury Portfolio, Institutional Class | 30,937,048 | 32,028,686 | (45,954,353 | ) | - | - | 17,011,381 | 173,538 | ||||||||||||||||||
Total | $77,349,682 | $80,693,761 | $(115,188,140 | ) | $717 | $(1,628 | ) | $42,854,392 | $460,426 |
(d) | The rate shown is the 7-day SEC standardized yield as of April 30, 2020. |
Portfolio Composition
By sector, based on Net Assets
as of April 30, 2020
Consumer Discretionary | 19.73 | % | ||
Consumer Staples | 15.84 | |||
Information Technology | 14.91 | |||
Real Estate | 14.57 | |||
Financials | 12.41 | |||
Communication Services | 8.10 | |||
Industrials | 3.72 | |||
Other Sectors, Each Less than 2% of Net Assets | 3.38 | |||
Money Market Funds Plus Other Assets Less Liabilities | 7.34 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
7 Invesco Asia Pacific Growth Fund
Statement of Assets and Liabilities
April 30, 2020
(Unaudited)
Assets: | ||
Investments in securities, at value | $574,160,814 | |
Investments in affiliated money market funds, at value (Cost $42,848,054) | 42,854,392 | |
Foreign currencies, at value (Cost $235,015) | 237,296 | |
Receivable for: | ||
Investments sold | 1,692,766 | |
Fund shares sold | 134,053 | |
Dividends | 1,488,954 | |
Investment for trustee deferred compensation and retirement plans | 120,739 | |
Other assets | 36,721 | |
Total assets | 620,725,735 | |
Liabilities: | ||
Payable for: | ||
Fund shares reacquired | 519,808 | |
Accrued fees to affiliates | 317,384 | |
Accrued other operating expenses | 183,891 | |
Trustee deferred compensation and retirement plans | 132,478 | |
Total liabilities | 1,153,561 | |
Net assets applicable to shares outstanding | $619,572,174 | |
Net assets consist of: | ||
Shares of beneficial interest | $474,315,415 | |
Distributable earnings | 145,256,759 | |
$619,572,174 |
Net Assets: | ||||
Class A | $ | 372,793,122 | ||
| ||||
Class C | $ | 22,921,674 | ||
| ||||
Class Y | $ | 136,754,021 | ||
| ||||
Class R6 | $ | 87,103,357 | ||
| ||||
Shares outstanding, no par value, with an unlimited number of shares authorized: |
| |||
Class A | 12,784,780 | |||
| ||||
Class C | 861,598 | |||
| ||||
Class Y | 4,681,095 | |||
| ||||
Class R6 | 2,983,473 | |||
| ||||
Class A: | ||||
Net asset value per share | $ | 29.16 | ||
| ||||
Maximum offering price per share | $ | 30.86 | ||
| ||||
Class C: | ||||
Net asset value and offering price per share | $ | 26.60 | ||
| ||||
Class Y: | ||||
Net asset value and offering price per share | $ | 29.21 | ||
| ||||
Class R6: | ||||
Net asset value and offering price per share | $ | 29.20 | ||
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
8 Invesco Asia Pacific Growth Fund
Statement of Operations
For the six months ended April 30, 2020
(Unaudited)
Investment income: | ||||
Dividends (net of foreign withholding taxes of $470,251) | $ | 5,003,397 | ||
| ||||
Dividends from affiliated money market funds | 460,426 | |||
| ||||
Total investment income | 5,463,823 | |||
| ||||
Expenses: | ||||
Advisory fees | 3,129,099 | |||
| ||||
Administrative services fees | 51,286 | |||
| ||||
Custodian fees | 85,253 | |||
| ||||
Distribution fees: | ||||
Class A | 513,722 | |||
| ||||
Class C | 140,308 | |||
| ||||
Transfer agent fees – A, C and Y | 634,602 | |||
| ||||
Transfer agent fees – R6 | 3,522 | |||
| ||||
Trustees’ and officers’ fees and benefits | 10,419 | |||
| ||||
Registration and filing fees | 32,696 | |||
| ||||
Reports to shareholders | 41,761 | |||
| ||||
Professional services fees | 31,075 | |||
| ||||
Other | 10,975 | |||
| ||||
Total expenses | 4,684,718 | |||
| ||||
Less: Fees waived and/or expense offset arrangement(s) | (44,775 | ) | ||
| ||||
Net expenses | 4,639,943 | |||
| ||||
Net investment income | 823,880 | |||
| ||||
Realized and unrealized gain (loss) from: | ||||
Net realized gain (loss) from: | ||||
Investment securities (net of foreign taxes of $312,618) | 22,201,789 | |||
| ||||
Foreign currencies | (274,373 | ) | ||
| ||||
21,927,416 | ||||
| ||||
Change in net unrealized appreciation (depreciation) of: | ||||
Investment securities (net of foreign taxes of $300,250) | (65,174,907 | ) | ||
| ||||
Foreign currencies | 7,225 | |||
| ||||
(65,167,682 | ) | |||
| ||||
Net realized and unrealized gain (loss) | (43,240,266 | ) | ||
| ||||
Net increase (decrease) in net assets resulting from operations | $ | (42,416,386 | ) | |
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
9 Invesco Asia Pacific Growth Fund
Statement of Changes in Net Assets
For the six months ended April 30, 2020 and the year ended October 31, 2019
(Unaudited)
April 30, 2020 | October 31, 2019 | |||||||
| ||||||||
Operations: | ||||||||
Net investment income | $ | 823,880 | $ | 8,639,587 | ||||
| ||||||||
Net realized gain | 21,927,416 | 39,831,706 | ||||||
| ||||||||
Change in net unrealized appreciation (depreciation) | (65,167,682 | ) | 67,995,708 | |||||
| ||||||||
Net increase (decrease) in net assets resulting from operations | (42,416,386 | ) | 116,467,001 | |||||
| ||||||||
Distributions to shareholders from distributable earnings: | ||||||||
Class A | (28,385,720 | ) | (26,750,392 | ) | ||||
| ||||||||
Class C | (1,894,754 | ) | (3,425,301 | ) | ||||
| ||||||||
Class Y | (11,193,927 | ) | (12,016,731 | ) | ||||
| ||||||||
Class R6 | (7,091,434 | ) | (6,512,306 | ) | ||||
| ||||||||
Total distributions from distributable earnings | (48,565,835 | ) | (48,704,730 | ) | ||||
| ||||||||
Share transactions–net: | ||||||||
Class A | (6,240,328 | ) | (1,605,418 | ) | ||||
| ||||||||
Class C | (4,720,813 | ) | (25,531,581 | ) | ||||
| ||||||||
Class Y | (12,925,704 | ) | (18,397,911 | ) | ||||
| ||||||||
Class R6 | 3,129,959 | 881,498 | ||||||
| ||||||||
Net increase (decrease) in net assets resulting from share transactions | (20,756,886 | ) | (44,653,412 | ) | ||||
| ||||||||
Net increase (decrease) in net assets | (111,739,107 | ) | 23,108,859 | |||||
| ||||||||
Net assets: | ||||||||
Beginning of period | 731,311,281 | 708,202,422 | ||||||
| ||||||||
End of period | $ | 619,572,174 | $ | 731,311,281 | ||||
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
10 Invesco Asia Pacific Growth Fund
(Unaudited)
The following schedule presents financial highlights for a share of the Fund outstanding throughout the periods indicated.
Net asset value, beginning of period | Net investment income (loss)(a) | Net gains (losses) on securities (both realized and unrealized) | Total from investment operations | Dividends from net investment income | Distributions from net realized gains | Total distributions | Net asset value, end of period | Total return (b) | Net assets, end of period (000’s omitted) | Ratio of expenses to average net assets with fee waivers and/or expenses absorbed | Ratio of expenses to average net assets without fee waivers and/or expenses absorbed | Ratio of net investment income (loss) to average net assets | Portfolio turnover (c) | |||||||||||||||||||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 04/30/20 | $33.15 | $0.02 | $(1.81 | ) | $(1.79 | ) | $(0.35 | ) | $(1.85 | ) | $(2.20 | ) | $29.16 | (6.02 | )% | $372,793 | 1.44 | %(d) | 1.45 | %(d) | 0.15 | %(d) | 17 | % | ||||||||||||||||||||||||||||||||
Year ended 10/31/19 | 30.30 | 0.35 | 4.60 | 4.95 | (0.34 | ) | (1.76 | ) | (2.10 | ) | 33.15 | 17.17 | 433,120 | 1.43 | 1.44 | 1.08 | 17 | |||||||||||||||||||||||||||||||||||||||
Year ended 10/31/18 | 36.95 | 0.36 | (4.21 | ) | (3.85 | ) | (0.28 | ) | (2.52 | ) | (2.80 | ) | 30.30 | (11.39 | ) | 395,319 | 1.44 | 1.46 | 1.04 | 21 | ||||||||||||||||||||||||||||||||||||
Year ended 10/31/17 | 31.60 | 0.28 | 5.69 | 5.97 | (0.30 | ) | (0.32 | ) | (0.62 | ) | 36.95 | 19.32 | 495,214 | 1.45 | 1.47 | 0.85 | 18 | |||||||||||||||||||||||||||||||||||||||
Year ended 10/31/16 | 29.35 | 0.31 | 2.83 | 3.14 | (0.89 | ) | – | (0.89 | ) | 31.60 | 11.15 | 467,191 | 1.45 | 1.47 | 1.06 | 9 | ||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/15 | 33.43 | 0.83 | (e) | (3.54 | ) | (2.71 | ) | (0.41 | ) | (0.96 | ) | (1.37 | ) | 29.35 | (8.32 | ) | 468,366 | 1.44 | 1.45 | 2.63 | (e) | 23 | ||||||||||||||||||||||||||||||||||
Class C | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 04/30/20 | 30.25 | (0.08 | ) | (1.67 | ) | (1.75 | ) | (0.05 | ) | (1.85 | ) | (1.90 | ) | 26.60 | (6.39 | ) | 22,922 | 2.19 | (d) | 2.20 | (d) | (0.60 | )(d) | 17 | ||||||||||||||||||||||||||||||||
Year ended 10/31/19 | 27.77 | 0.10 | 4.21 | 4.31 | (0.07 | ) | (1.76 | ) | (1.83 | ) | 30.25 | 16.29 | 31,409 | 2.18 | 2.19 | 0.33 | 17 | |||||||||||||||||||||||||||||||||||||||
Year ended 10/31/18 | 34.08 | 0.09 | (3.86 | ) | (3.77 | ) | (0.02 | ) | (2.52 | ) | (2.54 | ) | 27.77 | (12.05 | ) | 53,201 | 2.19 | 2.21 | 0.29 | 21 | ||||||||||||||||||||||||||||||||||||
Year ended 10/31/17 | 29.17 | 0.03 | 5.27 | 5.30 | (0.07 | ) | (0.32 | ) | (0.39 | ) | 34.08 | 18.44 | 70,146 | 2.20 | 2.22 | 0.10 | 18 | |||||||||||||||||||||||||||||||||||||||
Year ended 10/31/16 | 27.10 | 0.08 | 2.63 | 2.71 | (0.64 | ) | – | (0.64 | ) | 29.17 | 10.34 | 72,872 | 2.20 | 2.22 | 0.31 | 9 | ||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/15 | 30.96 | 0.55 | (e) | (3.27 | ) | (2.72 | ) | (0.18 | ) | (0.96 | ) | (1.14 | ) | 27.10 | (9.02 | ) | 79,991 | 2.19 | 2.20 | 1.88 | (e) | 23 | ||||||||||||||||||||||||||||||||||
Class Y | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 04/30/20 | 33.25 | 0.06 | (1.82 | ) | (1.76 | ) | (0.43 | ) | (1.85 | ) | (2.28 | ) | 29.21 | (5.92 | ) | 136,754 | 1.19 | (d) | 1.20 | (d) | 0.40 | (d) | 17 | |||||||||||||||||||||||||||||||||
Year ended 10/31/19 | 30.41 | 0.43 | 4.60 | 5.03 | (0.43 | ) | (1.76 | ) | (2.19 | ) | 33.25 | 17.44 | 170,249 | 1.18 | 1.19 | 1.33 | 17 | |||||||||||||||||||||||||||||||||||||||
Year ended 10/31/18 | 37.07 | 0.45 | (4.23 | ) | (3.78 | ) | (0.36 | ) | (2.52 | ) | (2.88 | ) | 30.41 | (11.17 | ) | 172,297 | 1.19 | 1.21 | 1.29 | 21 | ||||||||||||||||||||||||||||||||||||
Year ended 10/31/17 | 31.69 | 0.36 | 5.71 | 6.07 | (0.37 | ) | (0.32 | ) | (0.69 | ) | 37.07 | 19.66 | 267,942 | 1.20 | 1.22 | 1.10 | 18 | |||||||||||||||||||||||||||||||||||||||
Year ended 10/31/16 | 29.45 | 0.39 | 2.82 | 3.21 | (0.97 | ) | – | (0.97 | ) | 31.69 | 11.42 | 329,748 | 1.20 | 1.22 | 1.31 | 9 | ||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/15 | 33.55 | 0.91 | (e) | (3.55 | ) | (2.64 | ) | (0.50 | ) | (0.96 | ) | (1.46 | ) | 29.45 | (8.12 | ) | 268,833 | 1.19 | 1.20 | 2.88 | (e) | 23 | ||||||||||||||||||||||||||||||||||
Class R6 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 04/30/20 | 33.27 | 0.09 | (1.81 | ) | (1.72 | ) | (0.50 | ) | (1.85 | ) | (2.35 | ) | 29.20 | (5.81 | ) | 87,103 | 0.99 | (d) | 1.00 | (d) | 0.60 | (d) | 17 | |||||||||||||||||||||||||||||||||
Year ended 10/31/19 | 30.43 | 0.49 | 4.61 | 5.10 | (0.50 | ) | (1.76 | ) | (2.26 | ) | 33.27 | 17.70 | 96,533 | 0.98 | 0.99 | 1.53 | 17 | |||||||||||||||||||||||||||||||||||||||
Year ended 10/31/18 | 37.10 | 0.51 | (4.22 | ) | (3.71 | ) | (0.44 | ) | (2.52 | ) | (2.96 | ) | 30.43 | (11.00 | ) | 87,386 | 1.01 | 1.03 | 1.47 | 21 | ||||||||||||||||||||||||||||||||||||
Year ended 10/31/17(f) | 32.81 | 0.27 | 4.02 | 4.29 | – | – | – | 37.10 | 13.08 | 122,996 | 1.01 | (g) | 1.03 | (g) | 1.29 | (g) | 18 |
(a) | Calculated using average shares outstanding. |
(b) | Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Does not include sales charges and is not annualized for periods less than one year, if applicable. |
(c) | Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable. |
(d) | Ratios are annualized and based on average daily net assets (000’s omitted) of $413,264, $28,215, $154,159 and $94,201 for Class A, Class C, Class Y and Class R6 shares, respectively. |
(e) | Net investment income per share and the ratio of net investment income to average net assets include significant dividends received during the fiscal year ended October 31, 2015. Net investment income per share and the ratio of net investment income to average net assets excluding the significant dividends are $0.38 and 1.18%, $0.10 and 0.43% and $0.46 and 1.43% for Class A, Class C and Class Y shares, respectively. |
(f) | Commencement date of April 4, 2017. |
(g) | Annualized. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
11 Invesco Asia Pacific Growth Fund
April 30, 2020
(Unaudited)
NOTE 1–Significant Accounting Policies
Invesco Asia Pacific Growth Fund (the “Fund”) is a series portfolio of AIM International Mutual Funds (Invesco International Mutual 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 the Fund or each class.
The Fund’s investment objective is long-term growth of capital.
The Fund currently consists of four different classes of shares: Class A, Class C, Class Y 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. Under certain circumstances, load waived shares may be subject to contingent deferred sales charges (“CDSC”). Class C shares are sold with a CDSC. Class Y 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. |
A security listed or traded on an exchange (except convertible securities) is valued at its last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded, or lacking any sales or official closing price on a particular day, the security may be valued at the closing bid price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued by an independent pricing service they may be considered fair valued. Futures contracts are valued at the final settlement price set by an exchange on which they are principally traded. Listed options are valued at the mean between the last bid and asked prices from the exchange on which they are principally traded. Options not listed on an exchange are valued by an independent source at the mean between the last bid and asked prices. For purposes of determining net asset value (“NAV”) per share, futures and option contracts generally are valued 15 minutes after the close of the customary trading session of the New York Stock Exchange (“NYSE”).
Investments in open-end and closed-end registered investment companies that do not trade on an exchange are valued at the end-of-day net asset value per share. Investments in open-end and closed-end registered investment companies that trade on an exchange are valued at the last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded.
Debt obligations (including convertible securities) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. Pricing services generally value debt obligations assuming orderly transactions of institutional round lot size, but a fund may hold or transact in the same securities in smaller, odd lot sizes. Odd lots often trade at lower prices than institutional round lots. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.
Foreign securities’ (including foreign exchange contracts) prices are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the NYSE. If market quotations are available and reliable for foreign exchange-traded equity securities, the securities will be valued at the market quotations. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become unreliable. If between the time trading ends on a particular security and the close of the customary trading session on the NYSE, events occur that the investment adviser determines are significant and make the closing price unreliable, the Fund may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith using procedures approved by the Board of Trustees. Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities’ prices meeting the approved degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economic upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.
Securities for which market prices are not provided by any of the above methods may be valued based upon quotes furnished by independent sources. The last bid price may be used to value equity securities. The mean between the last bid and asked prices is used to value debt obligations, including corporate loans.
Securities for which market quotations are not readily available or became unreliable are valued at fair value as determined in good faith by or under the supervision of the Trust’s officers following procedures approved by the Board of Trustees. Issuer specific events, market trends, bid/asked quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security’s fair value.
The Fund may invest in securities that are subject to interest rate risk, meaning the risk that the prices will generally fall as interest rates rise and, conversely, the prices will generally rise as interest rates fall. Specific securities differ in their sensitivity to changes in interest rates depending on their individual characteristics. Changes in interest rates may result in increased market volatility, which may affect the value and/or liquidity of certain Fund investments.
Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the issuer’s assets, general market conditions which are not specifically related to the particular issuer, such as real or perceived adverse economic conditions, changes in the general outlook for revenues or corporate earnings, changes in interest or currency rates, regional or global instability, natural or environmental disasters, widespread disease or other public health issues, war, acts of terrorism or adverse investor sentiment generally and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
B. | Securities Transactions and Investment Income – Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income (net of withholding tax, if any) is recorded on an accrual basis from settlement date. Dividend income (net of withholding tax, if any) is recorded on the ex-dividend date. |
The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Statement of Operations as realized gain (loss) for investments no longer held and as unrealized gain (loss) for investments still held.
Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of net realized and unrealized gain (loss) from investment
12 Invesco Asia Pacific Growth Fund
securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the net realized and unrealized gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and the Statement of Changes in Net Assets, or the net investment income per share and the ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.
The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class.
C. | Country Determination – For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues and the country that has the primary market for the issuer’s securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted. |
D. | Distributions – Distributions from net investment income and net realized capital gain, if any, are generally declared and paid annually and recorded on the ex-dividend date. The Fund may elect to treat a portion of the proceeds from redemptions as distributions for federal income tax purposes. |
E. | Federal Income Taxes – The Fund intends to comply with the requirements of Subchapter M of the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”), necessary to qualify as a regulated investment company and to distribute substantially all of the Fund’s taxable earnings to shareholders. As such, the Fund will not be subject to federal income taxes on otherwise taxable income (including net realized capital gain) that is distributed to shareholders. Therefore, no provision for federal income taxes is recorded in the financial statements. |
The Fund recognizes the tax benefits of uncertain tax positions only when the position is more likely than not to be sustained. Management has analyzed the Fund’s uncertain tax positions and concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions. Management is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the next 12 months.
The Fund files tax returns in the U.S. Federal jurisdiction and certain other jurisdictions. Generally, the Fund is subject to examinations by such taxing authorities for up to three years after the filing of the return for the tax period.
F. | Expenses – Fees provided for under the Rule 12b-1 plan of a particular class of the Fund are charged to the operations of such class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses attributable to Class R6 are charged to such 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 preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print. |
H. | Indemnifications – Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of the performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements, that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote. |
I. | Foreign Currency Translations – Foreign currency is valued at the close of the NYSE based on quotations posted by banks and major currency dealers. Portfolio securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at the date of valuation. Purchases and sales of portfolio securities (net of foreign taxes withheld on disposition) and income items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. The Fund does not separately account for the portion of the results of operations resulting from changes in foreign exchange rates on investments and the fluctuations arising from changes in market prices of securities held. The combined results of changes in foreign exchange rates and the fluctuation of market prices on investments (net of estimated foreign tax withholding) are included with the net realized and unrealized gain or loss from investments in the Statement of Operations. Reported net realized foreign currency gains or losses arise from (1) sales of foreign currencies, (2) currency gains or losses realized between the trade and settlement dates on securities transactions, and (3) the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign currency gains and losses arise from changes in the fair values of assets and liabilities, other than investments in securities at fiscal period end, resulting from changes in exchange rates. |
The Fund may invest in foreign securities, which may be subject to foreign taxes on income, gains on investments or currency repatriation, a portion of which may be recoverable. Foreign taxes, if any, are recorded based on the tax regulations and rates that exist in the foreign markets in which the Fund invests and are shown in the Statement of Operations.
J. | Forward Foreign Currency Contracts – The Fund may engage in foreign currency transactions either on a spot (i.e. for prompt delivery and settlement) basis, or through forward foreign currency contracts, to manage or minimize currency or exchange rate risk. |
The Fund may also enter into forward foreign currency contracts for the purchase or sale of a security denominated in a foreign currency in order to “lock in” the U.S. dollar price of that security, or the Fund may also enter into forward foreign currency contracts that do not provide for physical settlement of the two currencies, but instead are settled by a single cash payment calculated as the difference between the agreed upon exchange rate and the spot rate at settlement based upon an agreed upon notional amount (non-deliverable forwards). The Fund will set aside liquid assets in an amount equal to the daily mark-to-market obligation for forward foreign currency contracts.
A forward foreign currency contract is an obligation between two parties (“Counterparties”) to purchase or sell a specific currency for an agreed-upon price at a future date. The use of forward foreign currency contracts does not eliminate fluctuations in the price of the underlying securities the Fund owns or intends to acquire but establishes a rate of exchange in advance. Fluctuations in the value of these contracts are measured by the difference in the contract date and reporting date exchange rates and are recorded as unrealized appreciation (depreciation) until the contracts are closed. When the contracts are closed, realized gains (losses) are recorded. Realized and unrealized gains (losses) on the contracts are included in the Statement of Operations. The primary risks associated with forward foreign currency contracts include failure of the Counterparty to meet the terms of the contract and the value of the foreign currency changing unfavorably. These risks may be in excess of the amounts reflected in the Statement of Assets and Liabilities.
13 Invesco Asia Pacific Growth Fund
NOTE 2–Advisory Fees and Other Fees Paid to Affiliates
The Trust has entered into a master investment advisory agreement with Invesco Advisers, Inc. (the “Adviser” or “Invesco”). Under the terms of the investment advisory agreement, the Fund accrues daily and pays monthly an advisory fee to the Adviser based on the annual rate of the Fund’s average daily net assets as follows:
Average Daily Net Assets | Rate | |||
| ||||
First $250 million | 0.935% | |||
| ||||
Next $250 million | 0.910% | |||
| ||||
Next $500 million | 0.885% | |||
| ||||
Next $1.5 billion | 0.860% | |||
| ||||
Next $2.5 billion | 0.835% | |||
| ||||
Next $2.5 billion | 0.810% | |||
| ||||
Next $2.5 billion | 0.785% | |||
| ||||
Amount over $10 billion | 0.760% | |||
|
For the six months ended April 30, 2020, the effective advisory fee rate incurred by the Fund was 0.91%.
Under the terms of a master sub-advisory agreement between the Adviser and each of Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Canada Ltd. (collectively, the “Affiliated Sub-Advisers”) the Adviser, not the Fund, will pay 40% of the fees paid to the Adviser to any such Affiliated Sub-Adviser(s) that provide(s) discretionary investment management services to the Fund based on the percentage of assets allocated to such Affiliated Sub-Adviser(s).
The Adviser has contractually agreed, through at least June 30, 2021, to waive advisory fees and/or reimburse expenses of all shares to the extent necessary to limit total annual fund operating expenses after fee waiver and/or reimbursement (excluding certain items discussed below) of Class A, Class C, Class Y and Class R6 shares to 2.25%, 3.00%, 2.00% and 2.00%, 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 the total annual fund operating expenses after fee waiver and/or reimbursement to exceed the numbers reflected above: (1) interest, facilities and maintenance fees; (2) taxes; (3) dividend expense on short sales; (4) extraordinary or non-routine items, including litigation expenses; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Unless Invesco continues the fee waiver agreement, it will terminate on June 30, 2021. During its term, the fee waiver agreement cannot be terminated or amended to increase the expense limits or reduce the advisory fee waivers without approval of the Board of Trustees. The Adviser did not waive fees and/or reimburse expenses during the period under this expense limit.
Further, the Adviser has contractually agreed, through at least June 30, 2022, to waive the advisory fee payable by the Fund in an amount equal to 100% of the net advisory fees the Adviser receives from the affiliated money market funds on investments by the Fund of uninvested cash in such affiliated money market funds.
For the six months ended April 30, 2020, the Adviser waived advisory fees of $40,664.
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 April 30, 2020, expenses incurred under the agreement are shown in the Statement of Operations as Administrative services fees. Invesco has entered into a sub-administration agreement whereby State Street Bank and Trust Company (“SSB”) serves as fund accountant and provides certain administrative services to the Fund. Pursuant to a custody agreement with the Trust on behalf of the Fund, SSB also serves as the Fund’s custodian.
The Trust has entered into a transfer agency and service agreement with Invesco Investment Services, Inc. (“IIS”) pursuant to which the Fund has agreed to pay IIS a fee for providing transfer agency and shareholder services to the Fund and reimburse IIS for certain expenses incurred by IIS in the course of providing such services. IIS may make payments to intermediaries that provide omnibus account services, sub-accounting services and/or networking services. All fees payable by IIS to intermediaries that provide omnibus account services or sub-accounting services are charged back to the Fund, subject to certain limitations approved by the Trust’s Board of Trustees. For the six months ended April 30, 2020, expenses incurred under the agreement are shown in the Statement of Operations as Transfer 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 Y 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 and Class C shares (collectively, the “Plans”). The Fund, pursuant to the Plans, pays IDI compensation at the annual rate of 0.25% of the Fund’s average daily net assets of Class A shares and 1.00% of the average daily net assets of Class C 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 Plans 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. For the six-month period ended April 30, 2020, expenses incurred under the Plans are shown in the Statement of Operations as Distribution fees.
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 April 30, 2020, IDI advised the Fund that IDI retained $38,214 in front-end sales commissions from the sale of Class A shares and $2,876 and $1,456 from Class A and Class C shares, respectively, for CDSC imposed upon redemptions by shareholders.
Certain officers and trustees of the Trust are officers and directors of the Adviser, IIS and/or IDI.
NOTE 3–Additional Valuation Information
GAAP defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, under current market conditions. GAAP establishes a hierarchy that prioritizes the inputs to valuation methods, giving the highest priority to readily available unadjusted quoted prices in an active market for identical assets (Level 1) and the lowest priority to significant unobservable inputs (Level 3), generally when market prices are not readily available or are unreliable. Based on the valuation inputs, the securities or other investments are tiered into one of three levels. Changes in valuation methods may result in transfers in or out of an investment’s assigned level:
Level 1 - | Prices are determined using quoted prices in an active market for identical assets. | |
Level 2 - | Prices are determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk, yield curves, loss severities, default rates, discount rates, volatilities and others. | |
Level 3 - | Prices are determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Fund’s own assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information. |
14 Invesco Asia Pacific Growth Fund
The following is a summary of the tiered valuation input levels, as of April 30, 2020. The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
Investments in Securities | |||||||||||||||||
Australia | $ | – | $ | 10,456,477 | $ | – | $ 10,456,477 | ||||||||||
China | 84,340,434 | 159,401,022 | – | 243,741,456 | |||||||||||||
Hong Kong | – | 50,993,017 | – | 50,993,017 | |||||||||||||
India | 6,392,174 | – | – | 6,392,174 | |||||||||||||
Indonesia | – | 41,682,477 | – | 41,682,477 | |||||||||||||
Macau | – | 17,399,527 | – | 17,399,527 | |||||||||||||
Malaysia | – | 26,223,833 | – | 26,223,833 | |||||||||||||
Philippines | – | 25,806,142 | – | 25,806,142 | |||||||||||||
Singapore | – | 31,799,227 | – | 31,799,227 | |||||||||||||
South Korea | – | 36,285,407 | – | 36,285,407 | |||||||||||||
Taiwan | – | 26,645,802 | – | 26,645,802 | |||||||||||||
Thailand | – | 7,093,766 | – | 7,093,766 | |||||||||||||
United States | 25,302,218 | 10,549,688 | – | 35,851,906 | |||||||||||||
Vietnam | – | 13,789,603 | – | 13,789,603 | |||||||||||||
Money Market Funds | 42,854,392 | – | – | 42,854,392 | |||||||||||||
Total Investments | $ | 158,889,218 | $458,125,988 | $ | – | $617,015,206 |
NOTE 4–Expense Offset Arrangement(s)
The expense offset arrangement is comprised of transfer agency credits which result from balances in demand deposit accounts used by the transfer agent for clearing shareholder transactions. For the six months ended April 30, 2020, the Fund received credits from this arrangement, which resulted in the reduction of the Fund’s total expenses of $4,111.
NOTE 5–Trustees’ and Officers’ Fees and Benefits
Trustees’ and Officers’ Fees and Benefits include amounts accrued by the Fund to pay remuneration to certain Trustees and Officers of the Fund. Trustees have the option to defer compensation payable by the Fund, and Trustees’ and Officers’ Fees and Benefits also include amounts accrued by the Fund to fund such deferred compensation amounts. Those Trustees who defer compensation have the option to select various Invesco Funds in which their deferral accounts shall be deemed to be invested. Finally, certain current Trustees were eligible to participate in a retirement plan that provided for benefits to be paid upon retirement to Trustees over a period of time based on the number of years of service. The Fund may have certain former Trustees who also participate in a retirement plan and receive benefits under such plan. Trustees’ and Officers’ Fees and Benefits include amounts accrued by the Fund to fund such retirement benefits. Obligations under the deferred compensation and retirement plans represent unsecured claims against the general assets of the Fund.
NOTE 6–Cash Balances
The Fund is permitted to temporarily carry a negative or overdrawn balance in its account with SSB, the custodian bank. Such balances, if any at period-end, are shown in the Statement of Assets and Liabilities under the payable caption Amount due custodian. To compensate the custodian bank for such overdrafts, the overdrawn Fund may either (1) leave funds as a compensating balance in the account so the custodian bank can be compensated by earning the additional interest; or (2) compensate by paying the custodian bank at a rate agreed upon by the custodian bank and Invesco, not to exceed the contractually agreed upon rate. The Fund may not purchase additional securities when any borrowings from banks or broker-dealers exceed 5% of the Fund’s total assets, or when any borrowings from an Invesco Fund are outstanding.
NOTE 7–Tax Information
The amount and character of income and gains to be distributed are determined in accordance with income tax regulations, which may differ from GAAP.
Reclassifications are made to the Fund’s capital accounts to reflect income and gains available for distribution (or available capital loss carryforward) under income tax regulations. The tax character of distributions paid during the year and the tax components of net assets will be reported at the Fund’s fiscal year-end.
Capital loss carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Fund to utilize. The ability to utilize capital loss carryforwards in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.
The Fund did not have a capital loss carryforward as of October 31, 2019.
NOTE 8–Investment Transactions
The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Fund during the six months ended April 30, 2020 was $103,425,351 and $138,002,107, 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 | $ | 146,093,963 | ||
| ||||
Aggregate unrealized (depreciation) of investments | (23,396,192 | ) | ||
| ||||
Net unrealized appreciation of investments | $ | 122,697,771 | ||
| ||||
Cost of investments for tax purposes is $494,317,435. |
15 Invesco Asia Pacific Growth Fund
NOTE 9–Share Information
Summary of Share Activity | ||||||||||||||||
| ||||||||||||||||
Six months ended April 30, 2020(a) | Year ended October 31, 2019 | |||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||
| ||||||||||||||||
Sold: | ||||||||||||||||
Class A | 519,308 | $ | 15,928,193 | 1,158,851 | $ | 36,782,554 | ||||||||||
| ||||||||||||||||
Class C | 48,091 | 1,365,480 | 100,245 | 2,918,924 | ||||||||||||
| ||||||||||||||||
Class Y | 991,450 | 29,839,612 | 1,331,908 | 41,475,028 | ||||||||||||
| ||||||||||||||||
Class R6 | 228,080 | 7,431,951 | 157,858 | 5,056,872 | ||||||||||||
| ||||||||||||||||
Issued as reinvestment of dividends: | ||||||||||||||||
Class A | 807,938 | 25,926,737 | 846,013 | 25,008,104 | ||||||||||||
| ||||||||||||||||
Class C | 58,740 | 1,724,617 | 115,828 | 3,144,732 | ||||||||||||
| ||||||||||||||||
Class Y | 291,878 | 9,375,121 | 330,511 | 9,779,806 | ||||||||||||
| ||||||||||||||||
Class R6 | 192,554 | 6,175,199 | 60,895 | 1,799,437 | ||||||||||||
| ||||||||||||||||
Automatic conversion of Class C shares to Class A shares: | ||||||||||||||||
Class A | 38,140 | 1,189,519 | 664,213 | 20,856,417 | ||||||||||||
| ||||||||||||||||
Class C | (41,758 | ) | (1,189,519 | ) | (724,136 | ) | (20,856,417 | ) | ||||||||
| ||||||||||||||||
Reacquired: | ||||||||||||||||
Class A | (1,644,310 | ) | (49,284,777 | ) | (2,650,540 | ) | (84,252,493 | ) | ||||||||
| ||||||||||||||||
Class C | (241,675 | ) | (6,621,391 | ) | (369,393 | ) | (10,738,820 | ) | ||||||||
| ||||||||||||||||
Class Y | (1,721,771 | ) | (52,140,437 | ) | (2,209,183 | ) | (69,652,745 | ) | ||||||||
| ||||||||||||||||
Class R6 | (338,677 | ) | (10,477,191 | ) | (188,971 | ) | (5,974,811 | ) | ||||||||
| ||||||||||||||||
Net increase (decrease) in share activity | (812,012 | ) | $ | (20,756,886 | ) | (1,375,901 | ) | $ | (44,653,412 | ) | ||||||
|
(a) | There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 41% 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. |
NOTE 10–Coronavirus (COVID-19) Pandemic
During the first quarter of 2020, the World Health Organization declared COVID-19 to be a public health emergency. COVID-19 has led to increased short-term market volatility and may have adverse long-term effects on U.S. and world economies and markets in general. COVID-19 may adversely impact the Fund’s ability to achieve its investment objective. Because of the uncertainties on valuation, the global economy and business operations, values reflected in these financial statements may materially differ from the value received upon actual sales of those investments.
The extent of the impact on the performance of the Fund and its investments will depend on future developments, including the duration and spread of the COVID-19 outbreak, related restrictions and advisories, and the effects on the financial markets and economy overall, all of which are highly uncertain and cannot be predicted.
16 Invesco Asia Pacific Growth Fund
Calculating your ongoing Fund expenses
Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, which may include sales charges (loads) on purchase payments or contingent deferred sales charges on redemptions, if any; and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees, and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period November 1, 2019 through April 30, 2020.
Actual expenses
The table below provides information about actual account values and actual expenses. You may use the information in this table, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the table under the heading entitled “Actual Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Hypothetical example for comparison purposes
The table below also provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return.
The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads) on purchase payments or contingent deferred sales charges on redemptions, if any. Therefore, the hypothetical information is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, expenses shown in the table do not include the expenses of the underlying funds, which are borne indirectly by the Fund. If transaction costs and indirect expenses were included, your costs would have been higher.
ACTUAL | HYPOTHETICAL (5% annual return before expenses) | |||||||||||||||||||||||||||||
Beginning Account Value (11/01/19) | Ending Account Value (04/30/20)1 | Expenses Paid During Period2 | Ending Account Value (04/30/20) | Expenses Paid During Period2 | Annualized Expense Ratio | |||||||||||||||||||||||||
Class A | $1,000.00 | $939.80 | $6.95 | $1,017.70 | $7.22 | 1.44 | % | |||||||||||||||||||||||
Class C | 1,000.00 | 936.10 | 10.54 | 1,013.97 | 10.97 | 2.19 | ||||||||||||||||||||||||
Class Y | 1,000.00 | 940.80 | 5.74 | 1,018.95 | 5.97 | 1.19 | ||||||||||||||||||||||||
Class R6 | 1,000.00 | 941.90 | 4.78 | 1,019.94 | 4.97 | 0.99 |
1 | The actual ending account value is based on the actual total return of the Fund for the period November 1, 2019 through April 30, 2020, after actual expenses and will differ from the hypothetical ending account value which is based on the Fund’s expense ratio and a hypothetical annual return of 5% before expenses. |
2 | Expenses are equal to the Fund’s annualized expense ratio as indicated above multiplied by the average account value over the period, multiplied by 182/366 to reflect the most recent fiscal half year. |
17 Invesco Asia Pacific Growth Fund
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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 list appears 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 Form N-PORT filings on the SEC website, sec.gov. The SEC file numbers for the Fund are shown below. | ||
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. This 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. |
SEC file numbers: 811-06463 and 033-44611 | Invesco Distributors, Inc. | APG-SAR-1 |
| ||||
Semiannual Report to Shareholders | April 30, 2020 | |||
Invesco European Growth Fund | ||||
Nasdaq: | ||||
A: AEDAX ∎ C: AEDCX ∎ R: AEDRX ∎ Y: AEDYX ∎ Investor: EGINX ∎ R6: AEGSX |
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.
For the most current month-end Fund performance and commentary, please visit invesco.com/performance.
Unless otherwise noted, all data provided by Invesco.
This report must be accompanied or preceded by a currently effective Fund prospectus, which contains more complete information, including sales charges and expenses. Investors should read it carefully before investing.
NOT FDIC INSURED | MAY LOSE VALUE | NO BANK GUARANTEE
Bruce Crockett | Dear Fellow Shareholders: As independent chair of the Invesco Funds Board, I can assure you that the members of the Board are strong advocates for the interests of investors in Invesco’s mutual funds. We work hard to represent your interests through oversight of the quality of the investment management services your funds receive and other matters important to your investment. This includes but is not limited to: monitoring how the portfolio management teams of the Invesco funds are performing in light of changing economic and market conditions; assessing each portfolio management team’s investment performance within the context of the investment strategy described in the fund’s prospectus; and monitoring for potential conflicts of interests that may impact the nature of the services that your funds receive. We believe one of the most important services we provide our fund shareholders is the annual review of the funds’ advisory and sub-advisory contracts with Invesco Advisers and its affiliates. This review is required by the Investment Company Act of 1940 and focuses on the nature and quality of the services Invesco provides as the adviser to the Invesco funds and the reasonableness of the fees that it | |
charges for those services. Each year, we spend months carefully reviewing information received from Invesco and a variety of independent sources, such as performance and fee data prepared by Lipper Inc. (a subsidiary of Broadridge Financial Solutions, Inc.), an independent, third-party firm widely recognized as a leader in its field. We also meet with our independent legal counsel and other independent advisers to review and help us assess the information that we have received. Our goal is to assure that you receive quality investment management services for a reasonable fee. On behalf of the Board, we look forward to continuing to represent your interests and serving your needs. |
Sincerely,
Bruce L. Crockett
Independent Chair
Invesco Funds Board of Trustees
Andrew Schlossberg | Dear Shareholders: This semiannual report includes information about your Fund, including performance data and a complete list of its investments as of the close of the reporting period. Invesco’s efforts to help investors achieve their financial objectives include providing timely information about the markets, the economy and investing. Our website, invesco.com/us, offers a wide range of market insights and investment perspectives. On the website, you’ll find detailed information about our funds, including performance, holdings and portfolio manager commentaries. You can access information about your account by completing a simple, secure online registration. To do so, select “Log In” on the right side of the homepage, and then select “Register for Individual Account Access.” | |
In addition to the resources accessible on our website, you can obtain timely updates to help you stay informed by connecting with Invesco on Twitter, LinkedIn or Facebook. You can access our blog at blog.invesco.us.com. Our goal is to provide you with information you want, when and where you want it. | ||
For questions about your account, feel free to contact an Invesco client services representative at 800 959 4246. All of us at Invesco look forward to serving your investment management needs. Thank you for investing with us. |
Sincerely,
Andrew Schlossberg
Head of the Americas,
Senior Managing Director, Invesco Ltd.
2 Invesco European Growth Fund
Performance summary
|
| |||||
Fund vs. Indexes |
| |||||
Cumulative total returns, October 31, 2019 to April 30, 2020, at net asset value (NAV). Performance shown does not include applicable contingent deferred sales charges (CDSC) or front-end sales charges, which would have reduced performance. |
| |||||
Class A Shares | -16.45 | % | ||||
Class C Shares | -16.77 | |||||
Class R Shares | -16.57 | |||||
Class Y Shares | -16.36 | |||||
Investor Class Shares | -16.44 | |||||
Class R6 Shares | -16.31 | |||||
MSCI Europe Indexq (Broad Market Index) | -15.47 | |||||
MSCI Europe Growth Indexq (Style-Specific Index) | -7.16 | |||||
Lipper European Funds Index∎ (Peer Group Index) | -12.26 | |||||
Source(s): qRIMES Technologies Corp.; ∎Lipper Inc. |
| |||||
The MSCI Europe Index is an unmanaged index considered representative of stocks of developed European countries. The index is computed using the net return, which with-holds applicable taxes for non-resident investors. |
| |||||
The MSCI Europe Growth Index is an unmanaged index considered representative of European growth stocks. The index is computed using the net return, which withholds applicable taxes for non-resident investors. |
| |||||
The Lipper European Funds Index is an unmanaged index considered representative of European funds tracked by Lipper. |
| |||||
The Fund is not managed to track the performance of any particular index, including the index(es) described here, and consequently, the performance of the Fund may deviate significantly from the performance of the index(es). |
| |||||
A direct investment cannot be made in an index. Unless otherwise indicated, index results include reinvested dividends, and they do not reflect sales charges. Performance of the peer group, if applicable, reflects fund expenses; performance of a market index does not. |
|
For more information about your Fund
Read the most recent quarterly commentary from your Fund’s portfolio managers by visiting invesco.com/us. Click on “Products” and select “Mutual Funds.” Use the “Product Finder” to locate your Fund; then click on its name to access its product detail page. There, you can learn more about your Fund’s investment strategies, holdings and performance. Also, visit blog.invesco.us.com, where many of Invesco’s investment professionals share their insights about market and economic news and trends.
|
3 Invesco European Growth Fund
Average Annual Total Returns As of 4/30/20, including maximum applicable sales charges |
| |||||
Class A Shares |
| |||||
Inception (11/3/97) | 8.03 | % | ||||
10 Years | 3.78 | |||||
5 Years | -2.09 | |||||
1 Year | -19.17 | |||||
Class C Shares | ||||||
Inception (11/3/97) | 7.97 | % | ||||
10 Years | 3.59 | |||||
5 Years | -1.71 | |||||
1 Year | -15.95 | |||||
Class R Shares | ||||||
Inception (6/3/02) | 6.60 | % | ||||
10 Years | 4.11 | |||||
5 Years | -1.22 | |||||
1 Year | -14.72 | |||||
Class Y Shares | ||||||
Inception (10/3/08) | 4.98 | % | ||||
10 Years | 4.63 | |||||
5 Years | -0.72 | |||||
1 Year | -14.29 | |||||
Investor Class Shares | ||||||
Inception (9/30/03) | 7.29 | % | ||||
10 Years | 4.41 | |||||
5 Years | -0.92 | |||||
1 Year | -14.45 | |||||
Class R6 Shares | ||||||
10 Years | 4.49 | % | ||||
5 Years | -0.75 | |||||
1 Year | -14.16 |
Class R6 shares incepted on April 4, 2017. Performance shown prior to that date is that of Class A shares and includes the 12b-1 fees applicable to Class A shares.
The performance data quoted represent past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/ performance for the most recent month-end performance. Performance figures reflect reinvested distributions, changes in net asset value and the effect of the maximum sales charge unless otherwise stated. Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares. Investment return and principal value will fluctuate so that you may have a gain or loss when you sell shares.
Class A share performance reflects the maximum 5.50% sales charge, and Class C share performance reflects the applicable contingent deferred sales charge (CDSC) for the period involved. The CDSC on Class C shares is 1% for the first year after purchase. Class R shares, Class Y shares, Investor Class shares and Class R6 shares do not have a front-end sales charge or a
CDSC; therefore, performance is at net asset value.
The performance of the Fund’s share classes will differ primarily due to different sales charge structures and class expenses.
Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information.
4 Invesco European Growth Fund
Liquidity Risk Management Program
The Securities and Exchange Commission has adopted Rule 22e-4 under the Investment Company Act of 1940 (the “Liquidity Rule”) in order to promote effective liquidity risk management throughout the open-end investment company industry, thereby reducing the risk that funds will be unable to meet their redemption obligations and mitigating dilution of the interests of fund shareholders. The Fund has adopted and implemented a liquidity risk management program in accordance with the Liquidity Rule (the “Program”). The Program is reasonably designed to assess and manage the Fund’s liquidity risk, which is the risk that the Fund could not meet redemption requests without significant dilution of remaining investors’ interests in the Fund. The Board of Trustees of the Fund (the “Board”) has appointed Invesco Advisers, Inc. (“Invesco”), the Fund’s investment adviser, as the Program’s administrator, and Invesco has delegated oversight of the Program to the Liquidity Risk Management Committee (the “Committee”), which is composed of senior representatives from relevant business groups at Invesco.
As required by the Liquidity Rule, the Program includes policies and procedures providing for an assessment, no less frequently than annually, of the Fund’s liquidity risk that takes into account, as relevant to the Fund’s liquidity risk: (1) the Fund’s investment strategy and liquidity of portfolio investments during both normal and reasonably foreseeable stressed conditions; (2) short-term and long-term cash flow projections for the Fund during both normal and reasonably foreseeable stressed conditions; and (3) the Fund’s holdings of cash and cash equivalents and any borrowing arrangements. The Liquidity Rule also requires the classification of the Fund’s investments into categories that reflect the assessment of their relative liquidity under current market conditions. The Fund classifies its investments into one of four categories defined in the Liquidity Rule: “Highly Liquid,” “Moderately Liquid,” “Less Liquid” and “Illiquid.” Funds that are not invested primarily in “Highly Liquid Investments” that are assets (cash or investments that are reasonably expected to be convertible into cash within three business days without significantly changing the market value of the investment) are required to establish a “Highly Liquid Investment Minimum” (“HLIM”), which is the minimum percentage of net assets that must be invested in Highly Liquid Investments. Funds with HLIMs have procedures for addressing HLIM shortfalls, including reporting to the Board and the SEC (on a non-public basis) as required by the Program and the Liquidity Rule. In addition, the Fund may not acquire an investment if, immediately after the acquisition, over 15% of the Fund’s net assets would consist of “Illiquid Investments” that are assets (an investment that cannot reasonably be expected to be sold or disposed of in current market conditions in seven calendar days or less without the sale or disposition significantly changing the market value of the investment). The Liquidity Rule and the Program also require reporting to the Board and the SEC (on a non-public basis) if a Fund’s holdings of Illiquid Investments exceed 15% of the Fund’s assets.
At a meeting held on March 30-April 1, 2020, the Committee presented a report to the Board that addressed the operation of the Program and assessed the Program’s adequacy and effectiveness of implementation (the “Report”). The Report covered the period from December 1, 2018 through December 31, 2019 (the “Program Reporting Period”).
The Report stated, in relevant part, that during the Program Reporting Period:
∎ | The Program, as adopted and implemented, remained reasonably designed to assess and manage the Fund’s liquidity risk and was operated effectively to achieve that goal; |
∎ | The Fund’s investment strategy remained appropriate for an open-end fund; |
∎ | The Fund was able to meet requests for redemption without significant dilution of remaining investors’ interests in the Fund; |
∎ | The Fund did not breach the 15% limit on Illiquid Investments; and |
∎ | The Fund primarily held Highly Liquid Investments and therefore has not adopted an HLIM. |
5 Invesco European Growth Fund
April 30, 2020
(Unaudited)
Shares | Value | |||||
Common Stocks & Other Equity Interests–92.58% | ||||||
Denmark–3.04% | ||||||
Carlsberg A/S, Class B | 162,750 | $ 20,545,163 | ||||
Novo Nordisk A/S, Class B | 130,539 | 8,335,443 | ||||
28,880,606 | ||||||
France–10.07% | ||||||
Bollore S.A. | 5,030,456 | 13,368,100 | ||||
Bureau Veritas S.A. | 302,601 | 6,287,630 | ||||
Criteo S.A., ADR(a) | 379,070 | 3,764,165 | ||||
EssilorLuxottica S.A. | 116,602 | 14,411,220 | ||||
Kaufman & Broad S.A. | 404,795 | 14,629,050 | ||||
LVMH Moet Hennessy Louis Vuitton SE | 16,453 | 6,363,848 | ||||
Metropole Television S.A. | 730,831 | 8,142,238 | ||||
Pernod Ricard S.A. | 49,018 | 7,479,365 | ||||
Schneider Electric SE | 229,870 | 21,059,181 | ||||
95,504,797 | ||||||
Germany–13.46% | ||||||
Allianz SE | 93,356 | 17,294,537 | ||||
Beiersdorf AG | 73,341 | 7,698,333 | ||||
Deutsche Boerse AG | 189,816 | 29,525,516 | ||||
Knorr-Bremse AG | 111,554 | 10,382,585 | ||||
MorphoSys AG(a) | 273,418 | 28,782,444 | ||||
MTU Aero Engines AG | 113,601 | 15,490,399 | ||||
SAP SE | 155,224 | 18,513,213 | ||||
127,687,027 | ||||||
Hungary–1.23% | ||||||
Gedeon Richter PLC | 541,555 | 11,617,671 | ||||
Ireland–4.10% | ||||||
Flutter Entertainment PLC(a) | 106,158 | 13,048,209 | ||||
ICON PLC(a) | 103,820 | 16,659,995 | ||||
Origin Enterprises PLC | 3,142,459 | 9,181,269 | ||||
38,889,473 | ||||||
Italy–4.47% | ||||||
Danieli & C. Officine Meccaniche S.p.A., RSP | 1,381,700 | 10,252,940 | ||||
FinecoBank Banca Fineco S.p.A. | 2,550,841 | 28,416,297 | ||||
Mediobanca Banca di Credito Finanziario S.p.A. | 650,350 | 3,778,194 | ||||
42,447,431 | ||||||
Netherlands–8.06% | ||||||
Aalberts N.V. | 223,332 | 6,298,510 | ||||
ASML Holding N.V. | 19,388 | 5,759,181 | ||||
EXOR N.V. | 103,454 | 5,670,861 | ||||
ING Groep N.V. | 1,059,245 | 5,823,237 | ||||
Prosus N.V.(a) | 257,169 | 19,520,635 | ||||
SBM Offshore N.V. | 1,145,920 | 14,531,604 | ||||
Wolters Kluwer N.V. | 256,759 | 18,904,578 | ||||
76,508,606 | ||||||
Russia–4.81% | ||||||
Sberbank of Russia PJSC, Preference Shares | 19,097,718 | 45,661,421 |
Shares | Value | |||||
Spain–1.73% | ||||||
Construcciones y Auxiliar de Ferrocarriles S.A. | 479,029 | $ 16,409,183 | ||||
Sweden–2.87% | ||||||
Investor AB, Class B | 382,023 | 19,187,925 | ||||
Lifco AB, Class B | 168,932 | 8,056,288 | ||||
27,244,213 | ||||||
Switzerland–10.15% | ||||||
Alcon, Inc.(a) | 219,431 | 11,593,047 | ||||
Kuehne + Nagel International AG | 111,564 | 15,972,950 | ||||
Logitech International S.A. | 130,533 | 6,296,373 | ||||
Nestle S.A. | 179,030 | 18,912,025 | ||||
Novartis AG | 231,167 | 19,719,948 | ||||
OC Oerlikon Corp. AG | 1,637,432 | 12,278,278 | ||||
Roche Holding AG | 33,032 | 11,489,473 | ||||
96,262,094 | ||||||
Turkey–2.47% | ||||||
Haci Omer Sabanci Holding A.S. | 10,715,695 | 12,554,923 | ||||
Tupras-Turkiye Petrol Rafinerileri A.S.(a) | 841,052 | 10,913,645 | ||||
23,468,568 | ||||||
United Kingdom–23.65% | ||||||
British American Tobacco PLC | 462,762 | 17,971,206 | ||||
DCC PLC | 644,575 | 45,984,138 | ||||
Diploma PLC | 242,649 | 5,278,224 | ||||
Hays PLC | 8,181,714 | 11,193,837 | ||||
HomeServe PLC | 1,291,440 | 18,151,653 | ||||
IG Group Holdings PLC | 2,357,021 | 22,419,783 | ||||
Informa PLC | 1,097,918 | 6,055,570 | ||||
John Wood Group PLC | 959,601 | 2,453,364 | ||||
Jupiter Fund Management PLC | 2,738,160 | 7,542,533 | ||||
Linde PLC | 54,193 | 9,970,970 | ||||
RELX PLC | 1,028,237 | 23,287,420 | ||||
Savills PLC | 2,060,016 | 25,051,108 | ||||
Ultra Electronics Holdings PLC | 1,168,972 | 29,035,444 | ||||
224,395,250 | ||||||
United States–2.47% | ||||||
Philip Morris International, Inc. | 313,472 | 23,385,011 | ||||
Total Common Stocks & Other Equity Interests |
| 878,361,351 | ||||
Money Market Funds–6.77% | ||||||
Invesco Government & Agency Portfolio, Institutional Class, 0.20%(b)(c) | 21,078,615 | 21,078,615 | ||||
Invesco Liquid Assets Portfolio, Institutional Class, 0.60%(b)(c) | 18,987,769 | 18,999,162 | ||||
Invesco Treasury Portfolio, Institutional Class, 0.10%(b)(c) | 24,089,846 | 24,089,845 | ||||
Total Money Market Funds (Cost $64,149,912) |
| 64,167,622 | ||||
TOTAL INVESTMENTS IN SECURITIES–99.35% |
| 942,528,973 | ||||
OTHER ASSETS LESS LIABILITIES-0.65% |
| 6,196,554 | ||||
NET ASSETS-100.00% | $948,725,527 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
6 Invesco European Growth Fund
Investment Abbreviations:
ADR – American Depositary Receipt
RSP – Registered Savings Plan Shares
Notes to Schedule of Investments:
(a) | Non-income producing security. |
(b) | Affiliated issuer. The issuer and/or the Fund is a wholly-owned subsidiary of Invesco Ltd., or is affiliated by having an investment adviser that is under common control of Invesco Ltd. The table below shows the Fund’s transactions in, and earnings from, its investments in affiliates for the six months ended April 30, 2020. |
Value October 31, 2019 | Purchases at Cost | Proceeds from Sales | Change in Unrealized Appreciation | Realized Gain | Value April 30, 2020 | Dividend Income | |||||||||||||||||||||||||||||
Investments in Affiliated Money Market Funds: | |||||||||||||||||||||||||||||||||||
Invesco Government & Agency Portfolio, Institutional Class | $ | 28,046,386 | $ | 55,359,377 | $ | (62,327,148 | ) | $ | - | $ | - | $ | 21,078,615 | $ | 138,799 | ||||||||||||||||||||
Invesco Liquid Assets Portfolio, Institutional Class | 20,042,667 | 43,142,873 | (44,201,150 | ) | 11,669 | 3,103 | 18,999,162 | 121,493 | |||||||||||||||||||||||||||
Invesco Treasury Portfolio, Institutional Class | 32,053,013 | 63,267,859 | (71,231,027 | ) | - | - | 24,089,845 | 155,019 | |||||||||||||||||||||||||||
Total | $ | 80,142,066 | $ | 161,770,109 | $ | (177,759,325 | ) | $ | 11,669 | $ | 3,103 | $ | 64,167,622 | $ | 415,311 |
(c) | The rate shown is the 7-day SEC standardized yield as of April 30, 2020. |
Portfolio Composition
By sector, based on Net Assets
as of April 30, 2020
Industrials | 28.92 | % | ||
Financials | 20.86 | |||
Health Care | 11.40 | |||
Consumer Staples | 11.09 | |||
Consumer Discretionary | 7.16 | |||
Communication Services | 3.30 | |||
Information Technology | 3.22 | |||
Energy | 2.94 | |||
Real Estate | 2.64 | |||
Other Sectors, Each Less than 2% of Net Assets | 1.05 | |||
Money Market Funds Plus Other Assets Less Liabilities | 7.42 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
7 Invesco European Growth Fund
Statement of Assets and Liabilities
April 30, 2020
(Unaudited)
Assets: | ||||
Investments in securities, at value | $ | 878,361,351 | ||
Investments in affiliated money market funds, at value | 64,167,622 | |||
Foreign currencies, at value (Cost $746,669) | 753,875 | |||
Receivable for: | ||||
Investments sold | 2,635,867 | |||
Fund shares sold | 470,027 | |||
Dividends | 4,323,897 | |||
Investment for trustee deferred compensation and retirement plans | 191,543 | |||
Other assets | 49,170 | |||
Total assets | 950,953,352 | |||
Liabilities: | ||||
Payable for: | ||||
Fund shares reacquired | 1,424,564 | |||
Accrued fees to affiliates | 408,189 | |||
Accrued other operating expenses | 180,960 | |||
Trustee deferred compensation and retirement plans | 214,112 | |||
Total liabilities | 2,227,825 | |||
Net assets applicable to shares outstanding | $ | 948,725,527 | ||
Net assets consist of: | ||||
Shares of beneficial interest | $ | 875,697,735 | ||
Distributable earnings | 73,027,792 | |||
$ | 948,725,527 |
Net Assets: | ||||
Class A | $ | 293,959,276 | ||
Class C | $ | 25,511,637 | ||
Class R | $ | 5,939,099 | ||
Class Y | $ | 513,243,714 | ||
Investor Class | $ | 102,792,888 | ||
Class R6 | $ | 7,278,913 | ||
Shares outstanding, no par value, with an unlimited number of shares authorized: |
| |||
Class A | 9,312,519 | |||
Class C | 867,269 | |||
Class R | 188,651 | |||
Class Y | 16,240,265 | |||
Investor Class | 3,264,849 | |||
Class R6 | 230,447 | |||
Class A: | ||||
Net asset value per share | $ | 31.57 | ||
Maximum offering price per share | $ | 33.41 | ||
Class C: | ||||
Net asset value and offering price per share | $ | 29.42 | ||
Class R: | ||||
Net asset value and offering price per share | $ | 31.48 | ||
Class Y: | ||||
Net asset value and offering price per share | $ | 31.60 | ||
Investor Class: | ||||
Net asset value and offering price per share | $ | 31.48 | ||
Class R6: | ||||
Net asset value and offering price per share | $ | 31.59 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
8 Invesco European Growth Fund
Statement of Operations
For the six months ended April 30, 2020
(Unaudited)
Investment income: | ||||
Dividends (net of foreign withholding taxes of $1,073,766) | $ | 10,309,218 | ||
| ||||
Dividends from affiliated money market funds | 415,311 | |||
| ||||
Total investment income | 10,724,529 | |||
| ||||
Expenses: | ||||
Advisory fees | 5,215,351 | |||
| ||||
Administrative services fees | 89,857 | |||
| ||||
Custodian fees | 81,598 | |||
| ||||
Distribution fees: | ||||
Class A | 442,775 | |||
| ||||
Class C | 164,332 | |||
| ||||
Class R | 17,988 | |||
| ||||
Investor Class | 95,951 | |||
| ||||
Transfer agent fees – A, C, R, Y and Investor | 903,296 | |||
| ||||
Transfer agent fees – R6 | 1,686 | |||
| ||||
Trustees’ and officers’ fees and benefits | 13,732 | |||
| ||||
Registration and filing fees | 45,446 | |||
| ||||
Reports to shareholders | 38,931 | |||
| ||||
Professional services fees | 34,237 | |||
| ||||
Other | (24,704 | ) | ||
| ||||
Total expenses | 7,120,476 | |||
| ||||
Less: Fees waived and/or expense offset arrangement(s) | (42,572 | ) | ||
| ||||
Net expenses | 7,077,904 | |||
| ||||
Net investment income | 3,646,625 | |||
| ||||
Realized and unrealized gain (loss) from: | ||||
Net realized gain (loss) from: | ||||
Investment securities | (25,086,867 | ) | ||
| ||||
Foreign currencies | (35,667 | ) | ||
| ||||
(25,122,534 | ) | |||
| ||||
Change in net unrealized appreciation (depreciation) of: | ||||
Investment securities | (181,209,797 | ) | ||
| ||||
Foreign currencies | (32,760 | ) | ||
| ||||
(181,242,557 | ) | |||
| ||||
Net realized and unrealized gain (loss) | (206,365,091 | ) | ||
| ||||
Net increase (decrease) in net assets resulting from operations | $ | (202,718,466 | ) | |
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
9 Invesco European Growth Fund
Statement of Changes in Net Assets
For the six months ended April 30, 2020 and the year ended October 31, 2019
(Unaudited)
April 30, 2020 | October 31, 2019 | |||||||
Operations: | ||||||||
Net investment income | $ | 3,646,625 | $ | 28,067,235 | ||||
| ||||||||
Net realized gain (loss) | (25,122,534 | ) | (2,132,949 | ) | ||||
| ||||||||
Change in net unrealized appreciation (depreciation) | (181,242,557 | ) | 101,791,103 | |||||
| ||||||||
Net increase (decrease) in net assets resulting from operations | (202,718,466 | ) | 127,725,389 | |||||
| ||||||||
Distributions to shareholders from distributable earnings: | ||||||||
Class A | (9,968,428 | ) | (5,164,427 | ) | ||||
| ||||||||
Class C | (650,978 | ) | (308,282 | ) | ||||
| ||||||||
Class R | (178,444 | ) | (108,132 | ) | ||||
| ||||||||
Class Y | (19,903,511 | ) | (12,661,911 | ) | ||||
| ||||||||
Investor Class | (3,532,061 | ) | (1,839,884 | ) | ||||
| ||||||||
Class R6 | (268,019 | ) | (171,586 | ) | ||||
| ||||||||
Total distributions from distributable earnings | (34,501,441 | ) | (20,254,222 | ) | ||||
| ||||||||
Share transactions–net: | ||||||||
Class A | (21,197,843 | ) | (49,808,600 | ) | ||||
| ||||||||
Class C | (6,451,913 | ) | (37,493,491 | ) | ||||
| ||||||||
Class R | (411,362 | ) | (3,679,296 | ) | ||||
| ||||||||
Class Y | (55,915,571 | ) | (176,336,063 | ) | ||||
| ||||||||
Investor Class | (5,571,125 | ) | (11,598,083 | ) | ||||
| ||||||||
Class R6 | 515,307 | (2,094,827 | ) | |||||
| ||||||||
Net increase (decrease) in net assets resulting from share transactions | (89,032,507 | ) | (281,010,360 | ) | ||||
| ||||||||
Net increase (decrease) in net assets | (326,252,414 | ) | (173,539,193 | ) | ||||
| ||||||||
Net assets: | ||||||||
Beginning of period | 1,274,977,941 | 1,448,517,134 | ||||||
| ||||||||
End of period | $ | 948,725,527 | $ | 1,274,977,941 | ||||
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
10 Invesco European Growth Fund
(Unaudited)
The following schedule presents financial highlights for a share of the Fund outstanding throughout the periods indicated.
Net asset value, beginning of period | Net investment income (loss)(a) | Net gains (losses) on securities (both unrealized) | Total from investment operations | Dividends from net investment income | Distributions from net realized gains | Total distributions | Net asset of period | Total return (b) | Net assets, end of period (000’s omitted) | Ratio of expenses to average net assets | Ratio of fee waivers | Ratio of net to average | Portfolio turnover (c) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 04/30/20 | $ | 38.76 | $ | 0.09 | $ | (6.26 | ) | $ | (6.17 | ) | $ | (1.02 | ) | $ | – | $ | (1.02 | ) | $ | 31.57 | (16.45 | )% | $ | 293,959 | 1.34 | %(d) | 1.35 | %(d) | 0.51 | %(d) | 16 | % | ||||||||||||||||||||||||||||||||||||||
Year ended 10/31/19 | 35.55 | 0.74 | 2.94 | 3.68 | (0.47 | ) | – | (0.47 | ) | 38.76 | 10.57 | 386,369 | 1.35 | 1.36 | 2.02 | 10 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/18 | 40.95 | 0.58 | (5.21 | ) | (4.63 | ) | (0.77 | ) | – | (0.77 | ) | 35.55 | (11.54 | ) | 402,331 | 1.34 | 1.35 | 1.45 | 16 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/17 | 32.88 | 0.48 | 8.12 | 8.60 | (0.53 | ) | – | (0.53 | ) | 40.95 | 26.53 | 506,795 | 1.38 | 1.39 | 1.32 | 22 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/16 | 36.65 | 0.50 | (2.61 | ) | (2.11 | ) | (0.51 | ) | (1.15 | ) | (1.66 | ) | 32.88 | (5.94 | ) | 453,114 | 1.34 | 1.36 | 1.47 | 16 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/15 | 37.50 | 0.52 | 0.88 | 1.40 | (0.69 | ) | (1.56 | ) | (2.25 | ) | 36.65 | 4.18 | 575,258 | 1.37 | 1.38 | 1.41 | 14 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Class C | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 04/30/20 | 35.97 | (0.04 | ) | (5.86 | ) | (5.90 | ) | (0.65 | ) | – | (0.65 | ) | 29.42 | (16.77 | ) | 25,512 | 2.09 | (d) | 2.10 | (d) | (0.24 | )(d) | 16 | |||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/19 | 32.94 | 0.43 | 2.75 | 3.18 | (0.15 | ) | – | (0.15 | ) | 35.97 | 9.72 | 38,236 | 2.10 | 2.11 | 1.27 | 10 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/18 | 38.01 | 0.26 | (4.82 | ) | (4.56 | ) | (0.51 | ) | – | (0.51 | ) | 32.94 | (12.18 | ) | 71,859 | 2.09 | 2.10 | 0.70 | 16 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/17 | 30.50 | 0.19 | 7.56 | 7.75 | (0.24 | ) | – | (0.24 | ) | 38.01 | 25.58 | 90,488 | 2.13 | 2.14 | 0.57 | 22 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/16 | 34.12 | 0.22 | (2.42 | ) | (2.20 | ) | (0.27 | ) | (1.15 | ) | (1.42 | ) | 30.50 | (6.63 | ) | 86,303 | 2.09 | 2.11 | 0.72 | 16 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/15 | 35.04 | 0.22 | 0.84 | 1.06 | (0.42 | ) | (1.56 | ) | (1.98 | ) | 34.12 | 3.42 | 115,058 | 2.12 | 2.13 | 0.66 | 14 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Class R | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 04/30/20 | 38.59 | 0.05 | (6.27 | ) | (6.22 | ) | (0.89 | ) | – | (0.89 | ) | 31.48 | (16.57 | ) | 5,939 | 1.59 | (d) | 1.60 | (d) | 0.26 | (d) | 16 | ||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/19 | 35.38 | 0.64 | 2.93 | 3.57 | (0.36 | ) | – | (0.36 | ) | 38.59 | 10.26 | 7,803 | 1.60 | 1.61 | 1.77 | 10 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/18 | 40.76 | 0.48 | (5.18 | ) | (4.70 | ) | (0.68 | ) | – | (0.68 | ) | 35.38 | (11.74 | ) | 10,795 | 1.59 | 1.60 | 1.20 | 16 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/17 | 32.71 | 0.39 | 8.09 | 8.48 | (0.43 | ) | – | (0.43 | ) | 40.76 | 26.24 | 13,655 | 1.63 | 1.64 | 1.07 | 22 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/16 | 36.48 | 0.41 | (2.60 | ) | (2.19 | ) | (0.43 | ) | (1.15 | ) | (1.58 | ) | 32.71 | (6.19 | ) | 12,893 | 1.59 | 1.61 | 1.22 | 16 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/15 | 37.33 | 0.42 | 0.89 | 1.31 | (0.60 | ) | (1.56 | ) | (2.16 | ) | 36.48 | 3.93 | 15,280 | 1.62 | 1.63 | 1.16 | 14 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Class Y | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 04/30/20 | 38.85 | 0.14 | (6.27 | ) | (6.13 | ) | (1.12 | ) | – | (1.12 | ) | 31.60 | (16.36 | ) | 513,244 | 1.09 | (d) | 1.10 | (d) | 0.76 | (d) | 16 | ||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/19 | 35.67 | 0.83 | 2.93 | 3.76 | (0.58 | ) | – | (0.58 | ) | 38.85 | 10.81 | 700,808 | 1.10 | 1.11 | 2.27 | 10 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/18 | 41.06 | 0.68 | (5.21 | ) | (4.53 | ) | (0.86 | ) | – | (0.86 | ) | 35.67 | (11.29 | ) | 820,248 | 1.09 | 1.10 | 1.70 | 16 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/17 | 32.98 | 0.58 | 8.13 | 8.71 | (0.63 | ) | – | (0.63 | ) | 41.06 | 26.85 | 911,498 | 1.13 | 1.14 | 1.57 | 22 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/16 | 36.76 | 0.58 | (2.62 | ) | (2.04 | ) | (0.59 | ) | (1.15 | ) | (1.74 | ) | 32.98 | (5.71 | ) | 696,907 | 1.09 | 1.11 | 1.72 | 16 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/15 | 37.62 | 0.61 | 0.88 | 1.49 | (0.79 | ) | (1.56 | ) | (2.35 | ) | 36.76 | 4.46 | 695,157 | 1.12 | 1.13 | 1.66 | 14 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Investor Class | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 04/30/20 | 38.67 | 0.11 | (6.26 | ) | (6.15 | ) | (1.04 | ) | – | (1.04 | ) | 31.48 | (16.44 | )(e) | 102,793 | 1.25 | (d)(e) | 1.26 | (d)(e) | 0.60 | (d)(e) | 16 | ||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/19 | 35.48 | 0.76 | 2.93 | 3.69 | (0.50 | ) | – | (0.50 | ) | 38.67 | 10.61 | (e) | 133,149 | 1.29 | (e) | 1.30 | (e) | 2.08 | (e) | 10 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/18 | 40.86 | 0.60 | (5.19 | ) | (4.59 | ) | (0.79 | ) | – | (0.79 | ) | 35.48 | (11.47 | )(e) | 133,359 | 1.29 | (e) | 1.30 | (e) | 1.50 | (e) | 16 | ||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/17 | 32.80 | 0.50 | 8.10 | 8.60 | (0.54 | ) | – | (0.54 | ) | 40.86 | 26.61 | (e) | 166,324 | 1.32 | (e) | 1.33 | (e) | 1.38 | (e) | 22 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/16 | 36.56 | 0.51 | (2.61 | ) | (2.10 | ) | (0.51 | ) | (1.15 | ) | (1.66 | ) | 32.80 | (5.91 | )(e) | 147,804 | 1.31 | (e) | 1.33 | (e) | 1.50 | (e) | 16 | |||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/15 | 37.42 | 0.52 | 0.88 | 1.40 | (0.70 | ) | (1.56 | ) | (2.26 | ) | 36.56 | 4.21 | (e) | 178,602 | 1.35 | (e) | 1.36 | (e) | 1.43 | (e) | 14 | |||||||||||||||||||||||||||||||||||||||||||||||||
Class R6 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 04/30/20 | 38.86 | 0.16 | (6.27 | ) | (6.11 | ) | (1.16 | ) | – | (1.16 | ) | 31.59 | (16.31 | ) | 7,279 | 0.97 | (d) | 0.98 | (d) | 0.88 | (d) | 16 | ||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/19 | 35.68 | 0.87 | 2.94 | 3.81 | (0.63 | ) | – | (0.63 | ) | 38.86 | 10.96 | 8,613 | 0.98 | 0.99 | 2.39 | 10 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/18 | 41.09 | 0.72 | (5.21 | ) | (4.49 | ) | (0.92 | ) | – | (0.92 | ) | 35.68 | (11.20 | ) | 9,925 | 0.99 | 1.00 | 1.80 | 16 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/17(f) | 35.50 | 0.40 | 5.19 | 5.59 | – | – | – | 41.09 | 15.75 | 4,723 | 0.96 | (g) | 0.97 | (g) | 1.74 | (g) | 22 |
(a) | Calculated using average shares outstanding. |
(b) | Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Does not include sales charges and is not annualized for periods less than one year, if applicable. |
(c) | Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable. |
(d) | Ratios are annualized and based on average daily net assets (000’s omitted) of $356,126, $33,043, $7,234, $640,365 , $123,277 and $8,620 for Class A, Class C, Class R, Class Y, Investor Class and Class R6 shares, respectively. |
(e) | The total return, ratio of expenses to average net assets and ratio of net investment income to average net assets reflect actual 12b-1 fees of 0.16%, 0.19%, 0.20%, 0.19%, 0.22% and 0.22% for the six months ended April 30, 2020 and for each of the years ended October 31, 2019, 2018, 2017, 2016 and 2015, respectively. |
(f) | Commencement date of April 4, 2017. |
(g) | Annualized. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
11 Invesco European Growth Fund
April 30, 2020
(Unaudited)
NOTE 1–Significant Accounting Policies
Invesco European Growth Fund (the “Fund”) is a series portfolio of AIM International Mutual Funds (Invesco International Mutual 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 the Fund or each class.
The Fund’s investment objective is long-term growth of capital.
The Fund currently consists of six different classes of shares: Class A, Class C, Class R, Class Y, Investor Class and Class R6. Class Y and Investor Class shares are available only to certain investors. Class A shares are sold with a front-end sales charge unless certain waiver criteria are met. 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, Investor Class 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. |
A security listed or traded on an exchange (except convertible securities) is valued at its last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded, or lacking any sales or official closing price on a particular day, the security may be valued at the closing bid price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued by an independent pricing service they may be considered fair valued. Futures contracts are valued at the final settlement price set by an exchange on which they are principally traded. Listed options are valued at the mean between the last bid and asked prices from the exchange on which they are principally traded. Options not listed on an exchange are valued by an independent source at the mean between the last bid and asked prices. For purposes of determining net asset value (“NAV”) per share, futures and option contracts generally are valued 15 minutes after the close of the customary trading session of the New York Stock Exchange (“NYSE”).
Investments in open-end and closed-end registered investment companies that do not trade on an exchange are valued at the end-of-day net asset value per share. Investments in open-end and closed-end registered investment companies that trade on an exchange are valued at the last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded.
Debt obligations (including convertible securities) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. Pricing services generally value debt obligations assuming orderly transactions of institutional round lot size, but a fund may hold or transact in the same securities in smaller, odd lot sizes. Odd lots often trade at lower prices than institutional round lots. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.
Foreign securities’ (including foreign exchange contracts) prices are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the NYSE. If market quotations are available and reliable for foreign exchange-traded equity securities, the securities will be valued at the market quotations. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become unreliable. If between the time trading ends on a particular security and the close of the customary trading session on the NYSE, events occur that the investment adviser determines are significant and make the closing price unreliable, the Fund may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith using procedures approved by the Board of Trustees. Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities’ prices meeting the approved degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economic upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.
Securities for which market prices are not provided by any of the above methods may be valued based upon quotes furnished by independent sources. The last bid price may be used to value equity securities. The mean between the last bid and asked prices is used to value debt obligations, including corporate loans.
Securities for which market quotations are not readily available or became unreliable are valued at fair value as determined in good faith by or under the supervision of the Trust’s officers following procedures approved by the Board of Trustees. Issuer specific events, market trends, bid/asked quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security’s fair value.
The Fund may invest in securities that are subject to interest rate risk, meaning the risk that the prices will generally fall as interest rates rise and, conversely, the prices will generally rise as interest rates fall. Specific securities differ in their sensitivity to changes in interest rates depending on their individual characteristics. Changes in interest rates may result in increased market volatility, which may affect the value and/or liquidity of certain Fund investments.
Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the issuer’s assets, general market conditions which are not specifically related to the particular issuer, such as real or perceived adverse economic conditions, changes in the general outlook for revenues or corporate earnings, changes in interest or currency rates, regional or global instability, natural or environmental disasters, widespread disease or other public health issues, war, acts of terrorism or adverse investor sentiment generally and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
B. | Securities Transactions and Investment Income – Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income (net of withholding tax, if any) is recorded on an accrual basis from settlement date. Dividend income (net of withholding tax, if any) is recorded on the ex-dividend date. |
The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Statement of Operations as realized gain (loss) for investments no longer held and as unrealized gain (loss) for investments still held.
12 Invesco European Growth Fund
Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of net realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the net realized and unrealized gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and the Statement of Changes in Net Assets, or the net investment income per share and the ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.
The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class.
C. | Country Determination – For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues and the country that has the primary market for the issuer’s securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted. |
D. | Distributions – Distributions from net investment income and net realized capital gain, if any, are generally declared and paid annually and recorded on the ex-dividend date. The Fund may elect to treat a portion of the proceeds from redemptions as distributions for federal income tax purposes. |
E. | Federal Income Taxes – The Fund intends to comply with the requirements of Subchapter M of the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”), necessary to qualify as a regulated investment company and to distribute substantially all of the Fund’s taxable earnings to shareholders. As such, the Fund will not be subject to federal income taxes on otherwise taxable income (including net realized capital gain) that is distributed to shareholders. Therefore, no provision for federal income taxes is recorded in the financial statements. |
The Fund recognizes the tax benefits of uncertain tax positions only when the position is more likely than not to be sustained. Management has analyzed the Fund’s uncertain tax positions and concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions. Management is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the next 12 months.
The Fund files tax returns in the U.S. Federal jurisdiction and certain other jurisdictions. Generally, the Fund is subject to examinations by such taxing authorities for up to three years after the filing of the return for the tax period.
F. | Expenses – Fees provided for under the Rule 12b-1 plan of a particular class of the Fund are charged to the operations of such class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses attributable to Class R6 are charged to such 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 preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print. |
H. | Indemnifications – Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of the performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements, that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote. |
I. | Foreign Currency Translations – Foreign currency is valued at the close of the NYSE based on quotations posted by banks and major currency dealers. Portfolio securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at the date of valuation. Purchases and sales of portfolio securities (net of foreign taxes withheld on disposition) and income items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. The Fund does not separately account for the portion of the results of operations resulting from changes in foreign exchange rates on investments and the fluctuations arising from changes in market prices of securities held. The combined results of changes in foreign exchange rates and the fluctuation of market prices on investments (net of estimated foreign tax withholding) are included with the net realized and unrealized gain or loss from investments in the Statement of Operations. Reported net realized foreign currency gains or losses arise from (1) sales of foreign currencies, (2) currency gains or losses realized between the trade and settlement dates on securities transactions, and (3) the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign currency gains and losses arise from changes in the fair values of assets and liabilities, other than investments in securities at fiscal period end, resulting from changes in exchange rates. |
The Fund may invest in foreign securities, which may be subject to foreign taxes on income, gains on investments or currency repatriation, a portion of which may be recoverable. Foreign taxes, if any, are recorded based on the tax regulations and rates that exist in the foreign markets in which the Fund invests and are shown in the Statement of Operations.
J. | Forward Foreign Currency Contracts – The Fund may engage in foreign currency transactions either on a spot (i.e. for prompt delivery and settlement) basis, or through forward foreign currency contracts, to manage or minimize currency or exchange rate risk. |
The Fund may also enter into forward foreign currency contracts for the purchase or sale of a security denominated in a foreign currency in order to “lock in” the U.S. dollar price of that security, or the Fund may also enter into forward foreign currency contracts that do not provide for physical settlement of the two currencies, but instead are settled by a single cash payment calculated as the difference between the agreed upon exchange rate and the spot rate at settlement based upon an agreed upon notional amount (non-deliverable forwards). The Fund will set aside liquid assets in an amount equal to the daily mark-to-market obligation for forward foreign currency contracts.
A forward foreign currency contract is an obligation between two parties (“Counterparties”) to purchase or sell a specific currency for an agreed-upon price at a future date. The use of forward foreign currency contracts does not eliminate fluctuations in the price of the underlying securities the Fund owns or intends to acquire but establishes a rate of exchange in advance. Fluctuations in the value of these contracts are measured by the difference in the contract date and reporting date exchange rates and are recorded as unrealized appreciation (depreciation) until the contracts are closed. When the contracts are closed, realized gains (losses) are recorded. Realized and unrealized gains (losses) on the contracts are included in the Statement of Operations. The primary risks associated with forward foreign currency contracts include failure of the Counterparty to meet the terms of the contract and the value of the foreign currency changing unfavorably. These risks may be in excess of the amounts reflected in the Statement of Assets and Liabilities.
13 Invesco European Growth Fund
NOTE 2–Advisory Fees and Other Fees Paid to Affiliates
The Trust has entered into a master investment advisory agreement with Invesco Advisers, Inc. (the “Adviser” or “Invesco”). Under the terms of the investment advisory agreement, the Fund accrues daily and pays monthly an advisory fee to the Adviser based on the annual rate of the Fund’s average daily net assets as follows:
Average Daily Net Assets | Rate | |||
First $250 million | 0.935 | % | ||
Next $250 million | 0.910 | % | ||
Next $500 million | 0.885 | % | ||
Next $1.5 billion | 0.860 | % | ||
Next $2.5 billion | 0.835 | % | ||
Next $2.5 billion | 0.810 | % | ||
Next $2.5 billion | 0.785 | % | ||
Over $10 billion | 0.760 | % |
For the six months ended April 30, 2020, the effective advisory fee rate incurred by the Fund was 0.90%.
Under the terms of a master sub-advisory agreement between the Adviser and each of Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Canada Ltd. and separate sub-advisory agreements with Invesco Capital Management LLC and Invesco Asset Management (India) Private Limited (collectively, the “Affiliated Sub-Advisers”) the Adviser, not the Fund, will pay 40% of the fees paid to the Adviser to any such Affiliated Sub-Adviser(s) that provide(s) discretionary investment management services to the Fund based on the percentage of assets allocated to such Affiliated Sub-Adviser(s).
The Adviser has contractually agreed, through at least June 30, 2021, to waive advisory fees and/or reimburse expenses of all shares to the extent necessary to limit total annual fund operating expenses after fee waiver and/or reimbursement (excluding certain items discussed below) of Class A, Class C, Class R, Class Y, Investor Class and Class R6 shares to 2.25%, 3.00%, 2.50%, 2.00%, 2.25% and 2.00%, 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 the total annual fund operating expenses after fee waiver and/or reimbursement to exceed the numbers reflected above: (1) interest, facilities and maintenance fees; (2) taxes; (3) dividend expense on short sales; (4) extraordinary or non-routine items, including litigation expenses; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Unless Invesco continues the fee waiver agreement, it will terminate on June 30, 2021. During its term, the fee waiver agreement cannot be terminated or amended to increase the expense limits or reduce the advisory fee waivers without approval of the Board of Trustees. To the extent that the annualized expense ratio does not exceed the expense limit, the Adviser will retain its ability to be reimbursed for such fee waivers or reimbursements prior to the end of each fiscal year. The Adviser did not waive fees and/or reimburse expenses during the period under this expense limit.
Further, the Adviser has contractually agreed, through at least June 30, 2022, to waive the advisory fee payable by the Fund in an amount equal to 100% of the net advisory fees the Adviser receives from the affiliated money market funds on investments by the Fund of uninvested cash in such affiliated money market funds.
For the six months ended April 30, 2020, the Adviser waived advisory fees of $36,996.
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 April 30, 2020, expenses incurred under the agreement are shown in the Statement of Operations as Administrative services fees. Invesco has entered into a sub-administration agreement whereby State Street Bank and Trust Company (“SSB”) serves as fund accountant and provides certain administrative services to the Fund. Pursuant to a custody agreement with the Trust on behalf of the Fund, SSB also serves as the Fund’s custodian.
The Trust has entered into a transfer agency and service agreement with Invesco Investment Services, Inc. (“IIS”) pursuant to which the Fund has agreed to pay IIS a fee for providing transfer agency and shareholder services to the Fund and reimburse IIS for certain expenses incurred by IIS in the course of providing such services. IIS may make payments to intermediaries that provide omnibus account services, sub-accounting services and/or networking services. All fees payable by IIS to intermediaries that provide omnibus account services or sub-accounting services are charged back to the Fund, subject to certain limitations approved by the Trust’s Board of Trustees. For the six months ended April 30, 2020, expenses incurred under the agreement are shown in the Statement of Operations as Transfer 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, Investor Class 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, Class R, Investor Class shares (collectively, the “Plans”). The Fund, pursuant to the Plans, pays IDI compensation at the annual rate of 0.25% of the Fund’s average daily net assets of Class A shares, 1.00% of the average daily net assets of Class C shares and 0.50% of the average daily net assets of Class R shares. The Fund, pursuant to the Investor Class Plan, reimburses IDI for its allocated share of expenses incurred pursuant to the Investor Class Plan for the period, up to a maximum annual rate of 0.25% of the average daily net assets of Investor Class 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 Plans 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. For the six-month period ended April 30, 2020, expenses incurred under the Plans are shown in the Statement of Operations as Distribution fees.
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 April 30, 2020, IDI advised the Fund that IDI retained $17,790 in front-end sales commissions from the sale of Class A shares and $420 and $834 from Class A and Class C shares, respectively, for CDSC imposed upon redemptions by shareholders.
Certain officers and trustees of the Trust are officers and directors of the Adviser, IIS and/or IDI.
NOTE 3–Additional Valuation Information
GAAP defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, under current market conditions. GAAP establishes a hierarchy that prioritizes the inputs to valuation methods, giving the highest priority to readily available unadjusted quoted prices in an active market for identical assets (Level 1) and the lowest priority to significant unobservable inputs (Level 3), generally when market prices are not readily available or are unreliable. Based on the valuation inputs, the securities or other investments are tiered into one of three levels. Changes in valuation methods may result in transfers in or out of an investment’s assigned level:
Level 1 - | Prices are determined using quoted prices in an active market for identical assets. | |
Level 2 - | Prices are determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk, yield curves, loss severities, default rates, discount rates, volatilities and others. |
14 Invesco European Growth Fund
Level 3 - | Prices are determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Fund’s own assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information. |
The following is a summary of the tiered valuation input levels, as of April 30, 2020. The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||
Investments in Securities | ||||||||||||||||||||
Denmark | $ | – | $ | 28,880,606 | $ | – | $ | 28,880,606 | ||||||||||||
France | 3,764,165 | 91,740,632 | – | 95,504,797 | ||||||||||||||||
Germany | – | 127,687,027 | – | 127,687,027 | ||||||||||||||||
Hungary | – | 11,617,671 | – | 11,617,671 | ||||||||||||||||
Ireland | 16,659,995 | 22,229,478 | – | 38,889,473 | ||||||||||||||||
Italy | – | 42,447,431 | – | 42,447,431 | ||||||||||||||||
Netherlands | – | 76,508,606 | – | 76,508,606 | ||||||||||||||||
Russia | – | 45,661,421 | – | 45,661,421 | ||||||||||||||||
Spain | – | 16,409,183 | – | 16,409,183 | ||||||||||||||||
Sweden | – | 27,244,213 | – | 27,244,213 | ||||||||||||||||
Switzerland | – | 96,262,094 | – | 96,262,094 | ||||||||||||||||
Turkey | – | 23,468,568 | – | 23,468,568 | ||||||||||||||||
United Kingdom | 9,970,970 | 214,424,280 | – | 224,395,250 | ||||||||||||||||
United States | 23,385,011 | – | – | 23,385,011 | ||||||||||||||||
Money Market Funds | 64,167,622 | – | – | 64,167,622 | ||||||||||||||||
Total Investments | $ | 117,947,763 | $ | 824,581,210 | $ | – | $ | 942,528,973 |
NOTE 4–Expense Offset Arrangement(s)
The expense offset arrangement is comprised of transfer agency credits which result from balances in demand deposit accounts used by the transfer agent for clearing shareholder transactions. For the six months ended April 30, 2020, the Fund received credits from this arrangement, which resulted in the reduction of the Fund’s total expenses of $5,576.
NOTE 5–Trustees’ and Officers’ Fees and Benefits
Trustees’ and Officers’ Fees and Benefits include amounts accrued by the Fund to pay remuneration to certain Trustees and Officers of the Fund. Trustees have the option to defer compensation payable by the Fund, and Trustees’ and Officers’ Fees and Benefits also include amounts accrued by the Fund to fund such deferred compensation amounts. Those Trustees who defer compensation have the option to select various Invesco Funds in which their deferral accounts shall be deemed to be invested. Finally, certain current Trustees were eligible to participate in a retirement plan that provided for benefits to be paid upon retirement to Trustees over a period of time based on the number of years of service. The Fund may have certain former Trustees who also participate in a retirement plan and receive benefits under such plan. Trustees’ and Officers’ Fees and Benefits include amounts accrued by the Fund to fund such retirement benefits. Obligations under the deferred compensation and retirement plans represent unsecured claims against the general assets of the Fund.
NOTE 6–Cash Balances
The Fund is permitted to temporarily carry a negative or overdrawn balance in its account with SSB, the custodian bank. Such balances, if any at period-end, are shown in the Statement of Assets and Liabilities under the payable caption Amount due custodian. To compensate the custodian bank for such overdrafts, the overdrawn Fund may either (1) leave funds as a compensating balance in the account so the custodian bank can be compensated by earning the additional interest; or (2) compensate by paying the custodian bank at a rate agreed upon by the custodian bank and Invesco, not to exceed the contractually agreed upon rate. The Fund may not purchase additional securities when any borrowings from banks or broker-dealers exceed 5% of the Fund’s total assets, or when any borrowings from an Invesco Fund are outstanding.
NOTE 7–Tax Information
The amount and character of income and gains to be distributed are determined in accordance with income tax regulations, which may differ from GAAP. Reclassifications are made to the Fund’s capital accounts to reflect income and gains available for distribution (or available capital loss carryforward) under income tax regulations. The tax character of distributions paid during the year and the tax components of net assets will be reported at the Fund’s fiscal year-end.
Capital loss carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Fund to utilize. The ability to utilize capital loss carryforwards in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.
The Fund had a capital loss carryforward as of October 31, 2019, as follows:
Capital Loss Carryforward* | |||||||||||||||
Expiration | Short-Term | Long-Term | Total | ||||||||||||
Not subject to expiration | $ | 2,987,863 | $ | – | $ | 2,987,863 |
* | Capital loss carryforward is reduced for limitations, if any, to the extent required by the Internal Revenue Code and may be further limited depending upon a variety of factors, including the realization of net unrealized gains or losses as of the date of any reorganization. |
15 Invesco European Growth Fund
NOTE 8–Investment Transactions
The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Fund during the six months ended April 30, 2020 was $175,759,638 and $282,977,279, 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 | $ | 208,519,130 | ||
| ||||
Aggregate unrealized (depreciation) of investments | (110,798,718 | ) | ||
| ||||
Net unrealized appreciation of investments | $ | 97,720,412 | ||
| ||||
Cost of investments for tax purposes is $844,808,561. |
NOTE 9–Share Information
Summary of Share Activity | ||||||||||||||||
| ||||||||||||||||
Six months ended April 30, 2020(a) | Year ended October 31, 2019 | |||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||
| ||||||||||||||||
Sold: | ||||||||||||||||
Class A | 272,298 | $ | 9,881,128 | 751,237 | $ | 27,123,459 | ||||||||||
| ||||||||||||||||
Class C | 28,778 | 938,316 | 67,166 | 2,239,467 | ||||||||||||
| ||||||||||||||||
Class R | 14,435 | 510,706 | 34,739 | 1,257,448 | ||||||||||||
| ||||||||||||||||
Class Y | 2,558,905 | 83,291,682 | 4,660,942 | 165,361,568 | ||||||||||||
| ||||||||||||||||
Investor Class | 19,329 | 690,380 | 54,987 | 1,960,821 | ||||||||||||
| ||||||||||||||||
Class R6 | 45,528 | 1,748,841 | 31,879 | 1,165,050 | ||||||||||||
| ||||||||||||||||
Issued as reinvestment of dividends: | ||||||||||||||||
Class A | 220,798 | 8,713,417 | 138,228 | 4,622,322 | ||||||||||||
| ||||||||||||||||
Class C | 14,787 | 545,333 | 8,593 | 268,453 | ||||||||||||
| ||||||||||||||||
Class R | 4,499 | 177,209 | 3,199 | 106,759 | ||||||||||||
| ||||||||||||||||
Class Y | 416,542 | 16,440,918 | 175,171 | 5,859,477 | ||||||||||||
| ||||||||||||||||
Investor Class | 81,165 | 3,193,834 | 51,563 | 1,719,098 | ||||||||||||
| ||||||||||||||||
Class R6 | 6,621 | 261,078 | 5,015 | 167,583 | ||||||||||||
| ||||||||||||||||
Automatic conversion of Class C shares to Class A shares: | ||||||||||||||||
Class A | 46,450 | 1,736,288 | 517,108 | 18,495,040 | ||||||||||||
| ||||||||||||||||
Class C | (49,856 | ) | (1,736,288 | ) | (554,260 | ) | (18,495,040 | ) | ||||||||
| ||||||||||||||||
Reacquired: | ||||||||||||||||
Class A | (1,195,278 | ) | (41,528,676 | ) | (2,754,517 | ) | (100,049,421 | ) | ||||||||
| ||||||||||||||||
Class C | (189,412 | ) | (6,199,274 | ) | (640,261 | ) | (21,506,371 | ) | ||||||||
| ||||||||||||||||
Class R | (32,491 | ) | (1,099,277 | ) | (140,878 | ) | (5,043,503 | ) | ||||||||
| ||||||||||||||||
Class Y | (4,772,214 | ) | (155,648,171 | ) | (9,796,982 | ) | (347,557,108 | ) | ||||||||
| ||||||||||||||||
Investor Class | (278,994 | ) | (9,455,339 | ) | (422,290 | ) | (15,278,002 | ) | ||||||||
| ||||||||||||||||
Class R6 | (43,347 | ) | (1,494,612 | ) | (93,417 | ) | (3,427,460 | ) | ||||||||
| ||||||||||||||||
Net increase (decrease) in share activity | (2,831,457 | ) | $ | (89,032,507 | ) | (7,902,778 | ) | $ | (281,010,360 | ) | ||||||
|
(a) | There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 50% of the outstanding shares of the Fund. The Fund and the Fund’s principal underwriter or adviser, are parties to participation agreements with these entities whereby these entities sell units of interest in separate accounts funding variable products that are invested in the Fund. The Fund, Invesco and/or Invesco affiliates may make payments to these entities, which are considered to be related to the Fund, for providing services to the Fund, Invesco and/or Invesco affiliates including but not limited to services such as, securities brokerage, third party record keeping and account servicing and administrative services. The Fund has no knowledge as to whether all or any portion of the shares owned of record by these entities are also owned beneficially. |
NOTE 10–Coronavirus (COVID-19) Pandemic
During the first quarter of 2020, the World Health Organization declared COVID-19 to be a public health emergency. COVID-19 has led to increased short-term market volatility and may have adverse long-term effects on U.S. and world economies and markets in general. COVID-19 may adversely impact the Fund’s ability to achieve its investment objective. Because of the uncertainties on valuation, the global economy and business operations, values reflected in these financial statements may materially differ from the value received upon actual sales of those investments.
The extent of the impact on the performance of the Fund and its investments will depend on future developments, including the duration and spread of the COVID-19 outbreak, related restrictions and advisories, and the effects on the financial markets and economy overall, all of which are highly uncertain and cannot be predicted.
16 Invesco European Growth Fund
Calculating your ongoing Fund expenses
Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, which may include sales charges (loads) on purchase payments or contingent deferred sales charges on redemptions, if any; and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees, and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period November 1, 2019 through April 30, 2020.
Actual expenses
The table below provides information about actual account values and actual expenses. You may use the information in this table, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the table under the heading entitled “Actual Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Hypothetical example for comparison purposes
The table below also provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return.
The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads) on purchase payments or contingent deferred sales charges on redemptions, if any. Therefore, the hypothetical information 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 transaction costs were included, your costs would have been higher.
ACTUAL | HYPOTHETICAL (5% annual return before | |||||||||||||||||||||||||||||
Beginning Account Value (11/01/19) | Ending Account Value (04/30/20)1 | Expenses Paid During Period2 | Ending Account Value (04/30/20) | Expenses Paid During Period2 | Annualized Ratio | |||||||||||||||||||||||||
Class A | $ | 1,000.00 | $ | 835.50 | $ | 6.12 | $ | 1,018.20 | $ | 6.72 | 1.34 | % | ||||||||||||||||||
Class C | 1,000.00 | 832.30 | 9.52 | 1,014.47 | 10.47 | 2.09 | ||||||||||||||||||||||||
Class R | 1,000.00 | 834.30 | 7.25 | 1,016.96 | 7.97 | 1.59 | ||||||||||||||||||||||||
Class Y | 1,000.00 | 836.40 | 4.98 | 1,019.44 | 5.47 | 1.09 | ||||||||||||||||||||||||
Investor Class | 1,000.00 | 835.60 | 5.70 | 1,018.65 | 6.27 | 1.25 | ||||||||||||||||||||||||
Class R6 | 1,000.00 | 836.90 | 4.43 | 1,020.04 | 4.87 | 0.97 |
1 | The actual ending account value is based on the actual total return of the Fund for the period November 1, 2019 through April 30, 2020, after actual expenses and will differ from the hypothetical ending account value which is based on the Fund’s expense ratio and a hypothetical annual return of 5% before expenses. |
2 | Expenses are equal to the Fund’s annualized expense ratio as indicated above multiplied by the average account value over the period, multiplied by 182/366 to reflect the most recent fiscal half year. |
17 Invesco European Growth Fund
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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 list appears 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 Form N-PORT filings on the SEC website, sec.gov. The SEC file numbers for the Fund are shown below. | ||
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. This 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. |
SEC file numbers: 811-06463 and 033-44611 | Invesco Distributors, Inc. | EGR-SAR-1 |
Semiannual Report to Shareholders
|
April 30, 2020
| |||
Invesco Global Growth Fund
| ||||
Nasdaq: | ||||
A: AGGAX ∎ C: AGGCX ∎ Y: AGGYX ∎ R5: GGAIX ∎ R6: AGGFX |
2 | ||||
3 | ||||
5 | ||||
6 | ||||
9 | ||||
12 | ||||
13 | ||||
19 |
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.
For the most current month-end Fund performance and commentary, please visit invesco.com/performance.
Unless otherwise noted, all data provided by Invesco.
This report must be accompanied or preceded by a currently effective Fund prospectus, which contains more complete information, including sales charges and expenses. Investors should read it carefully before investing.
NOT FDIC INSURED | MAY LOSE VALUE | NO BANK GUARANTEE |
Dear Fellow Shareholders: | ||
As independent chair of the Invesco Funds Board, I can assure you that the members of the Board are strong advocates for the interests of investors in Invesco’s mutual funds. We work hard to represent your interests through oversight of the quality of the investment management services your funds receive and other matters important to your investment. This includes but is not limited to: monitoring how the portfolio management teams of the Invesco funds are performing in light of changing economic and market conditions; assessing each portfolio management team’s investment performance within the context of the investment strategy described in the fund’s prospectus; and monitoring for potential conflicts of interests that may impact the nature of the services that your funds receive. | ||
Bruce Crockett | We believe one of the most important services we provide our fund shareholders is the annual review of the funds’ advisory and sub-advisory contracts with Invesco Advisers and its affiliates. This review is required by the Investment Company Act of 1940 and focuses on the nature and quality of the services | |
Invesco provides as the adviser to the Invesco funds and the reasonableness of the fees that it charges for those services. Each year, we spend months carefully reviewing information received from Invesco and a variety of independent sources, such as performance and fee data prepared by Lipper Inc. (a subsidiary of Broadridge Financial Solutions, Inc.), an independent, third-party firm widely recognized as a leader in its field. We also meet with our independent legal counsel and other independent advisers to review and help us assess the information that we have received. Our goal is to assure that you receive quality investment management services for a reasonable fee. | ||
On behalf of the Board, we look forward to continuing to represent your interests and serving your needs. |
Sincerely,
Bruce L. Crockett
Independent Chair
Invesco Funds Board of Trustees
Dear Shareholders: | ||
This semiannual report includes information about your Fund, including performance data and a complete list of its investments as of the close of the reporting period. | ||
Invesco’s efforts to help investors achieve their financial objectives include providing timely information about the markets, the economy and investing. Our website, invesco.com/us, offers a wide range of market insights and investment perspectives. On the website, you’ll find detailed information about our funds, including performance, holdings and portfolio manager commentaries. You can access information about your account by completing a simple, secure online registration. To do so, select “Log In” on the right side of the homepage, and then select “Register for Individual Account Access.” | ||
Andrew Schlossberg | In addition to the resources accessible on our website, you can obtain timely updates to help you stay informed by connecting with Invesco on Twitter, LinkedIn or Facebook. You can access our blog at blog.invesco.us.com. Our goal is to provide you with information you want, when and where you want it. | |
For questions about your account, feel free to contact an Invesco client services representative at 800 959 4246. | ||
All of us at Invesco look forward to serving your investment management needs. Thank you for investing with us. |
Sincerely,
Andrew Schlossberg
Head of the Americas,
Senior Managing Director, Invesco Ltd.
2 Invesco Global Growth Fund
Performance summary
| ||||
Fund vs. Indexes | ||||
Cumulative total returns, October 31, 2019 to April 30, 2020, at net asset value (NAV). Performance shown does not include applicable contingent deferred sales charges (CDSC) or front-end sales charges, which would have reduced performance. |
| |||
Class A Shares | -6.52 | % | ||
Class C Shares | -6.86 | |||
Class Y Shares | -6.40 | |||
Class R5 Shares | -6.32 | |||
Class R6 Shares | -6.35 | |||
MSCI All County World Index▼ (Broad Market Index) | -7.68 | |||
MSCI All Country World Growth Index▼ (Style-Specific Index) | 1.17 | |||
Lipper Global Multi-Cap Growth Funds Index∎ (Peer Group Index)
| -1.20 | |||
Source(s): ▼RIMES Technologies Corp.; ∎Lipper Inc. | ||||
The MSCI All Country World Index is an unmanaged index considered representative of large- and mid-cap stocks across developed and emerging markets. The index is computed using the net return, which withholds applicable taxes for non-resident investors. |
| |||
The MSCI All Country World Growth Index is an unmanaged index considered representative of large- and mid-cap growth stocks of developed and emerging markets. The index is computed using the net return, which withholds applicable taxes for non-resident investors. |
| |||
The Lipper Global Multi-Cap Growth Funds Index is an unmanaged index considered representative of global multicap growth funds tracked by Lipper. |
| |||
The Fund is not managed to track the performance of any particular index, including the index(es) described here, and consequently, the performance of the Fund may deviate significantly from the performance of the index(es). |
| |||
A direct investment cannot be made in an index. Unless otherwise indicated, index results include reinvested dividends, and they do not reflect sales charges. Performance of the peer group, if applicable, reflects fund expenses; performance of a market index does not. |
|
For more information about your Fund |
Read the most recent quarterly commentary from your Fund’s portfolio managers by visiting invesco.com/us. Click on “Products” and select “Mutual Funds.” Use the “Product Finder” to locate your Fund; then click on its name to access its product detail page. There, you can learn more about your Fund’s investment strategies, holdings and performance. |
Also, visit blog.invesco.us.com, where many of Invesco’s investment professionals share their insights about market and economic news and trends. |
3 Invesco Global Growth Fund
Average Annual Total Returns | ||||
As of 4/30/20, including maximum applicable sales charges |
| |||
Class A Shares | ||||
Inception (9/15/94) | 5.98 | % | ||
10 Years | 6.08 | |||
5 Years | 1.29 | |||
1 Year | -9.77 | |||
Class C Shares | ||||
Inception (8/4/97) | 4.04 | % | ||
10 Years | 5.88 | |||
5 Years | 1.68 | |||
1 Year | -6.14 | |||
Class Y Shares | ||||
Inception (10/3/08) | 7.12 | % | ||
10 Years | 6.94 | |||
5 Years | 2.70 | |||
1 Year | -4.30 | |||
Class R5 Shares | ||||
Inception (9/28/07) | 3.80 | % | ||
10 Years | 7.12 | |||
5 Years | 2.81 | |||
1 Year | -4.20 | |||
Class R6 Shares | ||||
10 Years | 7.00 | % | ||
5 Years | 2.81 | |||
1 Year | -4.19 |
Class R6 shares incepted on September 24, 2012. Performance shown prior to that date is that of Class A shares and includes the 12b-1 fees applicable to Class A shares.
The performance data quoted represent past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/ performance for the most recent month-end performance. Performance figures reflect reinvested distributions, changes in net asset value and the effect of the maximum sales charge unless otherwise stated. Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares. Investment return and principal value will fluctuate so that you may have a gain or loss when you sell shares.
Class A share performance reflects the maximum 5.50% sales charge, and Class C share performance reflects the applicable contingent deferred sales charge (CDSC) for the period involved. The CDSC on Class C shares is 1% for the first year after purchase. Class Y, Class R5 and Class R6 shares do not have a front-end sales charge or a CDSC; therefore, performance is at net asset value.
The performance of the Fund’s share classes will differ primarily due to different sales charge structures and class expenses.
Fund performance reflects any applicable fee waivers and/or expense reimbursements.
Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information.
4 Invesco Global Growth Fund
Liquidity Risk Management Program
The Securities and Exchange Commission has adopted Rule 22e-4 under the Investment Company Act of 1940 (the “Liquidity Rule”) in order to promote effective liquidity risk management throughout the open-end investment company industry, thereby reducing the risk that funds will be unable to meet their redemption obligations and mitigating dilution of the interests of fund shareholders. The Fund has adopted and implemented a liquidity risk management program in accordance with the Liquidity Rule (the “Program”). The Program is reasonably designed to assess and manage the Fund’s liquidity risk, which is the risk that the Fund could not meet redemption requests without significant dilution of remaining investors’ interests in the Fund. The Board of Trustees of the Fund (the “Board”) has appointed Invesco Advisers, Inc. (“Invesco”), the Fund’s investment adviser, as the Program’s administrator, and Invesco has delegated oversight of the Program to the Liquidity Risk Management Committee (the “Committee”), which is composed of senior representatives from relevant business groups at Invesco.
As required by the Liquidity Rule, the Program includes policies and procedures providing for an assessment, no less frequently than annually, of the Fund’s liquidity risk that takes into account, as relevant to the Fund’s liquidity risk: (1) the Fund’s investment strategy and liquidity of portfolio investments during both normal and reasonably foreseeable stressed conditions; (2) short-term and long-term cash flow projections for the Fund during both normal and reasonably foreseeable stressed conditions; and (3) the Fund’s holdings of cash and cash equivalents and any borrowing arrangements. The Liquidity Rule also requires the classification of the Fund’s investments into categories that reflect the assessment of their relative liquidity under current market conditions. The Fund classifies its investments into one of four categories defined in the Liquidity Rule: “Highly Liquid,” “Moderately Liquid,” “Less Liquid” and “Illiquid.” Funds that are not invested primarily in “Highly Liquid Investments” that are assets (cash or investments that are reasonably expected to be convertible into cash within three business days without significantly changing the market value of the investment) are required to establish a “Highly Liquid Investment Minimum” (“HLIM”), which is the minimum percentage of net assets that must be invested in Highly Liquid Investments. Funds with HLIMs have procedures for addressing HLIM shortfalls, including reporting to the Board and the SEC (on a non-public basis) as required by the Program and the Liquidity Rule. In addition, the Fund may not acquire an investment if, immediately after the acquisition, over 15% of the Fund’s net assets would consist of “Illiquid Investments” that are assets (an investment that cannot reasonably be expected to be sold or disposed of in current market conditions in seven calendar days or less without the sale or disposition significantly changing the market value of the investment). The Liquidity Rule and the Program also require reporting to the Board and the SEC (on a non-public basis) if a Fund’s holdings of Illiquid Investments exceed 15% of the Fund’s assets.
At a meeting held on March 30-April 1, 2020, the Committee presented a report to the Board that addressed the operation of the Program and assessed the Program’s adequacy and effectiveness of implementation (the “Report”). The Report covered the period from December 1, 2018 through December 31, 2019 (the “Program Reporting Period”).
The Report stated, in relevant part, that during the Program Reporting Period:
∎ | The Program, as adopted and implemented, remained reasonably designed to assess and manage the Fund’s liquidity risk and was operated effectively to achieve that goal; |
∎ | The Fund’s investment strategy remained appropriate for an open-end fund; |
∎ | The Fund was able to meet requests for redemption without significant dilution of remaining investors’ interests in the Fund; |
∎ | The Fund did not breach the 15% limit on Illiquid Investments; and |
∎ | The Fund primarily held Highly Liquid Investments and therefore has not adopted an HLIM. |
5 Invesco Global Growth Fund
April 30, 2020
(Unaudited)
Shares | Value | |||||
Common Stocks & Other Equity Interests–96.33% | ||||||
Brazil–1.10% | ||||||
B3 S.A. - Brasil, Bolsa, Balcao | 794,631 | $ 5,614,249 | ||||
Banco Bradesco S.A., ADR | 767,032 | 2,699,952 | ||||
8,314,201 | ||||||
Canada–2.57% | ||||||
CGI, Inc., Class A(a) | 75,777 | 4,832,591 | ||||
Onex Corp. | 138,174 | 6,368,938 | ||||
Open Text Corp. | 90,507 | 3,420,143 | ||||
Tourmaline Oil Corp. | 490,425 | 4,862,147 | ||||
19,483,819 | ||||||
China–5.42% | ||||||
Alibaba Group Holding Ltd., | 62,726 | 12,712,678 | ||||
New Oriental Education & Technology Group, Inc., ADR(a) | 63,010 | 8,043,857 | ||||
Tencent Holdings Ltd. | 155,100 | 8,228,537 | ||||
Wuliangye Yibin Co. Ltd., A Shares | 210,756 | 4,057,563 | ||||
Yum China Holdings, Inc. | 165,977 | 8,043,245 | ||||
41,085,880 | ||||||
Denmark–1.20% | ||||||
Carlsberg A/S, Class B | 43,622 | 5,506,735 | ||||
Novo Nordisk A/S, Class B | 56,429 | 3,603,220 | ||||
9,109,955 | ||||||
France–1.20% | ||||||
Criteo S.A., ADR(a) | 120,928 | 1,200,815 | ||||
LVMH Moet Hennessy Louis Vuitton SE | 9,109 | 3,523,266 | ||||
Schneider Electric SE | 47,840 | 4,382,787 | ||||
9,106,868 | ||||||
Germany–3.24% | ||||||
Deutsche Boerse AG | 70,075 | 10,900,033 | ||||
Knorr-Bremse AG | 39,712 | 3,696,086 | ||||
MorphoSys AG(a) | 47,540 | 5,004,489 | ||||
SAP SE | 41,981 | 5,006,978 | ||||
24,607,586 | ||||||
Hong Kong–0.96% | ||||||
AIA Group Ltd. | 804,000 | 7,318,372 | ||||
India–0.63% | ||||||
HDFC Bank Ltd., ADR | 110,824 | 4,804,220 | ||||
Indonesia–0.53% | ||||||
PT Bank Mandiri (Persero) Tbk | 13,387,000 | 4,007,857 | ||||
Ireland–1.24% | ||||||
Flutter Entertainment PLC(a) | 51,581 | 6,339,981 | ||||
Origin Enterprises PLC | 1,050,254 | 3,068,509 | ||||
9,408,490 | ||||||
Israel–0.56% | ||||||
Check Point Software Technologies Ltd.(a) | 39,961 | 4,225,476 |
Shares | Value | |||||
Italy–1.32% | ||||||
FinecoBank Banca Fineco S.p.A. | 897,973 | $ 10,003,394 | ||||
Japan–5.54% | ||||||
Disco Corp. | 26,500 | 5,952,555 | ||||
Hoya Corp. | 90,600 | 8,279,681 | ||||
Keyence Corp. | 15,500 | 5,568,595 | ||||
Koito Manufacturing Co. Ltd. | 182,100 | 6,894,956 | ||||
Nabtesco Corp. | 312,900 | 8,987,234 | ||||
SMC Corp. | 13,900 | 6,355,330 | ||||
42,038,351 | ||||||
Macau–0.92% | ||||||
Galaxy Entertainment Group Ltd. | 1,100,000 | 6,985,212 | ||||
Mexico–2.61% | ||||||
Grupo Aeroportuario del Pacifico S.A.B. de C.V., Class B | 1,231,500 | 7,695,278 | ||||
Kimberly-Clark de Mexico S.A.B. de C.V., Class A(a) | 3,333,900 | 4,708,766 | ||||
Wal-Mart de Mexico S.A.B. de C.V., Series V | 3,077,200 | 7,401,572 | ||||
19,805,616 | ||||||
Netherlands–2.39% | ||||||
ASML Holding N.V. | 7,399 | 2,197,863 | ||||
EXOR N.V. | 66,304 | 3,634,473 | ||||
Prosus N.V.(a) | 99,658 | 7,564,627 | ||||
SBM Offshore N.V. | 370,438 | 4,697,586 | ||||
18,094,549 | ||||||
South Korea–0.57% | ||||||
Samsung Electronics Co. Ltd. | 104,833 | 4,319,865 | ||||
Spain–0.26% | ||||||
Amadeus IT Group S.A. | 41,219 | 1,986,160 | ||||
Switzerland–2.05% | ||||||
Logitech International S.A. | 52,384 | 2,526,787 | ||||
Nestle S.A. | 48,501 | 5,123,455 | ||||
Roche Holding AG | 22,690 | 7,892,230 | ||||
15,542,472 | ||||||
Taiwan–1.26% | ||||||
Taiwan Semiconductor Manufacturing Co. Ltd. | 949,428 | 9,541,246 | ||||
United Kingdom–8.67% | ||||||
British American Tobacco PLC | 192,655 | 7,481,692 | ||||
Clinigen Group PLC | 1,490,077 | 13,561,527 | ||||
DCC PLC | 128,555 | 9,171,145 | ||||
HomeServe PLC | 701,729 | 9,863,053 | ||||
IG Group Holdings PLC | 590,709 | 5,618,774 | ||||
Informa PLC | 552,065 | 3,044,916 | ||||
Linde PLC | 19,431 | 3,575,110 | ||||
RELX PLC | 157,395 | 3,564,668 | ||||
Savills PLC | 335,352 | 4,078,094 | ||||
Ultra Electronics Holdings PLC | 235,062 | 5,838,574 | ||||
65,797,553 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
6 Invesco Global Growth Fund
Shares | Value | |||||
United States–52.09% | ||||||
Activision Blizzard, Inc. | 185,451 | $ 11,818,792 | ||||
Advance Auto Parts, Inc. | 74,535 | 9,012,027 | ||||
Alphabet, Inc., Class A(a) | 11,255 | 15,157,108 | ||||
Alphabet, Inc., Class C(a) | 5,350 | 7,215,331 | ||||
Amazon.com, Inc.(a) | 10,134 | 25,071,516 | ||||
Amphenol Corp., Class A | 84,153 | 7,427,344 | ||||
Aon PLC | 37,143 | 6,413,482 | ||||
Apollo Global Management, Inc. | 136,752 | 5,537,088 | ||||
Apple, Inc. | 62,654 | 18,407,745 | ||||
Aptiv PLC(a) | 109,677 | 7,628,035 | ||||
Assurant, Inc. | 83,728 | 8,895,263 | ||||
Baxter International, Inc. | 136,926 | 12,156,290 | ||||
Black Knight, Inc.(a) | 78,772 | 5,558,940 | ||||
Booking Holdings, Inc.(a) | 8,433 | 12,485,647 | ||||
Broadcom, Inc. | 31,932 | 8,673,370 | ||||
Citrix Systems, Inc. | 42,212 | 6,121,162 | ||||
Cognizant Technology Solutions Corp., Class A | 75,460 | 4,378,189 | ||||
Coherus Biosciences, Inc.(a) | 232,200 | 3,854,520 | ||||
Comcast Corp., Class A | 83,971 | 3,159,829 | ||||
Copart, Inc.(a) | 73,725 | 5,906,110 | ||||
Dollar General Corp. | 29,189 | 5,116,832 | ||||
Fidelity National Information Services, Inc. | 79,042 | 10,424,849 | ||||
FLIR Systems, Inc. | 172,667 | 7,493,748 | ||||
Fortive Corp. | 110,767 | 7,089,088 | ||||
Horizon Therapeutics PLC(a) | 231,459 | 8,341,782 | ||||
IHS Markit Ltd. | 79,135 | 5,325,785 | ||||
JPMorgan Chase & Co. | 74,462 | 7,130,481 | ||||
Kansas City Southern | 66,219 | 8,644,890 | ||||
KLA Corp. | 35,263 | 5,786,306 | ||||
L3Harris Technologies, Inc. | 51,878 | 10,048,769 | ||||
Microsoft Corp. | 77,713 | 13,926,947 | ||||
Mondelez International, Inc., Class A | 211,210 | 10,864,642 |
Shares | Value | |||||
United States–(continued) | ||||||
NCR Corp.(a) | 504,146 | $ 10,345,076 | ||||
NIKE, Inc., Class B | 44,341 | 3,865,648 | ||||
PayPal Holdings, Inc.(a) | 117,489 | 14,451,147 | ||||
Philip Morris International, Inc. | 108,903 | 8,124,164 | ||||
PTC, Inc.(a) | 79,741 | 5,522,064 | ||||
RealPage, Inc.(a) | 193,944 | 12,507,449 | ||||
Roper Technologies, Inc. | 16,199 | 5,524,345 | ||||
SBA Communications Corp., Class A | 11,256 | 3,263,340 | ||||
ServiceMaster Global Holdings, | 142,298 | 4,845,247 | ||||
Sherwin-Williams Co. (The) | 8,062 | 4,324,215 | ||||
Synopsys, Inc.(a) | 34,298 | 5,388,902 | ||||
Thermo Fisher Scientific, Inc. | 10,688 | 3,577,060 | ||||
Tradeweb Markets, Inc., Class A | 107,150 | 5,588,944 | ||||
UnitedHealth Group, Inc. | 29,219 | 8,545,681 | ||||
Visa, Inc., Class A | 55,303 | 9,883,752 | ||||
Wyndham Hotels & Resorts, Inc. | 115,750 | 4,364,933 | ||||
395,193,874 | ||||||
Total Common Stocks & Other Equity Interests |
| 730,781,016 | ||||
Money Market Funds–3.12% | ||||||
Invesco Government & Agency Portfolio, Institutional Class, 0.20%(b)(c) | 4,323,783 | 4,323,783 | ||||
Invesco Liquid Assets Portfolio, Institutional Class, 0.60%(b)(c) | 14,406,103 | 14,414,746 | ||||
Invesco Treasury Portfolio, Institutional Class, 0.10%(b)(c) | 4,941,466 | 4,941,466 | ||||
Total Money Market Funds |
| 23,679,995 | ||||
TOTAL INVESTMENTS IN SECURITIES–99.45% |
| 754,461,011 | ||||
OTHER ASSETS LESS LIABILITIES-0.55% |
| 4,174,182 | ||||
NET ASSETS-100.00% |
| $758,635,193 |
Investment Abbreviations:
ADR - American Depositary Receipt
Notes to Schedule of Investments:
(a) | Non-income producing security. |
(b) | Affiliated issuer. The issuer and/or the Fund is a wholly-owned subsidiary of Invesco Ltd., or is affiliated by having an investment adviser that is under common control of Invesco Ltd. The table below shows the Fund’s transactions in, and earnings from, its investments in affiliates for the six months ended April 30, 2020. |
Value October 31, 2019 | Purchases at Cost | Proceeds from Sales | Change in Unrealized Appreciation | Realized Gain (Loss) | Value April 30, 2020 | Dividend Income | ||||||||||||||||||||||||
Investments in Affiliated Money Market Funds: | ||||||||||||||||||||||||||||||
Invesco Government & Agency Portfolio, Institutional Class | $3,370,670 | $ | 62,574,479 | $ | (61,621,366 | ) | $ - | $ | - | $ | 4,323,783 | $25,704 | ||||||||||||||||||
Invesco Liquid Assets Portfolio, Institutional Class | 2,409,201 | 56,008,800 | (44,010,349 | ) | 7,566 | (472 | ) | 14,414,746 | 26,388 | |||||||||||||||||||||
Invesco Treasury Portfolio, Institutional Class | 3,852,194 | 71,513,690 | (70,424,418 | ) | - | - | 4,941,466 | 27,435 | ||||||||||||||||||||||
Total | $9,632,065 | $ | 190,096,969 | $ | (176,056,133 | ) | $7,566 | $ | (472 | ) | $ | 23,679,995 | $79,527 |
(c) | The rate shown is the 7-day SEC standardized yield as of April 30, 2020. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
7 Invesco Global Growth Fund
Portfolio Composition
By sector, based on Net Assets
as of April 30, 2020
Information Technology | 25.82 | % | ||
Consumer Discretionary | 17.46 | |||
Industrials | 13.46 | |||
Financials | 12.46 | |||
Health Care | 9.86 | |||
Consumer Staples | 7.43 | |||
Communication Services | 6.57 | |||
Other Sectors, Each Less than 2% of Net Assets | 3.27 | |||
Money Market Funds Plus Other Assets Less Liabilities | 3.67 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
8 Invesco Global Growth Fund
Statement of Assets and Liabilities
April 30, 2020
(Unaudited)
Assets: | ||
Investments in securities, at value | $730,781,016 | |
Investments in affiliated money market funds, at value (Cost $23,671,870) | 23,679,995 | |
Cash | 121,929 | |
Foreign currencies, at value (Cost $104,257) | 105,676 | |
Receivable for: | ||
Investments sold | 3,801,654 | |
Fund shares sold | 71,459 | |
Dividends | 1,298,811 | |
Investment for trustee deferred compensation and retirement plans | 303,047 | |
Other assets | 36,139 | |
Total assets | 760,199,726 | |
Liabilities: | ||
Payable for: | ||
Fund shares reacquired | 517,447 | |
Accrued fees to affiliates | 198,894 | |
Accrued other operating expenses | 519,419 | |
Trustee deferred compensation and retirement plans | 328,773 | |
Total liabilities | 1,564,533 | |
Net assets applicable to shares outstanding | $758,635,193 | |
Net assets consist of: | ||
Shares of beneficial interest | $590,535,640 | |
Distributable earnings | 168,099,553 | |
$758,635,193 |
Net Assets: | ||
Class A | $596,673,884 | |
Class C | $ 14,397,602 | |
Class Y | $ 25,916,145 | |
Class R5 | $1,152,555 | |
Class R6 | $120,495,007 | |
Shares outstanding, no par value, with an unlimited number of shares authorized: | ||
Class A | 21,588,161 | |
Class C | 576,312 | |
Class Y | 935,886 | |
Class R5 | 41,992 | |
Class R6 | 4,391,837 | |
Class A: | ||
Net asset value per share | $ 27.64 | |
Maximum offering price per share | $ 29.25 | |
Class C: | ||
Net asset value and offering price per share | $ 24.98 | |
Class Y: | ||
Net asset value and offering price per share | $ 27.69 | |
Class R5: | ||
Net asset value and offering price per share | $ 27.45 | |
Class R6: | ||
Net asset value and offering price per share | $ 27.44 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
9 Invesco Global Growth Fund
Statement of Operations
For the six months ended April 30, 2020
(Unaudited)
Investment income: | ||||
Dividends (net of foreign withholding taxes of $561,643) | $ | 2,648,827 | ||
| ||||
Dividends from affiliated money market funds | 79,527 | |||
| ||||
Total investment income | 2,728,354 | |||
| ||||
Expenses: | ||||
Advisory fees | 1,762,117 | |||
| ||||
Administrative services fees | 32,878 | |||
| ||||
Custodian fees | 21,033 | |||
| ||||
Distribution fees: | ||||
Class A | 377,171 | |||
| ||||
Class C | 36,103 | |||
| ||||
Transfer agent fees – A, C and Y | 320,053 | |||
| ||||
Transfer agent fees – R5 | 34 | |||
| ||||
Transfer agent fees – R6 | 1,356 | |||
| ||||
Trustees’ and officers’ fees and benefits | 9,296 | |||
| ||||
Registration and filing fees | 33,508 | |||
| ||||
Reports to shareholders | 27,272 | |||
| ||||
Professional services fees | 31,458 | |||
| ||||
Other | 776 | |||
| ||||
Total expenses | 2,653,055 | |||
| ||||
Less: Fees waived, expenses reimbursed and/or expense offset arrangement(s) | (150,296 | ) | ||
| ||||
Net expenses | 2,502,759 | |||
| ||||
Net investment income | 225,595 | |||
| ||||
Realized and unrealized gain (loss) from: | ||||
Net realized gain (loss) from: | ||||
Investment securities | 29,379,673 | |||
| ||||
Foreign currencies | (52,562 | ) | ||
| ||||
29,327,111 | ||||
| ||||
Change in net unrealized appreciation (depreciation) of: | ||||
Investment securities | (47,361,777 | ) | ||
| ||||
Foreign currencies | (16,569 | ) | ||
| ||||
(47,378,346 | ) | |||
| ||||
Net realized and unrealized gain (loss) | (18,051,235 | ) | ||
| ||||
Net increase (decrease) in net assets resulting from operations | $ | (17,825,640 | ) | |
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
10 Invesco Global Growth Fund
Statement of Changes in Net Assets
For the six months ended April 30, 2020 and the year ended October 31, 2019
(Unaudited)
April 30, 2020 | October 31, 2019 | |||||||
| ||||||||
Operations: | ||||||||
Net investment income | $ | 225,595 | $ | 4,246,079 | ||||
| ||||||||
Net realized gain | 29,327,111 | 33,968,462 | ||||||
| ||||||||
Change in net unrealized appreciation (depreciation) | (47,378,346 | ) | 39,912,203 | |||||
| ||||||||
Net increase (decrease) in net assets resulting from operations | (17,825,640 | ) | 78,126,744 | |||||
| ||||||||
Distributions to shareholders from distributable earnings: | ||||||||
Class A | (24,908,055 | ) | (13,675,234 | ) | ||||
| ||||||||
Class C | (580,123 | ) | (1,048,995 | ) | ||||
| ||||||||
Class Y | (1,191,872 | ) | (777,259 | ) | ||||
| ||||||||
Class R5 | (7,808 | ) | (798 | ) | ||||
| ||||||||
Class R6 | (11,309,854 | ) | (14,651,856 | ) | ||||
| ||||||||
Total distributions from distributable earnings | (37,997,712 | ) | (30,154,142 | ) | ||||
| ||||||||
Share transactions-net: | ||||||||
Class A | 335,986,497 | (5,625,219 | ) | |||||
| ||||||||
Class C | 8,326,803 | (14,154,827 | ) | |||||
| ||||||||
Class Y | 13,874,437 | (2,294,305 | ) | |||||
| ||||||||
Class R5 | 1,130,473 | - | ||||||
| ||||||||
Class R6 | 8,137,819 | (155,348,376 | ) | |||||
| ||||||||
Net increase (decrease) in net assets resulting from share transactions | 367,456,029 | (177,422,727 | ) | |||||
| ||||||||
Net increase (decrease) in net assets | 311,632,677 | (129,450,125 | ) | |||||
| ||||||||
Net assets: | ||||||||
Beginning of period | 447,002,516 | 576,452,641 | ||||||
| ||||||||
End of period | $ | 758,635,193 | $ | 447,002,516 | ||||
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
11 Invesco Global Growth Fund
(Unaudited)
The following schedule presents financial highlights for a share of the Fund outstanding throughout the periods indicated.
Net asset value, beginning of period | Net investment income (loss)(a) | Net gains (losses) on securities (both realized and unrealized) | Total from investment operations | Dividends from net investment income | Distributions from net realized gains | Total distributions | Net asset value, end of period | Total return (b) | Net assets, end of period (000’s omitted) | Ratio of expenses to average net assets with fee waivers and/or expenses absorbed | Ratio of expenses to average net assets without fee waivers and/or expenses absorbed | Ratio of net investment income (loss) to average net assets | Portfolio turnover (c) | |||||||||||||||||||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 04/30/20 | $32.19 | $0.00 | $(1.81 | ) | $(1.81 | ) | $(0.29 | ) | $(2.45 | ) | $(2.74 | ) | $27.64 | (6.52 | )% | $596,674 | 1.22 | %(d) | 1.31 | %(d) | 0.01 | %(d) | 46 | % | ||||||||||||||||||||||||||||||||
Year ended 10/31/19 | 29.42 | 0.22 | 4.04 | 4.26 | (0.13 | ) | (1.36 | ) | (1.49 | ) | 32.19 | 15.46 | 296,262 | 1.22 | 1.32 | 0.72 | 32 | |||||||||||||||||||||||||||||||||||||||
Year ended 10/31/18 | 32.21 | 0.24 | (2.25 | ) | (2.01 | ) | (0.31 | ) | (0.47 | ) | (0.78 | ) | 29.42 | (6.41 | ) | 273,874 | 1.22 | 1.32 | 0.74 | 32 | ||||||||||||||||||||||||||||||||||||
Year ended 10/31/17 | 28.00 | 0.21 | 4.22 | 4.43 | (0.09 | ) | (0.13 | ) | (0.22 | ) | 32.21 | 15.96 | 327,317 | 1.23 | 1.36 | 0.72 | 22 | |||||||||||||||||||||||||||||||||||||||
Year ended 10/31/16 | 28.63 | 0.19 | 0.32 | 0.51 | (0.15 | ) | (0.99 | ) | (1.14 | ) | 28.00 | 2.00 | 311,412 | 1.29 | 1.38 | 0.70 | 19 | |||||||||||||||||||||||||||||||||||||||
Year ended 10/31/15 | 31.21 | 0.16 | (0.21 | ) | (0.05 | ) | (0.18 | ) | (2.35 | ) | (2.53 | ) | 28.63 | 0.02 | 308,940 | 1.40 | 1.42 | 0.55 | 24 | |||||||||||||||||||||||||||||||||||||
Class C | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 04/30/20 | 29.17 | (0.10 | ) | (1.64 | ) | (1.74 | ) | - | (2.45 | ) | (2.45 | ) | 24.98 | (6.86 | ) | 14,398 | 1.97 | (d) | 2.06 | (d) | (0.74 | )(d) | 46 | |||||||||||||||||||||||||||||||||
Year ended 10/31/19 | 26.86 | (0.01 | ) | 3.68 | 3.67 | - | (1.36 | ) | (1.36 | ) | 29.17 | 14.61 | 6,963 | 1.97 | 2.07 | (0.03 | ) | 32 | ||||||||||||||||||||||||||||||||||||||
Year ended 10/31/18 | 29.47 | (0.00 | ) | (2.05 | ) | (2.05 | ) | (0.09 | ) | (0.47 | ) | (0.56 | ) | 26.86 | (7.10 | ) | 21,058 | 1.97 | 2.07 | (0.01 | ) | 32 | ||||||||||||||||||||||||||||||||||
Year ended 10/31/17 | 25.74 | (0.01 | ) | 3.87 | 3.86 | - | (0.13 | ) | (0.13 | ) | 29.47 | 15.07 | 24,995 | 1.98 | 2.11 | (0.03 | ) | 22 | ||||||||||||||||||||||||||||||||||||||
Year ended 10/31/16 | 26.45 | (0.01 | ) | 0.29 | 0.28 | - | (0.99 | ) | (0.99 | ) | 25.74 | 1.24 | 23,755 | 2.04 | 2.13 | (0.05 | ) | 19 | ||||||||||||||||||||||||||||||||||||||
Year ended 10/31/15 | 29.05 | (0.06 | ) | (0.19 | ) | (0.25 | ) | - | (2.35 | ) | (2.35 | ) | 26.45 | (0.74 | ) | 25,530 | 2.15 | 2.17 | (0.20 | ) | 24 | |||||||||||||||||||||||||||||||||||
Class Y | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 04/30/20 | 32.28 | 0.04 | (1.81 | ) | (1.77 | ) | (0.37 | ) | (2.45 | ) | (2.82 | ) | 27.69 | (6.40 | ) | 25,916 | 0.97 | (d) | 1.06 | (d) | 0.26 | (d) | 46 | |||||||||||||||||||||||||||||||||
Year ended 10/31/19 | 29.52 | 0.29 | 4.05 | 4.34 | (0.22 | ) | (1.36 | ) | (1.58 | ) | 32.28 | 15.74 | 13,871 | 0.97 | 1.07 | 0.97 | 32 | |||||||||||||||||||||||||||||||||||||||
Year ended 10/31/18 | 32.31 | 0.32 | (2.25 | ) | (1.93 | ) | (0.39 | ) | (0.47 | ) | (0.86 | ) | 29.52 | (6.16 | ) | 14,935 | 0.97 | 1.07 | 0.99 | 32 | ||||||||||||||||||||||||||||||||||||
Year ended 10/31/17 | 28.09 | 0.29 | 4.23 | 4.52 | (0.17 | ) | (0.13 | ) | (0.30 | ) | 32.31 | 16.24 | 20,983 | 0.98 | 1.11 | 0.97 | 22 | |||||||||||||||||||||||||||||||||||||||
Year ended 10/31/16 | 28.72 | 0.26 | 0.32 | 0.58 | (0.22 | ) | (0.99 | ) | (1.21 | ) | 28.09 | 2.27 | 12,562 | 1.04 | 1.13 | 0.95 | 19 | |||||||||||||||||||||||||||||||||||||||
Year ended 10/31/15 | 31.30 | 0.23 | (0.21 | ) | 0.02 | (0.25 | ) | (2.35 | ) | (2.60 | ) | 28.72 | 0.26 | 7,724 | 1.15 | 1.17 | (0.80 | ) | 24 | |||||||||||||||||||||||||||||||||||||
Class R5 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 04/30/20 | 32.03 | 0.05 | (1.78 | ) | (1.73 | ) | (0.40 | ) | (2.45 | ) | (2.85 | ) | 27.45 | (6.32 | ) | 1,153 | 0.87 | (d) | 0.91 | (d) | 0.36 | (d) | 46 | |||||||||||||||||||||||||||||||||
Year ended 10/31/19 | 29.31 | 0.32 | 4.01 | 4.33 | (0.25 | ) | (1.36 | ) | (1.61 | ) | 32.03 | 15.84 | 12 | 0.86 | 0.86 | 1.08 | 32 | |||||||||||||||||||||||||||||||||||||||
Year ended 10/31/18 | 32.09 | 0.34 | (2.23 | ) | (1.89 | ) | (0.42 | ) | (0.47 | ) | (0.89 | ) | 29.31 | (6.08 | ) | 11 | 0.88 | 0.88 | 1.08 | 32 | ||||||||||||||||||||||||||||||||||||
Year ended 10/31/17 | 27.91 | 0.32 | 4.20 | 4.52 | (0.21 | ) | (0.13 | ) | (0.34 | ) | 32.09 | 16.37 | 12 | 0.88 | 0.88 | 1.07 | 22 | |||||||||||||||||||||||||||||||||||||||
Year ended 10/31/16 | 28.57 | 0.30 | 0.30 | 0.60 | (0.27 | ) | (0.99 | ) | (1.26 | ) | 27.91 | 2.35 | 11 | 0.89 | 0.90 | 1.10 | 19 | |||||||||||||||||||||||||||||||||||||||
Year ended 10/31/15 | 31.17 | 0.30 | (0.24 | ) | 0.06 | (0.31 | ) | (2.35 | ) | (2.66 | ) | 28.57 | 0.42 | 11 | 0.99 | 0.99 | 0.96 | 24 | ||||||||||||||||||||||||||||||||||||||
Class R6 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 04/30/20 | 32.03 | 0.05 | (1.79 | ) | (1.74 | ) | (0.40 | ) | (2.45 | ) | (2.85 | ) | 27.44 | (6.35 | ) | 120,495 | 0.86 | (d) | 0.86 | (d) | 0.37 | (d) | 46 | |||||||||||||||||||||||||||||||||
Year ended 10/31/19 | 29.30 | 0.32 | 4.02 | 4.34 | (0.25 | ) | (1.36 | ) | (1.61 | ) | 32.03 | 15.88 | 129,894 | 0.86 | 0.86 | 1.08 | 32 | |||||||||||||||||||||||||||||||||||||||
Year ended 10/31/18 | 32.08 | 0.34 | (2.23 | ) | (1.89 | ) | (0.42 | ) | (0.47 | ) | (0.89 | ) | 29.30 | (6.08 | ) | 266,574 | 0.88 | 0.88 | 1.08 | 32 | ||||||||||||||||||||||||||||||||||||
Year ended 10/31/17 | 27.91 | 0.32 | 4.19 | 4.51 | (0.21 | ) | (0.13 | ) | (0.34 | ) | 32.08 | 16.33 | 308,082 | 0.88 | 0.88 | 1.07 | 22 | |||||||||||||||||||||||||||||||||||||||
Year ended 10/31/16 | 28.56 | 0.31 | 0.30 | 0.61 | (0.27 | ) | (0.99 | ) | (1.26 | ) | 27.91 | 2.39 | 320,339 | 0.89 | 0.90 | 1.10 | 19 | |||||||||||||||||||||||||||||||||||||||
Year ended 10/31/15 | 31.16 | 0.28 | (0.22 | ) | 0.06 | (0.31 | ) | (2.35 | ) | (2.66 | ) | 28.56 | 0.42 | 1,274 | 0.99 | 0.99 | 0.96 | 24 |
(a) | Calculated using average shares outstanding. |
(b) | Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Does not include sales charges and is not annualized for periods less than one year, if applicable. |
(c) | Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable. For the six months ended April 30, 2020, the portfolio turnover calculation excludes the value of securities purchased of $264,724,061 and sold of $91,251,356 in the effort to realign the Fund’s portfolio holdings after the reorganization of Invesco Global Small & Mid Cap Growth Fund into the Fund. |
(d) | Ratios are annualized and based on average daily net assets (000’s omitted) of $303,478, $7,262, $14,268, $141 and $122,748 for Class A, Class C, Class Y, Class R5 and Class R6 shares, respectively. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
12 Invesco Global Growth Fund
April 30, 2020
(Unaudited)
NOTE 1–Significant Accounting Policies
Invesco Global Growth Fund (the “Fund”) is a series portfolio of AIM International Mutual Funds (Invesco International Mutual 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 the Fund or each class.
The Fund’s investment objective is long-term growth of capital.
The Fund currently consists of five different classes of shares: Class A, Class C, 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. Under certain circumstances, load waived shares may be subject to contingent deferred sales charges (“CDSC”). Class C shares are sold with a CDSC. 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. |
A security listed or traded on an exchange (except convertible securities) is valued at its last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded, or lacking any sales or official closing price on a particular day, the security may be valued at the closing bid price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued by an independent pricing service they may be considered fair valued. Futures contracts are valued at the final settlement price set by an exchange on which they are principally traded. Listed options are valued at the mean between the last bid and asked prices from the exchange on which they are principally traded. Options not listed on an exchange are valued by an independent source at the mean between the last bid and asked prices. For purposes of determining net asset value (“NAV”) per share, futures and option contracts generally are valued 15 minutes after the close of the customary trading session of the New York Stock Exchange (“NYSE”).
Investments in open-end and closed-end registered investment companies that do not trade on an exchange are valued at the end-of-day net asset value per share. Investments in open-end and closed-end registered investment companies that trade on an exchange are valued at the last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded.
Debt obligations (including convertible securities) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. Pricing services generally value debt obligations assuming orderly transactions of institutional round lot size, but a fund may hold or transact in the same securities in smaller, odd lot sizes. Odd lots often trade at lower prices than institutional round lots. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.
Foreign securities’ (including foreign exchange contracts) prices are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the NYSE. If market quotations are available and reliable for foreign exchange-traded equity securities, the securities will be valued at the market quotations. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become unreliable. If between the time trading ends on a particular security and the close of the customary trading session on the NYSE, events occur that the investment adviser determines are significant and make the closing price unreliable, the Fund may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith using procedures approved by the Board of Trustees. Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities’ prices meeting the approved degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economic upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.
Securities for which market prices are not provided by any of the above methods may be valued based upon quotes furnished by independent sources. The last bid price may be used to value equity securities. The mean between the last bid and asked prices is used to value debt obligations, including corporate loans.
Securities for which market quotations are not readily available or became unreliable are valued at fair value as determined in good faith by or under the supervision of the Trust’s officers following procedures approved by the Board of Trustees. Issuer specific events, market trends, bid/asked quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security’s fair value.
The Fund may invest in securities that are subject to interest rate risk, meaning the risk that the prices will generally fall as interest rates rise and, conversely, the prices will generally rise as interest rates fall. Specific securities differ in their sensitivity to changes in interest rates depending on their individual characteristics. Changes in interest rates may result in increased market volatility, which may affect the value and/or liquidity of certain Fund investments.
Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the issuer’s assets, general market conditions which are not specifically related to the particular issuer, such as real or perceived adverse economic conditions, changes in the general outlook for revenues or corporate earnings, changes in interest or currency rates, regional or global instability, natural or environmental disasters, widespread disease or other public health issues, war, acts of terrorism or adverse investor sentiment generally and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
B. | Securities Transactions and Investment Income - Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income (net of withholding tax, if any) is recorded on an accrual basis from settlement date. Dividend income (net of withholding tax, if any) is recorded on the ex-dividend date. |
The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Statement of Operations as realized gain (loss) for investments no longer held and as unrealized gain (loss) for investments still held.
Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of net realized and unrealized gain (loss) from investment
13 Invesco Global Growth Fund
securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the net realized and unrealized gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and the Statement of Changes in Net Assets, or the net investment income per share and the ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.
The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class.
C. | Country Determination - For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues and the country that has the primary market for the issuer’s securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted. |
D. | Distributions - Distributions from net investment income and net realized capital gain, if any, are generally declared and paid annually and recorded on the ex-dividend date. The Fund may elect to treat a portion of the proceeds from redemptions as distributions for federal income tax purposes. |
E. | Federal Income Taxes - The Fund intends to comply with the requirements of Subchapter M of the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”), necessary to qualify as a regulated investment company and to distribute substantially all of the Fund’s taxable earnings to shareholders. As such, the Fund will not be subject to federal income taxes on otherwise taxable income (including net realized capital gain) that is distributed to shareholders. Therefore, no provision for federal income taxes is recorded in the financial statements. |
The Fund recognizes the tax benefits of uncertain tax positions only when the position is more likely than not to be sustained. Management has analyzed the Fund’s uncertain tax positions and concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions. Management is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the next 12 months.
The Fund files tax returns in the U.S. Federal jurisdiction and certain other jurisdictions. Generally, the Fund is subject to examinations by such taxing authorities for up to three years after the filing of the return for the tax period.
F. | Expenses - Fees provided for under the Rule 12b-1 plan of a particular class of the Fund 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 preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print. |
H. | Indemnifications - Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of the performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements, that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote. |
I. | Foreign Currency Translations - Foreign currency is valued at the close of the NYSE based on quotations posted by banks and major currency dealers. Portfolio securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at the date of valuation. Purchases and sales of portfolio securities (net of foreign taxes withheld on disposition) and income items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. The Fund does not separately account for the portion of the results of operations resulting from changes in foreign exchange rates on investments and the fluctuations arising from changes in market prices of securities held. The combined results of changes in foreign exchange rates and the fluctuation of market prices on investments (net of estimated foreign tax withholding) are included with the net realized and unrealized gain or loss from investments in the Statement of Operations. Reported net realized foreign currency gains or losses arise from (1) sales of foreign currencies, (2) currency gains or losses realized between the trade and settlement dates on securities transactions, and (3) the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign currency gains and losses arise from changes in the fair values of assets and liabilities, other than investments in securities at fiscal period end, resulting from changes in exchange rates. |
The Fund may invest in foreign securities, which may be subject to foreign taxes on income, gains on investments or currency repatriation, a portion of which may be recoverable. Foreign taxes, if any, are recorded based on the tax regulations and rates that exist in the foreign markets in which the Fund invests and are shown in the Statement of Operations.
J. | Forward Foreign Currency Contracts - The Fund may engage in foreign currency transactions either on a spot (i.e. for prompt delivery and settlement) basis, or through forward foreign currency contracts, to manage or minimize currency or exchange rate risk. |
The Fund may also enter into forward foreign currency contracts for the purchase or sale of a security denominated in a foreign currency in order to “lock in” the U.S. dollar price of that security, or the Fund may also enter into forward foreign currency contracts that do not provide for physical settlement of the two currencies, but instead are settled by a single cash payment calculated as the difference between the agreed upon exchange rate and the spot rate at settlement based upon an agreed upon notional amount (non-deliverable forwards). The Fund will set aside liquid assets in an amount equal to the daily mark-to-market obligation for forward foreign currency contracts.
A forward foreign currency contract is an obligation between two parties (“Counterparties”) to purchase or sell a specific currency for an agreed-upon price at a future date. The use of forward foreign currency contracts does not eliminate fluctuations in the price of the underlying securities the Fund owns or intends to acquire but establishes a rate of exchange in advance. Fluctuations in the value of these contracts are measured by the difference in the contract date and reporting date exchange rates and are recorded as unrealized appreciation (depreciation) until the contracts are closed. When the contracts are closed, realized gains (losses) are recorded. Realized and unrealized gains (losses) on the contracts are included in the Statement of Operations. The primary risks associated with forward foreign currency contracts include failure of the Counterparty to meet the terms of the contract and the value of the foreign currency changing unfavorably. These risks may be in excess of the amounts reflected in the Statement of Assets and Liabilities.
14 Invesco Global Growth Fund
NOTE 2–Advisory Fees and Other Fees Paid to Affiliates
The Trust has entered into a master investment advisory agreement with Invesco Advisers, Inc. (the “Adviser” or “Invesco”). Under the terms of the investment advisory agreement, the Fund accrues daily and pays monthly an advisory fee to the Adviser based on the annual rate of the Fund’s average daily net assets as follows:
Average Daily Net Assets | Rate | |
First $ 250 million | 0.800% | |
Next $250 million | 0.780% | |
Next $500 million | 0.760% | |
Next $1.5 billion | 0.740% | |
Next $2.5 billion | 0.720% | |
Next $2.5 billion | 0.700% | |
Next $2.5 billion | 0.680% | |
Over $10 billion | 0.660% |
For the six months ended April 30, 2020, the effective advisory fee rate incurred by the Fund was 0.79%.
Under the terms of a master sub-advisory agreement between the Adviser and each of Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Canada Ltd. (collectively, the “Affiliated Sub-Advisers”) the Adviser, not the Fund, will pay 40% of the fees paid to the Adviser to any such Affiliated Sub-Adviser(s) that provide(s) discretionary investment management services to the Fund based on the percentage of assets allocated to such Affiliated Sub-Adviser(s).
The Adviser has contractually agreed, through at least May 31, 2021, to waive advisory fees and/or reimburse expenses to the extent necessary to limit total annual fund operating expenses after fee waiver and/or expense reimbursement (excluding certain items discussed below) of Class A, Class C, Class Y, Class R5 and Class R6 shares to 1.22%, 1.97%, 0.97%, 0.87% and 0.87%, respectively, of average daily net assets (the “expense limits”). In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause the total annual fund operating expenses after fee waiver and/or expense reimbursement to exceed the numbers reflected above: (1) interest; (2) taxes; (3) dividend expense on short sales; (4) extraordinary or non-routine items, including litigation expenses; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Unless Invesco continues the fee waiver agreement, it will terminate on May 31, 2021. During its term, the fee waiver agreement cannot be terminated or amended to increase the expense limits or reduce the advisory fee waiver without approval of the Board of Trustees.
Further, the Adviser has contractually agreed, through at least June 30, 2022, to waive the advisory fee payable by the Fund in an amount equal to 100% of the net advisory fees the Adviser receives from the affiliated money market funds on investments by the Fund of uninvested cash in such affiliated money market funds.
For the six months ended April 30, 2020, the Adviser waived advisory fees of $6,057 and reimbursed class level expenses of $131,465, $3,145, $6,196, $30 and $0 of Class A, Class C, Class Y, Class R5 and Class R6 shares, respectively.
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 April 30, 2020, expenses incurred under the agreement are shown in the Statement of Operations as Administrative services fees. Invesco has entered into a sub-administration agreement whereby State Street Bank and Trust Company (“SSB”) serves as fund accountant and provides certain administrative services to the Fund. Pursuant to a custody agreement with the Trust on behalf of the Fund, SSB also serves as the Fund’s custodian.
The Trust has entered into a transfer agency and service agreement with Invesco Investment Services, Inc. (“IIS”) pursuant to which the Fund has agreed to pay IIS a fee for providing transfer agency and shareholder services to the Fund and reimburse IIS for certain expenses incurred by IIS in the course of providing such services. IIS may make payments to intermediaries that provide omnibus account services, sub-accounting services and/or networking services. All fees payable by IIS to intermediaries that provide omnibus account services or sub-accounting services are charged back to the Fund, subject to certain limitations approved by the Trust’s Board of Trustees. For the six months ended April 30, 2020, expenses incurred under the agreement are shown in the Statement of Operations as Transfer 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 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 and Class C shares (collectively, the “Plans”). The Fund, pursuant to the Plans, pays IDI compensation at the annual rate of 0.25% of the Fund’s average daily net assets of Class A shares and 1.00% of the average daily net assets of Class C 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 Plans 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. For the six-month period ended April 30, 2020, expenses incurred under the Plans are shown in the Statement of Operations as Distribution fees.
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 April 30, 2020, IDI advised the Fund that IDI retained $13,528 in front-end sales commissions from the sale of Class A shares and $6 and $122 from Class A and Class C shares, respectively, for CDSC imposed upon redemptions by shareholders.
Certain officers and trustees of the Trust are officers and directors of the Adviser, IIS and/or IDI.
NOTE 3–Additional Valuation Information
GAAP defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, under current market conditions. GAAP establishes a hierarchy that prioritizes the inputs to valuation methods, giving the highest priority to readily available unadjusted quoted prices in an active market for identical assets (Level 1) and the lowest priority to significant unobservable inputs (Level 3), generally when market prices are not readily available or are unreliable. Based on the valuation inputs, the securities or other investments are tiered into one of three levels. Changes in valuation methods may result in transfers in or out of an investment’s assigned level:
Level 1 | - Prices are determined using quoted prices in an active market for identical assets. | |
Level 2 | - Prices are determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk, yield curves, loss severities, default rates, discount rates, volatilities and others. | |
Level 3 | - Prices are determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Fund’s own assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information. |
15 Invesco Global Growth Fund
The following is a summary of the tiered valuation input levels, as of April 30, 2020. The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
Level 1 | Level 2 | Level 3 | Total | |||||||||||
Investments in Securities | ||||||||||||||
Brazil | $ | 8,314,201 | $ | – | $– | $ 8,314,201 | ||||||||
Canada | 19,483,819 | – | – | 19,483,819 | ||||||||||
China | 28,799,780 | 12,286,100 | – | 41,085,880 | ||||||||||
Denmark | – | 9,109,955 | – | 9,109,955 | ||||||||||
France | 1,200,815 | 7,906,053 | – | 9,106,868 | ||||||||||
Germany | – | 24,607,586 | – | 24,607,586 | ||||||||||
Hong Kong | – | 7,318,372 | – | 7,318,372 | ||||||||||
India | 4,804,220 | – | – | 4,804,220 | ||||||||||
Indonesia | – | 4,007,857 | – | 4,007,857 | ||||||||||
Ireland | – | 9,408,490 | – | 9,408,490 | ||||||||||
Israel | 4,225,476 | – | – | 4,225,476 | ||||||||||
Italy | – | 10,003,394 | – | 10,003,394 | ||||||||||
Japan | – | 42,038,351 | – | 42,038,351 | ||||||||||
Macau | – | 6,985,212 | – | 6,985,212 | ||||||||||
Mexico | 19,805,616 | – | – | 19,805,616 | ||||||||||
Netherlands | – | 18,094,549 | – | 18,094,549 | ||||||||||
South Korea | – | 4,319,865 | – | 4,319,865 | ||||||||||
Spain | – | 1,986,160 | – | 1,986,160 | ||||||||||
Switzerland | – | 15,542,472 | – | 15,542,472 | ||||||||||
Taiwan | – | 9,541,246 | – | 9,541,246 | ||||||||||
United Kingdom | 3,575,110 | 62,222,443 | – | 65,797,553 | ||||||||||
United States | 395,193,874 | – | – | 395,193,874 | ||||||||||
Money Market Funds | 23,679,995 | – | – | 23,679,995 | ||||||||||
Total Investments | $ | 509,082,906 | $ | 245,378,105 | $– | $754,461,011 |
NOTE 4–Expense Offset Arrangement(s)
The expense offset arrangement is comprised of transfer agency credits which result from balances in demand deposit accounts used by the transfer agent for clearing shareholder transactions. For the six months ended April 30, 2020, the Fund received credits from this arrangement, which resulted in the reduction of the Fund’s total expenses of $3,403.
NOTE 5–Trustees’ and Officers’ Fees and Benefits
Trustees’ and Officers’ Fees and Benefits include amounts accrued by the Fund to pay remuneration to certain Trustees and Officers of the Fund. Trustees have the option to defer compensation payable by the Fund, and Trustees’ and Officers’ Fees and Benefits also include amounts accrued by the Fund to fund such deferred compensation amounts. Those Trustees who defer compensation have the option to select various Invesco Funds in which their deferral accounts shall be deemed to be invested. Finally, certain current Trustees were eligible to participate in a retirement plan that provided for benefits to be paid upon retirement to Trustees over a period of time based on the number of years of service. The Fund may have certain former Trustees who also participate in a retirement plan and receive benefits under such plan. Trustees’ and Officers’ Fees and Benefits include amounts accrued by the Fund to fund such retirement benefits. Obligations under the deferred compensation and retirement plans represent unsecured claims against the general assets of the Fund.
NOTE 6–Cash Balances
The Fund is permitted to temporarily carry a negative or overdrawn balance in its account with SSB, the custodian bank. Such balances, if any at period-end, are shown in the Statement of Assets and Liabilities under the payable caption Amount due custodian. To compensate the custodian bank for such overdrafts, the overdrawn Fund may either (1) leave funds as a compensating balance in the account so the custodian bank can be compensated by earning the additional interest; or (2) compensate by paying the custodian bank at a rate agreed upon by the custodian bank and Invesco, not to exceed the contractually agreed upon rate. The Fund may not purchase additional securities when any borrowings from banks or broker-dealers exceed 5% of the Fund’s total assets, or when any borrowings from an Invesco Fund are outstanding.
NOTE 7–Tax Information
The amount and character of income and gains to be distributed are determined in accordance with income tax regulations, which may differ from GAAP. Reclassifications are made to the Fund’s capital accounts to reflect income and gains available for distribution (or available capital loss carryforward) under income tax regulations. The tax character of distributions paid during the year and the tax components of net assets will be reported at the Fund’s fiscal year-end.
Capital loss carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Fund to utilize. The ability to utilize capital loss carryforwards in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.
The Fund did not have a capital loss carryforward as of October 31, 2019.
16 Invesco Global Growth Fund
NOTE 8–Investment Transactions
The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Fund during the six months ended April 30, 2020 was $289,708,323 and $197,521,020, respectively. Cost of investments, including any derivatives, on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end.
Unrealized Appreciation (Depreciation) of Investments on a Tax Basis |
| |||
| ||||
Aggregate unrealized appreciation of investments | $ | 164,838,855 | ||
| ||||
Aggregate unrealized (depreciation) of investments | (26,086,318 | ) | ||
| ||||
Net unrealized appreciation of investments | $ | 138,752,537 | ||
|
Cost of investments for tax purposes is $615,708,474.
NOTE 9–Share Information
Summary of Share Activity | ||||||||||||||||
| ||||||||||||||||
Six months ended April 30, 2020(a) | Year ended October 31, 2019 | |||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||
| ||||||||||||||||
Sold: | ||||||||||||||||
Class A | 221,576 | $ | 6,599,703 | 395,725 | $ | 11,780,680 | ||||||||||
| ||||||||||||||||
Class C | 33,395 | 903,591 | 55,848 | 1,487,095 | ||||||||||||
| ||||||||||||||||
Class Y | 79,311 | 2,368,649 | 102,233 | 3,106,742 | ||||||||||||
| ||||||||||||||||
Class R5 | 2,380 | 77,865 | - | - | ||||||||||||
| ||||||||||||||||
Class R6 | 270,506 | 6,671,591 | 165,748 | 4,883,313 | ||||||||||||
| ||||||||||||||||
Issued as reinvestment of dividends: |
| |||||||||||||||
Class A | 728,047 | 22,496,638 | 466,247 | 12,542,018 | ||||||||||||
| ||||||||||||||||
Class C | 19,433 | 544,308 | 39,666 | 973,019 | ||||||||||||
| ||||||||||||||||
Class Y | 31,560 | 976,162 | 25,216 | 678,806 | ||||||||||||
| ||||||||||||||||
Class R5 | 219 | 6,711 | - | - | ||||||||||||
| ||||||||||||||||
Class R6 | 369,101 | 11,305,578 | 548,984 | 14,646,895 | ||||||||||||
| ||||||||||||||||
Automatic conversion of Class C shares to Class A shares: |
| |||||||||||||||
Class A | 7,874 | 217,818 | 472,761 | 13,379,256 | ||||||||||||
| ||||||||||||||||
Class C | (8,705 | ) | (217,818 | ) | (518,953 | ) | (13,379,256 | ) | ||||||||
| ||||||||||||||||
Issued in connection with acquisitions:(b) | ||||||||||||||||
Class A | 12,268,714 | 331,385,465 | - | - | ||||||||||||
| ||||||||||||||||
Class C | 325,621 | 7,951,237 | - | - | ||||||||||||
| ||||||||||||||||
Class Y | 498,214 | 13,481,249 | - | - | ||||||||||||
| ||||||||||||||||
Class R5 | 79,171 | 2,123,036 | - | - | ||||||||||||
| ||||||||||||||||
Class R6 | 68,630 | 1,839,906 | - | - | ||||||||||||
| ||||||||||||||||
Reacquired: | ||||||||||||||||
Class A | (842,631 | ) | (24,713,127 | ) | (1,438,030 | ) | (43,327,173 | ) | ||||||||
| ||||||||||||||||
Class C | (32,141 | ) | (854,515 | ) | (121,737 | ) | (3,235,685 | ) | ||||||||
| ||||||||||||||||
Class Y | (102,913 | ) | (2,951,623 | ) | (203,617 | ) | (6,079,853 | ) | ||||||||
| ||||||||||||||||
Class R5 | (40,162 | ) | (1,077,139 | ) | - | - | ||||||||||
| ||||||||||||||||
Class R6 | (372,392 | ) | (11,679,256 | ) | (5,755,374 | ) | (174,878,584 | ) | ||||||||
| ||||||||||||||||
Net increase (decrease) in share activity | 13,604,808 | $ | 367,456,029 | (5,765,283 | ) | $ | (177,422,727 | ) | ||||||||
|
(a) | There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 32% of the outstanding shares of the Fund. 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. |
(b) | After the close of business on April 17, 2020, the Fund acquired all the net assets of Invesco Global Small & Mid Cap Growth Fund (the “Target Fund”) pursuant to a plan of reorganization approved by the Board of Trustees of the Fund on February 14, 2020. The reorganization was executed in order to reduce overlap and increase efficiencies in the Adviser’s product line. The acquisition was accomplished by a tax-free exchange of 13,240,350 shares of the Fund for 25,876,586 shares outstanding of the Target Fund as of the close of business on April 17, 2020. Shares of the Target Fund were exchanged for the like class of shares of the Fund, based on the relative net asset value of the Target Fund to the net asset value of the Fund on the close of business, April 17, 2020. The Target Fund’s net assets as of the close of business on April 17, 2020 of $356,780,894, including $46,380,795 of unrealized appreciation, were combined with those of the Fund. The net assets of the Fund immediately before the acquisition were $388,600,725 and $745,381,619 immediately after the acquisition. |
The pro forma results of operations for the six months ended April 30, 2020 assuming the reorganization had been completed on November 1, 2019, the beginning of the semi-annual reporting period are as follows:
Net investment income | $ | 176,250 | ||
| ||||
Net realized/unrealized gains (losses) | (71,147,311 | ) | ||
| ||||
Change in net assets resulting from operations | $ | (70,971,061 | ) | |
|
17 Invesco Global Growth Fund
As the combined investment portfolios have been managed as a single integrated portfolio since the acquisition was completed, it is not practicable to separate the amounts of revenue and earnings of the Target Fund that has been included in the Fund’s Statement of Operations since April 18, 2020.
NOTE 10–Coronavirus (COVID-19) Pandemic
During the first quarter of 2020, the World Health Organization declared COVID-19 to be a public health emergency. COVID-19 has led to increased short-term market volatility and may have adverse long-term effects on U.S. and world economies and markets in general. COVID-19 may adversely impact the Fund’s ability to achieve its investment objective. Because of the uncertainties on valuation, the global economy and business operations, values reflected in these financial statements may materially differ from the value received upon actual sales of those investments.
The extent of the impact on the performance of the Fund and its investments will depend on future developments, including the duration and spread of the COVID-19 outbreak, related restrictions and advisories, and the effects on the financial markets and economy overall, all of which are highly uncertain and cannot be predicted.
18 Invesco Global Growth Fund
Calculating your ongoing Fund expenses
Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, which may include sales charges (loads) on purchase payments or contingent deferred sales charges on redemptions, if any; and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees, and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period November 1, 2019 through April 30, 2020.
Actual expenses
The table below provides information about actual account values and actual expenses. You may use the information in this table, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the table under the heading entitled “Actual Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Hypothetical example for comparison purposes
The table below also provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return.
The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads) on purchase payments or contingent deferred sales charges on redemptions, if any. Therefore, the hypothetical information 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 transaction costs were included, your costs would have been higher.
ACTUAL | HYPOTHETICAL (5% annual return before expenses) | |||||||||||
Beginning Account Value (11/01/19) | Ending Account Value (04/30/20)1 | Expenses Paid During Period2 | Ending Account Value (04/30/20) | Expenses Paid During Period2 | Annualized Expense Ratio | |||||||
Class A | $1,000.00 | $934.80 | $5.87 | $1,018.80 | $6.12 | 1.22% | ||||||
Class C | 1,000.00 | 931.40 | 9.46 | 1,015.07 | 9.87 | 1.97 | ||||||
Class Y | 1,000.00 | 936.00 | 4.67 | 1,020.04 | 4.87 | 0.97 | ||||||
Class R5 | 1,000.00 | 936.80 | 4.19 | 1,020.54 | 4.37 | 0.87 | ||||||
Class R6 | 1,000.00 | 936.50 | 4.14 | 1,020.59 | 4.32 | 0.86 |
1 | The actual ending account value is based on the actual total return of the Fund for the period November 1, 2019 through April 30, 2020, after actual expenses and will differ from the hypothetical ending account value which is based on the Fund’s expense ratio and a hypothetical annual return of 5% before expenses. |
2 | Expenses are equal to the Fund’s annualized expense ratio as indicated above multiplied by the average account value over the period, multiplied by 182/366 to reflect the most recent fiscal half year. |
19 Invesco Global Growth Fund
20
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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 list appears 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 Form N-PORT filings on the SEC website, sec.gov. The SEC file numbers for the Fund are shown below.
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. This 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. |
SEC file numbers: 811-06463 and 033-44611 | Invesco Distributors, Inc. | GLG-SAR-1 |
| ||||
Semiannual Report to Shareholders
| April 30, 2020
| |||
| ||||
Invesco Global Opportunities Fund | ||||
Nasdaq: A: IAOPX ∎ C: ICOPX ∎ R: IROPX ∎ Y: IYOPX ∎ R5: IIOPX ∎ R6: IFOPX |
2 | Letters to Shareholders | |
3 | Fund Performance | |
5 | Liquidity Risk Management Program | |
6 | Schedule of Investments | |
8 | Financial Statements | |
11 | Financial Highlights | |
12 | Notes to Financial Statements | |
17 | Fund Expenses |
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.
For the most current month-end Fund performance and commentary, please visit invesco.com/performance.
Unless otherwise noted, all data provided by Invesco.
This report must be accompanied or preceded by a currently effective Fund prospectus, which contains more complete information, including sales charges and expenses. Investors should read it carefully before investing.
NOT FDIC INSURED | MAY LOSE VALUE | NO BANK GUARANTEE |
Bruce Crockett |
Dear Fellow Shareholders: As independent chair of the Invesco Funds Board, I can assure you that the members of the Board are strong advocates for the interests of investors in Invesco’s mutual funds. We work hard to represent your interests through oversight of the quality of the investment management services your funds receive and other matters important to your investment. This includes but is not limited to: monitoring how the portfolio management teams of the Invesco funds are performing in light of changing economic and market conditions; assessing each portfolio management team’s investment performance within the context of the investment strategy described in the fund’s prospectus; and monitoring for potential conflicts of interests that may impact the nature of the services that your funds receive. | |
We believe one of the most important services we provide our fund shareholders is the annual review of the funds’ advisory and sub-advisory contracts with Invesco Advisers and its affiliates. This review is required by the Investment Company Act of 1940 and focuses on the nature and quality of the services Invesco provides as the adviser to the Invesco funds and the reasonableness of the fees that it charges | ||
for those services. Each year, we spend months carefully reviewing information received from Invesco and a variety of independent sources, such as performance and fee data prepared by Lipper Inc. (a subsidiary of Broadridge Financial Solutions, Inc.), an independent, third-party firm widely recognized as a leader in its field. We also meet with our independent legal counsel and other independent advisers to review and help us assess the information that we have received. Our goal is to assure that you receive quality investment management services for a reasonable fee. On behalf of the Board, we look forward to continuing to represent your interests and serving your needs. |
Sincerely, |
|
Bruce L. Crockett |
Independent Chair |
Invesco Funds Board of Trustees |
Andrew Schlossberg | Dear Shareholders: This semiannual report includes information about your Fund, including performance data and a complete list of its investments as of the close of the reporting period. Invesco’s efforts to help investors achieve their financial objectives include providing timely information about the markets, the economy and investing. Our website, invesco.com/us, offers a wide range of market insights and investment perspectives. On the website, you’ll find detailed information about our funds, including performance, holdings and portfolio manager commentaries. You can access information about your account by completing a simple, secure online registration. To do so, select “Log In” on the right side of the homepage, and then select “Register for Individual Account Access.” | |
In addition to the resources accessible on our website, you can obtain timely updates to help you stay informed by connecting with Invesco on Twitter, LinkedIn or Facebook. You can access our blog at blog.invesco.us.com. Our goal is to provide you with information you want, when and where you want it. | ||
For questions about your account, feel free to contact an Invesco client services representative at 800 959 4246. All of us at Invesco look forward to serving your investment management needs. Thank you for investing with us. |
Sincerely, |
Andrew Schlossberg |
Head of the Americas, |
Senior Managing Director, Invesco Ltd. |
2 Invesco Global Opportunities Fund
Performance summary | ||||
Fund vs. Indexes | ||||
Cumulative total returns, October 31, 2019 to April 30, 2020, at net asset value (NAV). Performance shown does not include applicable contingent deferred sales charges (CDSC) or front-end sales charges, which would have reduced performance. |
| |||
Class A Shares | -13.65 | % | ||
Class C Shares | -13.91 | |||
Class R Shares | -13.66 | |||
Class Y Shares | -13.50 | |||
Class R5 Shares | -13.49 | |||
Class R6 Shares | -13.49 | |||
MSCI All Country World Indexq (Broad Market/Style-Specific Index) | -7.68 | |||
Lipper Global Large-Cap Core Funds Index∎ (Peer Group Index) | -8.49 | |||
Source(s): q RIMES Technologies Corp.; ∎Lipper Inc. | ||||
The MSCI All Country World Index is an unmanaged index considered representative of large- and mid-cap stocks across developed and emerging markets. The index is computed using the net return, which withholds applicable taxes for non-resident investors. |
| |||
The Lipper Global Large-Cap Core Funds Index is an unmanaged index considered representative of global large-cap core funds tracked by Lipper. |
| |||
The Fund is not managed to track the performance of any particular index, including the index(es) described here, and consequently, the performance of the Fund may deviate significantly from the performance of the index(es). |
| |||
A direct investment cannot be made in an index. Unless otherwise indicated, index results include reinvested dividends, and they do not reflect sales charges. Performance of the peer group, if applicable, reflects fund expenses; performance of a market index does not. |
|
For more information about your Fund |
Read the most recent quarterly commentary from your Fund’s portfolio managers by visiting invesco.com/us. Click on “Products” and select “Mutual Funds.” Use the “Product Finder” to locate your Fund; then click on its name to access its product detail page. There, you can learn more about your Fund’s investment strategies, holdings and performance. Also, visit blog.invesco.us.com, where many of Invesco’s investment professionals share their insights about market and economic news and trends. |
3 Invesco Global Opportunities Fund
Average Annual Total Returns |
| |||
As of 4/30/20, including maximum applicable sales charges |
| |||
Class A Shares | ||||
Inception (8/3/12) | 6.40 | % | ||
5 Years | -0.41 | |||
1 Year | -18.90 | |||
Class C Shares | ||||
Inception (8/3/12) | 6.38 | % | ||
5 Years | -0.03 | |||
1 Year | -15.66 | |||
Class R Shares | ||||
Inception (8/3/12) | 6.91 | % | ||
5 Years | 0.47 | |||
1 Year | -14.31 | |||
Class Y Shares | ||||
Inception (8/3/12) | 7.44 | % | ||
5 Years | 0.97 | |||
1 Year | -13.97 | |||
Class R5 Shares | ||||
Inception (8/3/12) | 7.45 | % | ||
5 Years | 0.97 | |||
1 Year | -13.96 | |||
Class R6 Shares | ||||
10 Years | 7.45 | % | ||
5 Years | 0.99 | |||
1 Year | -13.96 |
Class R6 shares incepted on September 24, 2012. Performance shown prior to that date is that of Class A shares and includes the 12b-1 fees applicable to Class A shares.
The performance data quoted represent past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/ performance for the most recent month-end performance. Performance figures reflect reinvested distributions, changes in net asset value and the effect of the maximum sales charge unless otherwise stated. Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares. Investment return and principal value will fluctuate so that you may have a gain or loss when you sell shares.
Class A share performance reflects the maximum 5.50% sales charge, and Class C share performance reflects the applicable contingent deferred sales charge (CDSC) for the period involved. The CDSC on Class C shares is 1% for the first year after purchase. Class R, Class Y, Class R5 and Class R6 class shares do not have a front-end sales charge or a CDSC; therefore, performance is at net asset value.
The performance of the Fund’s share classes will differ primarily due to different sales charge structures and class expenses.
Fund performance reflects any applicable fee waivers and/or expense reimbursements.
Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information.
4 Invesco Global Opportunities Fund
Liquidity Risk Management Program
The Securities and Exchange Commission has adopted Rule 22e-4 under the Investment Company Act of 1940 (the “Liquidity Rule”) in order to promote effective liquidity risk management throughout the open-end investment company industry, thereby reducing the risk that funds will be unable to meet their redemption obligations and mitigating dilution of the interests of fund shareholders. The Fund has adopted and implemented a liquidity risk management program in accordance with the Liquidity Rule (the “Program”). The Program is reasonably designed to assess and manage the Fund’s liquidity risk, which is the risk that the Fund could not meet redemption requests without significant dilution of remaining investors’ interests in the Fund. The Board of Trustees of the Fund (the “Board”) has appointed Invesco Advisers, Inc. (“Invesco”), the Fund’s investment adviser, as the Program’s administrator, and Invesco has delegated oversight of the Program to the Liquidity Risk Management Committee (the “Committee”), which is composed of senior representatives from relevant business groups at Invesco.
As required by the Liquidity Rule, the Program includes policies and procedures providing for an assessment, no less frequently than annually, of the Fund’s liquidity risk that takes into account, as relevant to the Fund’s liquidity risk: (1) the Fund’s investment strategy and liquidity of portfolio investments during both normal and reasonably foreseeable stressed conditions; (2) short-term and long-term cash flow projections for the Fund during both normal and reasonably foreseeable stressed conditions; and (3) the Fund’s holdings of cash and cash equivalents and any borrowing arrangements. The Liquidity Rule also requires the classification of the Fund’s investments into categories that reflect the assessment of their relative liquidity under current market conditions. The Fund classifies its investments into one of four categories defined in the Liquidity Rule: “Highly Liquid,” “Moderately Liquid,” “Less Liquid” and “Illiquid.” Funds that are not invested primarily in “Highly Liquid Investments” that are assets (cash or investments that are reasonably expected to be convertible into cash within three business days without significantly changing the market value of the investment) are required to establish a “Highly Liquid Investment Minimum” (“HLIM”), which is the minimum percentage of net assets that must be invested in Highly Liquid Investments. Funds with HLIMs have procedures for addressing HLIM shortfalls, including reporting to the Board and the SEC (on a non-public basis) as required by the Program and the Liquidity Rule. In addition, the Fund may not acquire an investment if, immediately after the acquisition, over 15% of the Fund’s net assets would consist of “Illiquid Investments” that are assets (an investment that cannot reasonably be expected to be sold or disposed of in current market conditions in seven calendar days or less without the sale or disposition significantly changing the market value of the investment). The Liquidity Rule and the Program also require reporting to the Board and the SEC (on a non-public basis) if a Fund’s holdings of Illiquid Investments exceed 15% of the Fund’s assets.
At a meeting held on March 30-April 1, 2020, the Committee presented a report to the Board that addressed the operation of the Program and assessed the Program’s adequacy and effectiveness of implementation (the “Report”). The Report covered the period from December 1, 2018 through December 31, 2019 (the “Program Reporting Period”).
The Report stated, in relevant part, that during the Program Reporting Period:
∎ | The Program, as adopted and implemented, remained reasonably designed to assess and manage the Fund’s liquidity risk and was operated effectively to achieve that goal; |
∎ | The Fund’s investment strategy remained appropriate for an open-end fund; |
∎ | The Fund was able to meet requests for redemption without significant dilution of remaining investors’ interests in the Fund; |
∎ | The Fund did not breach the 15% limit on Illiquid Investments; and |
∎ | The Fund primarily held Highly Liquid Investments and therefore has not adopted an HLIM. |
5 Invesco Global Opportunities Fund
April 30, 2020
(Unaudited)
Shares | Value | |||||||
| ||||||||
Common Stocks & Other Equity Interests-100.11% |
| |||||||
Brazil-1.32% | ||||||||
Itau Unibanco Holding S.A., Preference Shares | 99,200 | $ | 415,378 | |||||
| ||||||||
Canada-1.70% | ||||||||
Canadian Natural Resources Ltd. | 31,999 | 535,864 | ||||||
| ||||||||
China-7.87% | ||||||||
Alibaba Group Holding Ltd.(a) | 13,800 | 349,707 | ||||||
| ||||||||
NetEase, Inc., ADR | 2,630 | 907,245 | ||||||
| ||||||||
Tencent Holdings Ltd. | 23,000 | 1,220,221 | ||||||
| ||||||||
2,477,173 | ||||||||
| ||||||||
France-4.39% | ||||||||
L’Oreal S.A. | 1,208 | 351,558 | ||||||
| ||||||||
Sanofi | 5,964 | 583,480 | ||||||
| ||||||||
TOTAL S.A. | 12,414 | 447,616 | ||||||
| ||||||||
1,382,654 | ||||||||
| ||||||||
Germany-5.02% | ||||||||
Bayer AG | 12,404 | 820,870 | ||||||
| ||||||||
Volkswagen AG, Preference Shares | 5,414 | 759,751 | ||||||
| ||||||||
1,580,621 | ||||||||
| ||||||||
Hong Kong-1.42% | ||||||||
Standard Chartered PLC | 88,961 | 446,523 | ||||||
| ||||||||
India-1.57% | ||||||||
Kotak Mahindra Bank Ltd. | 27,495 | 493,972 | ||||||
| ||||||||
Ireland-2.17% | ||||||||
Ryanair Holdings PLC, ADR(a) | 10,785 | 684,524 | ||||||
| ||||||||
Japan-2.73% | ||||||||
Sony Corp. | 13,400 | 859,679 | ||||||
| ||||||||
Russia-1.20% | ||||||||
Sberbank of Russia PJSC, ADR | 35,915 | 377,467 | ||||||
| ||||||||
South Korea-2.38% | ||||||||
Samsung Electronics Co. Ltd. | 18,163 | 748,445 | ||||||
| ||||||||
Spain-1.72% | ||||||||
Industria de Diseno Textil S.A.(a) | 21,261 | 542,373 | ||||||
| ||||||||
Sweden-1.63% | ||||||||
Autoliv, Inc. | 8,566 | 514,131 | ||||||
|
Shares | Value | |||||||
| ||||||||
Switzerland-4.20% | ||||||||
Roche Holding AG | 3,803 | $ | 1,322,792 | |||||
| ||||||||
Taiwan-4.28% | ||||||||
Taiwan Semiconductor Manufacturing Co. Ltd. | 134,000 | 1,346,629 | ||||||
| ||||||||
United Kingdom-5.92% | ||||||||
Berkeley Group Holdings PLC | 8,810 | 464,693 | ||||||
| ||||||||
Melrose Industries PLC | 282,646 | 355,803 | ||||||
| ||||||||
Royal Bank of Scotland Group PLC (The) | 218,083 | 304,067 | ||||||
| ||||||||
Royal Dutch Shell PLC, Class A | 28,753 | 488,442 | ||||||
| ||||||||
Standard Chartered PLC | 48,838 | 250,979 | ||||||
| ||||||||
1,863,984 | ||||||||
| ||||||||
United States-50.59% | ||||||||
Agilent Technologies, Inc. | 9,942 | 762,154 | ||||||
| ||||||||
Alphabet, Inc., Class C(a) | 686 | 925,181 | ||||||
| ||||||||
American Express Co. | 8,834 | 806,102 | ||||||
| ||||||||
Analog Devices, Inc. | 5,635 | 617,596 | ||||||
| ||||||||
Berkshire Hathaway, Inc., Class B(a) | 5,244 | 982,516 | ||||||
| ||||||||
Booking Holdings, Inc.(a) | 368 | 544,850 | ||||||
| ||||||||
Bristol-Myers Squibb Co. | 11,115 | 675,903 | ||||||
| ||||||||
Citigroup, Inc. | 11,649 | 565,675 | ||||||
| ||||||||
CME Group, Inc., Class A | 2,510 | 447,307 | ||||||
| ||||||||
Colgate-Palmolive Co. | 15,236 | 1,070,634 | ||||||
| ||||||||
Copart, Inc.(a) | 4,878 | 390,777 | ||||||
| ||||||||
Delta Air Lines, Inc. | 8,596 | 222,722 | ||||||
| ||||||||
Equifax, Inc. | 2,365 | 328,499 | ||||||
| ||||||||
First Republic Bank | 8,185 | 853,614 | ||||||
| ||||||||
JPMorgan Chase & Co. | 7,062 | 676,257 | ||||||
| ||||||||
Las Vegas Sands Corp.(a) | 14,402 | 691,584 | ||||||
| ||||||||
Markel Corp.(a) | 668 | 578,381 | ||||||
| ||||||||
Mastercard, Inc., Class A | 3,709 | 1,019,864 | ||||||
| ||||||||
Microsoft Corp. | 6,735 | 1,206,979 | ||||||
| ||||||||
National Oilwell Varco, Inc. | 27,028 | 341,634 | ||||||
| ||||||||
Old Dominion Freight Line, Inc. | 4,922 | 715,117 | ||||||
| ||||||||
Texas Instruments, Inc. | 12,974 | 1,505,892 | ||||||
| ||||||||
15,929,238 | ||||||||
| ||||||||
TOTAL INVESTMENTS IN |
| 31,521,447 | ||||||
| ||||||||
OTHER ASSETS LESS LIABILITIES-(0.11)% |
| (34,855 | ) | |||||
| ||||||||
NET ASSETS-100.00% | $ | 31,486,592 | ||||||
|
Investment Abbreviations:
ADR - American Depositary Receipt
Notes to Schedule of Investments:
(a) Non-income producing security.
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
6 Invesco Global Opportunities Fund
Portfolio Composition
By sector, based on Net Assets
as of April 30, 2020
Financials | 22.87 | % | ||
Information Technology | 20.47 | |||
Consumer Discretionary | 15.01 | |||
Health Care | 13.23 | |||
Communication Services | 9.70 | |||
Industrials | 8.56 | |||
Energy | 5.75 | |||
Consumer Staples | 4.52 | |||
Other Assets Less Liabilities | (0.11 | ) |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
7 Invesco Global Opportunities Fund
Statement of Assets and Liabilities
April 30, 2020
(Unaudited)
Assets: | ||
Investments in securities, at value | $31,521,447 | |
| ||
Foreign currencies, at value | 456,183 | |
| ||
Receivable for: | ||
Investments sold | 124,776 | |
| ||
Fund shares sold | 31,543 | |
| ||
Fund expenses absorbed | 38,410 | |
| ||
Dividends | 86,639 | |
| ||
Investment for trustee deferred compensation and retirement plans | 19,684 | |
| ||
Other assets | 27,461 | |
| ||
Total assets | 32,306,143 | |
| ||
Liabilities: | ||
Payable for: | ||
Investments purchased | 100,898 | |
| ||
Fund shares reacquired | 47,560 | |
| ||
Amount due custodian | 577,896 | |
| ||
Accrued fees to affiliates | 22,351 | |
| ||
Accrued other operating expenses | 50,982 | |
| ||
Trustee deferred compensation and retirement plans | 19,864 | |
| ||
Total liabilities | 819,551 | |
| ||
Net assets applicable to shares outstanding | $31,486,592 | |
| ||
Net assets consist of: | ||
Shares of beneficial interest | $41,537,248 | |
| ||
Distributable earnings (loss) | (10,050,656) | |
| ||
$31,486,592 | ||
|
Net Assets: | ||||
Class A | $ | 22,655,583 | ||
| ||||
Class C | $ | 3,330,619 | ||
| ||||
Class R | $ | 1,482,516 | ||
| ||||
Class Y | $ | 3,901,387 | ||
| ||||
Class R5 | $ | 12,431 | ||
| ||||
Class R6 | $ | 104,056 | ||
| ||||
Shares outstanding, no par value, with an unlimited number of shares authorized: |
| |||
Class A | 1,830,847 | |||
| ||||
Class C | 274,432 | |||
| ||||
Class R | 120,578 | |||
| ||||
Class Y | 314,386 | |||
| ||||
Class R5 | 1,001 | |||
| ||||
Class R6 | 8,380 | |||
| ||||
Class A: | ||||
Net asset value per share | $ | 12.37 | ||
| ||||
Maximum offering price per share | $ | 13.09 | ||
| ||||
Class C: | ||||
Net asset value and offering price per share | $ | 12.14 | ||
| ||||
Class R: | ||||
Net asset value and offering price per share | $ | 12.30 | ||
| ||||
Class Y: | ||||
Net asset value and offering price per share | $ | 12.41 | ||
| ||||
Class R5: | ||||
Net asset value and offering price per share | $ | 12.42 | ||
| ||||
Class R6: | ||||
Net asset value and offering price per share | $ | 12.42 | ||
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
8 Invesco Global Opportunities Fund
Statement of Operations
For the six months ended April 30, 2020
(Unaudited)
Investment income: | ||||
Dividends (net of foreign withholding taxes of $34,358) | $ | 375,195 | ||
| ||||
Expenses: | ||||
Advisory fees | 148,855 | |||
| ||||
Administrative services fees | 2,649 | |||
| ||||
Custodian fees | 5,726 | |||
| ||||
Distribution fees: | ||||
Class A | 32,770 | |||
| ||||
Class C | 21,070 | |||
| ||||
Class R | 3,908 | |||
| ||||
Transfer agent fees – A, C, R and Y | 49,687 | |||
| ||||
Transfer agent fees – R5 | 5 | |||
| ||||
Transfer agent fees – R6 | 46 | |||
| ||||
Trustees’ and officers’ fees and benefits | 6,857 | |||
| ||||
Registration and filing fees | 36,867 | |||
| ||||
Reports to shareholders | 7,753 | |||
| ||||
Professional services fees | 26,422 | |||
| ||||
Other | 7,584 | |||
| ||||
Total expenses | 350,199 | |||
| ||||
Less: Fees waived, expenses reimbursed and/or expense offset arrangement(s) | (149,309 | ) | ||
| ||||
Net expenses | 200,890 | |||
| ||||
Net investment income | 174,305 | |||
| ||||
Realized and unrealized gain (loss) from: | ||||
Net realized gain (loss) from: | ||||
Investment securities (net of foreign taxes of $17) | (44,020 | ) | ||
| ||||
Foreign currencies | (9,015 | ) | ||
| ||||
(53,035 | ) | |||
| ||||
Change in net unrealized appreciation (depreciation) of: | ||||
Investment securities | (5,271,675 | ) | ||
| ||||
Foreign currencies | (94,571 | ) | ||
| ||||
(5,366,246 | ) | |||
| ||||
Net realized and unrealized gain (loss) | (5,419,281 | ) | ||
| ||||
Net increase (decrease) in net assets resulting from operations | $ | (5,244,976 | ) | |
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
9 Invesco Global Opportunities Fund
Statement of Changes in Net Assets
For the six months ended April 30, 2020 and the year ended October 31, 2019 (Unaudited)
April 30, 2020 | October 31, 2019 | |||||||
| ||||||||
Operations: | ||||||||
Net investment income | $ | 174,305 | $ | 623,007 | ||||
| ||||||||
Net realized gain (loss) | (53,035 | ) | (3,930,565 | ) | ||||
| ||||||||
Change in net unrealized appreciation (depreciation) | (5,366,246 | ) | 6,041,674 | |||||
| ||||||||
Net increase (decrease) in net assets resulting from operations | (5,244,976 | ) | 2,734,116 | |||||
| ||||||||
Distributions to shareholders from distributable earnings: | ||||||||
Class A | (420,685 | ) | (1,953,842 | ) | ||||
| ||||||||
Class C | (29,172 | ) | (432,496 | ) | ||||
| ||||||||
Class R | (20,014 | ) | (70,652 | ) | ||||
| ||||||||
Class Y | (102,925 | ) | (482,207 | ) | ||||
| ||||||||
Class R5 | (272 | ) | (1,134 | ) | ||||
| ||||||||
Class R6 | (2,192 | ) | (9,961 | ) | ||||
| ||||||||
Total distributions from distributable earnings | (575,260 | ) | (2,950,292 | ) | ||||
| ||||||||
Share transactions–net: | ||||||||
Class A | 272,604 | (208,421 | ) | |||||
| ||||||||
Class C | (340,369 | ) | (2,055,435 | ) | ||||
| ||||||||
Class R | 254,080 | 489,318 | ||||||
| ||||||||
Class Y | (502,167 | ) | (3,393,480 | ) | ||||
| ||||||||
Class R6 | 1,757 | 67,076 | ||||||
| ||||||||
Net increase (decrease) in net assets resulting from share transactions | (314,095 | ) | (5,100,942 | ) | ||||
| ||||||||
Net increase (decrease) in net assets | (6,134,331 | ) | (5,317,118 | ) | ||||
| ||||||||
Net assets: | ||||||||
Beginning of period | 37,620,923 | 42,938,041 | ||||||
| ||||||||
End of period | $ | 31,486,592 | $ | 37,620,923 | ||||
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
10 Invesco Global Opportunities Fund
(Unaudited)
The following schedule presents financial highlights for a share of the Fund outstanding throughout the periods indicated.
Net asset value, beginning of period | Net investment income (loss)(a) | Net gains (losses) on securities (both realized and unrealized) | Total from investment operations | Dividends from net investment income | Distributions from net realized gains | Total distributions | Net asset value, end of period | Total return(b) | Net assets, end of period (000’s omitted) | Ratio of expenses to average net assets with fee waivers and/or expenses absorbed | Ratio of expenses to average net assets without fee waivers and/or expenses absorbed | Ratio of net investment income (loss) to average net assets | Portfolio turnover(c) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 04/30/20 | $ | 14.54 | $ | 0.07 | $ | (2.01 | ) | $ | (1.94 | ) | $ | (0.23 | ) | $ | — | $ | (0.23 | ) | $ | 12.37 | (13.65 | )% | $ | 22,656 | 1.02 | %(d) | 1.82 | %(d) | 1.00 | %(d) | 47 | % | ||||||||||||||||||||||||||||||||||||||
Year ended 10/31/19 | 14.65 | 0.24 | 0.75 | 0.99 | (0.28 | ) | (0.82 | ) | (1.10 | ) | 14.54 | 7.90 | 26,543 | 1.02 | 1.99 | 1.72 | 45 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/18 | 16.57 | 0.25 | (2.04 | ) | (1.79 | ) | (0.11 | ) | (0.02 | ) | (0.13 | ) | 14.65 | (10.88 | ) | 26,811 | 1.02 | 1.76 | 1.50 | 92 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/17 | 12.77 | 0.13 | 3.84 | 3.97 | (0.17 | ) | — | (0.17 | ) | 16.57 | 31.42 | 19,643 | 1.07 | 2.69 | 0.90 | 33 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/16 | 13.13 | 0.09 | (0.04 | ) | 0.05 | (0.02 | ) | (0.39 | ) | (0.41 | ) | 12.77 | 0.57 | 11,455 | 1.36 | 2.77 | 0.72 | 52 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/15 | 14.74 | 0.06 | 0.11 | 0.17 | (0.22 | ) | (1.56 | ) | (1.78 | ) | 13.13 | 1.76 | 12,405 | 1.36 | 2.94 | 0.43 | 71 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Class C | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 04/30/20 | 14.19 | 0.02 | (1.98 | ) | (1.96 | ) | (0.09 | ) | — | (0.09 | ) | 12.14 | (13.91 | ) | 3,331 | 1.77 | (d) | 2.57 | (d) | 0.25 | (d) | 47 | ||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/19 | 14.30 | 0.13 | 0.73 | 0.86 | (0.15 | ) | (0.82 | ) | (0.97 | ) | 14.19 | 7.06 | 4,337 | 1.77 | 2.74 | 0.97 | 45 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/18 | 16.22 | 0.12 | (1.98 | ) | (1.86 | ) | (0.04 | ) | (0.02 | ) | (0.06 | ) | 14.30 | (11.51 | ) | 6,531 | 1.77 | 2.51 | 0.75 | 92 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/17 | 12.51 | 0.02 | 3.76 | 3.78 | (0.07 | ) | — | (0.07 | ) | 16.22 | 30.38 | 5,476 | 1.82 | 3.44 | 0.15 | 33 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/16 | 12.93 | 0.00 | (0.03 | ) | (0.03 | ) | — | (0.39 | ) | (0.39 | ) | 12.51 | (0.08 | ) | 2,753 | 2.11 | 3.52 | (0.03 | ) | 52 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/15 | 14.51 | (0.04 | ) | 0.10 | 0.06 | (0.08 | ) | (1.56 | ) | (1.64 | ) | 12.93 | 0.86 | 2,967 | 2.11 | 3.69 | (0.32 | ) | 71 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Class R | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 04/30/20 | 14.42 | 0.05 | (1.98 | ) | (1.93 | ) | (0.19 | ) | — | (0.19 | ) | 12.30 | (13.66 | ) | 1,483 | 1.27 | (d) | 2.07 | (d) | 0.75 | (d) | 47 | ||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/19 | 14.54 | 0.20 | 0.74 | 0.94 | (0.24 | ) | (0.82 | ) | (1.06 | ) | 14.42 | 7.56 | 1,475 | 1.27 | 2.24 | 1.47 | 45 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/18 | 16.46 | 0.21 | (2.02 | ) | (1.81 | ) | (0.09 | ) | (0.02 | ) | (0.11 | ) | 14.54 | (11.08 | ) | 950 | 1.27 | 2.01 | 1.25 | 92 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/17 | 12.69 | 0.10 | 3.81 | 3.91 | (0.14 | ) | — | (0.14 | ) | 16.46 | 31.06 | 513 | 1.32 | 2.94 | 0.65 | 33 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/16 | 13.05 | 0.06 | (0.03 | ) | 0.03 | — | (0.39 | ) | (0.39 | ) | 12.69 | 0.40 | 261 | 1.61 | 3.02 | 0.47 | 52 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/15 | 14.67 | 0.02 | 0.09 | 0.11 | (0.17 | ) | (1.56 | ) | (1.73 | ) | 13.05 | 1.31 | 218 | 1.61 | 3.19 | 0.18 | 71 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Class Y | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 04/30/20 | 14.60 | 0.09 | (2.01 | ) | (1.92 | ) | (0.27 | ) | — | (0.27 | ) | 12.41 | (13.50 | ) | 3,901 | 0.77 | (d) | 1.57 | (d) | 1.25 | (d) | 47 | ||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/19 | 14.72 | 0.27 | 0.75 | 1.02 | (0.32 | ) | (0.82 | ) | (1.14 | ) | 14.60 | 8.12 | 5,130 | 0.77 | 1.74 | 1.97 | 45 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/18 | 16.63 | 0.30 | (2.05 | ) | (1.75 | ) | (0.14 | ) | (0.02 | ) | (0.16 | ) | 14.72 | (10.63 | ) | 8,579 | 0.77 | 1.51 | 1.75 | 92 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/17 | 12.82 | 0.17 | 3.85 | 4.02 | (0.21 | ) | — | (0.21 | ) | 16.63 | 31.71 | 2,323 | 0.82 | 2.44 | 1.15 | 33 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/16 | 13.17 | 0.12 | (0.03 | ) | 0.09 | (0.05 | ) | (0.39 | ) | (0.44 | ) | 12.82 | 0.90 | 449 | 1.11 | 2.52 | 0.97 | 52 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/15 | 14.81 | 0.09 | 0.09 | 0.18 | (0.26 | ) | (1.56 | ) | (1.82 | ) | 13.17 | 1.90 | 4,681 | 1.11 | 2.69 | 0.68 | 71 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Class R5 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 04/30/20 | 14.61 | 0.09 | (2.01 | ) | (1.92 | ) | (0.27 | ) | — | (0.27 | ) | 12.42 | (13.49 | ) | 12 | 0.77 | (d) | 1.38 | (d) | 1.25 | (d) | 47 | ||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/19 | 14.73 | 0.27 | 0.75 | 1.02 | �� | (0.32 | ) | (0.82 | ) | (1.14 | ) | 14.61 | 8.12 | 15 | 0.77 | 1.55 | 1.97 | 45 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/18 | 16.64 | 0.30 | (2.05 | ) | (1.75 | ) | (0.14 | ) | (0.02 | ) | (0.16 | ) | 14.73 | (10.62 | ) | 15 | 0.77 | 1.39 | 1.75 | 92 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/17 | 12.83 | 0.17 | 3.85 | 4.02 | (0.21 | ) | — | (0.21 | ) | 16.64 | 31.68 | 17 | 0.82 | 2.24 | 1.15 | 33 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/16 | 13.18 | 0.12 | (0.03 | ) | 0.09 | (0.05 | ) | (0.39 | ) | (0.44 | ) | 12.83 | 0.91 | 13 | 1.11 | 2.28 | 0.97 | 52 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/15 | 14.81 | 0.09 | 0.10 | 0.19 | (0.26 | ) | (1.56 | ) | (1.82 | ) | 13.18 | 1.97 | 13 | 1.11 | 2.45 | 0.68 | 71 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Class R6 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 04/30/20 | 14.61 | 0.09 | (2.01 | ) | (1.92 | ) | (0.27 | ) | — | (0.27 | ) | 12.42 | (13.49 | ) | 104 | 0.77 | (d) | 1.38 | (d) | 1.25 | (d) | 47 | ||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/19 | 14.73 | 0.27 | 0.75 | 1.02 | (0.32 | ) | (0.82 | ) | (1.14 | ) | 14.61 | 8.12 | 121 | 0.77 | 1.55 | 1.97 | 45 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/18 | 16.63 | 0.29 | (2.03 | ) | (1.74 | ) | (0.14 | ) | (0.02 | ) | (0.16 | ) | 14.73 | (10.57 | ) | 52 | 0.77 | 1.39 | 1.75 | 92 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/17 | 12.82 | 0.17 | 3.85 | 4.02 | (0.21 | ) | — | (0.21 | ) | 16.63 | 31.71 | 15 | 0.82 | 2.24 | 1.15 | 33 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/16 | 13.17 | 0.12 | (0.03 | ) | 0.09 | (0.05 | ) | (0.39 | ) | (0.44 | ) | 12.82 | 0.90 | 12 | 1.11 | 2.28 | 0.97 | 52 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/15 | 14.81 | 0.09 | 0.09 | 0.18 | (0.26 | ) | (1.56 | ) | (1.82 | ) | 13.17 | 1.89 | 12 | 1.11 | 2.45 | 0.68 | 71 |
(a) | Calculated using average shares outstanding. |
(b) | Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Does not include sales charges and is not annualized for periods less than one year, if applicable. |
(c) | Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable. |
(d) | Ratios are annualized and based on average daily net assets (000’s omitted) of $26,351, $4,235, $1,571, $5,129, $14 and $117 for Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares, respectively. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
11 Invesco Global Opportunities Fund
April 30, 2020
(Unaudited)
NOTE 1–Significant Accounting Policies
Invesco Global Opportunities Fund (the “Fund”) is a series portfolio of AIM International Mutual Funds (Invesco International Mutual 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 the Fund or each class.
The Fund’s investment objective is long-term growth of capital.
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. 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. |
A security listed or traded on an exchange (except convertible securities) is valued at its last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded, or lacking any sales or official closing price on a particular day, the security may be valued at the closing bid price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued by an independent pricing service they may be considered fair valued. Futures contracts are valued at the final settlement price set by an exchange on which they are principally traded. Listed options are valued at the mean between the last bid and asked prices from the exchange on which they are principally traded. Options not listed on an exchange are valued by an independent source at the mean between the last bid and asked prices. For purposes of determining net asset value (“NAV”) per share, futures and option contracts generally are valued 15 minutes after the close of the customary trading session of the New York Stock Exchange (“NYSE”).
Investments in open-end and closed-end registered investment companies that do not trade on an exchange are valued at the end-of-day net asset value per share. Investments in open-end and closed-end registered investment companies that trade on an exchange are valued at the last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded.
Debt obligations (including convertible securities) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. Pricing services generally value debt obligations assuming orderly transactions of institutional round lot size, but a fund may hold or transact in the same securities in smaller, odd lot sizes. Odd lots often trade at lower prices than institutional round lots. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.
Foreign securities’ (including foreign exchange contracts) prices are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the NYSE. If market quotations are available and reliable for foreign exchange-traded equity securities, the securities will be valued at the market quotations. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become unreliable. If between the time trading ends on a particular security and the close of the customary trading session on the NYSE, events occur that the investment adviser determines are significant and make the closing price unreliable, the Fund may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith using procedures approved by the Board of Trustees. Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities’ prices meeting the approved degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economic upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.
Securities for which market prices are not provided by any of the above methods may be valued based upon quotes furnished by independent sources. The last bid price may be used to value equity securities. The mean between the last bid and asked prices is used to value debt obligations, including corporate loans.
Securities for which market quotations are not readily available or became unreliable are valued at fair value as determined in good faith by or under the supervision of the Trust’s officers following procedures approved by the Board of Trustees. Issuer specific events, market trends, bid/asked quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security’s fair value.
The Fund may invest in securities that are subject to interest rate risk, meaning the risk that the prices will generally fall as interest rates rise and, conversely, the prices will generally rise as interest rates fall. Specific securities differ in their sensitivity to changes in interest rates depending on their individual characteristics. Changes in interest rates may result in increased market volatility, which may affect the value and/or liquidity of certain Fund investments.
Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the issuer’s assets, general market conditions which are not specifically related to the particular issuer, such as real or perceived adverse economic conditions, changes in the general outlook for revenues or corporate earnings, changes in interest or currency rates, regional or global instability, natural or environmental disasters, widespread disease or other public health issues, war, acts of terrorism or adverse investor sentiment generally and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
B. | Securities Transactions and Investment Income - Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income (net of withholding tax, if any) is recorded on an accrual basis from settlement date. Dividend income (net of withholding tax, if any) is recorded on the ex-dividend date. |
The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Statement of Operations as realized gain (loss) for investments no longer held and as unrealized gain (loss) for investments still held.
Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of net realized and unrealized gain (loss) from investment
12 Invesco Global Opportunities Fund
securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the net realized and unrealized gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and the Statement of Changes in Net Assets, or the net investment income per share and the ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.
The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class.
C. | Country Determination - For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues and the country that has the primary market for the issuer’s securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted. |
D. | Distributions - Distributions from net investment income and net realized capital gain, if any, are generally declared and paid annually and recorded on the ex-dividend date. The Fund may elect to treat a portion of the proceeds from redemptions as distributions for federal income tax purposes. |
E. | Federal Income Taxes - The Fund intends to comply with the requirements of Subchapter M of the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”), necessary to qualify as a regulated investment company and to distribute substantially all of the Fund’s taxable earnings to shareholders. As such, the Fund will not be subject to federal income taxes on otherwise taxable income (including net realized capital gain) that is distributed to shareholders. Therefore, no provision for federal income taxes is recorded in the financial statements. |
The Fund recognizes the tax benefits of uncertain tax positions only when the position is more likely than not to be sustained. Management has analyzed the Fund’s uncertain tax positions and concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions. Management is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the next 12 months.
The Fund files tax returns in the U.S. Federal jurisdiction and certain other jurisdictions. Generally, the Fund is subject to examinations by such taxing authorities for up to three years after the filing of the return for the tax period.
F. | Expenses - Fees provided for under the Rule 12b-1 plan of a particular class of the Fund 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 preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print. |
H. | Indemnifications - Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of the performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements, that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote. |
I. | Foreign Currency Translations - Foreign currency is valued at the close of the NYSE based on quotations posted by banks and major currency dealers. Portfolio securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at the date of valuation. Purchases and sales of portfolio securities (net of foreign taxes withheld on disposition) and income items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. The Fund does not separately account for the portion of the results of operations resulting from changes in foreign exchange rates on investments and the fluctuations arising from changes in market prices of securities held. The combined results of changes in foreign exchange rates and the fluctuation of market prices on investments (net of estimated foreign tax withholding) are included with the net realized and unrealized gain or loss from investments in the Statement of Operations. Reported net realized foreign currency gains or losses arise from (1) sales of foreign currencies, (2) currency gains or losses realized between the trade and settlement dates on securities transactions, and (3) the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign currency gains and losses arise from changes in the fair values of assets and liabilities, other than investments in securities at fiscal period end, resulting from changes in exchange rates. |
The Fund may invest in foreign securities, which may be subject to foreign taxes on income, gains on investments or currency repatriation, a portion of which may be recoverable. Foreign taxes, if any, are recorded based on the tax regulations and rates that exist in the foreign markets in which the Fund invests and are shown in the Statement of Operations.
J. | Forward Foreign Currency Contracts - The Fund may engage in foreign currency transactions either on a spot (i.e. for prompt delivery and settlement) basis, or through forward foreign currency contracts, to manage or minimize currency or exchange rate risk. |
The Fund may also enter into forward foreign currency contracts for the purchase or sale of a security denominated in a foreign currency in order to “lock in” the U.S. dollar price of that security, or the Fund may also enter into forward foreign currency contracts that do not provide for physical settlement of the two currencies, but instead are settled by a single cash payment calculated as the difference between the agreed upon exchange rate and the spot rate at settlement based upon an agreed upon notional amount (non-deliverable forwards). The Fund will set aside liquid assets in an amount equal to the daily mark-to-market obligation for forward foreign currency contracts.
A forward foreign currency contract is an obligation between two parties (“Counterparties”) to purchase or sell a specific currency for an agreed-upon price at a future date. The use of forward foreign currency contracts does not eliminate fluctuations in the price of the underlying securities the Fund owns or intends to acquire but establishes a rate of exchange in advance. Fluctuations in the value of these contracts are measured by the difference in the contract date and reporting date exchange rates and are recorded as unrealized appreciation (depreciation) until the contracts are closed. When the contracts are closed, realized gains (losses) are recorded. Realized and unrealized gains (losses) on the contracts are included in the Statement of Operations. The primary risks associated with forward foreign currency contracts include failure of the Counterparty to meet the terms of the contract and the value of the foreign currency changing unfavorably. These risks may be in excess of the amounts reflected in the Statement of Assets and Liabilities.
13 Invesco Global Opportunities Fund
NOTE 2–Advisory Fees and Other Fees Paid to Affiliates
The Trust has entered into a master investment advisory agreement with Invesco Advisers, Inc. (the “Adviser” or “Invesco”). Under the terms of the investment advisory agreement, the Fund accrues daily and pays monthly an advisory fee to the Adviser based on the annual rate of the Fund’s average daily net assets as follows:
Average Daily Net Assets | Rate | |||
First $ 250 million | 0.800 | % | ||
Next $250 million | 0.780 | % | ||
Next $500 million | 0.760 | % | ||
Next $1.5 billion | 0.740 | % | ||
Next $2.5 billion | 0.720 | % | ||
Next $2.5 billion | 0.700 | % | ||
Next $2.5 billion | 0.680 | % | ||
Over $10 billion | 0.660 | % |
For the six months ended April 30, 2020, the effective advisory fee rate incurred by the Fund was 0.80%.
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 a separate sub-advisory agreement with Invesco Capital Management LLC (collectively, the “Affiliated Sub-Advisers”) the Adviser, not the Fund, will pay 40% of the fees paid to the Adviser to any such Affiliated Sub-Adviser(s) that provide(s) discretionary investment management services to the Fund based on the percentage of assets allocated to such Affiliated Sub-Adviser(s).
The Adviser has contractually agreed, through at least February 28, 2021, to waive advisory fees and/or reimburse expenses to the extent necessary to limit 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 1.02%, 1.77%, 1.27%, 0.77%, 0.77% and 0.77%, respectively, of average daily net assets (the “expense limits”). In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause the total annual fund operating expenses after fee waiver and/or expense reimbursement to exceed the numbers reflected above: (1) interest; (2) taxes; (3) dividend expense on short sales; (4) extraordinary or non-routine items, including litigation expenses; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Unless Invesco continues the fee waiver agreement, it will terminate on February 28, 2021. During its term, the fee waiver agreement cannot be terminated or amended to increase the expense limits or reduce the advisory fee waiver without approval of the Board of Trustees. To the extent that the annualized expense ratio does not exceed the expense limit, the Adviser will retain its ability to be reimbursed for such fee waivers or reimbursements prior to the end of each fiscal year.
Further, the Adviser has contractually agreed, through at least June 30, 2022, to waive the advisory fee payable by the Fund in an amount equal to 100% of the net advisory fees the Adviser receives from the affiliated money market funds on investments by the Fund of uninvested cash in such affiliated money market funds.
For the six months ended April 30, 2020, the Adviser waived advisory fees of $98,744, reimbursed fund level expenses of $0 and reimbursed class level expenses of $35,122, $5,646, $2,094, $6,825, $5 and $46 of Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares, respectively.
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 April 30, 2020, expenses incurred under the agreement are shown in the Statement of Operations as Administrative services fees. Invesco has entered into a sub-administration agreement whereby State Street Bank and Trust Company (“SSB”) serves as fund accountant and provides certain administrative services to the Fund. Pursuant to a custody agreement with the Trust on behalf of the Fund, SSB also serves as the Fund’s custodian.
The Trust has entered into a transfer agency and service agreement with Invesco Investment Services, Inc. (“IIS”) pursuant to which the Fund has agreed to pay IIS a fee for providing transfer agency and shareholder services to the Fund and reimburse IIS for certain expenses incurred by IIS in the course of providing such services. IIS may make payments to intermediaries that provide omnibus account services, sub-accounting services and/or networking services. All fees payable by IIS to intermediaries that provide omnibus account services or sub-accounting services are charged back to the Fund, subject to certain limitations approved by the Trust’s Board of Trustees. For the six months ended April 30, 2020, expenses incurred under the agreement are shown in the Statement of Operations as Transfer 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 “Plans”). The Fund, pursuant to the Plans, pays IDI compensation at the annual rate of 0.25% of the Fund’s average daily net assets of Class A shares, 1.00% of the average daily net assets of Class C shares 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 Plans 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. For the six-month period ended April 30, 2020, expenses incurred under the Plans are shown in the Statement of Operations as Distribution fees.
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 April 30, 2020, IDI advised the Fund that IDI retained $4,617 in front-end sales commissions from the sale of Class A shares and $351 and $163 from Class A and Class C shares, respectively, for CDSC imposed upon redemptions by shareholders.
Certain officers and trustees of the Trust are officers and directors of the Adviser, IIS and/or IDI.
NOTE 3–Additional Valuation Information
GAAP defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, under current market conditions. GAAP establishes a hierarchy that prioritizes the inputs to valuation methods, giving the highest priority to readily available unadjusted quoted prices in an active market for identical assets (Level 1) and the lowest priority to significant unobservable inputs (Level 3), generally when market prices are not readily available or are unreliable. Based on the valuation inputs, the securities or other investments are tiered into one of three levels. Changes in valuation methods may result in transfers in or out of an investment’s assigned level:
Level 1 | - | Prices are determined using quoted prices in an active market for identical assets. | ||||
Level 2 | - | Prices are determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk, yield curves, loss severities, default rates, discount rates, volatilities and others. |
14 Invesco Global Opportunities Fund
Level 3 | - | Prices are determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Fund’s own assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information. |
The following is a summary of the tiered valuation input levels, as of April 30, 2020. The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
Level 1 | Level 2 | Level 3 | Total | |||||||||||
Investments in Securities | ||||||||||||||
Brazil | $ 415,378 | $ – | $– | $ 415,378 | ||||||||||
Canada | 535,864 | – | – | 535,864 | ||||||||||
China | 907,245 | 1,569,928 | – | 2,477,173 | ||||||||||
France | – | 1,382,654 | – | 1,382,654 | ||||||||||
Germany | – | 1,580,621 | – | 1,580,621 | ||||||||||
Hong Kong | – | 446,523 | – | 446,523 | ||||||||||
India | – | 493,972 | – | 493,972 | ||||||||||
Ireland | 684,524 | – | – | 684,524 | ||||||||||
Japan | – | 859,679 | – | 859,679 | ||||||||||
Russia | 377,467 | – | – | 377,467 | ||||||||||
South Korea | – | 748,445 | – | 748,445 | ||||||||||
Spain | – | 542,373 | – | 542,373 | ||||||||||
Sweden | 514,131 | – | – | 514,131 | ||||||||||
Switzerland | – | 1,322,792 | – | 1,322,792 | ||||||||||
Taiwan | – | 1,346,629 | – | 1,346,629 | ||||||||||
United Kingdom | – | 1,863,984 | – | 1,863,984 | ||||||||||
United States | 15,929,238 | – | – | 15,929,238 | ||||||||||
Total Investments | $19,363,847 | $12,157,600 | $– | $31,521,447 |
NOTE 4–Expense Offset Arrangement(s)
The expense offset arrangement is comprised of transfer agency credits which result from balances in demand deposit accounts used by the transfer agent for clearing shareholder transactions. For the six months ended April 30, 2020, the Fund received credits from this arrangement, which resulted in the reduction of the Fund’s total expenses of $827.
NOTE 5–Trustees’ and Officers’ Fees and Benefits
Trustees’ and Officers’ Fees and Benefits include amounts accrued by the Fund to pay remuneration to certain Trustees and Officers of the Fund. Trustees have the option to defer compensation payable by the Fund, and Trustees’ and Officers’ Fees and Benefits also include amounts accrued by the Fund to fund such deferred compensation amounts. Those Trustees who defer compensation have the option to select various Invesco Funds in which their deferral accounts shall be deemed to be invested. Finally, certain current Trustees were eligible to participate in a retirement plan that provided for benefits to be paid upon retirement to Trustees over a period of time based on the number of years of service. The Fund may have certain former Trustees who also participate in a retirement plan and receive benefits under such plan. Trustees’ and Officers’ Fees and Benefits include amounts accrued by the Fund to fund such retirement benefits. Obligations under the deferred compensation and retirement plans represent unsecured claims against the general assets of the Fund.
NOTE 6–Cash Balances
The Fund is permitted to temporarily carry a negative or overdrawn balance in its account with SSB, the custodian bank. Such balances, if any at period-end, are shown in the Statement of Assets and Liabilities under the payable caption Amount due custodian. To compensate the custodian bank for such overdrafts, the overdrawn Fund may either (1) leave funds as a compensating balance in the account so the custodian bank can be compensated by earning the additional interest; or (2) compensate by paying the custodian bank at a rate agreed upon by the custodian bank and Invesco, not to exceed the contractually agreed upon rate. The Fund may not purchase additional securities when any borrowings from banks or broker-dealers exceed 5% of the Fund’s total assets, or when any borrowings from an Invesco Fund are outstanding.
NOTE 7–Tax Information
The amount and character of income and gains to be distributed are determined in accordance with income tax regulations, which may differ from GAAP.
Reclassifications are made to the Fund’s capital accounts to reflect income and gains available for distribution (or available capital loss carryforward) under income tax regulations. The tax character of distributions paid during the year and the tax components of net assets will be reported at the Fund’s fiscal year-end.
Capital loss carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Fund to utilize. The ability to utilize capital loss carryforwards in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.
The Fund had a capital loss carryforward as of October 31, 2019, as follows:
Capital Loss Carryforward* | |||||||||||||||
Expiration | Short-Term | Long-Term | Total | ||||||||||||
Not subject to expiration | $ | 2,519,470 | $ | 2,488,413 | $ | 5,007,883 |
* | Capital loss carryforward is reduced for limitations, if any, to the extent required by the Internal Revenue Code and may be further limited depending upon a variety of factors, including the realization of net unrealized gains or losses as of the date of any reorganization. |
15 Invesco Global Opportunities Fund
NOTE 8–Investment Transactions
The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Fund during the six months ended April 30, 2020 was $17,045,124 and $18,234,328, 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 | $ | 2,174,061 | ||
| ||||
Aggregate unrealized (depreciation) of investments | (7,157,025 | ) | ||
| ||||
Net unrealized appreciation (depreciation) of investments | $ | (4,982,964 | ) | |
|
Cost of investments for tax purposes is $36,504,411.
NOTE 9–Share Information
Summary of Share Activity | ||||||||||||||||
| ||||||||||||||||
Six months ended April 30, 2020(a) | Year ended October 31, 2019 | |||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||
| ||||||||||||||||
Sold: | ||||||||||||||||
Class A | 303,341 | $ | 4,242,034 | 408,136 | $ | 5,559,513 | ||||||||||
| ||||||||||||||||
Class C | 70,022 | 959,918 | 65,788 | 892,323 | ||||||||||||
| ||||||||||||||||
Class R | 32,389 | 443,530 | 50,039 | 675,346 | ||||||||||||
| ||||||||||||||||
Class Y | 147,256 | 2,129,433 | 189,173 | 2,569,056 | ||||||||||||
| ||||||||||||||||
Class R6 | 250 | 3,462 | 13,140 | 186,243 | ||||||||||||
| ||||||||||||||||
Issued as reinvestment of dividends: | ||||||||||||||||
Class A | 25,810 | 396,417 | 149,174 | 1,870,607 | ||||||||||||
| ||||||||||||||||
Class C | 1,895 | 28,636 | 33,523 | 413,000 | ||||||||||||
| ||||||||||||||||
Class R | 1,298 | 19,827 | 5,586 | 69,598 | ||||||||||||
| ||||||||||||||||
Class Y | 6,386 | 98,278 | 36,110 | 453,901 | ||||||||||||
| ||||||||||||||||
Class R6 | 126 | 1,940 | 708 | 8,908 | ||||||||||||
| ||||||||||||||||
Automatic conversion of Class C shares to Class A shares: | ||||||||||||||||
Class A | 1,568 | 21,188 | 94,189 | 1,294,683 | ||||||||||||
| ||||||||||||||||
Class C | (1,598 | ) | (21,188 | ) | (95,956 | ) | (1,294,683 | ) | ||||||||
| ||||||||||||||||
Reacquired: | ||||||||||||||||
Class A | (325,880 | ) | (4,387,035 | ) | (654,984 | ) | (8,933,224 | ) | ||||||||
| ||||||||||||||||
Class C | (101,522 | ) | (1,307,735 | ) | (154,347 | ) | (2,066,075 | ) | ||||||||
| ||||||||||||||||
Class R | (15,454 | ) | (209,277 | ) | (18,657 | ) | (255,626 | ) | ||||||||
| ||||||||||||||||
Class Y | (190,637 | ) | (2,729,878 | ) | (456,658 | ) | (6,416,437 | ) | ||||||||
| ||||||||||||||||
Class R6 | (248 | ) | (3,645 | ) | (9,112 | ) | (128,075 | ) | ||||||||
| ||||||||||||||||
Net increase (decrease) in share activity | (44,998 | ) | $ | (314,095 | ) | (344,148 | ) | $ | (5,100,942 | ) | ||||||
|
(a) | There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 34% of the outstanding shares of the Fund. 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. |
NOTE 10–Coronavirus (COVID-19) Pandemic
During the first quarter of 2020, the World Health Organization declared COVID-19 to be a public health emergency. COVID-19 has led to increased short-term market volatility and may have adverse long-term effects on U.S. and world economies and markets in general. COVID-19 may adversely impact the Fund’s ability to achieve its investment objective. Because of the uncertainties on valuation, the global economy and business operations, values reflected in these financial statements may materially differ from the value received upon actual sales of those investments.
The extent of the impact on the performance of the Fund and its investments will depend on future developments, including the duration and spread of the COVID-19 outbreak, related restrictions and advisories, and the effects on the financial markets and economy overall, all of which are highly uncertain and cannot be predicted.
NOTE 11–Subsequent Event
On June 3, 2020, the Board of Trustees approved a Plan of Liquidation and Dissolution, which authorizes the termination, liquidation and dissolution of the Fund. In order to effect such liquidation, the Fund closed to investments by new accounts after the close of business on June 5, 2020. The Fund will be liquidated on or about August 5, 2020.
16 Invesco Global Opportunities Fund
Calculating your ongoing Fund expenses
Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, which may include sales charges (loads) on purchase payments or contingent deferred sales charges on redemptions, if any; and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees, and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period November 1, 2019 through April 30, 2020.
Actual expenses
The table below provides information about actual account values and actual expenses. You may use the information in this table, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the table under the heading entitled “Actual Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Hypothetical example for comparison purposes
The table below also provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return.
The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads) on purchase payments or contingent deferred sales charges on redemptions, if any. Therefore, the hypothetical information 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 transaction costs were included, your costs would have been higher.
ACTUAL | HYPOTHETICAL (5% annual return before expenses) | |||||||||||||||||||||||||||||
Beginning Account Value (11/01/19) | Ending Account Value (04/30/20)1 | Expenses Paid During Period2 | Ending Account Value (04/30/20) | Expenses Paid During Period2 | Annualized Expense Ratio | |||||||||||||||||||||||||
Class A | $ | 1,000.00 | $ | 863.50 | $ | 4.73 | $ | 1,019.79 | $ | 5.12 | 1.02 | % | ||||||||||||||||||
Class C | 1,000.00 | 860.90 | 8.19 | 1,016.06 | 8.87 | 1.77 | ||||||||||||||||||||||||
Class R | 1,000.00 | 863.40 | 5.88 | 1,018.55 | 6.37 | 1.27 | ||||||||||||||||||||||||
Class Y | 1,000.00 | 865.00 | 3.57 | 1,021.03 | 3.87 | 0.77 | ||||||||||||||||||||||||
Class R5 | 1,000.00 | 865.10 | 3.57 | 1,021.03 | 3.87 | 0.77 | ||||||||||||||||||||||||
Class R6 | 1,000.00 | 865.10 | 3.57 | 1,021.03 | 3.87 | 0.77 |
1 | The actual ending account value is based on the actual total return of the Fund for the period November 1, 2019 through April 30, 2020, after actual expenses and will differ from the hypothetical ending account value which is based on the Fund’s expense ratio and a hypothetical annual return of 5% before expenses. |
2 | Expenses are equal to the Fund’s annualized expense ratio as indicated above multiplied by the average account value over the period, multiplied by 182/366 to reflect the most recent fiscal half year. |
17 Invesco Global Opportunities Fund
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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 list appears 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 Form N-PORT filings on the SEC website, sec.gov. The SEC file numbers for the Fund are shown below.
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. This 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. |
SEC file numbers: 811-06463 and 033-44611 | Invesco Distributors, Inc. | GLOPP-SAR-1 |
Semiannual Report to Shareholders | April 30, 2020 | |||
Invesco Global Responsibility Equity Fund | ||||
Effective June 29, 2020 Invesco Global Responsibility Equity Fund will be renamed Invesco MSCI World SRI Index Fund. | ||||
Nasdaq: | ||||
A: VSQAX ∎ C: VSQCX ∎ R: VSQRX ∎ Y: VSQYX ∎ R5: VSQFX ∎ R6: VSQSX |
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.
For the most current month-end Fund performance and commentary, please visit invesco.com/performance.
Unless otherwise noted, all data provided by Invesco.
This report must be accompanied or preceded by a currently effective Fund prospectus, which contains more complete information, including sales charges and expenses. Investors should read it carefully before investing.
NOT FDIC INSURED | MAY LOSE VALUE | NO BANK GUARANTEE |
Bruce Crockett |
Dear Fellow Shareholders: As independent chair of the Invesco Funds Board, I can assure you that the members of the Board are strong advocates for the interests of investors in Invesco’s mutual funds. We work hard to represent your interests through oversight of the quality of the investment management services your funds receive and other matters important to your investment. This includes but is not limited to: monitoring how the portfolio management teams of the Invesco funds are performing in light of changing economic and market conditions; assessing each portfolio management team’s investment performance within the context of the investment strategy described in the fund’s prospectus; and monitoring for potential conflicts of interests that may impact the nature of the services that your funds receive. | |
We believe one of the most important services we provide our fund shareholders is the annual review of the funds’ advisory and sub-advisory contracts with Invesco Advisers and its affiliates. This review is required by the Investment Company Act of 1940 and focuses on the nature and quality of the services Invesco provides as the adviser to the Invesco funds and the reasonableness of the fees that it | ||
charges for those services. Each year, we spend months carefully reviewing information received from Invesco and a variety of independent sources, such as performance and fee data prepared by Lipper Inc. (a subsidiary of Broadridge Financial Solutions, Inc.), an independent, third-party firm widely recognized as a leader in its field. We also meet with our independent legal counsel and other independent advisers to review and help us assess the information that we have received. Our goal is to assure that you receive quality investment management services for a reasonable fee. |
On behalf of the Board, we look forward to continuing to represent your interests and serving your needs.
Sincerely,
Bruce L. Crockett |
Independent Chair |
Invesco Funds Board of Trustees |
Andrew Schlossberg | Dear Shareholders: This semiannual report includes information about your Fund, including performance data and a complete list of its investments as of the close of the reporting period. Invesco’s efforts to help investors achieve their financial objectives include providing timely information about the markets, the economy and investing. Our website, invesco.com/us, offers a wide range of market insights and investment perspectives. On the website, you’ll find detailed information about our funds, including performance, holdings and portfolio manager commentaries. You can access information about your account by completing a simple, secure online registration. To do so, select “Log In” on the right side of the homepage, and then select “Register for Individual Account Access.” | |
In addition to the resources accessible on our website, you can obtain timely updates to help you stay informed by connecting with Invesco on Twitter, LinkedIn or Facebook. You can access our blog at blog.invesco.us.com. Our goal is to provide you with information you want, when and where you want it. | ||
For questions about your account, feel free to contact an Invesco client services representative at 800 959 4246. All of us at Invesco look forward to serving your investment management needs. Thank you for investing with us. |
Sincerely, |
Andrew Schlossberg |
Head of the Americas, |
Senior Managing Director, Invesco Ltd. |
2 Invesco Global Responsibility Equity Fund
Performance summary | ||||||
Fund vs. Indexes | ||||||
Cumulative total returns, October 31, 2019 to April 30, 2020, at net asset value (NAV). Performance shown does not include applicable contingent deferred sales charges (CDSC) or front-end sales charges, which would have reduced performance. |
| |||||
Class A Shares | -10.33 | % | ||||
Class C Shares | -10.61 | |||||
Class R Shares | -10.33 | |||||
Class Y Shares | -10.26 | |||||
Class R5 Shares | -10.18 | |||||
Class R6 Shares | -10.18 | |||||
MSCI World Indexq (Broad Market/Style-Specific Index) | -7.29 | |||||
Lipper Global Multi-Cap Core Funds Index∎ (Peer Group Index) | -9.42 | |||||
Source(s): qRIMES Technologies Corp.; ∎ Lipper Inc. | ||||||
The MSCI World IndexSM is an unmanaged index considered representative of stocks of developed countries. The index is computed using the net return, which withholds applicable taxes for non-resident investors. |
| |||||
The Lipper Global Multi-Cap Core Funds Index is an unmanaged index considered representative of global multicap core funds tracked by Lipper. The Fund is not managed to track the performance of any particular index, including the index(es) described here, and consequently, the performance of the Fund may deviate significantly from the performance of the index(es). |
| |||||
A direct investment cannot be made in an index. Unless otherwise indicated, index results include reinvested dividends, and they do not reflect sales charges. Performance of the peer group, if applicable, reflects fund expenses; performance of a market index does not. |
|
For more information about your Fund
Read the most recent quarterly commentary from your Fund’s portfolio managers by visiting invesco.com/us. Click on “Products” and select “Mutual Funds.” Use the “Product Finder” to locate your Fund; then click on its name to access its product detail page. There, you can learn more about your Fund’s investment strategies, holdings and performance. Also, visit blog.invesco.us.com, where many of Invesco’s investment professionals share their insights about market and economic news and trends. |
3 Invesco Global Responsibility Equity Fund
Average Annual Total Returns As of 4/30/20, including maximum applicable sales charges |
| |||
Class A Shares | ||||
Inception (7/1/16) | 1.50 | % | ||
1 Year | -15.93 | |||
Class C Shares | ||||
Inception (7/1/16) | 2.23 | % | ||
1 Year | -12.46 | |||
Class R Shares | ||||
Inception (7/1/16) | 2.75 | % | ||
1 Year | -11.15 | |||
Class Y Shares | ||||
Inception (7/1/16) | 3.24 | % | ||
1 Year | -10.78 | |||
Class R5 Shares | ||||
Inception (7/1/16) | 3.25 | % | ||
1 Year | -10.78 | |||
Class R6 Shares | ||||
Inception (7/1/16) | 3.25 | % | ||
1 Year | -10.78 |
The performance data quoted represent past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/ performance for the most recent month-end performance. Performance figures reflect reinvested distributions, changes in net asset value and the effect of the maximum sales charge unless otherwise stated. Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares. Investment return and principal value will fluctuate so that you may have a gain or loss when you sell shares.
Class A share performance reflects the maximum 5.50% sales charge, and Class C share performance reflects the applicable contingent deferred sales charge (CDSC) for the period involved. The CDSC on Class C shares is 1% for the first year after purchase. Class R, Class Y, Class R5 and Class R6 class shares do not have a front-end sales charge or a CDSC; therefore, performance is at net asset value.
The performance of the Fund’s share classes will differ primarily due to different sales charge structures and class expenses.
Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information.
4 Invesco Global Responsibility Equity Fund
Liquidity Risk Management Program
The Securities and Exchange Commission has adopted Rule 22e-4 under the Investment Company Act of 1940 (the “Liquidity Rule”) in order to promote effective liquidity risk management throughout the open-end investment company industry, thereby reducing the risk that funds will be unable to meet their redemption obligations and mitigating dilution of the interests of fund shareholders. The Fund has adopted and implemented a liquidity risk management program in accordance with the Liquidity Rule (the “Program”). The Program is reasonably designed to assess and manage the Fund’s liquidity risk, which is the risk that the Fund could not meet redemption requests without significant dilution of remaining investors’ interests in the Fund. The Board of Trustees of the Fund (the “Board”) has appointed Invesco Advisers, Inc. (“Invesco”), the Fund’s investment adviser, as the Program’s administrator, and Invesco has delegated oversight of the Program to the Liquidity Risk Management Committee (the “Committee”), which is composed of senior representatives from relevant business groups at Invesco.
As required by the Liquidity Rule, the Program includes policies and procedures providing for an assessment, no less frequently than annually, of the Fund’s liquidity risk that takes into account, as relevant to the Fund’s liquidity risk: (1) the Fund’s investment strategy and liquidity of portfolio investments during both normal and reasonably foreseeable stressed conditions; (2) short-term and long-term cash flow projections for the Fund during both normal and reasonably foreseeable stressed conditions; and (3) the Fund’s holdings of cash and cash equivalents and any borrowing arrangements. The Liquidity Rule also requires the classification of the Fund’s investments into categories that reflect the assessment of their relative liquidity under current market conditions. The Fund classifies its investments into one of four categories defined in the Liquidity Rule: “Highly Liquid,” “Moderately Liquid,” “Less Liquid” and “Illiquid.” Funds that are not invested primarily in “Highly Liquid Investments” that are assets (cash or investments that are reasonably expected to be convertible into cash within three business days without significantly changing the market value of the investment) are required to establish a “Highly Liquid Investment Minimum” (“HLIM”), which is the minimum percentage of net assets that must be invested in Highly Liquid Investments. Funds with HLIMs have procedures for addressing HLIM shortfalls, including reporting to the Board and the SEC (on a non-public basis) as required by the Program and the Liquidity Rule. In addition, the Fund may not acquire an investment if, immediately after the acquisition, over 15% of the Fund’s net assets would consist of “Illiquid Investments” that are assets (an investment that cannot reasonably be expected to be sold or disposed of in current market conditions in seven calendar days or less without the sale or disposition significantly changing the market value of the investment). The Liquidity Rule and the Program also require reporting to the Board and the SEC (on a non-public basis) if a Fund’s holdings of Illiquid Investments exceed 15% of the Fund’s assets.
At a meeting held on March 30-April 1, 2020, the Committee presented a report to the Board that addressed the operation of the Program and assessed the Program’s adequacy and effectiveness of implementation (the “Report”). The Report covered the period from December 1, 2018 through December 31, 2019 (the “Program Reporting Period”).
The Report stated, in relevant part, that during the Program Reporting Period:
∎ | The Program, as adopted and implemented, remained reasonably designed to assess and manage the Fund’s liquidity risk and was operated effectively to achieve that goal; |
∎ | The Fund’s investment strategy remained appropriate for an open-end fund; |
∎ | The Fund was able to meet requests for redemption without significant dilution of remaining investors’ interests in the Fund; |
∎ | The Fund did not breach the 15% limit on Illiquid Investments; and |
∎ | The Fund primarily held Highly Liquid Investments and therefore has not adopted an HLIM. |
5 Invesco Global Responsibility Equity Fund
April 30, 2020
(Unaudited)
Shares | Value | |||||
Common Stocks & Other Equity Interests-97.90% | ||||||
Australia-2.30% | ||||||
Fortescue Metals Group Ltd. | 15,288 | $ 117,185 | ||||
Magellan Financial Group Ltd. | 1,259 | 41,390 | ||||
Newcrest Mining Ltd. | 891 | 15,990 | ||||
174,565 | ||||||
Canada-5.60% | ||||||
CGI, Inc., Class A(a) | 467 | 29,783 | ||||
Hydro One Ltd.(b) | 5,986 | 108,543 | ||||
Intact Financial Corp. | 365 | 34,737 | ||||
Kinross Gold Corp.(a) | 6,877 | 45,404 | ||||
Magna International, Inc. | 454 | 17,691 | ||||
Manulife Financial Corp. | 2,092 | 26,346 | ||||
National Bank of Canada | 1,167 | 47,067 | ||||
Open Text Corp. | 1,405 | 53,093 | ||||
Royal Bank of Canada | 352 | 21,654 | ||||
SNC-Lavalin Group, Inc. | 890 | 16,413 | ||||
Thomson Reuters Corp.(a) | 347 | 24,448 | ||||
425,179 | ||||||
Denmark-0.69% | ||||||
Novo Nordisk A/S, Class B | 328 | 20,944 | ||||
Pandora A/S | 876 | 31,163 | ||||
52,107 | ||||||
France-3.51% | ||||||
Air Liquide S.A. | 152 | 19,357 | ||||
Alstom S.A. | 713 | 29,229 | ||||
BNP Paribas S.A. | 409 | 12,874 | ||||
Faurecia SE | 528 | 19,158 | ||||
Hermes International | 26 | 19,047 | ||||
L’Oreal S.A. | 164 | 47,728 | ||||
Peugeot S.A. | 1,548 | 22,217 | ||||
Publicis Groupe S.A. | 459 | 13,660 | ||||
Schneider Electric SE | 570 | 52,220 | ||||
Teleperformance | 66 | 14,802 | ||||
Ubisoft Entertainment S.A.(a) | 221 | 16,467 | ||||
266,759 | ||||||
Germany-1.35% | ||||||
HeidelbergCement AG | 765 | 36,500 | ||||
Merck KGaA | 568 | 66,203 | ||||
102,703 | ||||||
Hong Kong-1.10% | ||||||
HKT Trust & HKT Ltd. | 24,000 | 38,647 | ||||
WH Group Ltd. | 47,000 | 44,989 | ||||
83,636 | ||||||
Ireland-1.08% | ||||||
AerCap Holdings N.V.(a) | 916 | 25,758 | ||||
CRH PLC | 1,385 | 41,872 | ||||
CRH PLC | 474 | 14,347 | ||||
81,977 | ||||||
Israel-1.03% | ||||||
Bank Leumi Le-Israel BM | 2,690 | 14,605 |
Shares | Value | |||||
Israel-(continued) | ||||||
Teva Pharmaceutical Industries Ltd., | 5,955 | $ 63,957 | ||||
78,562 | ||||||
Italy-0.18% | ||||||
DiaSorin S.p.A. | 82 | 13,974 | ||||
Japan-10.01% | ||||||
AGC, Inc. | 3,600 | 89,721 | ||||
Ajinomoto Co., Inc. | 1,000 | 17,761 | ||||
Amada Co. Ltd. | 6,200 | 56,362 | ||||
Astellas Pharma, Inc. | 1,900 | 31,450 | ||||
Dai Nippon Printing Co. Ltd. | 4,800 | 101,716 | ||||
Fujitsu Ltd. | 300 | 29,227 | ||||
Hitachi Ltd. | 1,200 | 36,004 | ||||
Kao Corp. | 500 | 38,567 | ||||
Konica Minolta, Inc. | 8,400 | 32,687 | ||||
Mazda Motor Corp. | 3,700 | 20,923 | ||||
Nippon Electric Glass Co. Ltd. | 1,600 | 23,442 | ||||
Nissan Motor Co. Ltd. | 12,400 | 42,437 | ||||
Nomura Holdings, Inc. | 8,500 | 35,358 | ||||
Nomura Research Institute Ltd. | 1,300 | 31,629 | ||||
NTT DOCOMO, Inc. | 1,500 | 44,028 | ||||
Sekisui House Ltd. | 1,900 | 32,701 | ||||
Toppan Printing Co. Ltd. | 6,500 | 96,940 | ||||
760,953 | ||||||
Jordan-0.70% | ||||||
Hikma Pharmaceuticals PLC | 1,788 | 53,408 | ||||
Netherlands-1.74% | ||||||
ASM International N.V. | 396 | 43,667 | ||||
Signify N.V. | 760 | 15,520 | ||||
Wolters Kluwer N.V. | 995 | 73,259 | ||||
132,446 | ||||||
New Zealand-0.19% | ||||||
a2 Milk Co. Ltd.(a) | 1,210 | 14,226 | ||||
Norway-0.61% | ||||||
Orkla ASA | 2,618 | 23,725 | ||||
Yara International ASA | 668 | 22,823 | ||||
46,548 | ||||||
Sweden-3.31% | ||||||
Atlas Copco AB, Class A | 2,391 | 82,955 | ||||
Boliden AB | 718 | 14,700 | ||||
Essity AB, Class B | 1,854 | 60,238 | ||||
Getinge AB, Class B | 662 | 12,737 | ||||
Hennes & Mauritz AB, Class B | 3,443 | 47,922 | ||||
Skanska AB, Class B | 1,709 | 32,705 | ||||
251,257 | ||||||
Switzerland-5.15% | ||||||
Geberit AG | 64 | 28,742 | ||||
LafargeHolcim Ltd.(a) | 951 | 39,501 | ||||
Nestle S.A. | 700 | 73,945 | ||||
Novartis AG | 882 | 75,240 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
6 Invesco Global Responsibility Equity Fund
Shares | Value | |||||
Switzerland-(continued) | ||||||
Roche Holding AG | 138 | $ 48,001 | ||||
Roche Holding AG, BR | 297 | 103,414 | ||||
STMicroelectronics N.V. | 859 | 22,384 | ||||
391,227 | ||||||
United Kingdom-2.11% | ||||||
Auto Trader Group PLC(b) | 9,039 | 52,270 | ||||
GlaxoSmithKline PLC | 2,033 | 42,563 | ||||
Greggs PLC | 738 | 17,041 | ||||
Tate & Lyle PLC | 2,439 | 21,897 | ||||
United Utilities Group PLC | 1,377 | 15,663 | ||||
WPP PLC | 1,372 | 10,749 | ||||
160,183 | ||||||
United States-57.24% | ||||||
AbbVie, Inc. | 651 | 53,512 | ||||
Activision Blizzard, Inc. | 359 | 22,879 | ||||
AGCO Corp. | 419 | 22,140 | ||||
Akamai Technologies, Inc.(a) | 331 | 32,342 | ||||
Alexion Pharmaceuticals, Inc.(a) | 357 | 38,367 | ||||
Allstate Corp. (The) | 441 | 44,859 | ||||
Ally Financial, Inc. | 1,790 | 29,338 | ||||
Alphabet, Inc., Class C(a) | 91 | 122,728 | ||||
Amdocs Ltd. | 677 | 43,626 | ||||
Ameriprise Financial, Inc. | 278 | 31,953 | ||||
AmerisourceBergen Corp. | 485 | 43,485 | ||||
Amgen, Inc. | 79 | 18,898 | ||||
Apple, Inc. | 874 | 256,781 | ||||
Applied Materials, Inc. | 1,145 | 56,884 | ||||
Athene Holding Ltd., Class A(a) | 1,277 | 34,479 | ||||
AutoNation, Inc.(a) | 563 | 20,966 | ||||
AutoZone, Inc.(a) | 36 | 36,732 | ||||
Bank of America Corp. | 642 | 15,440 | ||||
Best Buy Co., Inc. | 691 | 53,020 | ||||
Biogen, Inc.(a) | 340 | 100,922 | ||||
Booking Holdings, Inc.(a) | 15 | 22,209 | ||||
Brixmor Property Group, Inc. | 1,734 | 19,854 | ||||
Cadence Design Systems, Inc.(a) | 764 | 61,983 | ||||
Campbell Soup Co. | 641 | 32,037 | ||||
Cardinal Health, Inc. | 780 | 38,594 | ||||
CenturyLink, Inc. | 4,068 | 43,202 | ||||
CF Industries Holdings, Inc. | 1,221 | 33,578 | ||||
Cisco Systems, Inc. | 1,022 | 43,312 | ||||
Citigroup, Inc. | 962 | 46,715 | ||||
Citrix Systems, Inc. | 110 | 15,951 | ||||
DaVita, Inc.(a) | 645 | 50,961 | ||||
DENTSPLY SIRONA, Inc. | 1,120 | 47,533 | ||||
Discovery, Inc., Class C(a) | 1,251 | 25,533 | ||||
Electronic Arts, Inc.(a) | 313 | 35,763 | ||||
Eli Lilly and Co. | 88 | 13,608 | ||||
Equity Residential | 743 | 48,340 | ||||
Essex Property Trust, Inc. | 228 | 55,655 | ||||
Expedia Group, Inc. | 187 | 13,273 | ||||
Facebook, Inc., Class A(a) | 363 | 74,310 | ||||
Ferguson PLC | 231 | 16,708 | ||||
Fifth Third Bancorp | 903 | 16,877 | ||||
FleetCor Technologies, Inc.(a) | 110 | 26,538 | ||||
Ford Motor Co.(a) | 9,182 | 46,736 | ||||
Fortinet, Inc.(a) | 201 | 21,656 |
Shares | Value | |||||
United States-(continued) | ||||||
General Mills, Inc. | 1,265 | $ 75,761 | ||||
General Motors Co.(a) | 1,994 | 44,446 | ||||
Gilead Sciences, Inc. | 958 | 80,472 | ||||
HCA Healthcare, Inc.(a) | 277 | 30,437 | ||||
Hershey Co. (The) | 242 | 32,048 | ||||
Hewlett Packard Enterprise Co. | 5,980 | 60,159 | ||||
Humana, Inc. | 58 | 22,146 | ||||
Incyte Corp.(a) | 440 | 42,970 | ||||
Ingredion, Inc. | 179 | 14,535 | ||||
Intel Corp. | 1,018 | 61,060 | ||||
International Business Machines Corp. | 129 | 16,197 | ||||
Interpublic Group of Cos., Inc. (The) | 856 | 14,535 | ||||
Jabil, Inc. | 743 | 21,131 | ||||
Johnson Controls International PLC | 1,366 | 39,764 | ||||
JPMorgan Chase & Co. | 1,237 | 118,455 | ||||
Kimberly-Clark Corp. | 515 | 71,317 | ||||
Lam Research Corp. | 151 | 38,547 | ||||
Leidos Holdings, Inc. | 671 | 66,302 | ||||
Lennar Corp., Class A | 361 | 18,075 | ||||
LKQ Corp.(a) | 528 | 13,807 | ||||
McKesson Corp. | 437 | 61,726 | ||||
MetLife, Inc. | 1,105 | 39,868 | ||||
Microsoft Corp. | 1,927 | 345,338 | ||||
Mid-America Apartment Communities, Inc. | 532 | 59,541 | ||||
Mondelez International, Inc., Class A | 1,521 | 78,240 | ||||
New York Community Bancorp, Inc. | 3,203 | 34,785 | ||||
NVIDIA Corp. | 51 | 14,906 | ||||
NVR, Inc.(a) | 5 | 15,500 | ||||
Old Dominion Freight Line, Inc. | 96 | 13,948 | ||||
Omnicom Group, Inc. | 546 | 31,138 | ||||
Oracle Corp. | 1,751 | 92,751 | ||||
Owens Corning | 389 | 16,867 | ||||
PACCAR, Inc. | 323 | 22,361 | ||||
Procter & Gamble Co. (The) | 1,180 | 139,087 | ||||
PulteGroup, Inc. | 1,490 | 42,122 | ||||
QUALCOMM, Inc. | 318 | 25,017 | ||||
Regeneron Pharmaceuticals, Inc.(a) | 35 | 18,406 | ||||
SBA Communications Corp., Class A | 254 | 73,640 | ||||
Seagate Technology PLC | 296 | 14,785 | ||||
Signature Bank | 231 | 24,759 | ||||
Synchrony Financial | 2,062 | 40,807 | ||||
Synopsys, Inc.(a) | 547 | 85,945 | ||||
Take-Two Interactive Software, Inc.(a) | 157 | 19,005 | ||||
TEGNA, Inc. | 1,364 | 14,622 | ||||
U.S. Bancorp | 962 | 35,113 | ||||
UnitedHealth Group, Inc. | 49 | 14,331 | ||||
Universal Health Services, Inc., Class B(a) | 110 | 11,626 | ||||
Unum Group | 937 | 16,351 | ||||
Vertex Pharmaceuticals, Inc.(a) | 56 | 14,067 | ||||
Western Union Co. (The) | 2,119 | 40,409 | ||||
Whirlpool Corp. | 144 | 16,091 | ||||
Xerox Holdings Corp. | 3,499 | 63,997 | ||||
4,349,590 | ||||||
Total Common Stocks & Other Equity Interests |
| 7,439,300 | ||||
Money Market Funds-2.02% | ||||||
Invesco Government & Agency Portfolio, Institutional Class, 0.20%(c)(d) | 52,631 | 52,631 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
7 Invesco Global Responsibility Equity Fund
Shares | Value | |||||
Money Market Funds-(continued) | ||||||
Invesco Liquid Assets Portfolio, Institutional | 41,043 | $ 41,068 | ||||
Invesco Treasury Portfolio, Institutional Class, 0.10%(c)(d) | 60,149 | 60,149 | ||||
Total Money Market Funds (Cost $153,800) | 153,848 | |||||
TOTAL INVESTMENTS IN SECURITIES-99.92% | 7,593,148 | |||||
OTHER ASSETS LESS LIABILITIES-0.08% | 6,046 | |||||
NET ASSETS-100.00% | $7,599,194 |
Investment Abbreviations: | ||
ADR | – American Depositary Receipt | |
BR | – Bearer Shares |
Notes to Schedule of Investments:
(a) | Non-income producing security. |
(b) | Security purchased or received in a transaction exempt from registration under the Securities Act of 1933, as amended (the “1933 Act”). The security may be resold pursuant to an exemption from registration under the 1933 Act, typically to qualified institutional buyers. The aggregate value of these securities at April 30, 2020 was $160,813, which represented 2.12% of the Fund’s Net Assets. |
(c) | Affiliated issuer. The issuer and/or the Fund is a wholly-owned subsidiary of Invesco Ltd., or is affiliated by having an investment adviser that is under common control of Invesco Ltd. The table below shows the Fund’s transactions in, and earnings from, its investments in affiliates for the six months ended April 30, 2020. |
Value October 31, 2019 | Purchases at Cost | Proceeds from Sales | Change in Unrealized Appreciation | Realized Gain (Loss) | Value April 30, 2020 | Dividend Income | ||||||||||||||||||||||||||
Investments in Affiliated Money Market Funds: | ||||||||||||||||||||||||||||||||
Invesco Government & Agency Portfolio, Institutional Class | $ | 35,294 | $ | 484,315 | $ | (466,978 | ) | $ | - | $ | - | $ | 52,631 | $ 332 | ||||||||||||||||||
Invesco Liquid Assets Portfolio, Institutional Class | 25,232 | 346,633 | (330,830 | ) | 45 | (12 | ) | 41,068 | 389 | |||||||||||||||||||||||
Invesco Treasury Portfolio, Institutional Class | 40,335 | 553,503 | (533,689 | ) | - | - | 60,149 | 367 | ||||||||||||||||||||||||
Total | $ | 100,861 | $ | 1,384,451 | $ | (1,331,497 | ) | $ | 45 | $ | (12 | ) | $ | 153,848 | $1,088 |
(d) | The rate shown is the 7-day SEC standardized yield as of April 30, 2020. |
Portfolio Composition
By sector, based on Net Assets
as of April 30, 2020
Information Technology | 23.79 | % | ||
Health Care | 16.24 | |||
Industrials | 11.48 | |||
Consumer Staples | 10.35 | |||
Financials | 10.05 | |||
Consumer Discretionary | 8.07 | |||
Communication Services | 7.63 | |||
Materials | 5.28 | |||
Real Estate | 3.38 | |||
Other Sectors, Each Less than 2% of Net Assets | 1.63 | |||
Money Market Funds Plus Other Assets Less Liabilities | 2.10 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
8 Invesco Global Responsibility Equity Fund
Statement of Assets and Liabilities
April 30, 2020
(Unaudited)
Assets: | ||||
Investments in securities, at value | $ | 7,439,300 | ||
| ||||
Investments in affiliated money market funds, at value | 153,848 | |||
| ||||
Cash | 875 | |||
| ||||
Foreign currencies, at value | 2,403 | |||
| ||||
Receivable for: | ||||
Investments sold | 26,329 | |||
| ||||
Fund shares sold | 6,053 | |||
| ||||
Dividends | 20,175 | |||
| ||||
Investment for trustee deferred compensation and retirement plans | 9,934 | |||
| ||||
Other assets | 21,667 | |||
| ||||
Total assets | 7,680,584 | |||
| ||||
Liabilities: | ||||
Payable for: | ||||
Investments purchased | 17,076 | |||
| ||||
Fund shares reacquired | 206 | |||
| ||||
Accrued fees to affiliates | 13,568 | |||
| ||||
Accrued trustees’ and officers’ fees and benefits | 374 | |||
| ||||
Accrued other operating expenses | 40,232 | |||
| ||||
Trustee deferred compensation and retirement plans | 9,934 | |||
| ||||
Total liabilities | 81,390 | |||
| ||||
Net assets applicable to shares outstanding | $ | 7,599,194 | ||
| ||||
Net assets consist of: | ||||
Shares of beneficial interest | $ | 8,786,049 | ||
| ||||
Distributable earnings (loss) | (1,186,855 | ) | ||
| ||||
$ | 7,599,194 | |||
|
Net Assets: | ||||
Class A | $ | 1,032,997 | ||
| ||||
Class C | $ | 187,964 | ||
| ||||
Class R | $ | 183,651 | ||
| ||||
Class Y | $ | 486,131 | ||
| ||||
Class R5 | $ | 19,066 | ||
| ||||
Class R6 | $ | 5,689,385 | ||
| ||||
Shares outstanding, no par value, with an unlimited number of shares authorized: |
| |||
Class A | 98,644 | |||
| ||||
Class C | 18,059 | |||
| ||||
Class R | 17,582 | |||
| ||||
Class Y | 46,279 | |||
| ||||
Class R5 | 1,815 | |||
| ||||
Class R6 | 541,605 | |||
| ||||
Class A: | ||||
Net asset value per share | $ | 10.47 | ||
| ||||
Maximum offering price per share | $ | 11.08 | ||
| ||||
Class C: | ||||
Net asset value and offering price per share | $ | 10.41 | ||
| ||||
Class R: | ||||
Net asset value and offering price per share | $ | 10.45 | ||
| ||||
Class Y: | ||||
Net asset value and offering price per share | $ | 10.50 | ||
| ||||
Class R5: | ||||
Net asset value and offering price per share | $ | 10.50 | ||
| ||||
Class R6: | ||||
Net asset value and offering price per share | $ | 10.50 | ||
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
9 Invesco Global Responsibility Equity Fund
Statement of Operations
For the six months ended April 30, 2020
(Unaudited)
Investment income: | ||||
Dividends (net of foreign withholding taxes of $4,829) | $ | 96,200 | ||
| ||||
Dividends from affiliated money market funds | 1,088 | |||
| ||||
Total investment income | 97,288 | |||
| ||||
Expenses: | ||||
Advisory fees | 27,749 | |||
| ||||
Administrative services fees | 619 | |||
| ||||
Custodian fees | 1,933 | |||
| ||||
Distribution fees: | ||||
Class A | 1,906 | |||
| ||||
Class C | 1,118 | |||
| ||||
Class R | 196 | |||
| ||||
Transfer agent fees – A, C, R and Y | 4,407 | |||
| ||||
Transfer agent fees – R5 | 6 | |||
| ||||
Transfer agent fees – R6 | 552 | |||
| ||||
Trustees’ and officers’ fees and benefits | 7,829 | |||
| ||||
Registration and filing fees | 34,744 | |||
| ||||
Reports to shareholders | 5,967 | |||
| ||||
Professional services fees | 24,286 | |||
| ||||
Other | 99 | |||
| ||||
Total expenses | 111,411 | |||
| ||||
Less: Fees waived, expenses reimbursed and/or expense offset arrangement(s) | (82,666 | ) | ||
| ||||
Net expenses | 28,745 | |||
| ||||
Net investment income | 68,543 | |||
| ||||
Realized and unrealized gain (loss) from: | ||||
Net realized gain (loss) from: | ||||
Investment securities | (197,740 | ) | ||
| ||||
Foreign currencies | 1,076 | |||
| ||||
(196,664 | ) | |||
| ||||
Change in net unrealized appreciation (depreciation) of: | ||||
Investment securities | (865,419 | ) | ||
| ||||
Foreign currencies | 159 | |||
| ||||
(865,260 | ) | |||
| ||||
Net realized and unrealized gain (loss) | (1,061,924 | ) | ||
| ||||
Net increase (decrease) in net assets resulting from operations | $ | (993,381 | ) | |
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
10 Invesco Global Responsibility Equity Fund
Statement of Changes in Net Assets
For the six months ended April 30, 2020 and the year ended October 31, 2019
(Unaudited)
April 30, 2020 | October 31, 2019 | |||||||
| ||||||||
Operations: | ||||||||
Net investment income | $ | 68,543 | $ | 144,906 | ||||
| ||||||||
Net realized gain (loss) | (196,664 | ) | (593,308 | ) | ||||
| ||||||||
Change in net unrealized appreciation (depreciation) | (865,260 | ) | 759,146 | |||||
| ||||||||
Net increase (decrease) in net assets resulting from operations | (993,381 | ) | 310,744 | |||||
| ||||||||
Distributions to shareholders from distributable earnings: | ||||||||
Class A | (27,377 | ) | (31,300 | ) | ||||
| ||||||||
Class C | (2,218 | ) | (1,884 | ) | ||||
| ||||||||
Class R | (492 | ) | (685 | ) | ||||
| ||||||||
Class Y | (9,964 | ) | (11,925 | ) | ||||
| ||||||||
Class R5 | (389 | ) | (508 | ) | ||||
| ||||||||
Class R6 | (118,725 | ) | (178,903 | ) | ||||
| ||||||||
Total distributions from distributable earnings | (159,165 | ) | (225,205 | ) | ||||
| ||||||||
Share transactions-net: | ||||||||
Class A | (153,351 | ) | 78,189 | |||||
| ||||||||
Class C | (28,309 | ) | 72,486 | |||||
| ||||||||
Class R | 157,624 | 3,239 | ||||||
| ||||||||
Class Y | 18,963 | 69,956 | ||||||
| ||||||||
Class R5 | 419 | 1,723 | ||||||
| ||||||||
Class R6 | 72,828 | (551,637 | ) | |||||
| ||||||||
Net increase (decrease) in net assets resulting from share transactions | 68,174 | (326,044 | ) | |||||
| ||||||||
Net increase (decrease) in net assets | (1,084,372 | ) | (240,505 | ) | ||||
| ||||||||
Net assets: | ||||||||
Beginning of period | 8,683,566 | 8,924,071 | ||||||
| ||||||||
End of period | $ | 7,599,194 | $ | 8,683,566 | ||||
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
11 Invesco Global Responsibility Equity Fund
(Unaudited)
The following schedule presents financial highlights for a share of the Fund outstanding throughout the periods indicated.
Net asset value, beginning of period | Net investment income(a) | Net gains on securities | Total from investment operations | Dividends from net investment income | Distributions from net realized gains | Total distributions | Net asset value, end of period | Total return (b) | Net assets, end of period (000’s omitted) | Ratio of net assets | Ratio of expenses to average net assets without fee waivers and/or expenses absorbed | Ratio of net to average | Portfolio turnover (c) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 04/30/20 | $ | 11.86 | $ | 0.08 | $ | (1.28 | ) | $ | (1.20 | ) | $ | (0.19 | ) | $ | - | $ | (0.19 | ) | $ | 10.47 | (10.33 | )% | $ | 1,033 | 0.85 | %(d) | 3.05 | %(d) | 1.43 | %(d) | 33 | % | ||||||||||||||||||||||||||||||||||||||
Year ended 10/31/19 | 11.76 | 0.17 | 0.21 | 0.38 | (0.18 | ) | (0.10 | ) | (0.28 | ) | 11.86 | 3.48 | 1,483 | 0.85 | 3.58 | 1.51 | 116 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/18 | 12.91 | 0.17 | (0.85 | ) | (0.68 | ) | (0.09 | ) | (0.38 | ) | (0.47 | ) | 11.76 | (5.55 | ) | 1,387 | 0.84 | 3.94 | 1.33 | 89 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/17 | 10.45 | 0.14 | 2.39 | 2.53 | (0.06 | ) | (0.01 | ) | (0.07 | ) | 12.91 | 24.36 | 531 | 0.84 | 9.90 | 1.16 | 69 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/16(e) | 10.17 | 0.04 | 0.24 | 0.28 | - | - | - | 10.45 | 2.75 | 46 | 0.84 | (f) | 31.57 | (f) | 1.13 | (f) | 18 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Class C | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 04/30/20 | 11.75 | 0.04 | (1.27 | ) | (1.23 | ) | (0.11 | ) | - | (0.11 | ) | 10.41 | (10.61 | ) | 188 | 1.60 | (d) | 3.80 | (d) | 0.68 | (d) | 33 | ||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/19 | 11.63 | 0.09 | 0.20 | 0.29 | (0.07 | ) | (0.10 | ) | (0.17 | ) | 11.75 | 2.66 | 243 | 1.60 | 4.33 | 0.76 | 116 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/18 | 12.83 | 0.07 | (0.84 | ) | (0.77 | ) | (0.05 | ) | (0.38 | ) | (0.43 | ) | 11.63 | (6.27 | ) | 166 | 1.59 | 4.69 | 0.58 | 89 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/17 | 10.42 | 0.05 | 2.39 | 2.44 | (0.02 | ) | (0.01 | ) | (0.03 | ) | 12.83 | 23.49 | 124 | 1.59 | 10.65 | 0.41 | 69 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/16(e) | 10.17 | 0.01 | 0.24 | 0.25 | - | - | - | 10.42 | 2.46 | 10 | 1.59 | (f) | 32.32 | (f) | 0.38 | (f) | 18 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Class R | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 04/30/20 | 11.81 | 0.06 | (1.26 | ) | (1.20 | ) | (0.16 | ) | - | (0.16 | ) | 10.45 | (10.33 | ) | 184 | 1.10 | (d) | 3.30 | (d) | 1.18 | (d) | 33 | ||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/19 | 11.71 | 0.15 | 0.20 | 0.35 | (0.15 | ) | (0.10 | ) | (0.25 | ) | 11.81 | 3.17 | 35 | 1.10 | 3.83 | 1.26 | 116 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/18 | 12.88 | 0.14 | (0.85 | ) | (0.71 | ) | (0.08 | ) | (0.38 | ) | (0.46 | ) | 11.71 | (5.82 | ) | 32 | 1.09 | 4.19 | 1.08 | 89 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/17 | 10.44 | 0.11 | 2.39 | 2.50 | (0.05 | ) | (0.01 | ) | (0.06 | ) | 12.88 | 24.04 | 13 | 1.09 | 10.15 | 0.91 | 69 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/16(e) | 10.17 | 0.03 | 0.24 | 0.27 | - | - | - | 10.44 | 2.65 | 10 | 1.09 | (f) | 31.82 | (f) | 0.88 | (f) | 18 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Class Y | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 04/30/20 | 11.91 | 0.10 | (1.29 | ) | (1.19 | ) | (0.22 | ) | - | (0.22 | ) | 10.50 | (10.26 | ) | 486 | 0.60 | (d) | 2.80 | (d) | 1.68 | (d) | 33 | ||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/19 | 11.80 | 0.20 | 0.22 | 0.42 | (0.21 | ) | (0.10 | ) | (0.31 | ) | 11.91 | 3.80 | 522 | 0.60 | 3.33 | 1.76 | 116 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/18 | 12.94 | 0.20 | (0.86 | ) | (0.66 | ) | (0.10 | ) | (0.38 | ) | (0.48 | ) | 11.80 | (5.39 | ) | 446 | 0.59 | 3.69 | 1.58 | 89 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/17 | 10.46 | 0.17 | 2.39 | 2.56 | (0.07 | ) | (0.01 | ) | (0.08 | ) | 12.94 | 24.67 | 189 | 0.59 | 9.65 | 1.41 | 69 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/16(e) | 10.17 | 0.05 | 0.24 | 0.29 | - | - | - | 10.46 | 2.85 | 42 | 0.59 | (f) | 31.32 | (f) | 1.38 | (f) | 18 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Class R5 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 04/30/20 | 11.90 | 0.10 | (1.28 | ) | (1.18 | ) | (0.22 | ) | - | (0.22 | ) | 10.50 | (10.18 | ) | 19 | 0.60 | (d) | 2.48 | (d) | 1.68 | (d) | 33 | ||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/19 | 11.80 | 0.20 | 0.21 | 0.41 | (0.21 | ) | (0.10 | ) | (0.31 | ) | 11.90 | 3.71 | 21 | 0.60 | 2.95 | 1.76 | 116 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/18 | 12.94 | 0.20 | (0.86 | ) | (0.66 | ) | (0.10 | ) | (0.38 | ) | (0.48 | ) | 11.80 | (5.39 | ) | 19 | 0.59 | 3.47 | 1.58 | 89 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/17 | 10.46 | 0.17 | 2.39 | 2.56 | (0.07 | ) | (0.01 | ) | (0.08 | ) | 12.94 | 24.67 | 21 | 0.59 | 9.28 | 1.41 | 69 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/16(e) | 10.17 | 0.05 | 0.24 | 0.29 | - | - | - | 10.46 | 2.85 | 10 | 0.59 | (f) | 29.53 | (f) | 1.38 | (f) | 18 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Class R6 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 04/30/20 | 11.90 | 0.10 | (1.28 | ) | (1.18 | ) | (0.22 | ) | - | (0.22 | ) | 10.50 | (10.18 | ) | 5,689 | 0.60 | (d) | 2.44 | (d) | 1.68 | (d) | 33 | ||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/19 | 11.80 | 0.20 | 0.21 | 0.41 | (0.21 | ) | (0.10 | ) | (0.31 | ) | 11.90 | 3.71 | 6,379 | 0.60 | 2.91 | 1.76 | 116 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/18 | 12.94 | 0.20 | (0.86 | ) | (0.66 | ) | (0.10 | ) | (0.38 | ) | (0.48 | ) | 11.80 | (5.39 | ) | 6,875 | 0.59 | 3.42 | 1.58 | 89 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/17 | 10.46 | 0.17 | 2.39 | 2.56 | (0.07 | ) | (0.01 | ) | (0.08 | ) | 12.94 | 24.67 | 4,935 | 0.59 | 9.28 | 1.41 | 69 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/16(e) | 10.17 | 0.05 | 0.24 | 0.29 | - | - | - | 10.46 | 2.85 | 1,353 | 0.59 | (f) | 29.53 | (f) | 1.38 | (f) | 18 |
(a) | Calculated using average shares outstanding. |
(b) | Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Does not include sales charges and is not annualized for periods less than one year, if applicable. |
(c) | Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable. |
(d) | Ratios are annualized and based on average daily net assets (000’s omitted) of $1,533, $225, $79, $494, $21 and $6,234 for Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares, respectively. |
(e) | Commencement date of July 1, 2016. |
(f) | Annualized. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
12 Invesco Global Responsibility Equity Fund
April 30, 2020
(Unaudited)
NOTE 1–Significant Accounting Policies
Invesco Global Responsibility Equity Fund (the “Fund”) is a series portfolio of AIM International Mutual Funds (Invesco International Mutual 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 the Fund or each class.
The Fund’s investment objective is long-term growth of capital.
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. 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. |
A security listed or traded on an exchange (except convertible securities) is valued at its last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded, or lacking any sales or official closing price on a particular day, the security may be valued at the closing bid price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued by an independent pricing service they may be considered fair valued. Futures contracts are valued at the final settlement price set by an exchange on which they are principally traded. Listed options are valued at the mean between the last bid and asked prices from the exchange on which they are principally traded. Options not listed on an exchange are valued by an independent source at the mean between the last bid and asked prices. For purposes of determining net asset value (“NAV”) per share, futures and option contracts generally are valued 15 minutes after the close of the customary trading session of the New York Stock Exchange (“NYSE”).
Investments in open-end and closed-end registered investment companies that do not trade on an exchange are valued at the end-of-day net asset value per share. Investments in open-end and closed-end registered investment companies that trade on an exchange are valued at the last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded.
Debt obligations (including convertible securities) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. Pricing services generally value debt obligations assuming orderly transactions of institutional round lot size, but a fund may hold or transact in the same securities in smaller, odd lot sizes. Odd lots often trade at lower prices than institutional round lots. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.
Foreign securities’ (including foreign exchange contracts) prices are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the NYSE. If market quotations are available and reliable for foreign exchange-traded equity securities, the securities will be valued at the market quotations. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become unreliable. If between the time trading ends on a particular security and the close of the customary trading session on the NYSE, events occur that the investment adviser determines are significant and make the closing price unreliable, the Fund may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith using procedures approved by the Board of Trustees. Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities’ prices meeting the approved degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economic upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.
Securities for which market prices are not provided by any of the above methods may be valued based upon quotes furnished by independent sources. The last bid price may be used to value equity securities. The mean between the last bid and asked prices is used to value debt obligations, including corporate loans.
Securities for which market quotations are not readily available or became unreliable are valued at fair value as determined in good faith by or under the supervision of the Trust’s officers following procedures approved by the Board of Trustees. Issuer specific events, market trends, bid/asked quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security’s fair value.
The Fund may invest in securities that are subject to interest rate risk, meaning the risk that the prices will generally fall as interest rates rise and, conversely, the prices will generally rise as interest rates fall. Specific securities differ in their sensitivity to changes in interest rates depending on their individual characteristics. Changes in interest rates may result in increased market volatility, which may affect the value and/or liquidity of certain Fund investments.
Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the issuer’s assets, general market conditions which are not specifically related to the particular issuer, such as real or perceived adverse economic conditions, changes in the general outlook for revenues or corporate earnings, changes in interest or currency rates, regional or global instability, natural or environmental disasters, widespread disease or other public health issues, war, acts of terrorism or adverse investor sentiment generally and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
B. | Securities Transactions and Investment Income – Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income (net of withholding tax, if any) is recorded on an accrual basis from settlement date. Dividend income (net of withholding tax, if any) is recorded on the ex-dividend date. |
The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Statement of Operations as realized gain (loss) for investments no longer held and as unrealized gain (loss) for investments still held.
Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of net realized and unrealized gain (loss) from investment
13 Invesco Global Responsibility Equity Fund
securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the net realized and unrealized gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and the Statement of Changes in Net Assets, or the net investment income per share and the ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.
The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class.
C. | Country Determination - For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues and the country that has the primary market for the issuer’s securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted. |
D. | Distributions - Distributions from net investment income and net realized capital gain, if any, are generally declared and paid annually and recorded on the ex-dividend date. The Fund may elect to treat a portion of the proceeds from redemptions as distributions for federal income tax purposes. |
E. | Federal Income Taxes - The Fund intends to comply with the requirements of Subchapter M of the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”), necessary to qualify as a regulated investment company and to distribute substantially all of the Fund’s taxable earnings to shareholders. As such, the Fund will not be subject to federal income taxes on otherwise taxable income (including net realized capital gain) that is distributed to shareholders. Therefore, no provision for federal income taxes is recorded in the financial statements. |
The Fund recognizes the tax benefits of uncertain tax positions only when the position is more likely than not to be sustained. Management has analyzed the Fund’s uncertain tax positions and concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions. Management is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the next 12 months.
The Fund files tax returns in the U.S. Federal jurisdiction and certain other jurisdictions. Generally, the Fund is subject to examinations by such taxing authorities for up to three years after the filing of the return for the tax period.
F. | Expenses - Fees provided for under the Rule 12b-1 plan of a particular class of the Fund 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 preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print. |
H. | Indemnifications - Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of the performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements, that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote. |
I. | Foreign Currency Translations - Foreign currency is valued at the close of the NYSE based on quotations posted by banks and major currency dealers. Portfolio securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at the date of valuation. Purchases and sales of portfolio securities (net of foreign taxes withheld on disposition) and income items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. The Fund does not separately account for the portion of the results of operations resulting from changes in foreign exchange rates on investments and the fluctuations arising from changes in market prices of securities held. The combined results of changes in foreign exchange rates and the fluctuation of market prices on investments (net of estimated foreign tax withholding) are included with the net realized and unrealized gain or loss from investments in the Statement of Operations. Reported net realized foreign currency gains or losses arise from (1) sales of foreign currencies, (2) currency gains or losses realized between the trade and settlement dates on securities transactions, and (3) the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign currency gains and losses arise from changes in the fair values of assets and liabilities, other than investments in securities at fiscal period end, resulting from changes in exchange rates. |
The Fund may invest in foreign securities, which may be subject to foreign taxes on income, gains on investments or currency repatriation, a portion of which may be recoverable. Foreign taxes, if any, are recorded based on the tax regulations and rates that exist in the foreign markets in which the Fund invests and are shown in the Statement of Operations.
J. | Forward Foreign Currency Contracts - The Fund may engage in foreign currency transactions either on a spot (i.e. for prompt delivery and settlement) basis, or through forward foreign currency contracts, to manage or minimize currency or exchange rate risk. |
The Fund may also enter into forward foreign currency contracts for the purchase or sale of a security denominated in a foreign currency in order to “lock in” the U.S. dollar price of that security, or the Fund may also enter into forward foreign currency contracts that do not provide for physical settlement of the two currencies, but instead are settled by a single cash payment calculated as the difference between the agreed upon exchange rate and the spot rate at settlement based upon an agreed upon notional amount (non-deliverable forwards). The Fund will set aside liquid assets in an amount equal to the daily mark-to-market obligation for forward foreign currency contracts.
A forward foreign currency contract is an obligation between two parties (“Counterparties”) to purchase or sell a specific currency for an agreed-upon price at a future date. The use of forward foreign currency contracts does not eliminate fluctuations in the price of the underlying securities the Fund owns or intends to acquire but establishes a rate of exchange in advance. Fluctuations in the value of these contracts are measured by the difference in the contract date and reporting date exchange rates and are recorded as unrealized appreciation (depreciation) until the contracts are closed. When the contracts are closed, realized gains (losses) are recorded. Realized and unrealized gains (losses) on the contracts are included in the Statement of Operations. The primary risks associated with forward foreign currency contracts include failure of the Counterparty to meet the terms of the contract and the value of the foreign currency changing unfavorably. These risks may be in excess of the amounts reflected in the Statement of Assets and Liabilities.
14 Invesco Global Responsibility Equity Fund
NOTE 2–Advisory Fees and Other Fees Paid to Affiliates
The Trust has entered into a master investment advisory agreement with Invesco Advisers, Inc. (the “Adviser” or “Invesco”). Under the terms of the investment advisory agreement, the Fund accrues daily and pays monthly an advisory fee to the Adviser based on the annual rate of the Fund’s average daily net assets as follows:
Average Daily Net Assets | Rate | |
First $ 25 million | 0.650% | |
Over $25 million | 0.600% |
For the six months ended April 30, 2020, the effective advisory fee rate incurred by the Fund was 0.65%.
Under the terms of a master sub-advisory agreement between the Adviser and each of Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Canada Ltd. and separate sub-advisory agreements with Invesco Capital Management LLC and Invesco Asset Management (India) Private Limited (collectively, the “Affiliated Sub-Advisers”) the Adviser, not the Fund, will pay 40% of the fees paid to the Adviser to any such Affiliated Sub-Adviser(s) that provide(s) discretionary investment management services to the Fund based on the percentage of assets allocated to such Affiliated Sub-Adviser(s).
The Adviser has contractually agreed, through at least June 28,2020, to waive advisory fees and/or reimburse expenses to the extent necessary to limit 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 0.85%, 1.60%, 1.10%, 0.60%, 0.60%, and 0.60%, respectively, of average daily net assets (the “expense limits”). In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause the total annual fund operating expenses after fee waiver and/or expense reimbursement to exceed the numbers reflected above: (1) interest; (2) taxes; (3) dividend expense on short sales; (4) extraordinary or non-routine items, litigation expenses; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Unless Invesco continues the fee waiver agreement, it will terminate on June 28, 2020. During its term, the fee waiver agreement cannot be terminated or amended to increase the expense limits or reduce the advisory fee waiver without approval of the Board of Trustees. To the extent that the annualized expense ratio does not exceed the expense limit, the Adviser will retain its ability to be reimbursed for such fee waivers or reimbursements prior to the end of each fiscal year.
Further, the Adviser has contractually agreed, through at least June 30, 2022, to waive the advisory fee payable by the Fund in an amount equal to 100% of the net advisory fees the Adviser receives from the affiliated money market funds on investments by the Fund of uninvested cash in such affiliated money market funds.
For the six months ended April 30, 2020, the Adviser waived advisory fees of $27,842, reimbursed fund level expenses of $49,787 and reimbursed class level expenses of $2,900, $425, $148, $935, $2 and $553 of Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares, respectively.
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 April 30, 2020, expenses incurred under the agreement are shown in the Statement of Operations as Administrative services fees. Invesco has entered into a sub-administration agreement whereby State Street Bank and Trust Company (“SSB”) serves as fund accountant and provides certain administrative services to the Fund. Pursuant to a custody agreement with the Trust on behalf of the Fund, SSB also serves as the Fund’s custodian.
The Trust has entered into a transfer agency and service agreement with Invesco Investment Services, Inc. (“IIS”) pursuant to which the Fund has agreed to pay IIS a fee for providing transfer agency and shareholder services to the Fund and reimburse IIS for certain expenses incurred by IIS in the course of providing such services. IIS may make payments to intermediaries that provide omnibus account services, sub-accounting services and/or networking services. All fees payable by IIS to intermediaries that provide omnibus account services or sub-accounting services are charged back to the Fund, subject to certain limitations approved by the Trust’s Board of Trustees. For the six months ended April 30, 2020, expenses incurred under the agreement are shown in the Statement of Operations as Transfer 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 “Plans”). The Fund, pursuant to the Plans, pays IDI compensation at the annual rate of 0.25% of the Fund’s average daily net assets of Class A shares, 1.00% of the average daily net assets of Class C shares 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 Plans 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. For the six-month period ended April 30, 2020, expenses incurred under the Plans are shown in the Statement of Operations as Distribution fees.
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 April 30, 2020, IDI advised the Fund that IDI retained $0 in front-end sales commissions from the sale of Class A shares and $0 and $119 from Class A and Class C shares, respectively, for CDSC imposed upon redemptions by shareholders.
Certain officers and trustees of the Trust are officers and directors of the Adviser, IIS and/or IDI.
NOTE 3–Additional Valuation Information
GAAP defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, under current market conditions. GAAP establishes a hierarchy that prioritizes the inputs to valuation methods, giving the highest priority to readily available unadjusted quoted prices in an active market for identical assets (Level 1) and the lowest priority to significant unobservable inputs (Level 3), generally when market prices are not readily available or are unreliable. Based on the valuation inputs, the securities or other investments are tiered into one of three levels. Changes in valuation methods may result in transfers in or out of an investment’s assigned level:
Level 1 | - | Prices are determined using quoted prices in an active market for identical assets. | ||
Level 2 | - | Prices are determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk, yield curves, loss severities, default rates, discount rates, volatilities and others. | ||
Level 3 | - | Prices are determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Fund’s own assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information. |
The following is a summary of the tiered valuation input levels, as of April 30, 2020. The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
15 Invesco Global Responsibility Equity Fund
Level 1 | Level 2 | Level 3 | Total | |||||||||||
Investments in Securities | ||||||||||||||
Australia | $ | - | $ | 174,565 | $- | $ 174,565 | ||||||||
Canada | 425,179 | - | - | 425,179 | ||||||||||
Denmark | - | 52,107 | - | 52,107 | ||||||||||
France | - | 266,759 | - | 266,759 | ||||||||||
Germany | - | 102,703 | - | 102,703 | ||||||||||
Hong Kong | - | 83,636 | - | 83,636 | ||||||||||
Ireland | 25,758 | 56,219 | - | 81,977 | ||||||||||
Israel | 63,957 | 14,605 | - | 78,562 | ||||||||||
Italy | - | 13,974 | - | 13,974 | ||||||||||
Japan | - | 760,953 | - | 760,953 | ||||||||||
Jordan | - | 53,408 | - | 53,408 | ||||||||||
Netherlands | - | 132,446 | - | 132,446 | ||||||||||
New Zealand | - | 14,226 | - | 14,226 | ||||||||||
Norway | - | 46,548 | - | 46,548 | ||||||||||
Sweden | - | 251,257 | - | 251,257 | ||||||||||
Switzerland | - | 391,227 | - | 391,227 | ||||||||||
United Kingdom | - | 160,183 | - | 160,183 | ||||||||||
United States | 4,332,882 | 16,708 | - | 4,349,590 | ||||||||||
Money Market Funds | 153,848 | - | - | 153,848 | ||||||||||
Total Investments | $ | 5,001,624 | $ | 2,591,524 | $- | $7,593,148 |
NOTE 4–Expense Offset Arrangement(s)
The expense offset arrangement is comprised of transfer agency credits which result from balances in demand deposit accounts used by the transfer agent for clearing shareholder transactions. For the six months ended April 30, 2020, the Fund received credits from this arrangement, which resulted in the reduction of the Fund’s total expenses of $74.
NOTE 5–Trustees’ and Officers’ Fees and Benefits
Trustees’ and Officers’ Fees and Benefits include amounts accrued by the Fund to pay remuneration to certain Trustees and Officers of the Fund. Trustees have the option to defer compensation payable by the Fund, and Trustees’ and Officers’ Fees and Benefits also include amounts accrued by the Fund to fund such deferred compensation amounts. Those Trustees who defer compensation have the option to select various Invesco Funds in which their deferral accounts shall be deemed to be invested. Obligations under the deferred compensation plan represent unsecured claims against the general assets of the Fund.
NOTE 6–Cash Balances
The Fund is permitted to temporarily carry a negative or overdrawn balance in its account with SSB, the custodian bank. Such balances, if any at period-end, are shown in the Statement of Assets and Liabilities under the payable caption Amount due custodian. To compensate the custodian bank for such overdrafts, the overdrawn Fund may either (1) leave funds as a compensating balance in the account so the custodian bank can be compensated by earning the additional interest; or (2) compensate by paying the custodian bank at a rate agreed upon by the custodian bank and Invesco, not to exceed the contractually agreed upon rate. The Fund may not purchase additional securities when any borrowings from banks or broker-dealers exceed 5% of the Fund’s total assets, or when any borrowings from an Invesco Fund are outstanding.
NOTE 7–Tax Information
The amount and character of income and gains to be distributed are determined in accordance with income tax regulations, which may differ from GAAP.
Reclassifications are made to the Fund’s capital accounts to reflect income and gains available for distribution (or available capital loss carryforward) under income tax regulations. The tax character of distributions paid during the year and the tax components of net assets will be reported at the Fund’s fiscal year-end.
Capital loss carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Fund to utilize. The ability to utilize capital loss carryforwards in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.
The Fund had a capital loss carryforward as of October 31, 2019, as follows:
Capital Loss Carryforward* | ||||||||||||
Expiration | Short-Term | Long-Term | Total | |||||||||
Not subject to expiration | $416,454 | $174,799 | $591,253 |
* | Capital loss carryforward is reduced for limitations, if any, to the extent required by the Internal Revenue Code and may be further limited depending upon a variety of factors, including the realization of net unrealized gains or losses as of the date of any reorganization. |
16 Invesco Global Responsibility Equity Fund
NOTE 8–Investment Transactions
The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Fund during the six months ended April 30, 2020 was $2,770,668 and $2,828,154, 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 | $ | 502,286 | ||
| ||||
Aggregate unrealized (depreciation) of investments | (946,211 | ) | ||
| ||||
Net unrealized appreciation (depreciation) of investments | $ | (443,925 | ) | |
|
Cost of investments for tax purposes is $8,037,073.
NOTE 9–Share Information
Summary of Share Activity | ||||||||||||||||
| ||||||||||||||||
Six months ended April 30, 2020(a) | Year ended October 31, 2019 | |||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||
| ||||||||||||||||
Sold: | ||||||||||||||||
Class A | 25,281 | $ | 302,589 | 45,364 | $ | 523,796 | ||||||||||
| ||||||||||||||||
Class C | 5,280 | 50,562 | 11,783 | 134,617 | ||||||||||||
| ||||||||||||||||
Class R | 14,585 | 157,386 | 619 | 7,105 | ||||||||||||
| ||||||||||||||||
Class Y | 10,237 | 114,739 | 7,839 | 90,940 | ||||||||||||
| ||||||||||||||||
Class R5 | 27 | 300 | 139 | 1,623 | ||||||||||||
| ||||||||||||||||
Class R6 | 52,293 | 603,179 | 54,019 | 617,394 | ||||||||||||
| ||||||||||||||||
Issued as reinvestment of dividends: | ||||||||||||||||
Class A | 1,938 | 23,472 | 2,680 | 29,293 | ||||||||||||
| ||||||||||||||||
Class C | 175 | 2,109 | 156 | 1,708 | ||||||||||||
| ||||||||||||||||
Class R | 27 | 329 | 40 | 434 | ||||||||||||
| ||||||||||||||||
Class Y | 710 | 8,620 | 932 | 10,198 | ||||||||||||
| ||||||||||||||||
Class R5 | 14 | 171 | 18 | 197 | ||||||||||||
| ||||||||||||||||
Class R6 | 8,164 | 99,114 | 13,799 | 150,958 | ||||||||||||
| ||||||||||||||||
Automatic conversion of Class C shares to Class A shares: | ||||||||||||||||
Class A | 1,091 | 13,343 | 168 | 1,912 | ||||||||||||
| ||||||||||||||||
Class C | (1,101 | ) | (13,343 | ) | (169 | ) | (1,912 | ) | ||||||||
| ||||||||||||||||
Reacquired: | ||||||||||||||||
Class A | (54,751 | ) | (492,755 | ) | (41,044 | ) | (476,812 | ) | ||||||||
| ||||||||||||||||
Class C | (6,946 | ) | (67,637 | ) | (5,377 | ) | (61,927 | ) | ||||||||
| ||||||||||||||||
Class R | (8 | ) | (91 | ) | (386 | ) | (4,300 | ) | ||||||||
| ||||||||||||||||
Class Y | (8,541 | ) | (104,396 | ) | (2,646 | ) | (31,182 | ) | ||||||||
| ||||||||||||||||
Class R5 | (5 | ) | (52 | ) | (8 | ) | (97 | ) | ||||||||
| ||||||||||||||||
Class R6 | (54,705 | ) | (629,465 | ) | (114,373 | ) | (1,319,989 | ) | ||||||||
| ||||||||||||||||
Net increase (decrease) in share activity | (6,235 | ) | $ | 68,174 | (26,447 | ) | $ | (326,044 | ) | |||||||
|
(a) | There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 70% of the outstanding shares of the Fund. 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. |
In addition, 15% of the outstanding shares of the Fund are owned by the Adviser or an affiliate of the Adviser.
NOTE 10–Coronavirus (COVID-19) Pandemic
During the first quarter of 2020, the World Health Organization declared COVID-19 to be a public health emergency. COVID-19 has led to increased short-term market volatility and may have adverse long-term effects on U.S. and world economies and markets in general. COVID-19 may adversely impact the Fund’s ability to achieve its investment objective. Because of the uncertainties on valuation, the global economy and business operations, values reflected in these financial statements may materially differ from the value received upon actual sales of those investments.
The extent of the impact on the performance of the Fund and its investments will depend on future developments, including the duration and spread of the COVID-19 outbreak, related restrictions and advisories, and the effects on the financial markets and economy overall, all of which are highly uncertain and cannot be predicted.
NOTE 11–Significant Event
On March 30, 2020, the Board of Trustees approved changes to the principal investment strategies of the Fund in connection with repositioning the Fund as an index-based fund, including changing the Fund’s name to Invesco MSCI World SRI Index Fund, effective on or about June 29, 2020.
17 Invesco Global Responsibility Equity Fund
NOTE 12–Subsequent Event
Effective on or about June 29, 2020, the contractual management fee for the Fund will be lowered to 0.14% of the Fund’s average daily net assets for the first $2 billion in assets and 0.12% of the Fund’s average daily net assets over $2 billion in assets. The Fund’s expense limits will be lowered from 0.85%, 1.60%, 1.10%, 0.60%, 0.60% and 0.60%, for Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares, respectively, to 0.44%, 1.19%, 0.69%, 0.19%, 0.19% and 0.19%, respectively, pursuant to a new contractual fee waiver agreement with the Adviser.
18 Invesco Global Responsibility Equity Fund
Calculating your ongoing Fund expenses
Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, which may include sales charges (loads) on purchase payments or contingent deferred sales charges on redemptions, if any; and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees, and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period November 1, 2019 through April 30, 2020.
Actual expenses
The table below provides information about actual account values and actual expenses. You may use the information in this table, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the table under the heading entitled “Actual Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Hypothetical example for comparison purposes
The table below also provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return.
The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads) on purchase payments or contingent deferred sales charges on redemptions, if any. Therefore, the hypothetical information 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 transaction costs were included, your costs would have been higher.
ACTUAL | HYPOTHETICAL (5% annual return before | |||||||||||
Beginning Account Value (11/01/19) | Ending Account Value (04/30/20)1 | Expenses Paid During Period2 | Ending Account Value (04/30/20) | Expenses Paid During Period2 | Annualized Expense Ratio | |||||||
Class A | $1,000.00 | $896.70 | $4.01 | $1,020.64 | $4.27 | 0.85% | ||||||
Class C | 1,000.00 | 893.90 | 7.53 | 1,016.91 | 8.02 | 1.60 | ||||||
Class R | 1,000.00 | 896.70 | 5.19 | 1,019.39 | 5.52 | 1.10 | ||||||
Class Y | 1,000.00 | 897.40 | 2.83 | 1,021.88 | 3.02 | 0.60 | ||||||
Class R5 | 1,000.00 | 898.20 | 2.83 | 1,021.88 | 3.02 | 0.60 | ||||||
Class R6 | 1,000.00 | 898.20 | 2.83 | 1,021.88 | 3.02 | 0.60 |
1 | The actual ending account value is based on the actual total return of the Fund for the period November 1, 2019 through April 30, 2020, after actual expenses and will differ from the hypothetical ending account value which is based on the Fund’s expense ratio and a hypothetical annual return of 5% before expenses. |
2 | Expenses are equal to the Fund’s annualized expense ratio as indicated above multiplied by the average account value over the period, multiplied by 182/366 to reflect the most recent fiscal half year. |
19 Invesco Global Responsibility Equity Fund
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 list appears 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 Form N-PORT filings on the SEC website, sec.gov. The SEC file numbers for the Fund are shown below.
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. This 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. |
SEC file numbers: 811-06463 and 033-44611 | Invesco Distributors, Inc. | GLRE-SAR-1 |
| ||||
Semiannual Report to Shareholders | April 30, 2020 | |||
Invesco International Core Equity Fund | ||||
Nasdaq: | ||||
A: IBVAX ∎ C: IBVCX ∎ R: IIBRX ∎ Y: IBVYX ∎ Investor: IIBCX ∎ R5: IBVIX ∎ R6: IBVFX |
2 | ||||
3 | ||||
5 | ||||
6 | ||||
9 | ||||
12 | ||||
13 | ||||
19 |
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.
For the most current month-end Fund performance and commentary, please visit invesco.com/performance.
Unless otherwise noted, all data provided by Invesco.
This report must be accompanied or preceded by a currently effective Fund prospectus, which contains more complete information, including sales charges and expenses. Investors should read it carefully before investing.
NOT FDIC INSURED | MAY LOSE VALUE | NO BANK GUARANTEE
Bruce Crockett |
Dear Fellow Shareholders: As independent chair of the Invesco Funds Board, I can assure you that the members of the Board are strong advocates for the interests of investors in Invesco’s mutual funds. We work hard to represent your interests through oversight of the quality of the investment management services your funds receive and other matters important to your investment. This includes but is not limited to: monitoring how the portfolio management teams of the Invesco funds are performing in light of changing economic and market conditions; assessing each portfolio management team’s investment performance within the context of the investment strategy described in the fund’s prospectus; and monitoring for potential conflicts of interests that may impact the nature of the services that your funds receive. | |
We believe one of the most important services we provide our fund shareholders is the annual review of the funds’ advisory and sub-advisory contracts with Invesco Advisers and its affiliates. This review is required by the Investment Company Act of 1940 and focuses on the nature and quality of the services Invesco provides as the adviser to the Invesco funds and the reasonableness of the fees that it | ||
charges for those services. Each year, we spend months carefully reviewing information received from Invesco and a variety of independent sources, such as performance and fee data prepared by Lipper Inc. (a subsidiary of Broadridge Financial Solutions, Inc.), an independent, third-party firm widely recognized as a leader in its field. We also meet with our independent legal counsel and other independent advisers to review and help us assess the information that we have received. Our goal is to assure that you receive quality investment management services for a reasonable fee. |
On behalf of the Board, we look forward to continuing to represent your interests and serving your needs.
Sincerely,
Bruce L. Crockett |
Independent Chair |
Invesco Funds Board of Trustees |
Andrew Schlossberg | Dear Shareholders: This semiannual report includes information about your Fund, including performance data and a complete list of its investments as of the close of the reporting period. Invesco’s efforts to help investors achieve their financial objectives include providing timely information about the markets, the economy and investing. Our website, invesco.com/us, offers a wide range of market insights and investment perspectives. On the website, you’ll find detailed information about our funds, including performance, holdings and portfolio manager commentaries. You can access information about your account by completing a simple, secure online registration. To do so, select “Log In” on the right side of the homepage, and then select “Register for Individual Account Access.” | |
In addition to the resources accessible on our website, you can obtain timely updates to help you stay informed by connecting with Invesco on Twitter, LinkedIn or Facebook. You can access our blog at blog.invesco.us.com. Our goal is to provide you with information you want, when and where you want it. | ||
For questions about your account, feel free to contact an Invesco client services representative at 800 959 4246. All of us at Invesco look forward to serving your investment management needs. Thank you for investing with us. |
Sincerely, |
Andrew Schlossberg |
Head of the Americas, |
Senior Managing Director, Invesco Ltd. |
2 Invesco International Core Equity Fund
Performance summary | ||||
Fund vs. Indexes | ||||
Cumulative total returns, October 31, 2019 to April 30, 2020, at net asset value (NAV). Performance shown does not include applicable contingent deferred sales charges (CDSC) or front-end sales charges, which would have reduced performance. |
| |||
Class A Shares | -14.46 | % | ||
Class C Shares | -14.73 | |||
Class R Shares | -14.57 | |||
Class Y Shares | -14.33 | |||
Investor Class Shares | -14.39 | |||
Class R5 Shares | -14.33 | |||
Class R6 Shares | -14.33 | |||
MSCI EAFE Indexq (Broad Market/Style-Specific Index) | -14.21 | |||
Lipper International Large-Cap Core Funds Index∎ (Peer Group Index) | -16.59 | |||
Source(s): qRIMES Technologies Corp.; ∎Lipper Inc. | ||||
The MSCI EAFE® Index is an unmanaged index considered representative of stocks of Europe, Australasia and the Far East. The index is computed using the net return, which withholds applicable taxes for non-resident investors. |
| |||
The Lipper International Large-Cap Core Funds Index is an unmanaged index considered representative of international large-cap core funds tracked by Lipper. |
| |||
The Fund is not managed to track the performance of any particular index, including the index(es) described here, and consequently, the performance of the Fund may deviate significantly from the performance of the index(es). |
| |||
A direct investment cannot be made in an index. Unless otherwise indicated, index results include reinvested dividends, and they do not reflect sales charges. Performance of the peer group, if applicable, reflects fund expenses; performance of a market index does not. |
|
For more information about your Fund
Read the most recent quarterly commentary from your Fund’s portfolio managers by visiting invesco.com/us. Click on “Products” and select “Mutual Funds.” Use the “Product Finder” to locate your Fund; then click on its name to access its product detail page. There, you can learn more about your Fund’s investment strategies, holdings and performance. Also, visit blog.invesco.us.com, where many of Invesco’s investment professionals share their insights about market and economic news and trends. |
3 Invesco International Core Equity Fund
Average Annual Total Returns |
| |||
As of 4/30/20, including maximum applicable sales charges |
| |||
Class A Shares | ||||
Inception (3/28/02) | 2.60 | % | ||
10 Years | 0.55 | |||
5 Years | -2.95 | |||
1 Year | -18.15 | |||
Class C Shares | ||||
Inception (2/14/00) | 1.21 | % | ||
10 Years | 0.36 | |||
5 Years | -2.56 | |||
1 Year | -14.84 | |||
Class R Shares | ||||
Inception (11/24/03) | 3.00 | % | ||
10 Years | 0.86 | |||
5 Years | -2.08 | |||
1 Year | -13.60 | |||
Class Y Shares | ||||
Inception (10/3/08) | 1.92 | % | ||
10 Years | 1.37 | |||
5 Years | -1.60 | |||
1 Year | -13.13 | |||
Investor Class Shares | ||||
Inception (10/28/98) | 2.56 | % | ||
10 Years | 1.11 | |||
5 Years | -1.83 | |||
1 Year | -13.35 | |||
Class R5 Shares | ||||
Inception (4/30/04) | 3.23 | % | ||
10 Years | 1.58 | |||
5 Years | -1.54 | |||
1 Year | -13.19 | |||
Class R6 Shares | ||||
10 Years | 1.43 | % | ||
5 Years | -1.53 | |||
1 Year | -13.10 |
Class R6 shares incepted on September 24, 2012. Performance shown prior to that date is that of Investor Class shares and includes the 12b-1 fees applicable to Investor Class shares.
The performance data quoted represent past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/ performance for the most recent month-end performance. Performance figures reflect reinvested distributions, changes in net asset value and the effect of the maximum sales charge unless otherwise stated. Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares. Investment return and principal value will fluctuate so that you may have a gain or loss when you sell shares.
Class A share performance reflects the maximum 5.50% sales charge, and Class C share performance reflects the applicable
contingent deferred sales charge (CDSC) for the period involved. The CDSC on Class C shares is 1% for the first year after purchase. Class R, Class Y, Investor Class, Class R5 and Class R6 shares do not have a front-end sales charge or a CDSC; therefore, performance is at net asset value.
The performance of the Fund’s share classes will differ primarily due to different sales charge structures and class expenses.
Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information.
4 Invesco International Core Equity Fund
Liquidity Risk Management Program
The Securities and Exchange Commission has adopted Rule 22e-4 under the Investment Company Act of 1940 (the “Liquidity Rule”) in order to promote effective liquidity risk management throughout the open-end investment company industry, thereby reducing the risk that funds will be unable to meet their redemption obligations and mitigating dilution of the interests of fund shareholders. The Fund has adopted and implemented a liquidity risk management program in accordance with the Liquidity Rule (the “Program”). The Program is reasonably designed to assess and manage the Fund’s liquidity risk, which is the risk that the Fund could not meet redemption requests without significant dilution of remaining investors’ interests in the Fund. The Board of Trustees of the Fund (the “Board”) has appointed Invesco Advisers, Inc. (“Invesco”), the Fund’s investment adviser, as the Program’s administrator, and Invesco has delegated oversight of the Program to the Liquidity Risk Management Committee (the “Committee”), which is composed of senior representatives from relevant business groups at Invesco.
As required by the Liquidity Rule, the Program includes policies and procedures providing for an assessment, no less frequently than annually, of the Fund’s liquidity risk that takes into account, as relevant to the Fund’s liquidity risk: (1) the Fund’s investment strategy and liquidity of portfolio investments during both normal and reasonably foreseeable stressed conditions; (2) short-term and long-term cash flow projections for the Fund during both normal and reasonably foreseeable stressed conditions; and (3) the Fund’s holdings of cash and cash equivalents and any borrowing arrangements. The Liquidity Rule also requires the classification of the Fund’s investments into categories that reflect the assessment of their relative liquidity under current market conditions. The Fund classifies its investments into one of four categories defined in the Liquidity Rule: “Highly Liquid,” “Moderately Liquid,” “Less Liquid” and “Illiquid.” Funds that are not invested primarily in “Highly Liquid Investments” that are assets (cash or investments that are reasonably expected to be convertible into cash within three business days without significantly changing the market value of the investment) are required to establish a “Highly Liquid Investment Minimum” (“HLIM”), which is the minimum percentage of net assets that must be invested in Highly Liquid Investments. Funds with HLIMs have procedures for addressing HLIM shortfalls, including reporting to the Board and the SEC (on a non-public basis) as required by the Program and the Liquidity Rule. In addition, the Fund may not acquire an investment if, immediately after the acquisition, over 15% of the Fund’s net assets would consist of “Illiquid Investments” that are assets (an investment that cannot reasonably be expected to be sold or disposed of in current market conditions in seven calendar days or less without the sale or disposition significantly changing the market value of the investment). The Liquidity Rule and the Program also require reporting to the Board and the SEC (on a non-public basis) if a Fund’s holdings of Illiquid Investments exceed 15% of the Fund’s assets.
At a meeting held on March 30-April 1, 2020, the Committee presented a report to the Board that addressed the operation of the Program and assessed the Program’s adequacy and effectiveness of implementation (the “Report”). The Report covered the period from December 1, 2018 through December 31, 2019 (the “Program Reporting Period”).
The Report stated, in relevant part, that during the Program Reporting Period:
∎ | The Program, as adopted and implemented, remained reasonably designed to assess and manage the Fund’s liquidity risk and was operated effectively to achieve that goal; |
∎ | The Fund’s investment strategy remained appropriate for an open-end fund; |
∎ | The Fund was able to meet requests for redemption without significant dilution of remaining investors’ interests in the Fund; |
∎ | The Fund did not breach the 15% limit on Illiquid Investments; and |
∎ | The Fund primarily held Highly Liquid Investments and therefore has not adopted an HLIM. |
5 Invesco International Core Equity Fund
April 30, 2020
(Unaudited)
Shares | Value | |||||||
| ||||||||
Common Stocks & Other Equity Interests-98.64% |
| |||||||
Argentina-1.06% | ||||||||
MercadoLibre, Inc.(a) | 996 | $ | 581,176 | |||||
| ||||||||
Australia-7.20% | ||||||||
Ansell Ltd. | 71,352 | 1,309,672 | ||||||
| ||||||||
Brambles Ltd. | 106,454 | 759,649 | ||||||
| ||||||||
Rio Tinto PLC | 22,365 | 1,039,450 | ||||||
| ||||||||
Woodside Petroleum Ltd. | 58,075 | 829,267 | ||||||
| ||||||||
3,938,038 | ||||||||
| ||||||||
Belgium-2.07% | ||||||||
Umicore S.A. | 26,160 | 1,131,151 | ||||||
| ||||||||
Brazil-0.79% | ||||||||
Pagseguro Digital Ltd., Class A(a) | 16,989 | 430,331 | ||||||
| ||||||||
China-5.20% | ||||||||
Alibaba Group Holding Ltd., ADR(a) | 3,858 | 781,901 | ||||||
| ||||||||
Autohome, Inc., ADR | 9,358 | 768,760 | ||||||
| ||||||||
China International Capital Corp. Ltd., H Shares(b) | 366,000 | 559,754 | ||||||
| ||||||||
Ping An Healthcare and Technology Co. Ltd.(a)(b) | 53,500 | 736,995 | ||||||
| ||||||||
2,847,410 | ||||||||
| ||||||||
Denmark-1.03% | ||||||||
Novo Nordisk A/S, Class B | 8,833 | 564,023 | ||||||
| ||||||||
France-14.50% | ||||||||
Airbus SE | 12,835 | 815,971 | ||||||
| ||||||||
BNP Paribas S.A. | 46,361 | 1,459,238 | ||||||
| ||||||||
Cie Generale des Etablissements Michelin S.C.A. | 9,348 | 913,726 | ||||||
| ||||||||
Dassault Systemes SE | 7,858 | 1,151,234 | ||||||
| ||||||||
Sanofi | 22,405 | 2,191,963 | ||||||
| ||||||||
Vivendi S.A. | 64,939 | 1,403,605 | ||||||
| ||||||||
7,935,737 | ||||||||
| ||||||||
Germany-12.91% | ||||||||
Infineon Technologies AG | 72,430 | 1,345,822 | ||||||
| ||||||||
Muenchener Rueckversicherungs- Gesellschaft AG | 3,450 | 760,258 | ||||||
| ||||||||
Northern Data AG(a)(c) | 6,415 | 316,491 | ||||||
| ||||||||
RWE AG | 43,367 | 1,245,361 | ||||||
| ||||||||
SAP SE | 19,242 | 2,294,949 | ||||||
| ||||||||
Siemens AG | 11,862 | 1,101,846 | ||||||
| ||||||||
7,064,727 | ||||||||
| ||||||||
Hong Kong-3.06% | ||||||||
AIA Group Ltd. | 184,200 | 1,676,672 | ||||||
| ||||||||
India-1.37% | ||||||||
Housing Development Finance Corp. Ltd. | 29,772 | 750,312 | ||||||
| ||||||||
Ireland-0.82% | ||||||||
Ryanair Holdings PLC, ADR(a) | 7,059 | 448,034 | ||||||
|
Shares | Value | |||||||
| ||||||||
Italy-3.46% | ||||||||
Enel S.p.A. | 276,893 | $ | 1,895,652 | |||||
| ||||||||
Japan-18.21% | ||||||||
Asahi Group Holdings Ltd. | 21,300 | 736,434 | ||||||
| ||||||||
FANUC Corp. | 7,500 | 1,236,706 | ||||||
| ||||||||
Hitachi Ltd. | 54,300 | 1,629,177 | ||||||
| ||||||||
KDDI Corp. | 44,300 | 1,276,523 | ||||||
| ||||||||
Keisei Electric Railway Co. Ltd. | 32,000 | 965,056 | ||||||
| ||||||||
Kobe Bussan Co. Ltd. | 12,700 | 609,358 | ||||||
| ||||||||
Koito Manufacturing Co. Ltd. | 10,900 | 412,713 | ||||||
| ||||||||
Komatsu Ltd. | 42,393 | 808,202 | ||||||
| ||||||||
Nissan Chemical Corp. | 10,300 | 393,766 | ||||||
| ||||||||
ORIX Corp. | 48,600 | 578,522 | ||||||
| ||||||||
Shionogi & Co. Ltd. | 10,200 | 559,707 | ||||||
| ||||||||
SoftBank Group Corp. | 17,700 | 757,033 | ||||||
| ||||||||
9,963,197 | ||||||||
| ||||||||
Luxembourg-1.62% | ||||||||
ArcelorMittal S.A. | 80,485 | 883,999 | ||||||
| ||||||||
Netherlands-2.74% | ||||||||
Heineken N.V. | 11,365 | 967,597 | ||||||
| ||||||||
ING Groep N.V. | 97,263 | 534,707 | ||||||
| ||||||||
1,502,304 | ||||||||
| ||||||||
Russia-0.50% | ||||||||
Sberbank of Russia PJSC, ADR | 26,222 | 275,593 | ||||||
| ||||||||
Singapore-1.31% | ||||||||
DBS Group Holdings Ltd. | 51,060 | 715,709 | ||||||
| ||||||||
South Korea-1.48% | ||||||||
Samsung Electronics Co. Ltd. | 19,667 | 810,420 | ||||||
| ||||||||
Spain-1.99% | ||||||||
Bankinter S.A. | 30,320 | 125,226 | ||||||
| ||||||||
CaixaBank S.A. | 397,376 | 715,604 | ||||||
| ||||||||
Iberdrola S.A. | 24,641 | 247,016 | ||||||
| ||||||||
1,087,846 | ||||||||
| ||||||||
Switzerland-5.08% | ||||||||
Glencore PLC(a) | 376,622 | 699,105 | ||||||
| ||||||||
Novartis AG, ADR | 24,547 | 2,079,867 | ||||||
| ||||||||
2,778,972 | ||||||||
| ||||||||
United Kingdom-7.95% | ||||||||
Experian PLC | 38,550 | 1,154,975 | ||||||
| ||||||||
Nomad Foods Ltd.(a) | 59,307 | 1,222,317 | ||||||
| ||||||||
Reckitt Benckiser Group PLC | 12,484 | 1,043,182 | ||||||
| ||||||||
Vodafone Group PLC, ADR | 65,714 | 929,196 | ||||||
| ||||||||
4,349,670 | ||||||||
| ||||||||
United States-4.29% | ||||||||
Aptiv PLC | 10,560 | 734,448 | ||||||
| ||||||||
Chubb Ltd. | 7,645 | 825,737 | ||||||
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
6 Invesco International Core Equity Fund
Shares | Value | |||||||
| ||||||||
United States-(continued) | ||||||||
James Hardie Industries PLC, CDI | 54,848 | $ | 786,472 | |||||
| ||||||||
2,346,657 | ||||||||
| ||||||||
Total Common Stocks & Other Equity Interests | 53,977,630 | |||||||
| ||||||||
Money Market Funds-1.08% | ||||||||
Invesco Government & Agency Portfolio, Institutional Class, 0.20%(d)(e) | 353,468 | 353,468 | ||||||
| ||||||||
Invesco Treasury Portfolio, Institutional Class, 0.10%(d)(e) | 235,646 | 235,646 | ||||||
| ||||||||
Total Money Market Funds (Cost $589,114) | 589,114 | |||||||
| ||||||||
TOTAL INVESTMENTS IN SECURITIES | 54,566,744 | |||||||
|
Shares | Value | |||||||
| ||||||||
Investments Purchased with Cash Collateral from Securities on Loan |
| |||||||
Money Market Funds-0.53% | ||||||||
Invesco Private Government Fund, 0.01%, 05/12/2020(d)(f)(g) | 289,968 | $ | 289,968 | |||||
| ||||||||
TOTAL INVESTMENTS IN SECURITIES-100.25% | 54,856,712 | |||||||
| ||||||||
OTHER ASSETS LESS LIABILITIES-(0.25)% | (137,794 | ) | ||||||
| ||||||||
NET ASSETS-100.00% | $ | 54,718,918 | ||||||
|
Investment Abbreviations:
ADR | – | American Depositary Receipt | ||
CDI | – | CREST Depository Interest |
Notes to Schedule of Investments:
(a) | Non-income producing security. |
(b) | Security purchased or received in a transaction exempt from registration under the Securities Act of 1933, as amended (the “1933 Act”). The security may be resold pursuant to an exemption from registration under the 1933 Act, typically to qualified institutional buyers. The aggregate value of these securities at April 30, 2020 was $1,296,749, which represented 2.37% of the Fund’s Net Assets. |
(c) | All or a portion of this security was out on loan at April 30, 2020. |
(d) | Affiliated issuer. The issuer and/or the Fund is a wholly-owned subsidiary of Invesco Ltd., or is affiliated by having an investment adviser that is under common control of Invesco Ltd. The table below shows the Fund’s transactions in, and earnings from, its investments in affiliates for the six months ended April 30, 2020. |
Value October 31, 2019 | Purchases at Cost | Proceeds from Sales | Change in Unrealized Appreciation | Realized Gain | Value April 30, 2020 | Dividend Income | ||||||||||||||||||||||
| ||||||||||||||||||||||||||||
Investments in Affiliated Money Market Funds: | ||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||
Invesco Government & Agency Portfolio, Institutional Class | $330,611 | $4,115,837 | $(4,092,980 | ) | $- | $- | $353,468 | $2,003 | ||||||||||||||||||||
| ||||||||||||||||||||||||||||
Invesco Treasury Portfolio, Institutional Class | 220,408 | 2,743,891 | (2,728,653 | ) | - | - | 235,646 | 1,312 | ||||||||||||||||||||
| ||||||||||||||||||||||||||||
Investments Purchased with Cash Collateral from Securities on Loan: | ||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||
Invesco Private Government Fund | - | 579,936 | (289,968 | ) | - | - | 289,968 | - | ||||||||||||||||||||
| ||||||||||||||||||||||||||||
Total | $551,019 | $7,439,664 | $(7,111,601 | ) | $- | $- | $879,082 | $3,315 | ||||||||||||||||||||
|
(e) | The rate shown is the 7-day SEC standardized yield as of April 30, 2020. |
(f) | The rate shown is the 3-day SEC standardized yield as of April 30, 2020. The money market fund commenced operations on April 28, 2020. |
(g) | The security has been segregated to satisfy the commitment to return the cash collateral received in securities lending transactions upon the borrower’s return of the securities loaned. See Note 1I. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
7 Invesco International Core Equity Fund
Portfolio Composition
By sector, based on Net Assets
as of April 30, 2020
Financials | 16.41 | % | ||
Information Technology | 14.58 | |||
Health Care | 13.60 | |||
Industrials | 13.32 | |||
Communication Services | 9.38 | |||
Materials | 9.02 | |||
Consumer Staples | 8.37 | |||
Consumer Discretionary | 6.26 | |||
Utilities | 6.19 | |||
Energy | 1.51 | |||
Money Market Funds Plus Other Assets Less Liabilities | 1.36 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
8 Invesco International Core Equity Fund
Statement of Assets and Liabilities
April 30, 2020
(Unaudited)
Assets: | ||||
Investments in securities, at value | $ | 53,977,630 | ||
| ||||
Investments in affiliated money market funds, at value (Cost $879,082) | 879,082 | |||
| ||||
Cash | 17,433 | |||
| ||||
Foreign currencies, at value (Cost $30,615) | 29,629 | |||
| ||||
Receivable for: | ||||
Investments sold | 25 | |||
| ||||
Fund shares sold | 9,886 | |||
| ||||
Dividends | 238,894 | |||
| ||||
Investment for trustee deferred compensation and retirement plans | 89,573 | |||
| ||||
Other assets | 51,681 | |||
| ||||
Total assets | 55,293,833 | |||
| ||||
Liabilities: | ||||
Payable for: | ||||
Investments purchased | 42,012 | |||
| ||||
Fund shares reacquired | 34,123 | |||
| ||||
Collateral upon return of securities loaned | 289,968 | |||
| ||||
Accrued fees to affiliates | 39,046 | |||
| ||||
Accrued other operating expenses | 71,754 | |||
| ||||
Trustee deferred compensation and retirement plans | 98,012 | |||
| ||||
Total liabilities | 574,915 | |||
| ||||
Net assets applicable to shares outstanding | $ | 54,718,918 | ||
| ||||
Net assets consist of: | ||||
Shares of beneficial interest | $ | 68,675,459 | ||
| ||||
Distributable earnings (loss) | (13,956,541 | ) | ||
| ||||
$ | 54,718,918 | |||
|
Net Assets: | ||||
Class A | $ | 21,846,868 | ||
Class C | $ | 2,269,877 | ||
Class R | $ | 1,134,476 | ||
Class Y | $ | 3,756,094 | ||
Investor Class | $ | 7,019,847 | ||
Class R5 | $ | 2,813,997 | ||
Class R6 | $ | 15,877,759 | ||
Shares outstanding, no par value, with an unlimited number of shares authorized: |
| |||
Class A | 2,445,194 | |||
Class C | 259,220 | |||
Class R | 126,405 | |||
Class Y | 412,676 | |||
Investor Class | 771,386 | |||
Class R5 | 317,493 | |||
Class R6 | 1,792,050 | |||
Class A: | ||||
Net asset value per share | $ | 8.93 | ||
Maximum offering price per share (Net asset value of $8.93 ÷ 94.50%) | $ | 9.45 | ||
Class C: | ||||
Net asset value and offering price per share | $ | 8.76 | ||
Class R: | ||||
Net asset value and offering price per share | $ | 8.97 | ||
Class Y: | ||||
Net asset value and offering price per share | $ | 9.10 | ||
Investor Class: | ||||
Net asset value and offering price per share | $ | 9.10 | ||
Class R5: | ||||
Net asset value and offering price per share | $ | 8.86 | ||
Class R6: | ||||
Net asset value and offering price per share | $ | 8.86 |
* | At April 30, 2020, securities with an aggregate value of $289,968 were on loan to brokers. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
9 Invesco International Core Equity Fund
Statement of Operations
For the six months ended April 30, 2020
(Unaudited)
Investment income: | ||||
Dividends (net of foreign withholding taxes of $81,269) | $ | 700,905 | ||
| ||||
Dividends from affiliates | 3,315 | |||
| ||||
Total investment income | 704,220 | |||
| ||||
Expenses: | ||||
Advisory fees | 239,308 | |||
| ||||
Administrative services fees | 4,718 | |||
| ||||
Custodian fees | 5,901 | |||
| ||||
Distribution fees: | ||||
Class A | 32,339 | |||
| ||||
Class C | 13,217 | |||
| ||||
Class R | 3,073 | |||
| ||||
Investor Class | 10,310 | |||
| ||||
Transfer agent fees - A, C, R, Y and Investor | 73,200 | |||
| ||||
Transfer agent fees - R5 | 63 | |||
| ||||
Transfer agent fees - R6 | 291 | |||
| ||||
Trustees’ and officers’ fees and benefits | 7,233 | |||
| ||||
Registration and filing fees | 37,276 | |||
| ||||
Reports to shareholders | 10,819 | |||
| ||||
Professional services fees | 28,816 | |||
| ||||
Other | 6,048 | |||
| ||||
Total expenses | 472,612 | |||
| ||||
Less: Fees waived, expenses reimbursed and/or expense offset arrangement(s) | (136,293 | ) | ||
| ||||
Net expenses | 336,319 | |||
| ||||
Net investment income | 367,901 | |||
| ||||
Realized and unrealized gain (loss) from: | ||||
Net realized gain (loss) from: | ||||
Investment securities | (3,239,070 | ) | ||
| ||||
Foreign currencies | 499 | |||
| ||||
Forward foreign currency contracts | (86,893 | ) | ||
| ||||
(3,325,464 | ) | |||
| ||||
Change in net unrealized appreciation (depreciation) of: | ||||
Investment securities | (6,492,654 | ) | ||
| ||||
Foreign currencies | 1,054 | |||
| ||||
Forward foreign currency contracts | (88,712 | ) | ||
| ||||
(6,580,312 | ) | |||
| ||||
Net realized and unrealized gain (loss) | (9,905,776 | ) | ||
| ||||
Net increase (decrease) in net assets resulting from operations | $ | (9,537,875 | ) | |
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
10 Invesco International Core Equity Fund
Statement of Changes in Net Assets
For the six months ended April 30, 2020 and the year ended October 31, 2019
(Unaudited)
April 30, 2020 | October 31, 2019 | |||||||
| ||||||||
Operations: | ||||||||
Net investment income | $ | 367,901 | $ | 1,489,581 | ||||
| ||||||||
Net realized gain (loss) | (3,325,464 | ) | (3,921,202 | ) | ||||
| ||||||||
Change in net unrealized appreciation (depreciation) | (6,580,312 | ) | 9,550,072 | |||||
| ||||||||
Net increase (decrease) in net assets resulting from operations | (9,537,875 | ) | 7,118,451 | |||||
| ||||||||
Distributions to shareholders from distributable earnings: | ||||||||
Class A | (595,374 | ) | (2,650,679 | ) | ||||
| ||||||||
Class C | (35,022 | ) | (419,998 | ) | ||||
| ||||||||
Class R | (23,237 | ) | (103,364 | ) | ||||
| ||||||||
Class Y | (110,748 | ) | (455,264 | ) | ||||
| ||||||||
Investor Class | (187,346 | ) | (697,637 | ) | ||||
| ||||||||
Class R5 | (80,744 | ) | (249,749 | ) | ||||
| ||||||||
Class R6 | (468,107 | ) | (925,766 | ) | ||||
| ||||||||
Total distributions from distributable earnings | (1,500,578 | ) | (5,502,457 | ) | ||||
| ||||||||
Share transactions–net: | ||||||||
Class A | (1,408,247 | ) | (5,971,471 | ) | ||||
| ||||||||
Class C | (56,530 | ) | (3,047,980 | ) | ||||
| ||||||||
Class R | 253,922 | (317,798 | ) | |||||
| ||||||||
Class Y | 107,120 | (1,237,710 | ) | |||||
| ||||||||
Investor Class | (475,224 | ) | (268,463 | ) | ||||
| ||||||||
Class R5 | 82,859 | 211,702 | ||||||
| ||||||||
Class R6 | (155,192 | ) | 5,840,224 | |||||
| ||||||||
Net increase (decrease) in net assets resulting from share transactions | (1,651,292 | ) | (4,791,496 | ) | ||||
| ||||||||
Net increase (decrease) in net assets | (12,689,745 | ) | (3,175,502 | ) | ||||
| ||||||||
Net assets: | ||||||||
Beginning of period | 67,408,663 | 70,584,165 | ||||||
| ||||||||
End of period | $ | 54,718,918 | $ | 67,408,663 | ||||
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
11 Invesco International Core Equity Fund
(Unaudited)
The following schedule presents financial highlights for a share of the Fund outstanding throughout the periods indicated.
Net asset value, beginning of period | Net investment | Net gains realized and unrealized) | Total from investment operations | Dividends from net investment income | Distributions from net realized | Total distributions | Net asset of period | Total return (b) | Net assets, (000’s omitted) | Ratio of net assets | Ratio of fee waivers | Ratio of net investment to average | Portfolio turnover (c) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 04/30/20 | $10.66 | $0.06 | $(1.56 | ) | $(1.50 | ) | $(0.23 | ) | $ – | $(0.23 | ) | $8.93 | (14.46 | )% | $21,847 | 1.12 | %(d) | 1.66 | %(d) | 1.09 | %(d) | 22 | % | |||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/19 | 10.59 | 0.20 | 0.71 | 0.91 | (0.15 | ) | (0.69 | ) | (0.84 | ) | 10.66 | 9.74 | 27,707 | 1.12 | 1.66 | 1.97 | 28 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/18 | 12.43 | 0.19 | (1.84 | ) | (1.65 | ) | (0.19 | ) | – | (0.19 | ) | 10.59 | (13.53 | ) | 33,798 | 1.12 | 1.67 | 1.54 | 73 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/17 | 10.48 | 0.15 | 1.97 | 2.12 | (0.17 | ) | – | (0.17 | ) | 12.43 | 20.54 | 40,865 | 1.15 | 1.70 | 1.38 | 61 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/16 | 10.73 | 0.12 | (0.26 | ) | (0.14 | ) | (0.11 | ) | – | (0.11 | ) | 10.48 | (1.26 | ) | 35,406 | 1.41 | 1.61 | 1.18 | 37 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/15 | 11.37 | 0.13 | (0.17 | ) | (0.04 | ) | (0.10 | ) | (0.50 | ) | (0.60 | ) | 10.73 | (0.19 | ) | 40,161 | 1.61 | 1.61 | 1.19 | 63 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Class C | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 04/30/20 | 10.40 | 0.02 | (1.53 | ) | (1.51 | ) | (0.13 | ) | – | (0.13 | ) | 8.76 | (14.73 | ) | 2,270 | 1.87 | (d) | 2.41 | (d) | 0.34 | (d) | 22 | ||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/19 | 10.31 | 0.12 | 0.71 | 0.83 | (0.05 | ) | (0.69 | ) | (0.74 | ) | 10.40 | 8.98 | 2,775 | 1.87 | 2.41 | 1.22 | 28 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/18 | 12.10 | 0.09 | (1.79 | ) | (1.70 | ) | (0.09 | ) | – | (0.09 | ) | 10.31 | (14.14 | ) | 6,022 | 1.87 | 2.42 | 0.79 | 73 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/17 | 10.20 | 0.07 | 1.92 | 1.99 | (0.09 | ) | – | (0.09 | ) | 12.10 | 19.64 | 8,476 | 1.90 | 2.45 | 0.63 | 61 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/16 | 10.44 | 0.04 | (0.26 | ) | (0.22 | ) | (0.02 | ) | – | (0.02 | ) | 10.20 | (2.06 | ) | 8,581 | 2.16 | 2.36 | 0.43 | 37 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/15 | 11.08 | 0.05 | (0.17 | ) | (0.12 | ) | (0.02 | ) | (0.50 | ) | (0.52 | ) | 10.44 | (0.97 | ) | 10,067 | 2.36 | 2.36 | 0.44 | 63 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Class R | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 04/30/20 | 10.69 | 0.04 | (1.56 | ) | (1.52 | ) | (0.20 | ) | – | (0.20 | ) | 8.97 | (14.57 | ) | 1,134 | 1.37 | (d) | 1.91 | (d) | 0.84 | (d) | 22 | ||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/19 | 10.60 | 0.17 | 0.73 | 0.90 | (0.12 | ) | (0.69 | ) | (0.81 | ) | 10.69 | 9.52 | 1,105 | 1.37 | 1.91 | 1.72 | 28 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/18 | 12.44 | 0.16 | (1.84 | ) | (1.68 | ) | (0.16 | ) | – | (0.16 | ) | 10.60 | (13.73 | ) | 1,414 | 1.37 | 1.92 | 1.29 | 73 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/17 | 10.49 | 0.12 | 1.97 | 2.09 | (0.14 | ) | – | (0.14 | ) | 12.44 | 20.21 | 2,201 | 1.40 | 1.95 | 1.13 | 61 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/16 | 10.74 | 0.09 | (0.26 | ) | (0.17 | ) | (0.08 | ) | – | (0.08 | ) | 10.49 | (1.54 | ) | 2,180 | 1.66 | 1.86 | 0.93 | 37 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/15 | 11.38 | 0.10 | (0.17 | ) | (0.07 | ) | (0.07 | ) | (0.50 | ) | (0.57 | ) | 10.74 | (0.45 | ) | 1,799 | 1.86 | 1.86 | 0.94 | 63 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Class Y | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 04/30/20 | 10.87 | 0.07 | (1.58 | ) | (1.51 | ) | (0.26 | ) | – | (0.26 | ) | 9.10 | (14.33 | ) | 3,756 | 0.87 | (d) | 1.41 | (d) | 1.34 | (d) | 22 | ||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/19 | 10.78 | 0.23 | 0.73 | 0.96 | (0.18 | ) | (0.69 | ) | (0.87 | ) | 10.87 | 10.09 | 4,465 | 0.87 | 1.41 | 2.22 | 28 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/18 | 12.65 | 0.22 | (1.87 | ) | (1.65 | ) | (0.22 | ) | – | (0.22 | ) | 10.78 | (13.33 | ) | 5,738 | 0.87 | 1.42 | 1.79 | 73 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/17 | 10.66 | 0.19 | 2.00 | 2.19 | (0.20 | ) | – | (0.20 | ) | 12.65 | 20.88 | 6,226 | 0.90 | 1.45 | 1.63 | 61 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/16 | 10.92 | 0.15 | (0.27 | ) | (0.12 | ) | (0.14 | ) | – | (0.14 | ) | 10.66 | (1.06 | ) | 3,431 | 1.16 | 1.36 | 1.43 | 37 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/15 | 11.56 | 0.16 | (0.17 | ) | (0.01 | ) | (0.13 | ) | (0.50 | ) | (0.63 | ) | 10.92 | 0.05 | 3,017 | 1.36 | 1.36 | 1.44 | 63 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Investor Class |
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 04/30/20 | 10.85 | 0.06 | (1.58 | ) | (1.52 | ) | (0.23 | ) | – | (0.23 | ) | 9.10 | (14.39 | ) | 7,020 | 1.12 | (d) | 1.66 | (d) | 1.09 | (d) | 22 | ||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/19 | 10.76 | 0.20 | 0.73 | 0.93 | (0.15 | ) | (0.69 | ) | (0.84 | ) | 10.85 | 9.77 | 8,886 | 1.12 | 1.66 | 1.97 | 28 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/18 | 12.63 | 0.19 | (1.87 | ) | (1.68 | ) | (0.19 | ) | – | (0.19 | ) | 10.76 | (13.55 | ) | 9,037 | 1.12 | 1.67 | 1.54 | 73 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/17 | 10.65 | 0.16 | 1.99 | 2.15 | (0.17 | ) | – | (0.17 | ) | 12.63 | 20.50 | 14,503 | 1.15 | 1.70 | 1.38 | 61 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/16 | 10.90 | 0.12 | (0.26 | ) | (0.14 | ) | (0.11 | ) | – | (0.11 | ) | 10.65 | (1.24 | ) | 10,280 | 1.41 | 1.61 | 1.18 | 37 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/15 | 11.54 | 0.13 | (0.17 | ) | (0.04 | ) | (0.10 | ) | (0.50 | ) | (0.60 | ) | 10.90 | (0.19 | ) | 11,707 | 1.61 | 1.61 | 1.19 | 63 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Class R5 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 04/30/20 | 10.59 | 0.07 | (1.54 | ) | (1.47 | ) | (0.26 | ) | – | (0.26 | ) | 8.86 | (14.33 | ) | 2,814 | 0.87 | (d) | 1.07 | (d) | 1.34 | (d) | 22 | ||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/19 | 10.53 | 0.22 | 0.71 | 0.93 | (0.18 | ) | (0.69 | ) | (0.87 | ) | 10.59 | 10.04 | 3,282 | 0.87 | 1.10 | 2.22 | 28 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/18 | 12.36 | 0.22 | (1.83 | ) | (1.61 | ) | (0.22 | ) | – | (0.22 | ) | 10.53 | (13.32 | ) | 3,017 | 0.87 | 1.15 | 1.79 | 73 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/17 | 10.44 | 0.18 | 1.95 | 2.13 | (0.21 | ) | – | (0.21 | ) | 12.36 | 20.82 | 3,474 | 0.90 | 1.15 | 1.63 | 61 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/16 | 10.71 | 0.16 | (0.26 | ) | (0.10 | ) | (0.17 | ) | – | (0.17 | ) | 10.44 | (0.83 | ) | 2,832 | 1.03 | 1.04 | 1.56 | 37 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/15 | 11.35 | 0.19 | (0.17 | ) | 0.02 | (0.16 | ) | (0.50 | ) | (0.66 | ) | 10.71 | 0.37 | 2,830 | 1.03 | 1.03 | 1.77 | 63 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Class R6 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 04/30/20 | 10.59 | 0.07 | (1.54 | ) | (1.47 | ) | (0.26 | ) | – | (0.26 | ) | 8.86 | (14.33 | ) | 15,878 | 0.87 | (d) | 1.07 | (d) | 1.34 | (d) | 22 | ||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/19 | 10.53 | 0.22 | 0.71 | 0.93 | (0.18 | ) | (0.69 | ) | (0.87 | ) | 10.59 | 10.04 | 19,188 | 0.87 | 1.10 | 2.22 | 28 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/18 | 12.35 | 0.22 | (1.82 | ) | (1.60 | ) | (0.22 | ) | – | (0.22 | ) | 10.53 | (13.25 | ) | 11,560 | 0.87 | 1.15 | 1.79 | 73 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/17 | 10.43 | 0.18 | 1.96 | 2.14 | (0.22 | ) | – | (0.22 | ) | 12.35 | 20.85 | 15,702 | 0.90 | 1.15 | 1.63 | 61 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/16 | 10.71 | 0.16 | (0.27 | ) | (0.11 | ) | (0.17 | ) | – | (0.17 | ) | 10.43 | (0.91 | ) | 26,480 | 1.02 | 1.03 | 1.57 | 37 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/15 | 11.35 | 0.20 | (0.17 | ) | 0.03 | (0.17 | ) | (0.50 | ) | (0.67 | ) | 10.71 | 0.38 | 50,857 | 1.02 | 1.02 | 1.78 | 63 |
(a) | Calculated using average shares outstanding. |
(b) | Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Does not include sales charges and is not annualized for periods less than one year, if applicable. |
(c) | Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable. |
(d) | Ratios are annualized and based on average daily net assets (000’s omitted) of $26,008, $2,657, $1,236, $4,486 , $8,292 , $3,181 and $18,307 for Class A, Class C, Class R, Class Y, Investor Class, Class R5 and Class R6 shares, respectively. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
12 Invesco International Core Equity Fund
April 30, 2020
(Unaudited)
NOTE 1–Significant Accounting Policies
Invesco International Core Equity Fund (the “Fund”) is a series portfolio of AIM International Mutual Funds (Invesco International Mutual 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 the Fund or each class.
The Fund’s investment objective is long-term growth of capital.
The Fund currently consists of seven different classes of shares: Class A, Class C, Class R, Class Y, Investor Class, Class R5 and Class R6. Class Y and Investor Class shares are available only to certain investors. Class A shares are sold with a front-end sales charge unless certain waiver criteria are met. 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, Investor Class, 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. |
A security listed or traded on an exchange (except convertible securities) is valued at its last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded, or lacking any sales or official closing price on a particular day, the security may be valued at the closing bid price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued by an independent pricing service they may be considered fair valued. Futures contracts are valued at the final settlement price set by an exchange on which they are principally traded. Listed options are valued at the mean between the last bid and asked prices from the exchange on which they are principally traded. Options not listed on an exchange are valued by an independent source at the mean between the last bid and asked prices. For purposes of determining net asset value (“NAV”) per share, futures and option contracts generally are valued 15 minutes after the close of the customary trading session of the New York Stock Exchange (“NYSE”).
Investments in open-end and closed-end registered investment companies that do not trade on an exchange are valued at the end-of-day net asset value per share. Investments in open-end and closed-end registered investment companies that trade on an exchange are valued at the last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded.
Debt obligations (including convertible securities) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. Pricing services generally value debt obligations assuming orderly transactions of institutional round lot size, but a fund may hold or transact in the same securities in smaller, odd lot sizes. Odd lots often trade at lower prices than institutional round lots. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.
Foreign securities’ (including foreign exchange contracts) prices are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the NYSE. If market quotations are available and reliable for foreign exchange-traded equity securities, the securities will be valued at the market quotations. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become unreliable. If between the time trading ends on a particular security and the close of the customary trading session on the NYSE, events occur that the investment adviser determines are significant and make the closing price unreliable, the Fund may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith using procedures approved by the Board of Trustees. Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities’ prices meeting the approved degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economic upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.
Securities for which market prices are not provided by any of the above methods may be valued based upon quotes furnished by independent sources. The last bid price may be used to value equity securities. The mean between the last bid and asked prices is used to value debt obligations, including corporate loans.
Securities for which market quotations are not readily available or became unreliable are valued at fair value as determined in good faith by or under the supervision of the Trust’s officers following procedures approved by the Board of Trustees. Issuer specific events, market trends, bid/asked quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security’s fair value.
The Fund may invest in securities that are subject to interest rate risk, meaning the risk that the prices will generally fall as interest rates rise and, conversely, the prices will generally rise as interest rates fall. Specific securities differ in their sensitivity to changes in interest rates depending on their individual characteristics. Changes in interest rates may result in increased market volatility, which may affect the value and/or liquidity of certain Fund investments.
Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the issuer’s assets, general market conditions which are not specifically related to the particular issuer, such as real or perceived adverse economic conditions, changes in the general outlook for revenues or corporate earnings, changes in interest or currency rates, regional or global instability, natural or environmental disasters, widespread disease or other public health issues, war, acts of terrorism or adverse investor sentiment generally and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
B. | Securities Transactions and Investment Income – Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income (net of withholding tax, if any) is recorded on an accrual basis from settlement date. Dividend income (net of withholding tax, if any) is recorded on the ex-dividend date. |
The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Statement of Operations as realized gain (loss) for investments no longer held and as unrealized gain (loss) for investments still held.
13 Invesco International Core Equity Fund
Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of net realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the net realized and unrealized gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and the Statement of Changes in Net Assets, or the net investment income per share and the ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.
The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class.
C. | Country Determination – For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues and the country that has the primary market for the issuer’s securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted. |
D. | Distributions – Distributions from net investment income and net realized capital gain, if any, are generally declared and paid annually and recorded on the ex-dividend date. The Fund may elect to treat a portion of the proceeds from redemptions as distributions for federal income tax purposes. |
E. | Federal Income Taxes – The Fund intends to comply with the requirements of Subchapter M of the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”), necessary to qualify as a regulated investment company and to distribute substantially all of the Fund’s taxable earnings to shareholders. As such, the Fund will not be subject to federal income taxes on otherwise taxable income (including net realized capital gain) that is distributed to shareholders. |
Therefore, no provision for federal income taxes is recorded in the financial statements.
The Fund recognizes the tax benefits of uncertain tax positions only when the position is more likely than not to be sustained. Management has analyzed the Fund’s uncertain tax positions and concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions. Management is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the next 12 months.
The Fund files tax returns in the U.S. Federal jurisdiction and certain other jurisdictions. Generally, the Fund is subject to examinations by such taxing authorities for up to three years after the filing of the return for the tax period.
F. | Expenses – Fees provided for under the Rule 12b-1 plan of a particular class of the Fund 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 preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print. |
H. | Indemnifications – Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of the performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements, that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote. |
I. | Securities Lending – The Fund may lend portfolio securities having a market value up to one-third of the Fund’s total assets. Such loans are secured by collateral equal to no less than the market value of the loaned securities determined daily by the securities lending provider. Such collateral will be cash or debt securities issued or guaranteed by the U.S. Government or any of its sponsored agencies. Cash collateral received in connection with these loans is invested in short-term money market instruments or affiliated money market funds and is shown as such on the Schedule of Investments. The Fund bears the risk of loss with respect to the investment of collateral. It is the Fund’s policy to obtain additional collateral from or return excess collateral to the borrower by the end of the next business day, following the valuation date of the securities loaned. Therefore, the value of the collateral held may be temporarily less than the value of the securities on loan. When loaning securities, the Fund retains certain benefits of owning the securities, including the economic equivalent of dividends or interest generated by the security. Lending securities entails a risk of loss to the Fund if, and to the extent that, the market value of the securities loaned were to increase and the borrower did not increase the collateral accordingly, and the borrower failed to return the securities. The securities loaned are subject to termination at the option of the borrower or the Fund. Upon termination, the borrower will return to the Fund the securities loaned and the Fund will return the collateral. Upon the failure of the borrower to return the securities, collateral may be liquidated and the securities may be purchased on the open market to replace the loaned securities. The Fund could experience delays and costs in gaining access to the collateral and the securities may lose value during the delay which could result in potential losses to the Fund. Some of these losses may be indemnified by the lending agent. The Fund bears the risk of any deficiency in the amount of the collateral available for return to the borrower due to any loss on the collateral invested. Dividends received on cash collateral investments for securities lending transactions, which are net of compensation to counterparties, are included in Dividends from affiliated money market funds on the Statement of Operations. The aggregate value of securities out on loan, if any, is shown as a footnote on the Statement of Assets and Liabilities. |
J. | Foreign Currency Translations – Foreign currency is valued at the close of the NYSE based on quotations posted by banks and major currency dealers. Portfolio securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at the date of valuation. Purchases and sales of portfolio securities (net of foreign taxes withheld on disposition) and income items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. The Fund does not separately account for the portion of the results of operations resulting from changes in foreign exchange rates on investments and the fluctuations arising from changes in market prices of securities held. The combined results of changes in foreign exchange rates and the fluctuation of market prices on investments (net of estimated foreign tax withholding) are included with the net realized and unrealized gain or loss from investments in the Statement of Operations. Reported net realized foreign currency gains or losses arise from (1) sales of foreign currencies, (2) currency gains or losses realized between the trade and settlement dates on securities transactions, and (3) the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign currency gains and losses arise from changes in the fair values of assets and liabilities, other than investments in securities at fiscal period end, resulting from changes in exchange rates. |
The Fund may invest in foreign securities, which may be subject to foreign taxes on income, gains on investments or currency repatriation, a portion of which may be recoverable. Foreign taxes, if any, are recorded based on the tax regulations and rates that exist in the foreign markets in which the Fund invests and are shown in the Statement of Operations.
14 Invesco International Core Equity Fund
K. | Forward Foreign Currency Contracts – The Fund may engage in foreign currency transactions either on a spot (i.e. for prompt delivery and settlement) basis, or through forward foreign currency contracts, to manage or minimize currency or exchange rate risk. |
The Fund may also enter into forward foreign currency contracts for the purchase or sale of a security denominated in a foreign currency in order to “lock in” the U.S. dollar price of that security, or the Fund may also enter into forward foreign currency contracts that do not provide for physical settlement of the two currencies, but instead are settled by a single cash payment calculated as the difference between the agreed upon exchange rate and the spot rate at settlement based upon an agreed upon notional amount (non-deliverable forwards). The Fund will set aside liquid assets in an amount equal to the daily mark-to-market obligation for forward foreign currency contracts.
A forward foreign currency contract is an obligation between two parties (“Counterparties”) to purchase or sell a specific currency for an agreed-upon price at a future date. The use of forward foreign currency contracts does not eliminate fluctuations in the price of the underlying securities the Fund owns or intends to acquire but establishes a rate of exchange in advance. Fluctuations in the value of these contracts are measured by the difference in the contract date and reporting date exchange rates and are recorded as unrealized appreciation (depreciation) until the contracts are closed. When the contracts are closed, realized gains (losses) are recorded. Realized and unrealized gains (losses) on the contracts are included in the Statement of Operations. The primary risks associated with forward foreign currency contracts include failure of the Counterparty to meet the terms of the contract and the value of the foreign currency changing unfavorably. These risks may be in excess of the amounts reflected in the Statement of Assets and Liabilities.
NOTE 2–Advisory Fees and Other Fees Paid to Affiliates
The Trust has entered into a master investment advisory agreement with Invesco Advisers, Inc. (the “Adviser” or “Invesco”). Under the terms of the investment advisory agreement, the Fund accrues daily and pays monthly an advisory fee to the Adviser based on the annual rate of the Fund’s average daily net assets as follows:
Average Daily Net Assets | Rate | |||
| ||||
First $500 million | 0.750% | |||
| ||||
Next $500 million | 0.650% | |||
| ||||
From $1 billion | 0.550% | |||
| ||||
From $2 billion | 0.450% | |||
| ||||
From $4 billion | 0.400% | |||
| ||||
From $6 billion | 0.375% | |||
| ||||
Over $8 billion | 0.350% | |||
|
For the six months ended April 30, 2020, the effective advisory fee rate incurred by the Fund was 0.75%.
Under the terms of a master sub-advisory agreement between the Adviser and each of Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Canada Ltd. and separate sub-advisory agreements with Invesco Capital Management LLC and Invesco Asset Management (India) Private Limited (collectively, the “Affiliated Sub-Advisers”) the Adviser, not the Fund, will pay 40% of the fees paid to the Adviser to any such Affiliated Sub-Adviser(s) that provide(s) discretionary investment management services to the Fund based on the percentage of assets allocated to such Affiliated Sub-Adviser(s).
The Adviser has contractually agreed, through February 28, 2021, to waive advisory fees and/or reimburse expenses of all shares to the extent necessary to limit total annual fund operating expenses after fee waiver and/or expense reimbursement (excluding certain items discussed below) of Class A, Class C, Class R, Class Y, Investor Class, Class R5 and Class R6 shares to 1.12%, 1.87%, 1.37%, 0.87%, 1.12%, 0.87% and 0.87%, respectively, of average daily net assets (the “expense limits”). In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause the total annual fund operating expenses after fee waiver and/or expense reimbursement to exceed the numbers reflected above: (1) interest; (2) taxes; (3) dividend expense on short sales; (4) extraordinary or non-routine items, including litigation expenses; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Unless Invesco continues the fee waiver agreement, it will terminate on February 28, 2021. During its term, the fee waiver agreement cannot be terminated or amended to increase the expense limits or reduce the advisory fee waiver without approval of the Board of Trustees. To the extent that the annualized expense ratio does not exceed the expense limits, the Adviser will retain its ability to be reimbursed for such fee waivers or reimbursements prior to the end of each fiscal year.
The Adviser has contractually agreed, through at least June 30, 2022, to waive the advisory fee payable by the Fund in an amount equal to 100% of the net advisory fees the Adviser receives from the affiliated money market funds on investments by the Fund of uninvested cash (excluding investments of cash collateral from securities lending) in such affiliated money market funds.
For the six months ended April 30, 2020, the Adviser waived advisory fees of $61,569 and reimbursed class level expenses of $44,617, $4,557, $2,115, $7,687, $14,225, $63 and $291 of Class A, Class C, Class R, Class Y, Investor Class, Class R5 and Class R6 shares, respectively.
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 April 30, 2020, expenses incurred under the agreement are shown in the Statement of Operations as Administrative services fees. Invesco has entered into a sub-administration agreement whereby State Street Bank and Trust Company (“SSB”) serves as fund accountant and provides certain administrative services to the Fund. Pursuant to a custody agreement with the Trust on behalf of the Fund, SSB also serves as the Fund’s custodian.
The Trust has entered into a transfer agency and service agreement with Invesco Investment Services, Inc. (“IIS”) pursuant to which the Fund has agreed to pay IIS a fee for providing transfer agency and shareholder services to the Fund and reimburse IIS for certain expenses incurred by IIS in the course of providing such services. IIS may make payments to intermediaries that provide omnibus account services, sub-accounting services and/or networking services. All fees payable by IIS to intermediaries that provide omnibus account services or sub-accounting services are charged back to the Fund, subject to certain limitations approved by the Trust’s Board of Trustees. For the six months ended April 30, 2020, expenses incurred under the agreement are shown in the Statement of Operations as Transfer 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, Investor Class, 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, Class R and Investor Class shares (collectively, the “Plans”). The Fund, pursuant to the Plans, pays IDI compensation at the annual rate of 0.25% of the Fund’s average daily net assets of Class A shares, 1.00% of the average daily net assets of Class C shares, 0.50% of the average daily net assets of Class R shares and 0.25% of the average daily net assets of Investor Class 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 Plans 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. For the six-month period ended April 30, 2020, expenses incurred under the Plans are shown in the Statement of Operations as Distribution fees.
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
15 Invesco International Core Equity Fund
shareholder. During the six months ended April 30, 2020, IDI advised the Fund that IDI retained $1,416 in front-end sales commissions from the sale of Class A shares and $0 and $13 from Class A and Class C shares, respectively, for CDSC imposed upon redemptions by shareholders.
Certain officers and trustees of the Trust are officers and directors of the Adviser, IIS and/or IDI.
NOTE 3–Additional Valuation Information
GAAP defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, under current market conditions. GAAP establishes a hierarchy that prioritizes the inputs to valuation methods, giving the highest priority to readily available unadjusted quoted prices in an active market for identical assets (Level 1) and the lowest priority to significant unobservable inputs (Level 3), generally when market prices are not readily available or are unreliable. Based on the valuation inputs, the securities or other investments are tiered into one of three levels. Changes in valuation methods may result in transfers in or out of an investment’s assigned level:
Level 1 - | Prices are determined using quoted prices in an active market for identical assets. | |
Level 2 - | Prices are determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk, yield curves, loss severities, default rates, discount rates, volatilities and others. | |
Level 3 - | Prices are determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Fund’s own assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information. |
The following is a summary of the tiered valuation input levels, as of April 30, 2020. The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
Investments in Securities | |||||||||||||||||
Argentina | $ | 581,176 | $ | – | $ | – | $ 581,176 | ||||||||||
Australia | – | 3,938,038 | – | 3,938,038 | |||||||||||||
Belgium | – | 1,131,151 | – | 1,131,151 | |||||||||||||
Brazil | 430,331 | – | – | 430,331 | |||||||||||||
China | 1,550,661 | 1,296,749 | – | 2,847,410 | |||||||||||||
Denmark | – | 564,023 | – | 564,023 | |||||||||||||
France | – | 7,935,737 | – | 7,935,737 | |||||||||||||
Germany | – | 7,064,727 | – | 7,064,727 | |||||||||||||
Hong Kong | – | 1,676,672 | – | 1,676,672 | |||||||||||||
India | – | 750,312 | – | 750,312 | |||||||||||||
Ireland | 448,034 | – | – | 448,034 | |||||||||||||
Italy | – | 1,895,652 | – | 1,895,652 | |||||||||||||
Japan | – | 9,963,197 | – | 9,963,197 | |||||||||||||
Luxembourg | – | 883,999 | – | 883,999 | |||||||||||||
Netherlands | – | 1,502,304 | – | 1,502,304 | |||||||||||||
Russia | 275,593 | – | – | 275,593 | |||||||||||||
Singapore | – | 715,709 | – | 715,709 | |||||||||||||
South Korea | – | 810,420 | – | 810,420 | |||||||||||||
Spain | – | 1,087,846 | – | 1,087,846 | |||||||||||||
Switzerland | 2,079,867 | 699,105 | – | 2,778,972 | |||||||||||||
United Kingdom | 2,151,513 | 2,198,157 | – | 4,349,670 | |||||||||||||
United States | 1,560,185 | 786,472 | – | 2,346,657 | |||||||||||||
Money Market Funds | 589,114 | 289,968 | – | 879,082 | |||||||||||||
Total Investments | $ | 9,666,474 | $ | 45,190,238 | $ | – | $54,856,712 |
NOTE 4–Derivative Investments
The Fund may enter into an International Swaps and Derivatives Association Master Agreement (“ISDA Master Agreement”) under which a fund may trade OTC derivatives. An OTC transaction entered into under an ISDA Master Agreement typically involves a collateral posting arrangement, payment netting provisions and close-out netting provisions. These netting provisions allow for reduction of credit risk through netting of contractual obligations. The enforceability of the netting provisions of the ISDA Master Agreement depends on the governing law of the ISDA Master Agreement, among other factors.
For financial reporting purposes, the Fund does not offset OTC derivative assets or liabilities that are subject to ISDA Master Agreements in the Statement of Assets and Liabilities.
Effect of Derivative Investments for the six months ended April 30, 2020
The table below summarizes the gains (losses) on derivative investments, detailed by primary risk exposure, recognized in earnings during the period:
Location of Gain (Loss) on Statement of Operations | |||||
Currency Risk | |||||
Realized Gain (Loss): | |||||
Forward foreign currency contracts | $ | (86,893) |
16 Invesco International Core Equity Fund
Location of Gain (Loss) on Statement of Operations | |||||
Currency Risk | |||||
Change in Net Unrealized Appreciation (Depreciation): | |||||
Forward foreign currency contracts | $ | (88,712 | ) | ||
Total | $ | (175,605 | ) |
The table below summarizes the average notional value of derivatives held during the period.
Forward Foreign Currency Contracts | ||||
Average notional value | $2,417,051 |
NOTE 5–Expense Offset Arrangement(s)
The expense offset arrangement is comprised of transfer agency credits which result from balances in demand deposit accounts used by the transfer agent for clearing shareholder transactions. For the six months ended April 30, 2020, the Fund received credits from this arrangement, which resulted in the reduction of the Fund’s total expenses of $1,169.
NOTE 6–Trustees’ and Officers’ Fees and Benefits
Trustees’ and Officers’ Fees and Benefits include amounts accrued by the Fund to pay remuneration to certain Trustees and Officers of the Fund. Trustees have the option to defer compensation payable by the Fund, and Trustees’ and Officers’ Fees and Benefits also include amounts accrued by the Fund to fund such deferred compensation amounts. Those Trustees who defer compensation have the option to select various Invesco Funds in which their deferral accounts shall be deemed to be invested. Finally, certain current Trustees were eligible to participate in a retirement plan that provided for benefits to be paid upon retirement to Trustees over a period of time based on the number of years of service. The Fund may have certain former Trustees who also participate in a retirement plan and receive benefits under such plan. Trustees’ and Officers’ Fees and Benefits include amounts accrued by the Fund to fund such retirement benefits. Obligations under the deferred compensation and retirement plans represent unsecured claims against the general assets of the Fund.
NOTE 7–Cash Balances
The Fund is permitted to temporarily carry a negative or overdrawn balance in its account with SSB, the custodian bank. Such balances, if any at period-end, are shown in the Statement of Assets and Liabilities under the payable caption Amount due custodian. To compensate the custodian bank for such overdrafts, the overdrawn Fund may either (1) leave funds as a compensating balance in the account so the custodian bank can be compensated by earning the additional interest; or (2) compensate by paying the custodian bank at a rate agreed upon by the custodian bank and Invesco, not to exceed the contractually agreed upon rate. The Fund may not purchase additional securities when any borrowings from banks or broker-dealers exceed 5% of the Fund’s total assets, or when any borrowings from an Invesco Fund are outstanding.
NOTE 8–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 October 31, 2019, as follows:
Capital Loss Carryforward* | ||||||||||||||||||
Expiration | Short-Term | Long-Term | Total | |||||||||||||||
Not subject to expiration | $ | – | $ | 3,713,222 | $ | 3,713,222 |
* | Capital loss carryforward is reduced for limitations, if any, to the extent required by the Internal Revenue Code and may be further limited depending upon a variety of factors, including the realization of net unrealized gains or losses as of the date of any reorganization. |
NOTE 9–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 April 30, 2020 was $13,828,465 and $16,596,693, respectively. Cost of investments, including any derivatives, on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end.
Unrealized Appreciation (Depreciation) of Investments on a Tax Basis | ||||
| ||||
Aggregate unrealized appreciation of investments | $ | 3,555,747 | ||
| ||||
Aggregate unrealized (depreciation) of investments | (10,488,966 | ) | ||
| ||||
Net unrealized appreciation (depreciation) of investments | $ | (6,933,219 | ) | |
|
Cost of investments for tax purposes is $61,789,931.
17 Invesco International Core Equity Fund
NOTE 10–Share Information
Summary of Share Activity | ||||||||||||||||
| ||||||||||||||||
Six months ended April 30, 2020(a) | Year ended October 31, 2019 | |||||||||||||||
|
|
|
| |||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||
| ||||||||||||||||
Sold: | ||||||||||||||||
Class A | 86,751 | $ | 857,725 | 306,173 | $ | 3,076,911 | ||||||||||
| ||||||||||||||||
Class C | 20,936 | 204,359 | 52,968 | 521,114 | ||||||||||||
| ||||||||||||||||
Class R | 29,934 | 315,537 | 18,524 | 186,914 | ||||||||||||
| ||||||||||||||||
Class Y | 84,101 | 871,393 | 173,396 | 1,805,335 | ||||||||||||
| ||||||||||||||||
Investor Class | 11,933 | 123,742 | 16,692 | 172,492 | ||||||||||||
| ||||||||||||||||
Class R5 | 262 | 2,563 | 568 | 5,658 | ||||||||||||
| ||||||||||||||||
Class R6 | - | - | 1,176,175 | 10,713,294 | ||||||||||||
| ||||||||||||||||
Issued as reinvestment of dividends: | ||||||||||||||||
Class A | 50,386 | 553,747 | 271,803 | 2,538,646 | ||||||||||||
| ||||||||||||||||
Class C | 3,122 | 33,715 | 44,357 | 406,750 | ||||||||||||
| ||||||||||||||||
Class R | 2,103 | 23,237 | 10,994 | 103,237 | ||||||||||||
| ||||||||||||||||
Class Y | 9,061 | 101,302 | 36,283 | 344,688 | ||||||||||||
| ||||||||||||||||
Investor Class | 16,321 | 182,631 | 71,398 | 678,992 | ||||||||||||
| ||||||||||||||||
Class R5 | 7,413 | 80,731 | 26,966 | 249,706 | ||||||||||||
| ||||||||||||||||
Class R6 | 42,985 | 468,107 | 99,975 | 925,766 | ||||||||||||
| ||||||||||||||||
Automatic conversion of Class C shares to Class A shares: | ||||||||||||||||
Class A | 7,144 | 69,422 | 278,763 | 2,716,128 | ||||||||||||
| ||||||||||||||||
Class C | (7,287 | ) | (69,422 | ) | (284,411 | ) | (2,716,128 | ) | ||||||||
| ||||||||||||||||
Reacquired: | ||||||||||||||||
Class A | (298,188 | ) | (2,889,141 | ) | (1,450,002 | ) | (14,303,156 | ) | ||||||||
| ||||||||||||||||
Class C | (24,422 | ) | (225,182 | ) | (130,254 | ) | (1,259,716 | ) | ||||||||
| ||||||||||||||||
Class R | (9,005 | ) | (84,852 | ) | (59,518 | ) | (607,949 | ) | ||||||||
| ||||||||||||||||
Class Y | (91,311 | ) | (865,575 | ) | (331,060 | ) | (3,387,733 | ) | ||||||||
| ||||||||||||||||
Investor Class | (75,571 | ) | (781,597 | ) | (108,998 | ) | (1,119,947 | ) | ||||||||
| ||||||||||||||||
Class R5 | (40 | ) | (435 | ) | (4,181 | ) | (43,662 | ) | ||||||||
| ||||||||||||||||
Class R6 | (63,305 | ) | (623,299 | ) | (561,933 | ) | (5,798,836 | ) | ||||||||
| ||||||||||||||||
Net increase (decrease) in share activity | (196,677 | ) | $ | (1,651,292 | ) | (345,322 | ) | $ | (4,791,496 | ) | ||||||
|
(a) | There is an entity that is a record owner of more than 5% of the outstanding shares of the Fund and owns 26% of the outstanding shares of the Fund. IDI has an agreement with this entity to sell Fund shares. The Fund, Invesco and/or Invesco affiliates may make payments to this entity, which is 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 this entity are also owned beneficially. |
In addition, 15% of the outstanding shares of the Fund are owned by the Adviser or an affiliate of the Adviser.
NOTE 11–Coronavirus (COVID-19) Pandemic
During the first quarter of 2020, the World Health Organization declared COVID-19 to be a public health emergency. COVID-19 has led to increased short-term market volatility and may have adverse long-term effects on U.S. and world economies and markets in general. COVID-19 may adversely impact the Fund’s ability to achieve its investment objective. Because of the uncertainties on valuation, the global economy and business operations, values reflected in these financial statements may materially differ from the value received upon actual sales of those investments.
The extent of the impact on the performance of the Fund and its investments will depend on future developments, including the duration and spread of the COVID-19 outbreak, related restrictions and advisories, and the effects on the financial markets and economy overall, all of which are highly uncertain and cannot be predicted.
18 Invesco International Core Equity Fund
Calculating your ongoing Fund expenses
Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, which may include sales charges (loads) on purchase payments or contingent deferred sales charges on redemptions, if any; and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees, and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period November 1, 2019 through April 30, 2020.
Actual expenses
The table below provides information about actual account values and actual expenses. You may use the information in this table, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the table under the heading entitled “Actual Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Hypothetical example for comparison purposes
The table below also provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return.
The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads) on purchase payments or contingent deferred sales charges on redemptions, if any. Therefore, the hypothetical information 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 transaction costs were included, your costs would have been higher.
HYPOTHETICAL | ||||||||||||
(5% annual return before | ||||||||||||
ACTUAL | expenses) | |||||||||||
Beginning | Ending | Expenses | Ending | Expenses | Annualized | |||||||
Account Value | Account Value | Paid During | Account Value | Paid During | Expense | |||||||
(11/01/19) | (04/30/20)1 | Period2 | (04/30/20) | Period2 | Ratio | |||||||
Class A | $1,000.00 | $855.40 | $5.17 | $1,019.29 | $5.62 | 1.12% | ||||||
Class C | 1,000.00 | 852.70 | 8.61 | 1,015.56 | 9.37 | 1.87 | ||||||
Class R | 1,000.00 | 854.30 | 6.32 | 1,018.05 | 6.87 | 1.37 | ||||||
Class Y | 1,000.00 | 856.70 | 4.02 | 1,020.54 | 4.37 | 0.87 | ||||||
Investor Class | 1,000.00 | 856.10 | 5.17 | 1,019.29 | 5.62 | 1.12 | ||||||
Class R5 | 1,000.00 | 856.70 | 4.02 | 1,020.54 | 4.37 | 0.87 | ||||||
Class R6 | 1,000.00 | 856.70 | 4.02 | 1,020.54 | 4.37 | 0.87 |
1 | The actual ending account value is based on the actual total return of the Fund for the period November 1, 2019 through April 30, 2020, after actual expenses and will differ from the hypothetical ending account value which is based on the Fund’s expense ratio and a hypothetical annual return of 5% before expenses. |
2 | Expenses are equal to the Fund’s annualized expense ratio as indicated above multiplied by the average account value over the period, multiplied by 182/366 to reflect the most recent fiscal half year. |
19 Invesco International Core Equity Fund
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 list appears 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 Form N-PORT filings on the SEC website, sec.gov. The SEC file numbers for the Fund are shown below.
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. This 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. |
SEC file numbers: 811-06463 and 033-44611 | Invesco Distributors, Inc. | I-ICE-SAR-1 |
| ||||
Semiannual Report to Shareholders
| April 30, 2020
| |||
| ||||
Invesco International Growth Fund | ||||
Nasdaq: | ||||
A: AIIEX ∎ C: AIECX ∎ R: AIERX ∎ Y: AIIYX ∎ R5: AIEVX ∎ R6: IGFRX |
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.
For the most current month-end Fund performance and commentary, please visit invesco.com/performance.
Unless otherwise noted, all data provided by Invesco.
This report must be accompanied or preceded by a currently effective Fund prospectus, which contains more complete information, including sales charges and expenses. Investors should read it carefully before investing.
NOT FDIC INSURED | MAY LOSE VALUE | NO BANK GUARANTEE
Bruce Crockett | Dear Fellow Shareholders: As independent chair of the Invesco Funds Board, I can assure you that the members of the Board are strong advocates for the interests of investors in Invesco’s mutual funds. We work hard to represent your interests through oversight of the quality of the investment management services your funds receive and other matters important to your investment. This includes but is not limited to: monitoring how the portfolio management teams of the Invesco funds are performing in light of changing economic and market conditions; assessing each portfolio management team’s investment performance within the context of the investment strategy described in the fund’s prospectus; and monitoring for potential conflicts of interests that may impact the nature of the services that your funds receive. | |
We believe one of the most important services we provide our fund shareholders is the annual review of the funds’ advisory and sub-advisory contracts with Invesco Advisers and its affiliates. This review is required by the Investment Company Act of 1940 and focuses on the nature and quality of the services Invesco provides as the adviser to the Invesco funds and the reasonableness of the fees that it charges | ||
for those services. Each year, we spend months carefully reviewing information received from Invesco and a variety of independent sources, such as performance and fee data prepared by Lipper Inc. (a subsidiary of Broadridge Financial Solutions, Inc.), an independent, third-party firm widely recognized as a leader in its field. We also meet with our independent legal counsel and other independent advisers to review and help us assess the information that we have received. Our goal is to assure that you receive quality investment management services for a reasonable fee. | ||
On behalf of the Board, we look forward to continuing to represent your interests and serving your needs. |
Sincerely,
Bruce L. Crockett
Independent Chair
Invesco Funds Board of Trustees
Andrew Schlossberg | Dear Shareholders: This semiannual report includes information about your Fund, including performance data and a complete list of its investments as of the close of the reporting period. Invesco’s efforts to help investors achieve their financial objectives include providing timely information about the markets, the economy and investing. Our website, invesco.com/us, offers a wide range of market insights and investment perspectives. On the website, you’ll find detailed information about our funds, including performance, holdings and portfolio manager commentaries. You can access information about your account by completing a simple, secure online registration. To do so, select “Log In” on the right side of the homepage, and then select “Register for Individual Account Access.” | |
In addition to the resources accessible on our website, you can obtain timely updates to help you stay informed by connecting with Invesco on Twitter, LinkedIn or Facebook. You can access our blog at blog.invesco.us.com. Our goal is to provide you with information you want, when and where you want it. | ||
For questions about your account, feel free to contact an Invesco client services representative at 800 959 4246. All of us at Invesco look forward to serving your investment management needs. Thank you for investing with us. |
Sincerely,
Andrew Schlossberg
Head of the Americas,
Senior Managing Director, Invesco Ltd.
2 Invesco International Growth Fund
Performance summary |
| |||
Fund vs. Indexes |
| |||
Cumulative total returns, October 31, 2019 to April 30, 2020, at net asset value (NAV). Performance shown does not include applicable contingent deferred sales charges (CDSC) or front-end sales charges, which would have reduced performance. |
| |||
Class A Shares | -11.50 | % | ||
Class C Shares | -11.85 | |||
Class R Shares | -11.63 | |||
Class Y Shares | -11.39 | |||
Class R5 Shares | -11.36 | |||
Class R6 Shares | -11.34 | |||
MSCI All Country World ex-USA Indexq (Broad Market Index) | -13.22 | |||
Custom Invesco International Growth Index∎ (Style-Specific Index) | -6.10 | |||
Lipper International Large-Cap Growth Funds Index¨ (Peer Group Index) | -8.94 | |||
Source(s): qRIMES Technologies Corp.;∎Invesco, RIMES Technologies Corp.;¨ Lipper Inc. |
| |||
The MSCI All Country World ex-USA® Index is an index considered representative of developed and emerging stock markets, excluding the US. The index is computed using the net return, which withholds applicable taxes for non-resident investors. |
| |||
The Custom Invesco International Growth Index is composed of the MSCI EAFE Growth Index through February 28, 2013, and the MSCI All Country World ex-USA Growth Index thereafter. |
| |||
The Lipper International Large-Cap Growth Funds Index is an unmanaged index considered representative of international large-cap growth funds tracked by Lipper. |
| |||
The MSCI EAFE® Growth Index is an unmanaged index considered representative of growth stocks of Europe, Australasia and the Far East. The index is computed using the net return, which withholds applicable taxes for non-resident investors. The MSCI All Country World ex-USA Growth Index is a market capitalization weighted index that includes growth companies in developed and emerging markets, excluding the US. The index is computed using the net return, which withholds applicable taxes for non-resident investors. |
| |||
The Fund is not managed to track the performance of any particular index, including the index(es) described here, and consequently, the performance of the Fund may deviate significantly from the performance of the index(es). |
| |||
A direct investment cannot be made in an index. Unless otherwise indicated, index results include reinvested dividends, and they do not reflect sales charges. Performance of the peer group, if applicable, reflects fund expenses; performance of a market index does not. |
|
For more information about your Fund
|
Read the most recent quarterly commentary from your Fund’s portfolio managers by visiting invesco.com/us. Click on “Products” and select “Mutual Funds.” Use the “Product Finder” to locate your Fund; then click on its name to access its product detail page. There, you can learn more about your Fund’s investment strategies, holdings and performance. |
Also, visit blog.invesco.us.com, where many of Invesco’s investment professionals share their insights about market and economic news and trends.
|
3 Invesco International Growth Fund
Average Annual Total Returns |
| |||
As of 4/30/20, including maximum applicable sales charges |
| |||
Class A Shares | ||||
Inception (4/7/92) | 6.48 | % | ||
10 Years | 3.78 | |||
5 Years | -0.96 | |||
1 Year | -13.95 | |||
Class C Shares | ||||
Inception (8/4/97) | 4.15 | % | ||
10 Years | 3.59 | |||
5 Years | -0.59 | |||
1 Year | -10.42 | |||
Class R Shares | ||||
Inception (6/3/02) | 5.65 | % | ||
10 Years | 4.11 | |||
5 Years | -0.09 | |||
1 Year | -9.15 | |||
Class Y Shares | ||||
Inception (10/3/08) | 5.30 | % | ||
10 Years | 4.64 | |||
5 Years | 0.41 | |||
1 Year | -8.70 | |||
Class R5 Shares | ||||
Inception (3/15/02) | 6.37 | % | ||
10 Years | 4.74 | |||
5 Years | 0.50 | |||
1 Year | -8.59 | |||
Class R6 Shares | ||||
10 Years | 4.70 | % | ||
5 Years | 0.58 | |||
1 Year | -8.57 | |||
Class R6 shares incepted on September 24, 2012. Performance shown prior to that date is that of Class A shares and includes the 12b-1 fees applicable to Class A shares. The performance data quoted represent past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/ performance for the most recent month-end performance. Performance figures reflect reinvested distributions, changes in net asset value and the effect of the maximum sales charge unless otherwise stated. Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares. Investment return and principal value will fluctuate so that you may have a gain or loss when you sell shares. |
| |||
Class A share performance reflects the maximum 5.50% sales charge, and Class C share performance reflects the applicable contingent deferred sales charge (CDSC) for the period involved. The CDSC on Class C shares is 1% for the first year after purchase. Class R, Class Y, Class R5 and Class R6 shares do not have a front-end sales charge or a CDSC; therefore, performance is at net asset value.
|
|
The performance of the Fund’s share classes will differ primarily due to different sales charge structures and class expenses.
Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information.
4 Invesco International Growth Fund
Liquidity Risk Management Program
The Securities and Exchange Commission has adopted Rule 22e-4 under the Investment Company Act of 1940 (the “Liquidity Rule”) in order to promote effective liquidity risk management throughout the open-end investment company industry, thereby reducing the risk that funds will be unable to meet their redemption obligations and mitigating dilution of the interests of fund shareholders. The Fund has adopted and implemented a liquidity risk management program in accordance with the Liquidity Rule (the “Program”). The Program is reasonably designed to assess and manage the Fund’s liquidity risk, which is the risk that the Fund could not meet redemption requests without significant dilution of remaining investors’ interests in the Fund. The Board of Trustees of the Fund (the “Board”) has appointed Invesco Advisers, Inc. (“Invesco”), the Fund’s investment adviser, as the Program’s administrator, and Invesco has delegated oversight of the Program to the Liquidity Risk Management Committee (the “Committee”), which is composed of senior representatives from relevant business groups at Invesco.
As required by the Liquidity Rule, the Program includes policies and procedures providing for an assessment, no less frequently than annually, of the Fund’s liquidity risk that takes into account, as relevant to the Fund’s liquidity risk: (1) the Fund’s investment strategy and liquidity of portfolio investments during both normal and reasonably foreseeable stressed conditions; (2) short-term and long-term cash flow projections for the Fund during both normal and reasonably foreseeable stressed conditions; and (3) the Fund’s holdings of cash and cash equivalents and any borrowing arrangements. The Liquidity Rule also requires the classification of the Fund’s investments into categories that reflect the assessment of their relative liquidity under current market conditions. The Fund classifies its investments into one of four categories defined in the Liquidity Rule: “Highly Liquid,” “Moderately Liquid,” “Less Liquid” and “Illiquid.” Funds that are not invested primarily in “Highly Liquid Investments” that are assets (cash or investments that are reasonably expected to be convertible into cash within three business days without significantly changing the market value of the investment) are required to establish a “Highly Liquid Investment Minimum” (“HLIM”), which is the minimum percentage of net assets that must be invested in Highly Liquid Investments. Funds with HLIMs have procedures for addressing HLIM shortfalls, including reporting to the Board and the SEC (on a non-public basis) as required by the Program and the Liquidity Rule. In addition, the Fund may not acquire an investment if, immediately after the acquisition, over 15% of the Fund’s net assets would consist of “Illiquid Investments” that are assets (an investment that cannot reasonably be expected to be sold or disposed of in current market conditions in seven calendar days or less without the sale or disposition significantly changing the market value of the investment). The Liquidity Rule and the Program also require reporting to the Board and the SEC (on a non-public basis) if a Fund’s holdings of Illiquid Investments exceed 15% of the Fund’s assets.
At a meeting held on March 30-April 1, 2020, the Committee presented a report to the Board that addressed the operation of the Program and assessed the Program’s adequacy and effectiveness of implementation (the “Report”). The Report covered the period from December 1, 2018 through December 31, 2019 (the “Program Reporting Period”).
The Report stated, in relevant part, that during the Program Reporting Period:
∎ | The Program, as adopted and implemented, remained reasonably designed to assess and manage the Fund’s liquidity risk and was operated effectively to achieve that goal; |
∎ | The Fund’s investment strategy remained appropriate for an open-end fund; |
∎ | The Fund was able to meet requests for redemption without significant dilution of remaining investors’ interests in the Fund; |
∎ | The Fund did not breach the 15% limit on Illiquid Investments; and |
∎ | The Fund primarily held Highly Liquid Investments and therefore has not adopted an HLIM. |
5 Invesco International Growth Fund
April 30, 2020
(Unaudited)
Shares | Value | |||||
Common Stocks & Other Equity Interests–94.44% | ||||||
Australia–0.60% | ||||||
CSL Ltd. | 115,223 | $ 22,839,016 | ||||
Brazil–1.79% | ||||||
B3 S.A. - Brasil, Bolsa, Balcao | 6,567,102 | 46,398,069 | ||||
Banco Bradesco S.A., ADR | 6,358,420 | 22,381,638 | ||||
68,779,707 | ||||||
Canada–5.42% | ||||||
Canadian National Railway Co. | 975,987 | 80,711,135 | ||||
CGI, Inc., Class A(a) | 1,467,483 | 93,587,030 | ||||
Suncor Energy, Inc. | 1,889,142 | 33,685,480 | ||||
207,983,645 | ||||||
China–10.70% | ||||||
Alibaba Group Holding Ltd., | 506,716 | 102,696,132 | ||||
China Mengniu Dairy Co. Ltd.(a) | 8,060,000 | 28,379,717 | ||||
Kweichow Moutai Co. Ltd., A Shares | 151,574 | 26,821,476 | ||||
New Oriental Education & | 471,744 | 60,222,839 | ||||
Tencent Holdings Ltd. | 1,087,200 | 57,679,334 | ||||
Wuliangye Yibin Co. Ltd., A Shares | 3,114,876 | 59,968,905 | ||||
Yum China Holdings, Inc. | 1,538,322 | 74,547,084 | ||||
410,315,487 | ||||||
Denmark–2.65% | ||||||
Carlsberg A/S, Class B | 545,541 | 68,867,764 | ||||
Novo Nordisk A/S, Class B | 513,644 | 32,798,246 | ||||
101,666,010 | ||||||
France–5.87% | ||||||
Bureau Veritas S.A. | 1,421,831 | 29,543,680 | ||||
EssilorLuxottica S.A. | 437,801 | 54,109,247 | ||||
LVMH Moet Hennessy Louis Vuitton SE | 65,059 | 25,164,139 | ||||
Pernod Ricard S.A. | 249,885 | 38,128,463 | ||||
Schneider Electric SE | 855,153 | 78,343,508 | ||||
225,289,037 | ||||||
Germany–7.94% | ||||||
Allianz SE | 373,911 | 69,268,368 | ||||
Beiersdorf AG | 341,441 | 35,839,794 | ||||
Deutsche Boerse AG | 543,966 | 84,612,872 | ||||
Knorr-Bremse AG | 355,772 | 33,112,512 | ||||
SAP SE | 683,503 | 81,519,847 | ||||
304,353,393 | ||||||
Hong Kong–1.45% | ||||||
AIA Group Ltd. | 6,090,800 | 55,441,216 | ||||
India–0.83% | ||||||
HDFC Bank Ltd., ADR | 734,072 | 31,822,021 | ||||
Ireland–1.66% | ||||||
ICON PLC(a) | 397,834 | 63,840,422 | ||||
Italy–2.48% | ||||||
FinecoBank Banca Fineco S.p.A. | 7,681,207 | 85,568,429 |
Shares | Value | |||||
Italy–(continued) | ||||||
Mediobanca Banca di Credito Finanziario S.p.A. | 1,647,215 | $ 9,569,459 | ||||
95,137,888 | ||||||
Japan–12.86% | ||||||
Asahi Group Holdings Ltd. | 2,011,200 | 69,535,987 | ||||
FANUC Corp. | 409,812 | 67,575,600 | ||||
Hoya Corp. | 924,700 | 84,505,753 | ||||
Kao Corp. | 714,900 | 55,143,560 | ||||
Keyence Corp. | 127,600 | 45,842,113 | ||||
Koito Manufacturing Co. Ltd. | 889,800 | 33,691,005 | ||||
Komatsu Ltd. | 2,592,600 | 49,426,632 | ||||
Nidec Corp. | 576,000 | 33,455,918 | ||||
SMC Corp. | 117,700 | 53,814,555 | ||||
492,991,123 | ||||||
Macau–1.91% | ||||||
Galaxy Entertainment Group Ltd. | 11,537,090 | 73,262,740 | ||||
Mexico–2.26% | ||||||
Fomento Economico Mexicano, S.A.B. de C.V., ADR | 565,570 | 36,383,118 | ||||
Wal-Mart de Mexico S.A.B. de C.V., Series V | 20,895,700 | 50,260,310 | ||||
86,643,428 | ||||||
Netherlands–5.57% | ||||||
ASML Holding N.V. | 109,913 | 32,649,518 | ||||
EXOR N.V. | 407,873 | 22,357,674 | ||||
ING Groep N.V. | 4,985,793 | 27,409,574 | ||||
Prosus N.V.(a) | 648,789 | 49,246,890 | ||||
Wolters Kluwer N.V. | 1,111,898 | 81,866,506 | ||||
213,530,162 | ||||||
Singapore–1.38% | ||||||
United Overseas Bank Ltd. | 3,710,166 | 53,005,421 | ||||
South Korea–2.73% | ||||||
NAVER Corp. | 277,685 | 45,208,470 | ||||
Samsung Electronics Co. Ltd. | 1,440,697 | 59,366,956 | ||||
104,575,426 | ||||||
Spain–0.84% | ||||||
Amadeus IT Group S.A. | 670,275 | 32,297,565 | ||||
Sweden–2.36% | ||||||
Investor AB, Class B | 1,800,573 | 90,437,645 | ||||
Switzerland–8.67% | ||||||
Alcon, Inc.(a) | 856,486 | 45,250,136 | ||||
Kuehne + Nagel International AG | 437,919 | 62,698,166 | ||||
Logitech International S.A. | 542,806 | 26,182,719 | ||||
Nestle S.A. | 648,879 | 68,545,027 | ||||
Novartis AG | 944,958 | 80,610,653 | ||||
Roche Holding AG | 141,705 | 49,289,044 | ||||
332,575,745 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
6 Invesco International Growth Fund
Shares | Value | |||||
Taiwan–2.32% | ||||||
Taiwan Semiconductor Manufacturing Co. Ltd. | 8,841,887 | $ 88,856,258 | ||||
United Kingdom–4.80% | ||||||
British American Tobacco PLC | 1,449,180 | 56,278,417 | ||||
Linde PLC | 208,719 | 38,402,209 | ||||
RELX PLC | 3,946,583 | 89,381,859 | ||||
184,062,485 | ||||||
United States–7.35% | ||||||
Amcor PLC, CDI | 4,994,377 | 45,331,813 | ||||
Booking Holdings, Inc.(a) | 36,128 | 53,490,033 | ||||
Broadcom, Inc. | 332,276 | 90,252,807 | ||||
Philip Morris International, Inc. | 1,242,304 | 92,675,879 | ||||
281,750,532 | ||||||
Total Common Stocks & Other Equity Interests (Cost $2,666,443,379) |
| 3,621,456,372 |
Shares | Value | |||||
Money Market Funds–4.44% | ||||||
Invesco Government & Agency Portfolio, Institutional Class, 0.20%(b)(c) | 59,195,559 | $ 59,195,559 | ||||
Invesco Liquid Assets Portfolio, Institutional Class, 0.60%(b)(c) | 43,323,075 | 43,349,069 | ||||
Invesco Treasury Portfolio, Institutional Class, 0.10%(b)(c) | 67,652,067 | 67,652,067 | ||||
Total Money Market Funds |
| 170,196,695 | ||||
TOTAL INVESTMENTS IN |
| 3,791,653,067 | ||||
OTHER ASSETS LESS LIABILITIES–1.12% |
| 43,110,737 | ||||
NET ASSETS–100.00% | $3,834,763,804 |
Investment Abbreviations:
ADR - American Depositary Receipt
CDI - CREST Depository Interest
Notes to Schedule of Investments:
(a) | Non-income producing security. |
(b) | Affiliated issuer. The issuer and/or the Fund is a wholly-owned subsidiary of Invesco Ltd., or is affiliated by having an investment adviser that is under common control of Invesco Ltd. The table below shows the Fund’s transactions in, and earnings from, its investments in affiliates for the six months ended April 30, 2020. |
Value October 31, 2019 | Purchases at Cost | Proceeds from Sales | Change in Unrealized Appreciation | Realized Gain (Loss) | Value April 30, 2020 | Dividend Income | ||||||||||||||||||||
Investments in Affiliated Money Market Funds: |
| |||||||||||||||||||||||||
Invesco Government & Agency Portfolio, Institutional Class | $28,006,209 | $ | 309,952,562 | $ | (278,763,212 | ) | $ | - | $ | - | $ | 59,195,559 | $298,850 | |||||||||||||
Invesco Liquid Assets Portfolio, Institutional Class | 20,021,672 | 222,636,061 | (199,324,186 | ) | 20,911 | (5,389 | ) | 43,349,069 | 268,389 | |||||||||||||||||
Invesco Treasury Portfolio, Institutional Class | 32,007,096 | 354,231,499 | (318,586,528 | ) | - | - | 67,652,067 | 330,336 | ||||||||||||||||||
Total | $80,034,977 | $ | 886,820,122 | $ | (796,673,926 | ) | $ | 20,911 | $ | (5,389 | ) | $ | 170,196,695 | $897,575 |
(c) | The rate shown is the 7-day SEC standardized yield as of April 30, 2020. |
Portfolio Composition
By sector, based on Net Assets
as of April 30, 2020
Consumer Staples | 17.91 | % | ||
Industrials | 17.21 | |||
Financials | 15.60 | |||
Information Technology | 14.36 | |||
Consumer Discretionary | 13.73 | |||
Health Care | 9.89 | |||
Communication Services | 2.68 | |||
Materials | 2.18 | |||
Other Sectors, Each Less than 2% of Net Assets | 0.88 | |||
Money Market Funds Plus Other Assets Less Liabilities | 5.56 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
7 Invesco International Growth Fund
Statement of Assets and Liabilities
April 30, 2020
(Unaudited)
Assets: | ||
Investments in securities, at value | $3,621,456,372 | |
Investments in affiliated money market funds, at value (Cost $170,167,380) | 170,196,695 | |
Cash | 13,265 | |
Foreign currencies, at value (Cost $2,018,519) | 2,036,011 | |
Receivable for: | ||
Investments sold | 33,887,939 | |
Fund shares sold | 1,346,448 | |
Dividends | 18,102,893 | |
Investment for trustee deferred compensation and retirement plans | 721,797 | |
Other assets | 106,936 | |
Total assets | 3,847,868,356 | |
Liabilities: | ||
Payable for: | ||
Fund shares reacquired | 10,198,007 | |
Accrued fees to affiliates | 1,417,185 | |
Accrued other operating expenses | 672,764 | |
Trustee deferred compensation and retirement plans | 816,596 | |
Total liabilities | 13,104,552 | |
Net assets applicable to shares outstanding | $3,834,763,804 | |
Net assets consist of: | ||
Shares of beneficial interest | $2,841,431,857 | |
Distributable earnings | 993,331,947 | |
$3,834,763,804 |
Net Assets: | ||
Class A | $1,205,088,140 | |
Class C | $ 41,551,420 | |
Class R | $ 47,065,708 | |
Class Y | $ 757,975,959 | |
Class R5 | $ 487,900,228 | |
Class R6 | $1,295,182,349 | |
Shares outstanding, no par value, with an unlimited number of shares authorized: | ||
Class A | 44,299,263 | |
Class C | 1,690,019 | |
Class R | 1,754,641 | |
Class Y | 27,794,012 | |
Class R5 | 17,588,491 | |
Class R6 | 46,780,510 | |
Class A: | ||
Net asset value per share | $ 27.20 | |
Maximum offering price per share (Net asset value of $27.20 ÷ 94.50%) | $ 28.78 | |
Class C: | ||
Net asset value and offering price per share | $ 24.59 | |
Class R: | ||
Net asset value and offering price per share | $ 26.82 | |
Class Y: | ||
Net asset value and offering price per share | $ 27.27 | |
Class R5: | ||
Net asset value and offering price per share | $ 27.74 | |
Class R6: | ||
Net asset value and offering price per share | $ 27.69 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
8 Invesco International Growth Fund
Statement of Operations
For the six months ended April 30, 2020
(Unaudited)
Investment income: | ||||
Dividends (net of foreign withholding taxes of $4,064,250) | $ | 38,196,426 | ||
| ||||
Dividends from affiliated money market funds | 897,575 | |||
| ||||
Total investment income | 39,094,001 | |||
| ||||
Expenses: | ||||
Advisory fees | 19,405,802 | |||
| ||||
Administrative services fees | 360,479 | |||
| ||||
Custodian fees | 293,011 | |||
| ||||
Distribution fees: | ||||
Class A | 1,763,059 | |||
| ||||
Class C | 249,502 | |||
| ||||
Class R | 136,604 | |||
| ||||
Transfer agent fees – A, C, R and Y | 2,263,754 | |||
| ||||
Transfer agent fees – R5 | 271,492 | |||
| ||||
Transfer agent fees – R6 | 30,741 | |||
| ||||
Trustees’ and officers’ fees and benefits | 33,848 | |||
| ||||
Registration and filing fees | 80,960 | |||
| ||||
Reports to shareholders | 232,600 | |||
| ||||
Professional services fees | 61,545 | |||
| ||||
Other | (180,066 | ) | ||
| ||||
Total expenses | 25,003,331 | |||
| ||||
Less: Fees waived and/or expense offset arrangement(s) | (88,961 | ) | ||
| ||||
Net expenses | 24,914,370 | |||
| ||||
Net investment income | 14,179,631 | |||
| ||||
Realized and unrealized gain (loss) from: | ||||
Net realized gain (loss) from: | ||||
Investment securities | 135,872,428 | |||
| ||||
Foreign currencies | (1,507,265 | ) | ||
| ||||
134,365,163 | ||||
| ||||
Change in net unrealized appreciation (depreciation) of: | ||||
Investment securities | (679,220,705 | ) | ||
| ||||
Foreign currencies | 161,123 | |||
| ||||
(679,059,582 | ) | |||
| ||||
Net realized and unrealized gain (loss) | (544,694,419 | ) | ||
| ||||
Net increase (decrease) in net assets resulting from operations | $ | (530,514,788 | ) | |
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
9 Invesco International Growth Fund
Statement of Changes in Net Assets
For the six months ended April 30, 2020 and the year ended October 31, 2019
(Unaudited)
April 30, 2020 | October 31, 2019 | |||||||
| ||||||||
Operations: | ||||||||
Net investment income | $ | 14,179,631 | $ | 82,469,454 | ||||
| ||||||||
Net realized gain | 134,365,163 | 397,801,741 | ||||||
| ||||||||
Change in net unrealized appreciation (depreciation) | (679,059,582 | ) | 429,556,831 | |||||
| ||||||||
Net increase (decrease) in net assets resulting from operations | (530,514,788 | ) | 909,828,026 | |||||
| ||||||||
Distributions to shareholders from distributable earnings: | ||||||||
Class A | (154,710,182 | ) | (134,174,325 | ) | ||||
| ||||||||
Class C | (5,609,245 | ) | (8,736,060 | ) | ||||
| ||||||||
Class R | (5,980,324 | ) | (5,519,651 | ) | ||||
| ||||||||
Class Y | (111,599,569 | ) | (137,588,829 | ) | ||||
| ||||||||
Class R5 | (62,024,149 | ) | (92,022,495 | ) | ||||
| ||||||||
Class R6 | (160,535,126 | ) | (152,009,506 | ) | ||||
| ||||||||
Total distributions from distributable earnings | (500,458,595 | ) | (530,050,866 | ) | ||||
| ||||||||
Share transactions–net: | ||||||||
Class A | (5,763,554 | ) | (239,943,699 | ) | ||||
| ||||||||
Class C | (2,552,199 | ) | (51,239,152 | ) | ||||
| ||||||||
Class R | (2,862,607 | ) | (9,430,841 | ) | ||||
| ||||||||
Class Y | (118,617,886 | ) | (616,287,806 | ) | ||||
| ||||||||
Class R5 | (122,039,512 | ) | (451,501,058 | ) | ||||
| ||||||||
Class R6 | 114,664,793 | (399,726,297 | ) | |||||
| ||||||||
Net increase (decrease) in net assets resulting from share transactions | (137,170,965 | ) | (1,768,128,853 | ) | ||||
| ||||||||
Net increase (decrease) in net assets | (1,168,144,348 | ) | (1,388,351,693 | ) | ||||
| ||||||||
Net assets: | ||||||||
Beginning of period | 5,002,908,152 | 6,391,259,845 | ||||||
| ||||||||
End of period | $ | 3,834,763,804 | $ | 5,002,908,152 | ||||
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
10 Invesco International Growth Fund
(Unaudited)
The following schedule presents financial highlights for a share of the Fund outstanding throughout the periods indicated.
Net asset value, beginning of period | Net investment income (loss)(a) | Net gains (losses) on securities (both realized and unrealized) | Total from operations | Dividends investment income | Distributions from net realized gains | Total distributions | Net asset value, end of period (b) | Total return | Net assets, end of period (000’s omitted) | Ratio of expenses to average net assets with fee waivers and/or expenses absorbed | Ratio of expenses | Ratio of net investment income (loss) to average net assets | Portfolio turnover (c) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 04/30/20 | $ | 34.10 | $ | 0.06 | $ | (3.47 | ) | $ | (3.41 | ) | $ | (0.65 | ) | $ | (2.84 | ) | $ | (3.49 | ) | $ | 27.20 | (11.50 | )% | $ | 1,205,088 | 1.33 | %(d) | 1.33 | %(d) | 0.40 | %(d) | 21 | % | |||||||||||||||||||||||||||||||||||||
Year ended 10/31/19 | 31.92 | 0.38 | 4.55 | 4.93 | (0.29 | ) | (2.46 | ) | (2.75 | ) | 34.10 | 17.23 | 1,534,830 | 1.33 | 1.33 | 1.20 | 22 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/18 | 36.61 | 0.42 | (4.18 | ) | (3.76 | ) | (0.60 | ) | (0.33 | ) | (0.93 | ) | 31.92 | (10.55 | ) | 1,665,413 | 1.30 | 1.31 | 1.20 | 26 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/17 | 30.83 | 0.30 | 5.85 | 6.15 | (0.37 | ) | – | (0.37 | ) | 36.61 | 20.19 | 2,396,149 | 1.31 | 1.32 | 0.89 | 25 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/16 | 31.91 | 0.36 | (1.06 | ) | (0.70 | ) | (0.38 | ) | – | (0.38 | ) | 30.83 | (2.16 | ) | 2,332,125 | 1.31 | 1.32 | 1.15 | 12 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/15 | 34.24 | 0.37 | (1.13 | ) | (0.76 | ) | (0.46 | ) | (1.11 | ) | (1.57 | ) | 31.91 | (2.19 | ) | 2,725,649 | 1.30 | 1.31 | 1.11 | 20 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Class C | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 04/30/20 | 31.01 | (0.05 | ) | (3.13 | ) | (3.18 | ) | (0.40 | ) | (2.84 | ) | (3.24 | ) | 24.59 | (11.81 | ) | 41,551 | 2.08 | (d) | 2.08 | (d) | (0.35 | )(d) | 21 | ||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/19 | 29.20 | 0.13 | 4.16 | 4.29 | (0.02 | ) | (2.46 | ) | (2.48 | ) | 31.01 | 16.37 | 55,768 | 2.08 | 2.08 | 0.45 | 22 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/18 | 33.55 | 0.14 | (3.83 | ) | (3.69 | ) | (0.33 | ) | (0.33 | ) | (0.66 | ) | 29.20 | (11.22 | ) | 105,735 | 2.05 | 2.06 | 0.45 | 26 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/17 | 28.25 | 0.04 | 5.38 | 5.42 | (0.12 | ) | – | (0.12 | ) | 33.55 | 19.28 | 144,710 | 2.06 | 2.07 | 0.14 | 25 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/16 | 29.25 | 0.11 | (0.95 | ) | (0.84 | ) | (0.16 | ) | – | (0.16 | ) | 28.25 | (2.88 | ) | 160,642 | 2.06 | 2.07 | 0.40 | 12 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/15 | 31.55 | 0.11 | (1.04 | ) | (0.93 | ) | (0.26 | ) | (1.11 | ) | (1.37 | ) | 29.25 | (2.93 | ) | 198,692 | 2.05 | 2.06 | 0.36 | 20 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Class R | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 04/30/20 | 33.64 | 0.02 | (3.43 | ) | (3.41 | ) | (0.57 | ) | (2.84 | ) | (3.41 | ) | 26.82 | (11.63 | ) | 47,066 | 1.58 | (d) | 1.58 | (d) | 0.15 | (d) | 21 | |||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/19 | 31.49 | 0.30 | 4.51 | 4.81 | (0.20 | ) | (2.46 | ) | (2.66 | ) | 33.64 | 16.99 | 62,045 | 1.58 | 1.58 | 0.95 | 22 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/18 | 36.13 | 0.33 | (4.13 | ) | (3.80 | ) | (0.51 | ) | (0.33 | ) | (0.84 | ) | 31.49 | (10.78 | ) | 66,981 | 1.55 | 1.56 | 0.95 | 26 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/17 | 30.41 | 0.21 | 5.80 | 6.01 | (0.29 | ) | – | (0.29 | ) | 36.13 | 19.94 | 99,556 | 1.56 | 1.57 | 0.64 | 25 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/16 | 31.49 | 0.28 | (1.05 | ) | (0.77 | ) | (0.31 | ) | – | (0.31 | ) | 30.41 | (2.44 | ) | 100,493 | 1.56 | 1.57 | 0.90 | 12 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/15 | 33.83 | 0.28 | (1.11 | ) | (0.83 | ) | (0.40 | ) | (1.11 | ) | (1.51 | ) | 31.49 | (2.45 | ) | 116,738 | 1.55 | 1.56 | 0.86 | 20 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Class Y | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 04/30/20 | 34.21 | 0.10 | (3.48 | ) | (3.38 | ) | (0.72 | ) | (2.84 | ) | (3.56 | ) | 27.27 | (11.39 | ) | 757,976 | 1.08 | (d) | 1.08 | (d) | 0.65 | (d) | 21 | |||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/19 | 32.05 | 0.46 | 4.55 | 5.01 | (0.39 | ) | (2.46 | ) | (2.85 | ) | 34.21 | 17.51 | 1,091,697 | 1.08 | 1.08 | 1.45 | 22 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/18 | 36.75 | 0.51 | (4.19 | ) | (3.68 | ) | (0.69 | ) | (0.33 | ) | (1.02 | ) | 32.05 | (10.31 | ) | 1,635,426 | 1.05 | 1.06 | 1.45 | 26 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/17 | 30.96 | 0.38 | 5.87 | 6.25 | (0.46 | ) | – | (0.46 | ) | 36.75 | 20.47 | 2,427,028 | 1.06 | 1.07 | 1.14 | 25 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/16 | 32.04 | 0.44 | (1.05 | ) | (0.61 | ) | (0.47 | ) | – | (0.47 | ) | 30.96 | (1.89 | ) | 3,393,370 | 1.06 | 1.07 | 1.40 | 12 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/15 | 34.37 | 0.45 | (1.14 | ) | (0.69 | ) | (0.53 | ) | (1.11 | ) | (1.64 | ) | 32.04 | (1.96 | ) | 3,449,499 | 1.05 | 1.06 | 1.36 | 20 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Class R5 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 04/30/20 | 34.76 | 0.12 | (3.55 | ) | (3.43 | ) | (0.75 | ) | (2.84 | ) | (3.59 | ) | 27.74 | (11.36 | ) | 487,900 | 0.99 | (d) | 0.99 | (d) | 0.74 | (d) | 21 | |||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/19 | 32.48 | 0.50 | 4.63 | 5.13 | (0.39 | ) | (2.46 | ) | (2.85 | ) | 34.76 | 17.66 | 735,592 | 0.98 | 0.98 | 1.55 | 22 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/18 | 37.24 | 0.55 | (4.25 | ) | (3.70 | ) | (0.73 | ) | (0.33 | ) | (1.06 | ) | 32.48 | (10.25 | ) | 1,124,979 | 0.97 | 0.98 | 1.53 | 26 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/17 | 31.37 | 0.41 | 5.95 | 6.36 | (0.49 | ) | – | (0.49 | ) | 37.24 | 20.57 | 1,543,192 | 0.98 | 0.99 | 1.22 | 25 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/16 | 32.47 | 0.47 | (1.08 | ) | (0.61 | ) | (0.49 | ) | – | (0.49 | ) | 31.37 | (1.85 | ) | 1,471,592 | 0.97 | 0.98 | 1.49 | 12 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/15 | 34.80 | 0.48 | (1.15 | ) | (0.67 | ) | (0.55 | ) | (1.11 | ) | (1.66 | ) | 32.47 | (1.86 | ) | 1,721,004 | 0.97 | 0.98 | 1.44 | 20 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Class R6 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 04/30/20 | 34.71 | 0.13 | (3.53 | ) | (3.40 | ) | (0.78 | ) | (2.84 | ) | (3.62 | ) | 27.69 | (11.30 | ) | 1,295,182 | 0.90 | (d) | 0.90 | (d) | 0.83 | (d) | 21 | |||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/19 | 32.49 | 0.53 | 4.61 | 5.14 | (0.46 | ) | (2.46 | ) | (2.92 | ) | 34.71 | 17.74 | 1,522,977 | 0.90 | 0.90 | 1.63 | 22 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/18 | 37.25 | 0.58 | (4.25 | ) | (3.67 | ) | (0.76 | ) | (0.33 | ) | (1.09 | ) | 32.49 | (10.15 | ) | 1,792,725 | 0.89 | 0.90 | 1.61 | 26 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/17 | 31.38 | 0.45 | 5.94 | 6.39 | (0.52 | ) | – | (0.52 | ) | 37.25 | 20.68 | 2,427,136 | 0.89 | 0.90 | 1.31 | 25 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/16 | 32.48 | 0.50 | (1.08 | ) | (0.58 | ) | (0.52 | ) | – | (0.52 | ) | 31.38 | (1.76 | ) | 764,437 | 0.88 | 0.89 | 1.58 | 12 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/15 | 34.80 | 0.51 | (1.14 | ) | (0.63 | ) | (0.58 | ) | (1.11 | ) | (1.69 | ) | 32.48 | (1.77 | ) | 769,302 | 0.89 | 0.90 | 1.52 | 20 |
(a) | Calculated using average shares outstanding. |
(b) | Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Does not include sales charges and is not annualized for periods less than one year, if applicable. |
(c) | Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable. |
(d) | Ratios are annualized and based on average daily net assets (000’s omitted) of $1,417,767, $50,157, $54,953, $959,922, $581,245 and $1,482,346 for Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares, respectively. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
11 Invesco International Growth Fund
April 30, 2020
(Unaudited)
NOTE 1–Significant Accounting Policies
Invesco International Growth Fund (the “Fund”) is a series portfolio of AIM International Mutual Funds (Invesco International Mutual 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 the Fund or each class.
The Fund’s investment objective is long-term growth of capital.
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. 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. |
A security listed or traded on an exchange (except convertible securities) is valued at its last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded, or lacking any sales or official closing price on a particular day, the security may be valued at the closing bid price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued by an independent pricing service they may be considered fair valued. Futures contracts are valued at the final settlement price set by an exchange on which they are principally traded. Listed options are valued at the mean between the last bid and asked prices from the exchange on which they are principally traded. Options not listed on an exchange are valued by an independent source at the mean between the last bid and asked prices. For purposes of determining net asset value (“NAV”) per share, futures and option contracts generally are valued 15 minutes after the close of the customary trading session of the New York Stock Exchange (“NYSE”).
Investments in open-end and closed-end registered investment companies that do not trade on an exchange are valued at the end-of-day net asset value per share. Investments in open-end and closed-end registered investment companies that trade on an exchange are valued at the last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded.
Debt obligations (including convertible securities) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. Pricing services generally value debt obligations assuming orderly transactions of institutional round lot size, but a fund may hold or transact in the same securities in smaller, odd lot sizes. Odd lots often trade at lower prices than institutional round lots. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.
Foreign securities’ (including foreign exchange contracts) prices are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the NYSE. If market quotations are available and reliable for foreign exchange-traded equity securities, the securities will be valued at the market quotations. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become unreliable. If between the time trading ends on a particular security and the close of the customary trading session on the NYSE, events occur that the investment adviser determines are significant and make the closing price unreliable, the Fund may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith using procedures approved by the Board of Trustees. Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities’ prices meeting the approved degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economic upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.
Securities for which market prices are not provided by any of the above methods may be valued based upon quotes furnished by independent sources. The last bid price may be used to value equity securities. The mean between the last bid and asked prices is used to value debt obligations, including corporate loans.
Securities for which market quotations are not readily available or became unreliable are valued at fair value as determined in good faith by or under the supervision of the Trust’s officers following procedures approved by the Board of Trustees. Issuer specific events, market trends, bid/asked quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security’s fair value.
The Fund may invest in securities that are subject to interest rate risk, meaning the risk that the prices will generally fall as interest rates rise and, conversely, the prices will generally rise as interest rates fall. Specific securities differ in their sensitivity to changes in interest rates depending on their individual characteristics. Changes in interest rates may result in increased market volatility, which may affect the value and/or liquidity of certain Fund investments.
Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the issuer’s assets, general market conditions which are not specifically related to the particular issuer, such as real or perceived adverse economic conditions, changes in the general outlook for revenues or corporate earnings, changes in interest or currency rates, regional or global instability, natural or environmental disasters, widespread disease or other public health issues, war, acts of terrorism or adverse investor sentiment generally and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
B. | Securities Transactions and Investment Income – Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income (net of withholding tax, if any) is recorded on an accrual basis from settlement date. Dividend income (net of withholding tax, if any) is recorded on the ex-dividend date. |
The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Statement of Operations as realized gain (loss) for investments no longer held and as unrealized gain (loss) for investments still held.
Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of net realized and unrealized gain (loss) from investment
12 Invesco International Growth Fund
securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the net realized and unrealized gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and the Statement of Changes in Net Assets, or the net investment income per share and the ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.
The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class.
C. | Country Determination – For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues and the country that has the primary market for the issuer’s securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted. |
D. | Distributions - Distributions from net investment income and net realized capital gain, if any, are generally declared and paid annually and recorded on the ex-dividend date. The Fund may elect to treat a portion of the proceeds from redemptions as distributions for federal income tax purposes. |
E. | Federal Income Taxes – The Fund intends to comply with the requirements of Subchapter M of the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”), necessary to qualify as a regulated investment company and to distribute substantially all of the Fund’s taxable earnings to shareholders. As such, the Fund will not be subject to federal income taxes on otherwise taxable income (including net realized capital gain) that is distributed to shareholders. Therefore, no provision for federal income taxes is recorded in the financial statements. |
The Fund recognizes the tax benefits of uncertain tax positions only when the position is more likely than not to be sustained. Management has analyzed the Fund’s uncertain tax positions and concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions. Management is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the next 12 months.
The Fund files tax returns in the U.S. Federal jurisdiction and certain other jurisdictions. Generally, the Fund is subject to examinations by such taxing authorities for up to three years after the filing of the return for the tax period.
F. | Expenses – Fees provided for under the Rule 12b-1 plan of a particular class of the Fund 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 preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print. |
H. | Indemnifications – Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of the performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements, that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote. |
I. | Foreign Currency Translations – Foreign currency is valued at the close of the NYSE based on quotations posted by banks and major currency dealers. Portfolio securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at the date of valuation. Purchases and sales of portfolio securities (net of foreign taxes withheld on disposition) and income items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. The Fund does not separately account for the portion of the results of operations resulting from changes in foreign exchange rates on investments and the fluctuations arising from changes in market prices of securities held. The combined results of changes in foreign exchange rates and the fluctuation of market prices on investments (net of estimated foreign tax withholding) are included with the net realized and unrealized gain or loss from investments in the Statement of Operations. Reported net realized foreign currency gains or losses arise from (1) sales of foreign currencies, (2) currency gains or losses realized between the trade and settlement dates on securities transactions, and (3) the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign currency gains and losses arise from changes in the fair values of assets and liabilities, other than investments in securities at fiscal period end, resulting from changes in exchange rates. |
The Fund may invest in foreign securities, which may be subject to foreign taxes on income, gains on investments or currency repatriation, a portion of which may be recoverable. Foreign taxes, if any, are recorded based on the tax regulations and rates that exist in the foreign markets in which the Fund invests and are shown in the Statement of Operations.
J. | Forward Foreign Currency Contracts – The Fund may engage in foreign currency transactions either on a spot (i.e. for prompt delivery and settlement) basis, or through forward foreign currency contracts, to manage or minimize currency or exchange rate risk. |
The Fund may also enter into forward foreign currency contracts for the purchase or sale of a security denominated in a foreign currency in order to “lock in” the U.S. dollar price of that security, or the Fund may also enter into forward foreign currency contracts that do not provide for physical settlement of the two currencies, but instead are settled by a single cash payment calculated as the difference between the agreed upon exchange rate and the spot rate at settlement based upon an agreed upon notional amount (non-deliverable forwards). The Fund will set aside liquid assets in an amount equal to the daily mark-to-market obligation for forward foreign currency contracts.
A forward foreign currency contract is an obligation between two parties (“Counterparties”) to purchase or sell a specific currency for an agreed-upon price at a future date. The use of forward foreign currency contracts does not eliminate fluctuations in the price of the underlying securities the Fund owns or intends to acquire but establishes a rate of exchange in advance. Fluctuations in the value of these contracts are measured by the difference in the contract date and reporting date exchange rates and are recorded as unrealized appreciation (depreciation) until the contracts are closed. When the contracts are closed, realized gains (losses) are recorded. Realized and unrealized gains (losses) on the contracts are included in the Statement of Operations. The primary risks associated with forward foreign currency contracts include failure of the Counterparty to meet the terms of the contract and the value of the foreign currency changing unfavorably. These risks may be in excess of the amounts reflected in the Statement of Assets and Liabilities.
13 Invesco International Growth Fund
NOTE 2–Advisory Fees and Other Fees Paid to Affiliates
The Trust has entered into a master investment advisory agreement with Invesco Advisers, Inc. (the “Adviser” or “Invesco”). Under the terms of the investment advisory agreement, the Fund accrues daily and pays monthly an advisory fee to the Adviser based on the annual rate of the Fund’s average daily net assets as follows:
Average Daily Net Assets | Rate | |||||
First $ 250 million | 0.935% | |||||
Next $250 million | 0.910% | |||||
Next $500 million | 0.885% | |||||
Next $1.5 billion | 0.860% | |||||
Next $2.5 billion | 0.835% | |||||
Next $2.5 billion | 0.810% | |||||
Next $2.5 billion | 0.785% | |||||
Over $10 billion | 0.760% |
For the six months ended April 30, 2020, the effective advisory fee rate incurred by the Fund was 0.86%.
Under the terms of a master sub-advisory agreement between the Adviser and each of Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Canada Ltd. and separate sub-advisory agreements with Invesco Capital Management LLC and Invesco Asset Management (India) Private Limited (collectively, the “Affiliated Sub-Advisers”) the Adviser, not the Fund, will pay 40% of the fees paid to the Adviser to any such Affiliated Sub-Adviser(s) that provide(s) discretionary investment management services to the Fund based on the percentage of assets allocated to such Affiliated Sub-Adviser(s).
The Adviser has contractually agreed, through at least June 30, 2021, to waive advisory fees and/or reimburse expenses of all shares to the extent necessary to limit total annual fund operating expenses after fee waiver and/or expense reimbursement (excluding certain items discussed below) of Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares to 2.25%, 3.00%, 2.50%, 2.00%, 2.00% and 2.00%, respectively, of average daily net assets (the “expense limits”). In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause the total annual fund operating expenses after fee waiver and/or expense reimbursement to exceed the numbers reflected above: (1) interest; (2) taxes; (3) dividend expense on short sales; (4) extraordinary or non-routine items, including litigation expenses; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Unless Invesco continues the fee waiver agreement, it will terminate on June 30, 2021. During its term, the fee waiver agreement cannot be terminated or amended to increase the expense limits or reduce the advisory fee waiver without approval of the Board of Trustees. The Adviser did not waive fees and/or reimburse expenses during the period under these expense limits.
The Adviser has contractually agreed, through at least June 30, 2022, to waive the advisory fee payable by the Fund in an amount equal to 100% of the net advisory fees the Adviser receives from the affiliated money market funds on investments by the Fund of uninvested cash in such affiliated money market funds.
For the six months ended April 30, 2020, the Adviser waived advisory fees of $80,355.
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 April 30, 2020, expenses incurred under the agreement are shown in the Statement of Operations as Administrative services fees. Invesco has entered into a sub-administration agreement whereby State Street Bank and Trust Company (“SSB”) serves as fund accountant and provides certain administrative services to the Fund. Pursuant to a custody agreement with the Trust on behalf of the Fund, SSB also serves as the Fund’s custodian.
The Trust has entered into a transfer agency and service agreement with Invesco Investment Services, Inc. (“IIS”) pursuant to which the Fund has agreed to pay IIS a fee for providing transfer agency and shareholder services to the Fund and reimburse IIS for certain expenses incurred by IIS in the course of providing such services. IIS may make payments to intermediaries that provide omnibus account services, sub-accounting services and/or networking services. All fees payable by IIS to intermediaries that provide omnibus account services or sub-accounting services are charged back to the Fund, subject to certain limitations approved by the Trust’s Board of Trustees. For the six months ended April 30, 2020, expenses incurred under the agreement are shown in the Statement of Operations as Transfer 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 “Plans”). The Fund, pursuant to the Plans, pays IDI compensation at the annual rate of 0.25% of the Fund’s average daily net assets of Class A shares, 1.00% of the average daily net assets of Class C shares 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 Plans 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. For the six-month period ended April 30, 2020, expenses incurred under the Plans are shown in the Statement of Operations as Distribution fees.
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 April 30, 2020, IDI advised the Fund that IDI retained $77,877 in front-end sales commissions from the sale of Class A shares and $5,389 and $556 from Class A and Class C shares, respectively, for CDSC imposed upon redemptions by shareholders.
Certain officers and trustees of the Trust are officers and directors of the Adviser, IIS and/or IDI.
NOTE 3–Additional Valuation Information
GAAP defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, under current market conditions. GAAP establishes a hierarchy that prioritizes the inputs to valuation methods, giving the highest priority to readily available unadjusted quoted prices in an active market for identical assets (Level 1) and the lowest priority to significant unobservable inputs (Level 3), generally when market prices are not readily available or are unreliable. Based on the valuation inputs, the securities or other investments are tiered into one of three levels. Changes in valuation methods may result in transfers in or out of an investment’s assigned level:
Level 1 | – | Prices are determined using quoted prices in an active market for identical assets. | ||
Level 2 | – | Prices are determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk, yield curves, loss severities, default rates, discount rates, volatilities and others. | ||
Level 3 | – | Prices are determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Fund’s |
14 Invesco International Growth Fund
own assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information. |
The following is a summary of the tiered valuation input levels, as of April 30, 2020. The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
Level 1 | Level 2 | Level 3 | Total | |||||||||||
Investments in Securities | ||||||||||||||
Australia | $ | – | $ | 22,839,016 | $– | $ 22,839,016 | ||||||||
Brazil | 68,779,707 | – | – | 68,779,707 | ||||||||||
Canada | 207,983,645 | – | – | 207,983,645 | ||||||||||
China | 237,466,055 | 172,849,432 | – | 410,315,487 | ||||||||||
Denmark | – | 101,666,010 | – | 101,666,010 | ||||||||||
France | – | 225,289,037 | – | 225,289,037 | ||||||||||
Germany | – | 304,353,393 | – | 304,353,393 | ||||||||||
Hong Kong | – | 55,441,216 | – | 55,441,216 | ||||||||||
India | 31,822,021 | – | – | 31,822,021 | ||||||||||
Ireland | 63,840,422 | – | – | 63,840,422 | ||||||||||
Italy | – | 95,137,888 | – | 95,137,888 | ||||||||||
Japan | – | 492,991,123 | – | 492,991,123 | ||||||||||
Macau | – | 73,262,740 | – | 73,262,740 | ||||||||||
Mexico | 86,643,428 | – | – | 86,643,428 | ||||||||||
Netherlands | – | 213,530,162 | – | 213,530,162 | ||||||||||
Singapore | – | 53,005,421 | – | 53,005,421 | ||||||||||
South Korea | – | 104,575,426 | – | 104,575,426 | ||||||||||
Spain | – | 32,297,565 | – | 32,297,565 | ||||||||||
Sweden | – | 90,437,645 | – | 90,437,645 | ||||||||||
Switzerland | – | 332,575,745 | – | 332,575,745 | ||||||||||
Taiwan | – | 88,856,258 | – | 88,856,258 | ||||||||||
United Kingdom | 38,402,209 | 145,660,276 | – | 184,062,485 | ||||||||||
United States | 236,418,719 | 45,331,813 | – | 281,750,532 | ||||||||||
Money Market Funds | 170,196,695 | – | – | 170,196,695 | ||||||||||
Total Investments | $ | 1,141,552,901 | $ | 2,650,100,166 | $– | $3,791,653,067 |
NOTE 4–Expense Offset Arrangement(s)
The expense offset arrangement is comprised of transfer agency credits which result from balances in demand deposit accounts used by the transfer agent for clearing shareholder transactions. For the six months ended April 30, 2020, the Fund received credits from this arrangement, which resulted in the reduction of the Fund’s total expenses of $8,606.
NOTE 5–Trustees’ and Officers’ Fees and Benefits
Trustees’ and Officers’ Fees and Benefits include amounts accrued by the Fund to pay remuneration to certain Trustees and Officers of the Fund. Trustees have the option to defer compensation payable by the Fund, and Trustees’ and Officers’ Fees and Benefits also include amounts accrued by the Fund to fund such deferred compensation amounts. Those Trustees who defer compensation have the option to select various Invesco Funds in which their deferral accounts shall be deemed to be invested. Finally, certain current Trustees were eligible to participate in a retirement plan that provided for benefits to be paid upon retirement to Trustees over a period of time based on the number of years of service. The Fund may have certain former Trustees who also participate in a retirement plan and receive benefits under such plan. Trustees’ and Officers’ Fees and Benefits include amounts accrued by the Fund to fund such retirement benefits. Obligations under the deferred compensation and retirement plans represent unsecured claims against the general assets of the Fund.
NOTE 6–Cash Balances
The Fund is permitted to temporarily carry a negative or overdrawn balance in its account with SSB, the custodian bank. Such balances, if any at period-end, are shown in the Statement of Assets and Liabilities under the payable caption Amount due custodian. To compensate the custodian bank for such overdrafts, the overdrawn Fund may either (1) leave funds as a compensating balance in the account so the custodian bank can be compensated by earning the additional interest; or (2) compensate by paying the custodian bank at a rate agreed upon by the custodian bank and Invesco, not to exceed the contractually agreed upon rate. The Fund may not purchase additional securities when any borrowings from banks or broker-dealers exceed 5% of the Fund’s total assets, or when any borrowings from an Invesco Fund are outstanding.
NOTE 7–Tax Information
The amount and character of income and gains to be distributed are determined in accordance with income tax regulations, which may differ from GAAP. Reclassifications are made to the Fund’s capital accounts to reflect income and gains available for distribution (or available capital loss carryforward) under income tax regulations. The tax character of distributions paid during the year and the tax components of net assets will be reported at the Fund’s fiscal year-end.
Capital loss carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Fund to utilize. The ability to utilize capital loss carryforwards in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.
The Fund did not have a capital loss carryforward as of October 31, 2019.
15 Invesco International Growth Fund
NOTE 8–Investment Transactions
The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Fund during the six months ended April 30, 2020 was $914,004,240 and $1,584,174,575, respectively. Cost of investments, including any derivatives, on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end.
Unrealized Appreciation (Depreciation) of Investments on a Tax Basis |
| |||
| ||||
Aggregate unrealized appreciation of investments | $ | 1,004,051,533 | ||
| ||||
Aggregate unrealized (depreciation) of investments | (158,512,180 | ) | ||
| ||||
Net unrealized appreciation of investments | $ | 845,539,353 | ||
| ||||
Cost of investments for tax purposes is $2,946,113,714. |
NOTE 9–Share Information
Summary of Share Activity | ||||||||||||||||
| ||||||||||||||||
Six months ended April 30, 2020(a) | Year ended October 31, 2019 | |||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||
| ||||||||||||||||
Sold: | ||||||||||||||||
Class A | 2,000,942 | $ | 59,948,053 | 4,300,951 | $ | 135,409,256 | ||||||||||
| ||||||||||||||||
Class C | 93,182 | 2,547,635 | 200,758 | 5,784,086 | ||||||||||||
| ||||||||||||||||
Class R | 153,227 | 4,459,445 | 398,443 | 12,482,384 | ||||||||||||
| ||||||||||||||||
Class Y | 3,301,390 | 98,284,397 | 7,320,451 | 225,503,606 | ||||||||||||
| ||||||||||||||||
Class R5 | 1,431,573 | 44,542,597 | 4,794,150 | 154,476,861 | ||||||||||||
| ||||||||||||||||
Class R6 | 10,348,253 | 329,438,884 | 6,800,896 | 219,346,459 | ||||||||||||
| ||||||||||||||||
Issued as reinvestment of dividends: | ||||||||||||||||
Class A | 4,316,223 | 137,514,856 | 4,234,112 | 119,655,985 | ||||||||||||
| ||||||||||||||||
Class C | 175,747 | 5,073,827 | 306,892 | 7,939,305 | ||||||||||||
| ||||||||||||||||
Class R | 189,998 | 5,973,527 | 197,548 | 5,517,505 | ||||||||||||
| ||||||||||||||||
Class Y | 2,263,480 | 72,227,660 | 2,506,936 | 70,921,218 | ||||||||||||
| ||||||||||||||||
Class R5 | 1,844,768 | 59,844,271 | 2,665,867 | 76,537,027 | ||||||||||||
| ||||||||||||||||
Class R6 | 4,460,324 | 144,380,668 | 5,243,518 | 150,226,781 | ||||||||||||
| ||||||||||||||||
Automatic conversion of Class C shares to Class A shares: |
| |||||||||||||||
Class A | 76,962 | 2,377,783 | 1,379,952 | 41,674,000 | ||||||||||||
| ||||||||||||||||
Class C | (84,930 | ) | (2,377,783 | ) | (1,509,572 | ) | (41,674,000 | ) | ||||||||
| ||||||||||||||||
Reacquired: | ||||||||||||||||
Class A | (7,099,245 | ) | (205,604,246 | ) | (17,080,338 | ) | (536,682,940 | ) | ||||||||
| ||||||||||||||||
Class C | (292,361 | ) | (7,795,878 | ) | (820,235 | ) | (23,288,543 | ) | ||||||||
| ||||||||||||||||
Class R | (433,210 | ) | (13,295,579 | ) | (878,118 | ) | (27,430,730 | ) | ||||||||
| ||||||||||||||||
Class Y | (9,680,627 | ) | (289,129,943 | ) | (28,951,577 | ) | (912,712,630 | ) | ||||||||
| ||||||||||||||||
Class R5 | (6,851,990 | ) | (226,426,380 | ) | (20,930,076 | ) | (682,514,946 | ) | ||||||||
| ||||||||||||||||
Class R6 | (11,907,017 | ) | (359,154,759 | ) | (23,344,829 | ) | (769,299,537 | ) | ||||||||
| ||||||||||||||||
Net increase (decrease) in share activity | (5,693,311 | ) | $ | (137,170,965 | ) | (53,164,271 | ) | $ | (1,768,128,853 | ) | ||||||
|
(a) | There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 48% 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. |
NOTE 10–Coronavirus (COVID-19) Pandemic
During the first quarter of 2020, the World Health Organization declared COVID-19 to be a public health emergency. COVID-19 has led to increased short-term market volatility and may have adverse long-term effects on U.S. and world economies and markets in general. COVID-19 may adversely impact the Fund’s ability to achieve its investment objective. Because of the uncertainties on valuation, the global economy and business operations, values reflected in these financial statements may materially differ from the value received upon actual sales of those investments.
The extent of the impact on the performance of the Fund and its investments will depend on future developments, including the duration and spread of the COVID-19 outbreak, related restrictions and advisories, and the effects on the financial markets and economy overall, all of which are highly uncertain and cannot be predicted.
16 Invesco International Growth Fund
Calculating your ongoing Fund expenses
Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, which may include sales charges (loads) on purchase payments or contingent deferred sales charges on redemptions, if any; and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees, and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period November 1, 2019 through April 30, 2020.
Actual expenses
The table below provides information about actual account values and actual expenses. You may use the information in this table, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the table under the heading entitled “Actual Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Hypothetical example for comparison purposes
The table below also provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return.
The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads) on purchase payments or contingent deferred sales charges on redemptions, if any. Therefore, the hypothetical information 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 transaction costs were included, your costs would have been higher.
HYPOTHETICAL | ||||||||||||||||||||||||||||||
(5% annual return before | ||||||||||||||||||||||||||||||
ACTUAL | expenses) | |||||||||||||||||||||||||||||
Beginning Account Value (11/01/19) | Ending Account Value (04/30/20)1 | Expenses Paid During Period2 | Ending Account Value (04/30/20) | Expenses Paid During Period2 | Annualized Ratio | |||||||||||||||||||||||||
Class A | $ | 1,000.00 | $ | 885.00 | $ | 6.23 | $ | 1,018.25 | $ | 6.67 | 1.33 | % | ||||||||||||||||||
Class C | 1,000.00 | 881.50 | 9.73 | 1,014.52 | 10.42 | 2.08 | ||||||||||||||||||||||||
Class R | 1,000.00 | 883.70 | 7.40 | 1,017.01 | 7.92 | 1.58 | ||||||||||||||||||||||||
Class Y | 1,000.00 | 886.10 | 5.06 | 1,019.49 | 5.42 | 1.08 | ||||||||||||||||||||||||
Class R5 | 1,000.00 | 886.40 | 4.64 | 1,019.94 | 4.97 | 0.99 | ||||||||||||||||||||||||
Class R6 | 1,000.00 | 886.60 | 4.22 | 1,020.39 | 4.52 | 0.90 |
1 | The actual ending account value is based on the actual total return of the Fund for the period November 1, 2019 through April 30, 2020, after actual expenses and will differ from the hypothetical ending account value which is based on the Fund’s expense ratio and a hypothetical annual return of 5% before expenses. |
2 | Expenses are equal to the Fund’s annualized expense ratio as indicated above multiplied by the average account value over the period, multiplied by 182/366 to reflect the most recent fiscal half year. |
17 Invesco International Growth Fund
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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 list appears 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 Form N-PORT filings on the SEC website, sec.gov. The SEC file numbers for the Fund are shown below. 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. This 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. |
SEC file numbers: 811-06463 and 033-44611 | Invesco Distributors, Inc. | IGR-SAR-1 |
| ||||
Semiannual Report to Shareholders
| April 30, 2020
| |||
| ||||
Invesco International Select Equity Fund | ||||
Nasdaq: | ||||
A: IZIAX ∎ C: IZICX ∎ R: IZIRX ∎ Y: IZIYX ∎ R5: IZIFX ∎ R6: IZISX |
2 | Letters to Shareholders | |
3 | Fund Performance | |
5 | Liquidity Risk Management Program | |
6 | Schedule of Investments | |
8 | Financial Statements | |
11 | Financial Highlights | |
12 | Notes to Financial Statements | |
17 | Fund Expenses |
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.
For the most current month-end Fund performance and commentary, please visit invesco.com/performance.
Unless otherwise noted, all data provided by Invesco.
This report must be accompanied or preceded by a currently effective Fund prospectus, which contains more complete information, including sales charges and expenses. Investors should read it carefully before investing.
NOT FDIC INSURED | MAY LOSE VALUE | NO BANK GUARANTEE
Dear Fellow Shareholders: As independent chair of the Invesco Funds Board, I can assure you that the members of the Board are strong advocates for the interests of investors in Invesco’s mutual funds. We work hard to represent your interests through oversight of the quality of the investment management services your funds receive and other matters important to your investment. This includes but is not limited to: monitoring how the portfolio management teams of the Invesco funds are performing in light of changing economic and market conditions; assessing each portfolio management team’s investment performance within the context of the investment strategy described in the fund’s prospectus; and monitoring for potential conflicts of interests that may impact the nature of the services that your funds receive. | ||
Bruce Crockett | We believe one of the most important services we provide our fund shareholders is the annual review of the funds’ advisory and sub-advisory contracts with Invesco Advisers and its affiliates. This review is required by the Investment Company Act of 1940 and focuses on the nature and quality of the services Invesco provides as the adviser to the Invesco funds and the reasonableness of the fees that it | |
charges for those services. Each year, we spend months carefully reviewing information received from Invesco and a variety of independent sources, such as performance and fee data prepared by Lipper Inc. (a subsidiary of Broadridge Financial Solutions, Inc.), an independent, third-party firm widely recognized as a leader in its field. We also meet with our independent legal counsel and other independent advisers to review and help us assess the information that we have received. Our goal is to assure that you receive quality investment management services for a reasonable fee. | ||
On behalf of the Board, we look forward to continuing to represent your interests and serving your needs. |
Sincerely,
Bruce L. Crockett
Independent Chair
Invesco Funds Board of Trustees
Dear Shareholders: This semiannual report includes information about your Fund, including performance data and a complete list of its investments as of the close of the reporting period. Invesco’s efforts to help investors achieve their financial objectives include providing timely information about the markets, the economy and investing. Our website, invesco.com/us, offers a wide range of market insights and investment perspectives. On the website, you’ll find detailed information about our funds, including performance, holdings and portfolio manager commentaries. You can access information about your account by completing a simple, secure online registration. To do so, select “Log In” on the right side of the homepage, and then select “Register for Individual Account Access.” | ||
Andrew Schlossberg | In addition to the resources accessible on our website, you can obtain timely updates to help you stay informed by connecting with Invesco on Twitter, LinkedIn or Facebook. You can access our blog at blog.invesco.us.com. Our goal is to provide you with information you want, when and where you want it. | |
For questions about your account, feel free to contact an Invesco client services representative at 800 959 4246. | ||
All of us at Invesco look forward to serving your investment management needs. Thank you for investing with us. |
Sincerely,
Andrew Schlossberg
Head of the Americas,
Senior Managing Director, Invesco Ltd.
2 Invesco International Select Equity Fund
Performance summary |
| |||
Fund vs. Indexes |
| |||
Cumulative total returns, October 31, 2019 to April 30, 2020, at net asset value (NAV). Performance shown does not include applicable contingent deferred sales charges (CDSC) or front-end sales charges, which would have reduced performance. |
| |||
Class A Shares | -6.12 | % | ||
Class C Shares | -6.45 | |||
Class R Shares | -6.28 | |||
Class Y Shares | -5.99 | |||
Class R5 Shares | -5.99 | |||
Class R6 Shares | -6.08 | |||
MSCI All Country World ex-USA Index▼ (Broad Market Index) | -13.22 | |||
MSCI All Country World ex-U.S. Growth Index▼ (Style-Specific Index) | -6.10 | |||
Lipper International Multi-Cap Growth Funds Index∎ (Peer Group Index) | -10.68 | |||
Source(s): ▼RIMES Technologies Corp.; ∎Lipper Inc. | ||||
The MSCI All Country World ex-USA® Index is an index considered representative of developed and emerging market stock markets, excluding the US. The index is computed using the net return, which withholds applicable taxes for non-resident investors. The MSCI All Country World ex-U.S. Growth Index is an unmanaged index considered representative of growth stocks across developed and emerging markets, excluding the US. The index is computed using the net return, which withholds applicable taxes for non-resident investors. The Lipper International Multi-Cap Growth Funds Index is an unmanaged index considered representative of international multicap growth funds tracked by Lipper. The Fund is not managed to track the performance of any particular index, including the index(es) described here, and consequently, the performance of the Fund may deviate significantly from the performance of the index(es). A direct investment cannot be made in an index. Unless otherwise indicated, index results include reinvested dividends, and they do not reflect sales charges. Performance of the peer group, if applicable, reflects fund expenses; performance of a market index does not. |
|
For more information about your Fund
Read the most recent quarterly commentary from your Fund’s portfolio managers by visiting invesco.com/us. Click on “Products” and select “Mutual Funds.” Use the “Product Finder” to locate your Fund; then click on its name to access its product detail page. There, you can learn more about your Fund’s investment strategies, holdings and performance. Also, visit blog.invesco.us.com, where many of Invesco’s investment professionals share their insights about market and economic news and trends.
|
3 Invesco International Select Equity Fund
Average Annual Total Returns |
| |||
As of 4/30/20, including maximum applicable sales charges |
| |||
Class A Shares | ||||
Inception (12/21/15) | 5.11 | % | ||
1 Year | -10.11 | |||
Class C Shares | ||||
Inception (12/21/15) | 5.68 | % | ||
1 Year | -6.55 | |||
Class R Shares | ||||
Inception (12/21/15) | 6.18 | % | ||
1 Year | -5.20 | |||
Class Y Shares | ||||
Inception (12/21/15) | 6.73 | % | ||
1 Year | -4.58 | |||
Class R5 Shares | ||||
Inception (12/21/15) | 6.73 | % | ||
1 Year | -4.67 | |||
Class R6 Shares | ||||
Inception (12/21/15) | 6.71 | % | ||
1 Year | -4.76 |
The performance data quoted represent past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/ performance for the most recent month-end performance. Performance figures reflect reinvested distributions, changes in net asset value and the effect of the maximum sales charge unless otherwise stated. Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares. Investment return and principal value will fluctuate so that you may have a gain or loss when you sell shares.
Class A share performance reflects the maximum 5.50% sales charge, and Class C share performance reflects the applicable contingent deferred sales charge (CDSC) for the period involved. The CDSC on Class C shares is 1% for the first year after purchase. Class R, Class Y, Class R5 and Class R6 shares do not have a front-end sales charge or a CDSC; therefore, performance is at net asset value.
The performance of the Fund’s share classes will differ primarily due to different sales charge structures and class expenses.
Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information.
4 Invesco International Select Equity Fund
Liquidity Risk Management Program
The Securities and Exchange Commission has adopted Rule 22e-4 under the Investment Company Act of 1940 (the “Liquidity Rule”) in order to promote effective liquidity risk management throughout the open-end investment company industry, thereby reducing the risk that funds will be unable to meet their redemption obligations and mitigating dilution of the interests of fund shareholders. The Fund has adopted and implemented a liquidity risk management program in accordance with the Liquidity Rule (the “Program”). The Program is reasonably designed to assess and manage the Fund’s liquidity risk, which is the risk that the Fund could not meet redemption requests without significant dilution of remaining investors’ interests in the Fund. The Board of Trustees of the Fund (the “Board”) has appointed Invesco Advisers, Inc. (“Invesco”), the Fund’s investment adviser, as the Program’s administrator, and Invesco has delegated oversight of the Program to the Liquidity Risk Management Committee (the “Committee”), which is composed of senior representatives from relevant business groups at Invesco.
As required by the Liquidity Rule, the Program includes policies and procedures providing for an assessment, no less frequently than annually, of the Fund’s liquidity risk that takes into account, as relevant to the Fund’s liquidity risk: (1) the Fund’s investment strategy and liquidity of portfolio investments during both normal and reasonably foreseeable stressed conditions; (2) short-term and long-term cash flow projections for the Fund during both normal and reasonably foreseeable stressed conditions; and (3) the Fund’s holdings of cash and cash equivalents and any borrowing arrangements. The Liquidity Rule also requires the classification of the Fund’s investments into categories that reflect the assessment of their relative liquidity under current market conditions. The Fund classifies its investments into one of four categories defined in the Liquidity Rule: “Highly Liquid,” “Moderately Liquid,” “Less Liquid” and “Illiquid.” Funds that are not invested primarily in “Highly Liquid Investments” that are assets (cash or investments that are reasonably expected to be convertible into cash within three business days without significantly changing the market value of the investment) are required to establish a “Highly Liquid Investment Minimum” (“HLIM”), which is the minimum percentage of net assets that must be invested in Highly Liquid Investments. Funds with HLIMs have procedures for addressing HLIM shortfalls, including reporting to the Board and the SEC (on a non-public basis) as required by the Program and the Liquidity Rule. In addition, the Fund may not acquire an investment if, immediately after the acquisition, over 15% of the Fund’s net assets would consist of “Illiquid Investments” that are assets (an investment that cannot reasonably be expected to be sold or disposed of in current market conditions in seven calendar days or less without the sale or disposition significantly changing the market value of the investment). The Liquidity Rule and the Program also require reporting to the Board and the SEC (on a non-public basis) if a Fund’s holdings of Illiquid Investments exceed 15% of the Fund’s assets.
At a meeting held on March 30-April 1, 2020, the Committee presented a report to the Board that addressed the operation of the Program and assessed the Program’s adequacy and effectiveness of implementation (the “Report”). The Report covered the period from December 1, 2018 through December 31, 2019 (the “Program Reporting Period”).
The Report stated, in relevant part, that during the Program Reporting Period:
∎ | The Program, as adopted and implemented, remained reasonably designed to assess and manage the Fund’s liquidity risk and was operated effectively to achieve that goal; |
∎ | The Fund’s investment strategy remained appropriate for an open-end fund; |
∎ | The Fund was able to meet requests for redemption without significant dilution of remaining investors’ interests in the Fund; |
∎ | The Fund did not breach the 15% limit on Illiquid Investments; and |
∎ | The Fund primarily held Highly Liquid Investments and therefore has not adopted an HLIM. |
5 Invesco International Select Equity Fund
April 30, 2020
(Unaudited)
Shares | Value | |||||||
Common Stocks & Other Equity Interests–97.16% |
| |||||||
Australia–5.74% | ||||||||
Corporate Travel Management Ltd. | 736,772 | $ | 5,969,902 | |||||
Belgium–2.75% | ||||||||
Anheuser-Busch InBev S.A./N.V. | 61,696 | 2,863,758 | ||||||
Canada–2.65% | ||||||||
Ritchie Bros. Auctioneers, Inc. | 63,913 | 2,754,011 | ||||||
China–22.24% | ||||||||
Alibaba Group Holding Ltd., ADR(a) | 33,076 | 6,703,513 | ||||||
Focus Media Information Technology Co. Ltd., A Shares | 8,202,747 | 5,606,449 | ||||||
Gree Electric Appliances, Inc. of Zhuhai, A Shares | 683,555 | 5,308,817 | ||||||
Kweichow Moutai Co. Ltd., A Shares | 21,771 | 3,852,444 | ||||||
Virscend Education Co. Ltd.(b) | 7,933,000 | 1,668,767 | ||||||
23,139,990 | ||||||||
Denmark–1.67% | ||||||||
DSV Panalpina A/S | 16,838 | 1,740,675 | ||||||
Finland–1.38% | ||||||||
Asiakastieto Group OYJ(a)(b) | 40,804 | 1,435,728 | ||||||
France–4.81% | ||||||||
Bureau Veritas S.A. | 124,800 | 2,593,171 | ||||||
Edenred | 59,869 | 2,414,609 | ||||||
5,007,780 | ||||||||
Germany–5.46% | ||||||||
Scout24 AG(b) | 86,713 | 5,679,799 | ||||||
Hong Kong–2.73% | ||||||||
AIA Group Ltd. | 311,600 | 2,836,324 | ||||||
Japan–13.63% | ||||||||
FANUC Corp. | 18,600 | 3,067,031 | ||||||
Kao Corp. | 18,100 | 1,396,137 | ||||||
MISUMI Group, Inc. | 88,100 | 2,109,566 | ||||||
SMC Corp. | 4,400 | 2,011,759 | ||||||
SoftBank Group Corp. | 63,200 | 2,703,077 | ||||||
Sony Corp. | 45,000 | 2,886,984 | ||||||
14,174,554 |
Shares | Value | |||||||
Luxembourg–5.96% | ||||||||
Eurofins Scientific SE | 11,194 | $ | 6,200,516 | |||||
Netherlands–6.51% | ||||||||
Just Eat Takeaway.com N.V.(a)(b) | 2,560 | 260,650 | ||||||
Prosus N.V.(a) | 85,770 | 6,510,446 | ||||||
6,771,096 | ||||||||
Poland–2.45% | ||||||||
Benefit Systems S.A.(a) | 13,368 | 2,552,687 | ||||||
South Korea–3.80% | ||||||||
Samsung Electronics Co. Ltd., Preference Shares | 113,570 | 3,955,268 | ||||||
Spain–2.84% | ||||||||
Amadeus IT Group S.A. | 61,201 | 2,949,003 | ||||||
United Kingdom–12.54% | ||||||||
Auto Trader Group PLC(b) | 307,592 | 1,778,708 | ||||||
Clarkson PLC | 35,231 | 1,106,880 | ||||||
Domino’s Pizza Group PLC | 221,701 | 961,469 | ||||||
Howden Joinery Group PLC | 637,074 | 4,218,453 | ||||||
Liberty Global PLC, Class A(a) | 256,490 | 4,981,036 | ||||||
13,046,546 | ||||||||
Total Common Stocks & Other Equity Interests |
| 101,077,637 | ||||||
Money Market Funds–2.10% | ||||||||
Invesco Government & Agency Portfolio, Institutional Class, 0.20%(c)(d) | 876,662 | 876,662 | ||||||
Invesco Liquid Assets Portfolio, Institutional Class, 0.60%(c)(d) | 313,307 | 313,495 | ||||||
Invesco Treasury Portfolio, Institutional Class, 0.10%(c)(d) | 1,001,899 | 1,001,899 | ||||||
Total Money Market Funds |
| 2,192,056 | ||||||
TOTAL INVESTMENTS IN SECURITIES–99.26% |
| 103,269,693 | ||||||
OTHER ASSETS LESS LIABILITIES–0.74% |
| 765,137 | ||||||
NET ASSETS–100.00% | $ | 104,034,830 |
Investment Abbreviations:
ADR – American Depositary Receipt
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
6 Invesco International Select Equity Fund
Notes to Schedule of Investments:
(a) | Non-income producing security. |
(b) | Security purchased or received in a transaction exempt from registration under the Securities Act of 1933, as amended (the “1933 Act”). The security may be resold pursuant to an exemption from registration under the 1933 Act, typically to qualified institutional buyers. The aggregate value of these securities at April 30, 2020 was $10,823,652, which represented 10.40% of the Fund’s Net Assets. |
(c) | Affiliated issuer. The issuer and/or the Fund is a wholly-owned subsidiary of Invesco Ltd., or is affiliated by having an investment adviser that is under common control of Invesco Ltd. The table below shows the Fund’s transactions in, and earnings from, its investments in affiliates for the six months ended April 30, 2020. |
Value October 31, 2019 | Purchases at Cost | Proceeds from Sales | Change in Unrealized Appreciation | Realized Gain | Value April 30, 2020 | Dividend Income | ||||||||||||||||||||||
Investments in Affiliated Money Market Funds: | ||||||||||||||||||||||||||||
Invesco Government & Agency Portfolio, Institutional Class | $1,428,698 | $ 7,232,701 | $ (7,784,737 | ) | $ - | $ - | $ 876,662 | $ 6,984 | ||||||||||||||||||||
Invesco Liquid Assets Portfolio, Institutional Class | 1,021,215 | 5,210,817 | (5,919,135 | ) | 148 | 450 | 313,495 | 6,051 | ||||||||||||||||||||
Invesco Treasury Portfolio, Institutional Class | 1,632,797 | 8,265,944 | (8,896,842 | ) | - | - | 1,001,899 | 7,748 | ||||||||||||||||||||
Total | $4,082,710 | $20,709,462 | $(22,600,714 | ) | $148 | $450 | $2,192,056 | $20,783 |
(d) | The rate shown is the 7-day SEC standardized yield as of April 30, 2020. |
Portfolio Composition
By sector, based on Net Assets
as of April 30, 2020
Consumer Discretionary | 29.10 | % | ||
Industrials | 22.67 | |||
Communication Services | 19.94 | |||
Information Technology | 8.96 | |||
Consumer Staples | 7.80 | |||
Health Care | 5.96 | |||
Financials | 2.73 | |||
Money Market Funds Plus Other Assets Less Liabilities | 2.84 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
7 Invesco International Select Equity Fund
Statement of Assets and Liabilities
April 30, 2020
(Unaudited)
Assets: | ||||
Investments in securities, at value | $ | 101,077,637 | ||
Investments in affiliated money market funds, at value | 2,192,056 | |||
Foreign currencies, at value | 300,831 | |||
Receivable for: | 481,481 | |||
Fund shares sold | 30,715 | |||
Fund expenses absorbed | 8,071 | |||
Dividends | 176,608 | |||
Investment for trustee deferred compensation and retirement plans | 11,309 | |||
Other assets | 51,544 | |||
Total assets | 104,330,252 | |||
Liabilities: | ||||
Payable for: | ||||
Fund shares reacquired | 241,055 | |||
Accrued other operating expenses | 43,058 | |||
Trustee deferred compensation and retirement plans | 11,309 | |||
Total liabilities | 295,422 | |||
Net assets applicable to shares outstanding | $ | 104,034,830 | ||
Net assets consist of: | ||||
Shares of beneficial interest | $ | 101,723,377 | ||
Distributable earnings | 2,311,453 | |||
$ | 104,034,830 |
Net Assets: | ||||
Class A | $ | 5,897,773 | ||
Class C | $ | 675,786 | ||
Class R | $ | 243,476 | ||
Class Y | $ | 2,584,889 | ||
Class R5 | $ | 10,598 | ||
Class R6 | $ | 94,622,308 | ||
Shares outstanding, no par value, with an unlimited number of shares authorized: |
| |||
Class A | 557,709 | |||
Class C | 64,871 | |||
Class R | 23,156 | |||
Class Y | 244,160 | |||
Class R5 | 1,001 | |||
Class R6 | 8,939,873 | |||
Class A: | ||||
Net asset value per share | $ | 10.58 | ||
Maximum offering price per share | $ | 11.20 | ||
Class C: | ||||
Net asset value and offering price per share | $ | 10.42 | ||
Class R: | ||||
Net asset value and offering price per share | $ | 10.51 | ||
Class Y: | ||||
Net asset value and offering price per share | $ | 10.59 | ||
Class R5: | ||||
Net asset value and offering price per share | $ | 10.59 | ||
Class R6: | ||||
Net asset value and offering price per share | $ | 10.58 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
8 Invesco International Select Equity Fund
Statement of Operations
For the six months ended April 30, 2020
(Unaudited)
Investment income: | ||||
Dividends (net of foreign withholding taxes of $44,431) | $ | 303,198 | ||
| ||||
Dividends from affiliated money market funds | 20,783 | |||
| ||||
Total investment income | 323,981 | |||
| ||||
Expenses: | ||||
Advisory fees | 532,697 | |||
| ||||
Administrative services fees | 8,509 | |||
| ||||
Custodian fees | 6,342 | |||
| ||||
Distribution fees: | ||||
Class A | 7,669 | |||
| ||||
Class C | 3,830 | |||
| ||||
Class R | 586 | |||
| ||||
Transfer agent fees – A, C, R and Y | 11,150 | |||
| ||||
Transfer agent fees – R6 | 435 | |||
| ||||
Trustees’ and officers’ fees and benefits | 7,294 | |||
| ||||
Registration and filing fees | 32,668 | |||
| ||||
Reports to shareholders | 3,632 | |||
| ||||
Professional services fees | 22,976 | |||
| ||||
Other | 3,002 | |||
| ||||
Total expenses | 640,790 | |||
| ||||
Less: Fees waived, expenses reimbursed and/or expense offset arrangement(s) | (135,109 | ) | ||
| ||||
Net expenses | 505,681 | |||
| ||||
Net investment income (loss) | (181,700 | ) | ||
| ||||
Realized and unrealized gain (loss) from: | ||||
Net realized gain (loss) from: | ||||
Investment securities | (61,867 | ) | ||
| ||||
Foreign currencies | (29,197 | ) | ||
| ||||
(91,064 | ) | |||
| ||||
Change in net unrealized appreciation (depreciation) of: | ||||
Investment securities | (6,729,036 | ) | ||
| ||||
Foreign currencies | (3,574 | ) | ||
| ||||
(6,732,610 | ) | |||
| ||||
Net realized and unrealized gain (loss) | (6,823,674 | ) | ||
| ||||
Net increase (decrease) in net assets resulting from operations | $ | (7,005,374 | ) | |
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
9 Invesco International Select Equity Fund
Statement of Changes in Net Assets
For the six months ended April 30, 2020 and the year ended October 31, 2019
(Unaudited)
April 30, 2020 | October 31, 2019 | |||||||
| ||||||||
Operations: | ||||||||
Net investment income (loss) | $ | (181,700 | ) | $ | 2,628,850 | |||
| ||||||||
Net realized gain (loss) | (91,064 | ) | (3,796,953 | ) | ||||
| ||||||||
Change in net unrealized appreciation (depreciation) | (6,732,610 | ) | 19,494,424 | |||||
| ||||||||
Net increase (decrease) in net assets resulting from operations | (7,005,374 | ) | 18,326,321 | |||||
| ||||||||
Distributions to shareholders from distributable earnings: | ||||||||
Class A | (119,835 | ) | (261,379 | ) | ||||
| ||||||||
Class C | (10,848 | ) | (61,039 | ) | ||||
| ||||||||
Class R | (4,091 | ) | (5,692 | ) | ||||
| ||||||||
Class Y | (72,461 | ) | (233,862 | ) | ||||
| ||||||||
Class R5 | (257 | ) | (710 | ) | ||||
| ||||||||
Class R6 | (2,419,527 | ) | (6,889,723 | ) | ||||
| ||||||||
Total distributions from distributable earnings | (2,627,019 | ) | (7,452,405 | ) | ||||
| ||||||||
Share transactions–net: | ||||||||
Class A | 710,088 | 1,004,435 | ||||||
| ||||||||
Class C | (67,014 | ) | (444,675 | ) | ||||
| ||||||||
Class R | 35,938 | 125,063 | ||||||
| ||||||||
Class Y | (462,292 | ) | (5,416,992 | ) | ||||
| ||||||||
Class R6 | (8,001,379 | ) | (2,081,185 | ) | ||||
| ||||||||
Net increase (decrease) in net assets resulting from share transactions | (7,784,659 | ) | (6,813,354 | ) | ||||
| ||||||||
Net increase (decrease) in net assets | (17,417,052 | ) | 4,060,562 | |||||
| ||||||||
Net assets: | ||||||||
Beginning of period | 121,451,882 | 117,391,320 | ||||||
| ||||||||
End of period | $ | 104,034,830 | $ | 121,451,882 | ||||
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
10 Invesco International Select Equity Fund
(Unaudited)
The following schedule presents financial highlights for a share of the Fund outstanding throughout the periods indicated.
Net asset value, beginning of period | Net investment income (loss)(a) | Net gains (losses) on securities (both realized and unrealized) | Total from investment operations | Dividends from net investment income | Distributions from net realized gains | Total distributions | Net asset value, end of period | Total return (b) | Net assets, end of period (000’s omitted) | Ratio of expenses to average net assets with fee waivers and/or expenses absorbed | Ratio of expenses to average net assets without fee waivers and/or expenses absorbed | Ratio of net investment income (loss) to average net assets | Portfolio turnover (c) | |||||||||||||||||||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 04/30/20 | $ | 11.49 | $ | (0.03 | ) | $ | (0.64 | ) | $ | (0.67 | ) | $ | (0.24 | ) | $ | – | $ | (0.24 | ) | $ | 10.58 | (6.12 | )% | $ | 5,898 | 1.12 | %(d) | 1.55 | %(d) | (0.55 | )%(d) | 19 | % | |||||||||||||||||||||||
Year ended 10/31/19 | 10.52 | 0.22 | (e) | 1.42 | 1.64 | (0.07 | ) | (0.60 | ) | (0.67 | ) | 11.49 | 16.99 | 5,852 | 1.11 | 1.60 | 2.06 | (e) | 35 | |||||||||||||||||||||||||||||||||||||
Year ended 10/31/18 | 13.01 | 0.09 | (1.51 | ) | (1.42 | ) | (0.10 | ) | (0.97 | ) | (1.07 | ) | 10.52 | (11.93 | ) | 4,333 | 1.11 | 1.62 | 0.72 | 46 | ||||||||||||||||||||||||||||||||||||
Year ended 10/31/17 | 10.98 | 0.08 | 2.41 | 2.49 | (0.10 | ) | (0.36 | ) | (0.46 | ) | 13.01 | 23.77 | 5,436 | 1.14 | 1.70 | 0.71 | 43 | |||||||||||||||||||||||||||||||||||||||
Year ended 10/31/16(f) | 10.00 | 0.07 | 0.91 | 0.98 | – | – | – | 10.98 | 9.80 | 3,378 | 1.32 | (g) | 1.90 | (g) | 0.81 | (g) | 35 | |||||||||||||||||||||||||||||||||||||||
Class C | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 04/30/20 | 11.28 | (0.07 | ) | (0.64 | ) | (0.71 | ) | (0.15 | ) | – | (0.15 | ) | 10.42 | (6.45 | ) | 676 | 1.87 | (d) | 2.30 | (d) | (1.30 | )(d) | 19 | |||||||||||||||||||||||||||||||||
Year ended 10/31/19 | 10.35 | 0.14 | (e) | 1.39 | 1.53 | – | (0.60 | ) | (0.60 | ) | 11.28 | 16.03 | 811 | 1.86 | 2.35 | 1.31 | (e) | 35 | ||||||||||||||||||||||||||||||||||||||
Year ended 10/31/18 | 12.86 | (0.00 | ) | (1.48 | ) | (1.48 | ) | (0.06 | ) | (0.97 | ) | (1.03 | ) | 10.35 | (12.55 | ) | 1,192 | 1.86 | 2.37 | (0.03 | ) | 46 | ||||||||||||||||||||||||||||||||||
Year ended 10/31/17 | 10.91 | (0.00 | ) | 2.38 | 2.38 | (0.07 | ) | (0.36 | )�� | (0.43 | ) | 12.86 | 22.88 | 2,167 | 1.89 | 2.45 | (0.04 | ) | 43 | |||||||||||||||||||||||||||||||||||||
Year ended 10/31/16(f) | 10.00 | 0.01 | 0.90 | 0.91 | – | – | – | 10.91 | 9.10 | 50 | 2.07 | (g) | 2.65 | (g) | 0.06 | (g) | 35 | |||||||||||||||||||||||||||||||||||||||
Class R | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 04/30/20 | 11.41 | (0.04 | ) | (0.65 | ) | (0.69 | ) | (0.21 | ) | – | (0.21 | ) | 10.51 | (6.28 | ) | 243 | 1.37 | (d) | 1.80 | (d) | (0.80 | )(d) | 19 | |||||||||||||||||||||||||||||||||
Year ended 10/31/19 | 10.46 | 0.19 | (e) | 1.40 | 1.59 | (0.04 | ) | (0.60 | ) | (0.64 | ) | 11.41 | 16.60 | 227 | 1.36 | 1.85 | 1.81 | (e) | 35 | |||||||||||||||||||||||||||||||||||||
Year ended 10/31/18 | 12.95 | 0.06 | (1.49 | ) | (1.43 | ) | (0.09 | ) | (0.97 | ) | (1.06 | ) | 10.46 | (12.09 | ) | 89 | 1.36 | 1.87 | 0.47 | 46 | ||||||||||||||||||||||||||||||||||||
Year ended 10/31/17 | 10.95 | 0.05 | 2.40 | 2.45 | (0.09 | ) | (0.36 | ) | (0.45 | ) | 12.95 | 23.44 | 61 | 1.39 | 1.95 | 0.46 | 43 | |||||||||||||||||||||||||||||||||||||||
Year ended 10/31/16(f) | 10.00 | 0.05 | 0.90 | 0.95 | – | – | – | 10.95 | 9.50 | 15 | 1.57 | (g) | 2.15 | (g) | 0.56 | (g) | 35 | |||||||||||||||||||||||||||||||||||||||
Class Y | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 04/30/20 | 11.51 | (0.02 | ) | (0.64 | ) | (0.66 | ) | (0.26 | ) | — | (0.26 | ) | 10.59 | (5.99 | ) | 2,585 | 0.87 | (d) | 1.30 | (d) | (0.30 | )(d) | 19 | |||||||||||||||||||||||||||||||||
Year ended 10/31/19 | 10.56 | 0.25 | (e) | 1.41 | 1.66 | (0.11 | ) | (0.60 | ) | (0.71 | ) | 11.51 | 17.24 | 3,299 | �� | 0.86 | 1.35 | 2.31 | (e) | 35 | ||||||||||||||||||||||||||||||||||||
Year ended 10/31/18 | 13.04 | 0.12 | (1.51 | ) | (1.39 | ) | (0.12 | ) | (0.97 | ) | (1.09 | ) | 10.56 | (11.68 | ) | 8,594 | 0.86 | 1.37 | 0.97 | 46 | ||||||||||||||||||||||||||||||||||||
Year ended 10/31/17 | 11.00 | 0.11 | 2.40 | 2.51 | (0.11 | ) | (0.36 | ) | (0.47 | ) | 13.04 | 24.04 | 7,499 | 0.89 | 1.45 | 0.96 | 43 | |||||||||||||||||||||||||||||||||||||||
Year ended 10/31/16(f) | 10.00 | 0.10 | 0.90 | 1.00 | – | – | – | 11.00 | 10.00 | 2,810 | 1.07 | (g) | 1.65 | (g) | 1.06 | (g) | 35 | |||||||||||||||||||||||||||||||||||||||
Class R5 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 04/30/20 | 11.51 | (0.02 | ) | (0.64 | ) | (0.66 | ) | (0.26 | ) | – | (0.26 | ) | 10.59 | (5.99 | ) | 11 | 0.87 | (d) | 1.08 | (d) | (0.30 | )(d) | 19 | |||||||||||||||||||||||||||||||||
Year ended 10/31/19 | 10.56 | 0.25 | (e) | 1.41 | 1.66 | (0.11 | ) | (0.60 | ) | (0.71 | ) | 11.51 | 17.23 | 12 | 0.86 | 1.14 | 2.31 | (e) | 35 | |||||||||||||||||||||||||||||||||||||
Year ended 10/31/18 | 13.04 | 0.12 | (1.51 | ) | (1.39 | ) | (0.12 | ) | (0.97 | ) | (1.09 | ) | 10.56 | (11.68 | ) | 11 | 0.86 | 1.19 | 0.97 | 46 | ||||||||||||||||||||||||||||||||||||
Year ended 10/31/17 | 11.00 | 0.11 | 2.40 | 2.51 | (0.11 | ) | (0.36 | ) | (0.47 | ) | 13.04 | 24.04 | 13 | 0.89 | 1.30 | 0.96 | 43 | |||||||||||||||||||||||||||||||||||||||
Year ended 10/31/16(f) | 10.00 | 0.10 | 0.90 | 1.00 | – | – | – | 11.00 | 10.00 | 11 | 1.07 | (g) | 1.61 | (g) | 1.06 | (g) | 35 | |||||||||||||||||||||||||||||||||||||||
Class R6 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 04/30/20 | 11.51 | (0.02 | ) | (0.65 | ) | (0.67 | ) | (0.26 | ) | – | (0.26 | ) | 10.58 | (6.08 | ) | 94,622 | 0.87 | (d) | 1.08 | (d) | (0.30 | )(d) | 19 | |||||||||||||||||||||||||||||||||
Year ended 10/31/19 | 10.56 | 0.25 | (e) | 1.41 | 1.66 | (0.11 | ) | (0.60 | ) | (0.71 | ) | 11.51 | 17.24 | 111,252 | 0.86 | 1.14 | 2.31 | (e) | 35 | |||||||||||||||||||||||||||||||||||||
Year ended 10/31/18 | 13.03 | 0.12 | (1.50 | ) | (1.38 | ) | (0.12 | ) | (0.97 | ) | (1.09 | ) | 10.56 | (11.61 | ) | 103,172 | 0.86 | 1.19 | 0.97 | 46 | ||||||||||||||||||||||||||||||||||||
Year ended 10/31/17 | 11.00 | 0.11 | 2.39 | 2.50 | (0.11 | ) | (0.36 | ) | (0.47 | ) | 13.03 | 23.94 | 91,527 | 0.89 | 1.30 | 0.96 | 43 | |||||||||||||||||||||||||||||||||||||||
Year ended 10/31/16(f) | 10.00 | 0.10 | 0.90 | 1.00 | – | – | – | 11.00 | 10.00 | 52,208 | 1.07 | (g) | 1.61 | (g) | 1.06 | (g) | 35 |
(a) | Calculated using average shares outstanding. |
(b) | Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Does not include sales charges and is not annualized for periods less than one year, if applicable. |
(c) | Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable. |
(d) | Ratios are annualized and based on average daily net assets (000’s omitted) of $6,169, $770, $236, $3,132, $11 and $104,254 for Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares, respectively. |
(e) | Net investment income (loss) per share and the ratio of net investment income (loss) to average net assets includes significant dividends received during year ended October 31, 2019.Net investment income (loss) per share and the ratio of net investment income (loss) to average net assets excluding the significant dividends are $0.06 and 0.57%, $(0.02) and (0.18)%, $0.03 and 0.32%, $0.09 and 0.82%, $0.09 and 0.82%, and $0.09 and 0.82% for Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares, respectively. |
(f) | Commencement date of December 21, 2015. |
(g) | Annualized. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
11 Invesco International Select Equity Fund
April 30, 2020
(Unaudited)
NOTE 1–Significant Accounting Policies
Invesco International Select Equity Fund, formerly Invesco International Companies Fund, (the “Fund”) is a series portfolio of AIM International Mutual Funds (Invesco International Mutual 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 the Fund or each class.
The Fund’s investment objective is long-term growth of capital.
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. 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. |
A security listed or traded on an exchange (except convertible securities) is valued at its last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded, or lacking any sales or official closing price on a particular day, the security may be valued at the closing bid price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued by an independent pricing service they may be considered fair valued. Futures contracts are valued at the final settlement price set by an exchange on which they are principally traded. Listed options are valued at the mean between the last bid and asked prices from the exchange on which they are principally traded. Options not listed on an exchange are valued by an independent source at the mean between the last bid and asked prices. For purposes of determining net asset value (“NAV”) per share, futures and option contracts generally are valued 15 minutes after the close of the customary trading session of the New York Stock Exchange (“NYSE”).
Investments in open-end and closed-end registered investment companies that do not trade on an exchange are valued at the end-of-day net asset value per share. Investments in open-end and closed-end registered investment companies that trade on an exchange are valued at the last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded.
Debt obligations (including convertible securities) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. Pricing services generally value debt obligations assuming orderly transactions of institutional round lot size, but a fund may hold or transact in the same securities in smaller, odd lot sizes. Odd lots often trade at lower prices than institutional round lots. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.
Foreign securities’ (including foreign exchange contracts) prices are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the NYSE. If market quotations are available and reliable for foreign exchange-traded equity securities, the securities will be valued at the market quotations. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become unreliable. If between the time trading ends on a particular security and the close of the customary trading session on the NYSE, events occur that the investment adviser determines are significant and make the closing price unreliable, the Fund may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith using procedures approved by the Board of Trustees. Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities’ prices meeting the approved degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economic upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.
Securities for which market prices are not provided by any of the above methods may be valued based upon quotes furnished by independent sources. The last bid price may be used to value equity securities. The mean between the last bid and asked prices is used to value debt obligations, including corporate loans.
Securities for which market quotations are not readily available or became unreliable are valued at fair value as determined in good faith by or under the supervision of the Trust’s officers following procedures approved by the Board of Trustees. Issuer specific events, market trends, bid/asked quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security’s fair value.
The Fund may invest in securities that are subject to interest rate risk, meaning the risk that the prices will generally fall as interest rates rise and, conversely, the prices will generally rise as interest rates fall. Specific securities differ in their sensitivity to changes in interest rates depending on their individual characteristics. Changes in interest rates may result in increased market volatility, which may affect the value and/or liquidity of certain Fund investments.
Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the issuer’s assets, general market conditions which are not specifically related to the particular issuer, such as real or perceived adverse economic conditions, changes in the general outlook for revenues or corporate earnings, changes in interest or currency rates, regional or global instability, natural or environmental disasters, widespread disease or other public health issues, war, acts of terrorism or adverse investor sentiment generally and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
B. | Securities Transactions and Investment Income – Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income (net of withholding tax, if any) is recorded on an accrual basis from settlement date. Dividend income (net of withholding tax, if any) is recorded on the ex-dividend date. |
The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Statement of Operations as realized gain (loss) for investments no longer held and as unrealized gain (loss) for investments still held.
Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of net realized and unrealized gain (loss) from investment
12 Invesco International Select Equity Fund
securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the net realized and unrealized gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and the Statement of Changes in Net Assets, or the net investment income per share and the ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.
The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class.
C. | Country Determination – For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues and the country that has the primary market for the issuer’s securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted. |
D. | Distributions – Distributions from net investment income and net realized capital gain, if any, are generally declared and paid annually and recorded on the ex-dividend date. The Fund may elect to treat a portion of the proceeds from redemptions as distributions for federal income tax purposes. |
E. | Federal Income Taxes – The Fund intends to comply with the requirements of Subchapter M of the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”), necessary to qualify as a regulated investment company and to distribute substantially all of the Fund’s taxable earnings to shareholders. As such, the Fund will not be subject to federal income taxes on otherwise taxable income (including net realized capital gain) that is distributed to shareholders. Therefore, no provision for federal income taxes is recorded in the financial statements. |
The Fund recognizes the tax benefits of uncertain tax positions only when the position is more likely than not to be sustained. Management has analyzed the Fund’s uncertain tax positions and concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions. Management is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the next 12 months.
The Fund files tax returns in the U.S. Federal jurisdiction and certain other jurisdictions. Generally, the Fund is subject to examinations by such taxing authorities for up to three years after the filing of the return for the tax period.
F. | Expenses – Fees provided for under the Rule 12b-1 plan of a particular class of the Fund 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 preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print. |
H. | Indemnifications – Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of the performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements, that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote. |
I. | Foreign Currency Translations – Foreign currency is valued at the close of the NYSE based on quotations posted by banks and major currency dealers. Portfolio securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at the date of valuation. Purchases and sales of portfolio securities (net of foreign taxes withheld on disposition) and income items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. The Fund does not separately account for the portion of the results of operations resulting from changes in foreign exchange rates on investments and the fluctuations arising from changes in market prices of securities held. The combined results of changes in foreign exchange rates and the fluctuation of market prices on investments (net of estimated foreign tax withholding) are included with the net realized and unrealized gain or loss from investments in the Statement of Operations. Reported net realized foreign currency gains or losses arise from (1) sales of foreign currencies, (2) currency gains or losses realized between the trade and settlement dates on securities transactions, and (3) the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign currency gains and losses arise from changes in the fair values of assets and liabilities, other than investments in securities at fiscal period end, resulting from changes in exchange rates. |
The Fund may invest in foreign securities, which may be subject to foreign taxes on income, gains on investments or currency repatriation, a portion of which may be recoverable. Foreign taxes, if any, are recorded based on the tax regulations and rates that exist in the foreign markets in which the Fund invests and are shown in the Statement of Operations.
J. | Forward Foreign Currency Contracts – The Fund may engage in foreign currency transactions either on a spot (i.e. for prompt delivery and settlement) basis, or through forward foreign currency contracts, to manage or minimize currency or exchange rate risk. |
The Fund may also enter into forward foreign currency contracts for the purchase or sale of a security denominated in a foreign currency in order to “lock in” the U.S. dollar price of that security, or the Fund may also enter into forward foreign currency contracts that do not provide for physical settlement of the two currencies, but instead are settled by a single cash payment calculated as the difference between the agreed upon exchange rate and the spot rate at settlement based upon an agreed upon notional amount (non-deliverable forwards). The Fund will set aside liquid assets in an amount equal to the daily mark-to-market obligation for forward foreign currency contracts.
A forward foreign currency contract is an obligation between two parties (“Counterparties”) to purchase or sell a specific currency for an agreed-upon price at a future date. The use of forward foreign currency contracts does not eliminate fluctuations in the price of the underlying securities the Fund owns or intends to acquire but establishes a rate of exchange in advance. Fluctuations in the value of these contracts are measured by the difference in the contract date and reporting date exchange rates and are recorded as unrealized appreciation (depreciation) until the contracts are closed. When the contracts are closed, realized gains (losses) are recorded. Realized and unrealized gains (losses) on the contracts are included in the Statement of Operations. The primary risks associated with forward foreign currency contracts include failure of the Counterparty to meet the terms of the contract and the value of the foreign currency changing unfavorably. These risks may be in excess of the amounts reflected in the Statement of Assets and Liabilities.
13 Invesco International Select Equity Fund
NOTE 2–Advisory Fees and Other Fees Paid to Affiliates
The Trust has entered into a master investment advisory agreement with Invesco Advisers, Inc. (the “Adviser” or “Invesco”). Under the terms of the investment advisory agreement, the Fund accrues daily and pays monthly an advisory fee to the Adviser based on the annual rate of the Fund’s average daily net assets as follows:
Average Daily Net Assets | Rate | |||
First $ 250 million | 0.935 | % | ||
Next $250 million | 0.910 | % | ||
Next $500 million | 0.885 | % | ||
Next $1.5 billion | 0.860 | % | ||
Next $2.5 billion | 0.835 | % | ||
Next $2.5 billion | 0.810 | % | ||
Next $2.5 billion | 0.785 | % | ||
Over $10 billion | 0.760 | % |
For the six months ended April 30, 2020, the effective advisory fee rate incurred by the Fund was 0.935%.
Under the terms of a master sub-advisory agreement between the Adviser and each of Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Canada Ltd. and separate sub-advisory agreements with Invesco Capital Management LLC and Invesco Asset Management (India) Private Limited (collectively, the “Affiliated Sub-Advisers”) the Adviser, not the Fund, will pay 40% of the fees paid to the Adviser to any such Affiliated Sub-Adviser(s) that provide(s) discretionary investment management services to the Fund based on the percentage of assets allocated to such Affiliated Sub-Adviser(s).
The Adviser has contractually agreed, through at least February 28, 2021, to waive advisory fees and/or reimburse expenses of all shares to the extent necessary to limit total annual fund operating expenses after fee waiver and/or expense reimbursement (excluding certain items discussed below) of Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares to 1.12%, 1.87%, 1.37%, 0.87%, 0.87% and 0.87%, respectively, of average daily net assets (the “expense limits”). In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause the total annual fund operating expenses after fee waiver and/or expense reimbursement to exceed the numbers reflected above: (1) interest; (2) taxes; (3) dividend expense on short sales; (4) extraordinary or non-routine items, including litigation expenses; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Unless Invesco continues the fee waiver agreement, it will terminate on February 28, 2021. During its term, the fee waiver agreement cannot be terminated or amended to increase the expense limits or reduce the advisory fee waiver without approval of the Board of Trustees. To the extent that the annualized expense ratio does not exceed the expense limits, the Adviser will retain its ability to be reimbursed for such fee waivers or reimbursements prior to the end of each fiscal year.
The Adviser has contractually agreed, through at least June 30, 2022, to waive the advisory fee payable by the Fund in an amount equal to 100% of the net advisory fees the Adviser receives from the affiliated money market funds on investments by the Fund of uninvested cash in such affiliated money market funds.
For the six months ended April 30, 2020, the Adviser waived advisory fees of $123,790 and reimbursed class level expenses of $6,674, $833, $255, $3,388, $0 and $0 of Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares, respectively.
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 April 30, 2020, expenses incurred under the agreement are shown in the Statement of Operations as Administrative services fees. Invesco has entered into a sub-administration agreement whereby State Street Bank and Trust Company (“SSB”) serves as fund accountant and provides certain administrative services to the Fund. Pursuant to a custody agreement with the Trust on behalf of the Fund, SSB also serves as the Fund’s custodian.
The Trust has entered into a transfer agency and service agreement with Invesco Investment Services, Inc. (“IIS”) pursuant to which the Fund has agreed to pay IIS a fee for providing transfer agency and shareholder services to the Fund and reimburse IIS for certain expenses incurred by IIS in the course of providing such services. IIS may make payments to intermediaries that provide omnibus account services, sub-accounting services and/or networking services. All fees payable by IIS to intermediaries that provide omnibus account services or sub-accounting services are charged back to the Fund, subject to certain limitations approved by the Trust’s Board of Trustees. For the six months ended April 30, 2020, expenses incurred under the agreement are shown in the Statement of Operations as Transfer 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 “Plans”). The Fund, pursuant to the Plans, pays IDI compensation at the annual rate of 0.25% of the Fund’s average daily net assets of Class A shares, 1.00% of the average daily net assets of Class C shares 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 Plans 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. For the six-month period ended April 30, 2020, expenses incurred under the Plans are shown in the Statement of Operations as Distribution fees.
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 April 30, 2020, IDI advised the Fund that IDI retained $1,257 in front-end sales commissions from the sale of Class A shares and $0 and $0 from Class A and Class C shares, respectively, for CDSC imposed upon redemptions by shareholders.
Certain officers and trustees of the Trust are officers and directors of the Adviser, IIS and/or IDI.
NOTE 3–Additional Valuation Information
GAAP defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, under current market conditions. GAAP establishes a hierarchy that prioritizes the inputs to valuation methods, giving the highest priority to readily available unadjusted quoted prices in an active market for identical assets (Level 1) and the lowest priority to significant unobservable inputs (Level 3), generally when market prices are not readily available or are unreliable. Based on the valuation inputs, the securities or other investments are tiered into one of three levels. Changes in valuation methods may result in transfers in or out of an investment’s assigned level:
Level 1 – Prices are determined using quoted prices in an active market for identical assets.
Level 2 – Prices are determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk, yield curves, loss severities, default rates, discount rates, volatilities and others.
14 Invesco International Select Equity Fund
Level 3 – | Prices are determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Fund’s own assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information. |
The following is a summary of the tiered valuation input levels, as of April 30, 2020. The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Investments in Securities | ||||||||||||||||
Australia | $ | – | $ | 5,969,902 | $– | $ | 5,969,902 | |||||||||
Belgium | – | 2,863,758 | – | 2,863,758 | ||||||||||||
Canada | 2,754,011 | – | – | 2,754,011 | ||||||||||||
China | 6,703,513 | 16,436,477 | – | 23,139,990 | ||||||||||||
Denmark | – | 1,740,675 | – | 1,740,675 | ||||||||||||
Finland | – | 1,435,728 | – | 1,435,728 | ||||||||||||
France | – | 5,007,780 | – | 5,007,780 | ||||||||||||
Germany | – | 5,679,799 | – | 5,679,799 | ||||||||||||
Hong Kong | – | 2,836,324 | – | 2,836,324 | ||||||||||||
Japan | – | 14,174,554 | – | 14,174,554 | ||||||||||||
Luxembourg | – | 6,200,516 | – | 6,200,516 | ||||||||||||
Netherlands | – | 6,771,096 | – | 6,771,096 | ||||||||||||
Poland | – | 2,552,687 | – | 2,552,687 | ||||||||||||
South Korea | – | 3,955,268 | – | 3,955,268 | ||||||||||||
Spain | – | 2,949,003 | – | 2,949,003 | ||||||||||||
United Kingdom | 4,981,036 | 8,065,510 | – | 13,046,546 | ||||||||||||
Money Market Funds | 2,192,056 | – | – | 2,192,056 | ||||||||||||
Total Investments | $ | 16,630,616 | $ | 86,639,077 | $– | $ | 103,269,693 |
NOTE 4–Expense Offset Arrangement(s)
The expense offset arrangement is comprised of transfer agency credits which result from balances in demand deposit accounts used by the transfer agent for clearing shareholder transactions. For the six months ended April 30, 2020, the Fund received credits from this arrangement, which resulted in the reduction of the Fund’s total expenses of $169.
NOTE 5–Trustees’ and Officers’ Fees and Benefits
Trustees’ and Officers’ Fees and Benefits include amounts accrued by the Fund to pay remuneration to certain Trustees and Officers of the Fund. Trustees have the option to defer compensation payable by the Fund, and Trustees’ and Officers’ Fees and Benefits also include amounts accrued by the Fund to fund such deferred compensation amounts. Those Trustees who defer compensation have the option to select various Invesco Funds in which their deferral accounts shall be deemed to be invested. Obligations under the deferred compensation plan represent unsecured claims against the general assets of the Fund.
NOTE 6–Cash Balances
The Fund is permitted to temporarily carry a negative or overdrawn balance in its account with SSB, the custodian bank. Such balances, if any at period-end, are shown in the Statement of Assets and Liabilities under the payable caption Amount due custodian. To compensate the custodian bank for such overdrafts, the overdrawn Fund may either (1) leave funds as a compensating balance in the account so the custodian bank can be compensated by earning the additional interest; or (2) compensate by paying the custodian bank at a rate agreed upon by the custodian bank and Invesco, not to exceed the contractually agreed upon rate. The Fund may not purchase additional securities when any borrowings from banks or broker-dealers exceed 5% of the Fund’s total assets, or when any borrowings from an Invesco Fund are outstanding.
NOTE 7–Tax Information
The amount and character of income and gains to be distributed are determined in accordance with income tax regulations, which may differ from GAAP.
Reclassifications are made to the Fund’s capital accounts to reflect income and gains available for distribution (or available capital loss carryforward) under income tax regulations. The tax character of distributions paid during the year and the tax components of net assets will be reported at the Fund’s fiscal year-end.
Capital loss carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Fund to utilize. The ability to utilize capital loss carryforwards in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.
The Fund had a capital loss carryforward as of October 31, 2019, as follows:
Capital Loss Carryforward* | ||||||
Expiration | Short-Term | Long-Term | Total | |||
Not subject to expiration | $– | $3,554,957 | $3,554,957 |
* | Capital loss carryforward is reduced for limitations, if any, to the extent required by the Internal Revenue Code and may be further limited depending upon a variety of factors, including the realization of net unrealized gains or losses as of the date of any reorganization. |
15 Invesco International Select Equity Fund
NOTE 8–Investment Transactions
The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Fund during the six months ended April 30, 2020 was $20,680,390 and $29,771,834, 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 | $ | 17,181,888 | ||
| ||||
Aggregate unrealized (depreciation) of investments | (11,001,736 | ) | ||
| ||||
Net unrealized appreciation of investments | $ | 6,180,152 | ||
|
Cost of investments for tax purposes is $97,089,541.
NOTE 9–Share Information
Summary of Share Activity | ||||||||||||||||
| ||||||||||||||||
Six months ended April 30, 2020(a) | Year ended October 31, 2019 | |||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||
| ||||||||||||||||
Sold: | ||||||||||||||||
Class A | 248,817 | $ | 2,783,958 | 235,291 | $ | 2,507,996 | ||||||||||
| ||||||||||||||||
Class C | 13,854 | 150,459 | 27,714 | 290,309 | ||||||||||||
| ||||||||||||||||
Class R | 3,677 | 40,137 | 12,556 | 136,256 | ||||||||||||
| ||||||||||||||||
Class Y | 88,720 | 868,132 | 110,292 | 1,193,984 | ||||||||||||
| ||||||||||||||||
Class R6 | 125,212 | 1,286,617 | 1,123,421 | 12,123,681 | ||||||||||||
| ||||||||||||||||
Issued as reinvestment of dividends: | ||||||||||||||||
Class A | 9,178 | 108,579 | 25,834 | 242,582 | ||||||||||||
| ||||||||||||||||
Class C | 925 | 10,796 | 6,448 | 59,834 | ||||||||||||
| ||||||||||||||||
Class R | 330 | 3,885 | 540 | 5,047 | ||||||||||||
| ||||||||||||||||
Class Y | 5,899 | 69,729 | 24,317 | 228,088 | ||||||||||||
| ||||||||||||||||
Class R6 | 204,676 | 2,419,270 | 734,436 | 6,889,012 | ||||||||||||
| ||||||||||||||||
Automatic conversion of Class C shares to Class A shares: | ||||||||||||||||
Class A | 152 | 1,730 | 25,736 | 265,668 | ||||||||||||
| ||||||||||||||||
Class C | (154 | ) | (1,730 | ) | (26,056 | ) | (265,668 | ) | ||||||||
| ||||||||||||||||
Reacquired: | ||||||||||||||||
Class A | (209,770 | ) | (2,184,179 | ) | (189,236 | ) | (2,011,811 | ) | ||||||||
| ||||||||||||||||
Class C | (21,592 | ) | (226,539 | ) | (51,465 | ) | (529,150 | ) | ||||||||
| ||||||||||||||||
Class R | (702 | ) | (8,084 | ) | (1,773 | ) | (16,240 | ) | ||||||||
| ||||||||||||||||
Class Y | (137,139 | ) | (1,400,153 | ) | (661,489 | ) | (6,839,064 | ) | ||||||||
| ||||||||||||||||
Class R6 | (1,057,436 | ) | (11,707,266 | ) | (1,960,679 | ) | (21,093,878 | ) | ||||||||
| ||||||||||||||||
Net increase (decrease) in share activity | (725,353 | ) | $ | (7,784,659 | ) | (564,113 | ) | $ | (6,813,354 | ) | ||||||
|
(a) | 90% of the outstanding shares of the Fund are owned by the Adviser or an affiliate of the Adviser. |
NOTE 10–Coronavirus (COVID-19) Pandemic
During the first quarter of 2020, the World Health Organization declared COVID-19 to be a public health emergency. COVID-19 has led to increased short-term market volatility and may have adverse long-term effects on U.S. and world economies and markets in general. COVID-19 may adversely impact the Fund’s ability to achieve its investment objective. Because of the uncertainties on valuation, the global economy and business operations, values reflected in these financial statements may materially differ from the value received upon actual sales of those investments.
The extent of the impact on the performance of the Fund and its investments will depend on future developments, including the duration and spread of the COVID-19 outbreak, related restrictions and advisories, and the effects on the financial markets and economy overall, all of which are highly uncertain and cannot be predicted.
NOTE 11–Subsequent Event
On June 3, 2020, the Board of Trustees of the Trust, approved a change in the Fund’s sub-classification under the Investment Company Act of 1940 from “diversified” to “non-diversified” and the elimination of a related fundamental investment restriction (the “Proposal”). The Proposal requires approval by the shareholders of the Fund and will be submitted to shareholders at a special meeting to be held on September 22, 2020.
16 Invesco International Select Equity Fund
Calculating your ongoing Fund expenses
Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, which may include sales charges (loads) on purchase payments or contingent deferred sales charges on redemptions, if any; and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees, and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period November 1, 2019 through April 30, 2020.
Actual expenses
The table below provides information about actual account values and actual expenses. You may use the information in this table, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the table under the heading entitled “Actual Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Hypothetical example for comparison purposes
The table below also provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return.
The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads) on purchase payments or contingent deferred sales charges on redemptions, if any. Therefore, the hypothetical information 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 transaction costs were included, your costs would have been higher.
ACTUAL | HYPOTHETICAL (5% annual return before expenses) | Annualized Expense Ratio | ||||||||||||||||||||||
Beginning Account Value (11/01/19) | Ending Account Value (04/30/20)1 | Expenses Paid During Period2 | Ending Account Value (04/30/20) | Expenses Paid During Period2 | ||||||||||||||||||||
Class A | $1,000.00 | $938.80 | $5.40 | $1,019.29 | $5.62 | 1.12 | % | |||||||||||||||||
Class C | 1,000.00 | 935.50 | 9.00 | 1,015.56 | 9.37 | 1.87 | ||||||||||||||||||
Class R | 1,000.00 | 937.20 | 6.60 | 1,018.05 | 6.87 | 1.37 | ||||||||||||||||||
Class Y | 1,000.00 | 940.10 | 4.20 | 1,020.54 | 4.37 | 0.87 | ||||||||||||||||||
Class R5 | 1,000.00 | 940.10 | 4.20 | 1,020.54 | 4.37 | 0.87 | ||||||||||||||||||
Class R6 | 1,000.00 | 939.20 | 4.19 | 1,020.54 | 4.37 | 0.87 |
1 | The actual ending account value is based on the actual total return of the Fund for the period November 1, 2019 through April 30, 2020, after actual expenses and will differ from the hypothetical ending account value which is based on the Fund’s expense ratio and a hypothetical annual return of 5% before expenses. |
2 | Expenses are equal to the Fund’s annualized expense ratio as indicated above multiplied by the average account value over the period, multiplied by 182/366 to reflect the most recent fiscal half year. |
17 Invesco International Select Equity Fund
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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 list appears 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 Form N-PORT filings on the SEC website, sec.gov. The SEC file numbers for the Fund are shown below.
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. This 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. |
SEC file numbers: 811-06463 and 033-44611 | Invesco Distributors, Inc. | ICO-SAR-1 |
Semiannual Report to Shareholders
|
April 30, 2020
| |||
Invesco Select Opportunities Fund | ||||
Nasdaq: | ||||
A: IZSAX ∎ C: IZSCX ∎ R: IZSRX ∎ Y: IZSYX ∎ R5: IZSIX ∎ R6: IZFSX |
2 | Letters to Shareholders | |
3 | Fund Performance | |
5 | Liquidity Risk Management Program | |
6 | Schedule of Investments | |
8 | Financial Statements | |
11 | Financial Highlights | |
12 | Notes to Financial Statements | |
17 | Fund Expenses |
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.
For the most current month-end Fund performance and commentary, please visit invesco.com/performance.
Unless otherwise noted, all data provided by Invesco.
This report must be accompanied or preceded by a currently effective Fund prospectus, which contains more complete information, including sales charges and expenses. Investors should read it carefully before investing.
NOT FDIC INSURED | MAY LOSE VALUE | NO BANK GUARANTEE |
Bruce Crockett |
Dear Fellow Shareholders: As independent chair of the Invesco Funds Board, I can assure you that the members of the Board are strong advocates for the interests of investors in Invesco’s mutual funds. We work hard to represent your interests through oversight of the quality of the investment management services your funds receive and other matters important to your investment. This includes but is not limited to: monitoring how the portfolio management teams of the Invesco funds are performing in light of changing economic and market conditions; assessing each portfolio management team’s investment performance within the context of the investment strategy described in the fund’s prospectus; and monitoring for potential conflicts of interests that may impact the nature of the services that your funds receive. | |
We believe one of the most important services we provide our fund shareholders is the annual review of the funds’ advisory and sub-advisory contracts with Invesco Advisers and its affiliates. This review is required by the Investment Company Act of 1940 and focuses on the nature and quality of the services Invesco provides as the adviser to the Invesco funds and the reasonableness of the fees that it | ||
charges for those services. Each year, we spend months carefully reviewing information received from Invesco and a variety of independent sources, such as performance and fee data prepared by Lipper Inc. (a subsidiary of Broadridge Financial Solutions, Inc.), an independent, third-party firm widely recognized as a leader in its field. We also meet with our independent legal counsel and other independent advisers to review and help us assess the information that we have received. Our goal is to assure that you receive quality investment management services for a reasonable fee. On behalf of the Board, we look forward to continuing to represent your interests and serving your needs. |
Sincerely,
Bruce L. Crockett
Independent Chair
Invesco Funds Board of Trustees
Andrew Schlossberg |
Dear Shareholders: This semiannual report includes information about your Fund, including performance data and a complete list of its investments as of the close of the reporting period. Invesco’s efforts to help investors achieve their financial objectives include providing timely information about the markets, the economy and investing. Our website, invesco.com/us, offers a wide range of market insights and investment perspectives. On the website, you’ll find detailed information about our funds, including performance, holdings and portfolio manager commentaries. You can access information about your account by completing a simple, secure online registration. To do so, select “Log In” on the right side of the homepage, and then select “Register for Individual Account Access.” | |
In addition to the resources accessible on our website, you can obtain timely updates to help you stay informed by connecting with Invesco on Twitter, LinkedIn or Facebook. You can access our blog at blog.invesco.us.com. Our goal is to provide you with information you want, when and where you want it. | ||
For questions about your account, feel free to contact an Invesco client services representative at 800 959 4246. All of us at Invesco look forward to serving your investment management needs. Thank you for investing with us. |
Sincerely,
Andrew Schlossberg
Head of the Americas,
Senior Managing Director, Invesco Ltd.
2 Invesco Select Opportunities Fund
Performance summary
| ||
Fund vs. Indexes | ||
Cumulative total returns, October 31, 2019 to April 30, 2020, at net asset value (NAV). Performance shown does not include applicable contingent deferred sales charges (CDSC) or front-end sales charges, which would have reduced performance. | ||
Class A Shares | -17.22% | |
Class C Shares | -17.52 | |
Class R Shares | -17.39 | |
Class Y Shares | -17.16 | |
Class R5 Shares | -17.14 | |
Class R6 Shares | -17.15 | |
MSCI World Indexq (Broad Market Index) | -7.29 | |
MSCI All Country World Small Cap Indexq (Style-Specific Index) | -15.48 | |
Lipper Global Small/Mid-Cap Funds Classification Average∎ (Peer Group) | -10.00 | |
Source(s): qRIMES Technologies Corp.; ∎Lipper Inc. | ||
The MSCI World Index is an unmanaged index considered representative of stocks of developed countries. The index is computed using the net return, which withholds applicable taxes for non-resident investors. | ||
The MSCI All Country World Small Cap Index is an unmanaged index considered representative of small-cap stocks across developed and emerging market countries. The index is computed using the net return, which withholds applicable taxes for non-resident investors. | ||
The Lipper Global Small/Mid-Cap Funds Classification Average represents an average of all funds in the Lipper Global Small/Mid-Cap Funds classification. | ||
The Fund is not managed to track the performance of any particular index, including the index(es) described here, and consequently, the performance of the Fund may deviate significantly from the performance of the index(es). | ||
A direct investment cannot be made in an index. Unless otherwise indicated, index results include reinvested dividends, and they do not reflect sales charges. Performance of the peer group, if applicable, reflects fund expenses; performance of a market index does not. |
For more information about your Fund
|
Read the most recent quarterly commentary from your Fund’s portfolio managers by visiting invesco.com/us. Click on “Products” and select “Mutual Funds.” Use the “Product Finder” to locate your Fund; then click on its name to access its product detail page. There, you can learn more about your Fund’s investment strategies, holdings and performance. Also, visit blog.invesco.us.com, where many of Invesco’s investment professionals share their insights about market and economic news and trends.
|
3 Invesco Select Opportunities Fund
Average Annual Total Returns |
| |||
As of 4/30/20, including maximum applicable sales charges |
| |||
Class A Shares | ||||
Inception (8/3/12) | 2.69 | % | ||
5 Years | -4.06 | |||
1 Year | -25.02 | |||
Class C Shares | ||||
Inception (8/3/12) | 2.69 | % | ||
5 Years | -3.68 | |||
1 Year | -21.99 | |||
Class R Shares | ||||
Inception (8/3/12) | 3.19 | % | ||
5 Years | -3.21 | |||
1 Year | -20.87 | |||
Class Y Shares | ||||
Inception (8/3/12) | 3.70 | % | ||
5 Years | -2.72 | |||
1 Year | -20.50 | |||
Class R5 Shares | ||||
Inception (8/3/12) | 3.71 | % | ||
5 Years | -2.72 | |||
1 Year | -20.42 | |||
Class R6 Shares | ||||
Inception | 3.70 | % | ||
5 Years | -2.72 | |||
1 Year | -20.44 |
Class R6 shares incepted on September 24, 2012. Performance shown prior to that date is that of Class A shares and includes the 12b-1 fees applicable to Class A shares.
The performance data quoted represent past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/ performance for the most recent month-end performance. Performance figures reflect reinvested distributions, changes in net asset value and the effect of the maximum sales charge unless otherwise stated. Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares. Investment return and principal value will fluctuate so that you may have a gain or loss when you sell shares.
Class A share performance reflects the maximum 5.50% sales charge, and Class C share performance reflects the applicable contingent deferred sales charge (CDSC) for the period involved. The CDSC on Class C shares is 1% for the first year after purchase. Class R, Class Y, Class R5 and Class R6 shares do not have a front-end sales charge or a CDSC; therefore, performance is at net asset value.
The performance of the Fund’s share classes will differ primarily due to different sales charge structures and class expenses.
Fund performance reflects any applicable fee waivers and/or expense reimbursements.
Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information.
4 Invesco Select Opportunities Fund
Liquidity Risk Management Program
The Securities and Exchange Commission has adopted Rule 22e-4 under the Investment Company Act of 1940 (the “Liquidity Rule”) in order to promote effective liquidity risk management throughout the open-end investment company industry, thereby reducing the risk that funds will be unable to meet their redemption obligations and mitigating dilution of the interests of fund shareholders. The Fund has adopted and implemented a liquidity risk management program in accordance with the Liquidity Rule (the “Program”). The Program is reasonably designed to assess and manage the Fund’s liquidity risk, which is the risk that the Fund could not meet redemption requests without significant dilution of remaining investors’ interests in the Fund. The Board of Trustees of the Fund (the “Board”) has appointed Invesco Advisers, Inc. (“Invesco”), the Fund’s investment adviser, as the Program’s administrator, and Invesco has delegated oversight of the Program to the Liquidity Risk Management Committee (the “Committee”), which is composed of senior representatives from relevant business groups at Invesco.
As required by the Liquidity Rule, the Program includes policies and procedures providing for an assessment, no less frequently than annually, of the Fund’s liquidity risk that takes into account, as relevant to the Fund’s liquidity risk: (1) the Fund’s investment strategy and liquidity of portfolio investments during both normal and reasonably foreseeable stressed conditions; (2) short-term and long-term cash flow projections for the Fund during both normal and reasonably foreseeable stressed conditions; and (3) the Fund’s holdings of cash and cash equivalents and any borrowing arrangements. The Liquidity Rule also requires the classification of the Fund’s investments into categories that reflect the assessment of their relative liquidity under current market conditions. The Fund classifies its investments into one of four categories defined in the Liquidity Rule: “Highly Liquid,” “Moderately Liquid,” “Less Liquid” and “Illiquid.” Funds that are not invested primarily in “Highly Liquid Investments” that are assets (cash or investments that are reasonably expected to be convertible into cash within three business days without significantly changing the market value of the investment) are required to establish a “Highly Liquid Investment Minimum” (“HLIM”), which is the minimum percentage of net assets that must be invested in Highly Liquid Investments. Funds with HLIMs have procedures for addressing HLIM shortfalls, including reporting to the Board and the SEC (on a non-public basis) as required by the Program and the Liquidity Rule. In addition, the Fund may not acquire an investment if, immediately after the acquisition, over 15% of the Fund’s net assets would consist of “Illiquid Investments” that are assets (an investment that cannot reasonably be expected to be sold or disposed of in current market conditions in seven calendar days or less without the sale or disposition significantly changing the market value of the investment). The Liquidity Rule and the Program also require reporting to the Board and the SEC (on a non-public basis) if a Fund’s holdings of Illiquid Investments exceed 15% of the Fund’s assets.
At a meeting held on March 30-April 1, 2020, the Committee presented a report to the Board that addressed the operation of the Program and assessed the Program’s adequacy and effectiveness of implementation (the “Report”). The Report covered the period from December 1, 2018 through December 31, 2019 (the “Program Reporting Period”).
The Report stated, in relevant part, that during the Program Reporting Period:
∎ | The Program, as adopted and implemented, remained reasonably designed to assess and manage the Fund’s liquidity risk and was operated effectively to achieve that goal; |
∎ | The Fund’s investment strategy remained appropriate for an open-end fund; |
∎ | The Fund was able to meet requests for redemption without significant dilution of remaining investors’ interests in the Fund; |
∎ | The Fund did not breach the 15% limit on Illiquid Investments; and |
∎ | The Fund primarily held Highly Liquid Investments and therefore has not adopted an HLIM. |
5 Invesco Select Opportunities Fund
April 30, 2020
(Unaudited)
Shares | Value | |||||||
| ||||||||
Common Stocks & Other Equity Interests-98.33% |
| |||||||
Australia-4.54% | ||||||||
Corporate Travel Management Ltd. | 198,594 | $ | 1,609,164 | |||||
| ||||||||
Canada-4.84% | ||||||||
Colliers International Group, Inc. | 31,213 | 1,716,715 | ||||||
| ||||||||
France-2.81% | ||||||||
Ipsos | 51,548 | 995,168 | ||||||
| ||||||||
Germany-4.22% | ||||||||
Adesso SE | 27,961 | 1,495,676 | ||||||
| ||||||||
Monaco-2.99% | ||||||||
GasLog Ltd. | 229,698 | 1,061,205 | ||||||
| ||||||||
New Zealand-1.42% | ||||||||
Ryman Healthcare Ltd. | 69,745 | 504,766 | ||||||
| ||||||||
Poland-4.40% | ||||||||
Inter Cars S.A. | 33,573 | 1,558,762 | ||||||
| ||||||||
Switzerland-3.18% | ||||||||
SIG Combibloc Group AG(a) | 69,939 | 1,126,424 | ||||||
| ||||||||
United Kingdom-23.09% | ||||||||
Clarkson PLC | 41,526 | 1,304,655 | ||||||
| ||||||||
Clipper Logistics PLC | 376,998 | 1,008,591 | ||||||
| ||||||||
Dechra Pharmaceuticals PLC | 9,869 | 344,570 | ||||||
| ||||||||
Equiniti Group PLC(b) | 934,275 | 2,018,349 | ||||||
| ||||||||
G4S PLC | 834,062 | 1,148,764 | ||||||
| ||||||||
Howden Joinery Group PLC | 131,413 | 870,165 | ||||||
| ||||||||
Inspired Energy PLC | 2,522,313 | 455,907 | ||||||
| ||||||||
PageGroup PLC | 218,773 | 1,036,306 | ||||||
| ||||||||
8,187,307 | ||||||||
|
Shares | Value | |||||||
| ||||||||
United States-46.84% | ||||||||
Alliance Data Systems Corp. | 20,974 | $ | 1,050,168 | |||||
| ||||||||
Axalta Coating Systems Ltd.(a) | 51,389 | 1,014,419 | ||||||
| ||||||||
CommScope Holding Co., Inc.(a) | 172,145 | 1,895,316 | ||||||
| ||||||||
Delphi Technologies PLC(a) | 77,108 | 770,309 | ||||||
| ||||||||
Encore Capital Group, Inc.(a) | 54,444 | 1,414,455 | ||||||
| ||||||||
Floor & Decor Holdings, Inc., Class A(a) | 17,285 | 732,884 | ||||||
| ||||||||
Global Payments, Inc. | 10,742 | 1,783,387 | ||||||
| ||||||||
Insight Enterprises, Inc.(a) | 29,244 | 1,587,657 | ||||||
| ||||||||
Interface, Inc. | 185,047 | 1,709,834 | ||||||
| ||||||||
Nuance Communications, Inc.(a) | 110,738 | 2,236,907 | ||||||
| ||||||||
Performant Financial Corp.(a) | 492,974 | 345,082 | ||||||
| ||||||||
Sabre Corp. | 218,637 | 1,589,491 | ||||||
| ||||||||
Spirit Airlines, Inc.(a) | 31,634 | 475,143 | ||||||
| ||||||||
16,605,052 | ||||||||
| ||||||||
Total Common Stocks & Other Equity Interests |
| 34,860,239 | ||||||
| ||||||||
Money Market Funds-1.67% | ||||||||
Invesco Government & Agency Portfolio, Institutional Class, 0.20%(c)(d) | 195,677 | 195,677 | ||||||
| ||||||||
Invesco Liquid Assets Portfolio, Institutional Class, 0.60%(c)(d) | 172,497 | 172,600 | ||||||
| ||||||||
Invesco Treasury Portfolio, Institutional Class, 0.10%(c)(d) | 223,631 | 223,631 | ||||||
| ||||||||
Total Money Market Funds (Cost $591,820) |
| 591,908 | ||||||
| ||||||||
TOTAL INVESTMENTS IN SECURITIES-100.00% |
| 35,452,147 | ||||||
| ||||||||
OTHER ASSETS LESS LIABILITIES-(0.00)% | (636 | ) | ||||||
| ||||||||
NET ASSETS-100.00% |
| $ | 35,451,511 | |||||
|
Notes to Schedule of Investments:
(a) | Non-income producing security. |
(b) | Security purchased or received in a transaction exempt from registration under the Securities Act of 1933, as amended (the “1933 Act”). The security may be resold pursuant to an exemption from registration under the 1933 Act, typically to qualified institutional buyers. The value of this security at April 30, 2020 represented 5.69% of the Fund’s Net Assets. |
(c) | Affiliated issuer. The issuer and/or the Fund is a wholly-owned subsidiary of Invesco Ltd., or is affiliated by having an investment adviser that is under common control of Invesco Ltd. The table below shows the Fund’s transactions in, and earnings from, its investments in affiliates for the six months ended April 30, 2020. |
Value October 31, 2019 | Purchases at Cost | Proceeds from Sales | Change in Unrealized Appreciation | Realized Gain | Value April 30, 2020 | Dividend Income | ||||||||||||||||||||||
| ||||||||||||||||||||||||||||
Investments in Affiliated Money Market Funds: | ||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||
Invesco Government & Agency Portfolio, Institutional Class | $258,854 | $ | 3,562,772 | $ | (3,625,949 | ) | $ - | $ - | $195,677 | $2,703 | ||||||||||||||||||
| ||||||||||||||||||||||||||||
Invesco Liquid Assets Portfolio, Institutional Class | 185,116 | 2,673,098 | (2,685,944 | ) | 82 | 248 | 172,600 | 2,296 | ||||||||||||||||||||
| ||||||||||||||||||||||||||||
Invesco Treasury Portfolio, Institutional Class | 295,834 | 4,071,740 | (4,143,943 | ) | - | - | 223,631 | 3,049 | ||||||||||||||||||||
| ||||||||||||||||||||||||||||
Total | $739,804 | $ | 10,307,610 | $ | (10,455,836 | ) | $82 | $248 | $591,908 | $8,048 | ||||||||||||||||||
|
(d) | The rate shown is the 7-day SEC standardized yield as of April 30, 2020. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
6 Invesco Select Opportunities Fund
Portfolio Composition
By sector, based on Net Assets
as of April 30, 2020
Information Technology | 38.52 | % | ||
Industrials | 23.57 | |||
Consumer Discretionary | 13.18 | |||
Materials | 6.04 | |||
Real Estate | 4.84 | |||
Financials | 3.99 | |||
Energy | 2.99 | |||
Communication Services | 2.81 | |||
Health Care | 2.39 | |||
Money Market Funds Plus Other Assets Less Liabilities | 1.67 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
7 Invesco Select Opportunities Fund
Statement of Assets and Liabilities
April 30, 2020
(Unaudited)
Assets: | ||||
Investments in securities, at value | $ | 34,860,239 | ||
| ||||
Investments in affiliated money market funds, at value | 591,908 | |||
| ||||
Foreign currencies, at value (Cost $40,434) | 40,661 | |||
| ||||
Receivable for: | ||||
Fund shares sold | 75,376 | |||
| ||||
Dividends | 23,327 | |||
| ||||
Investment for trustee deferred compensation and retirement plans | 19,745 | |||
| ||||
Other assets | 26,969 | |||
| ||||
Total assets | 35,638,225 | |||
| ||||
Liabilities: | ||||
Payable for: | ||||
Fund shares reacquired | 111,489 | |||
| ||||
Accrued fees to affiliates | 12,633 | |||
| ||||
Accrued other operating expenses | 42,686 | |||
| ||||
Trustee deferred compensation and retirement plans | 19,906 | |||
| ||||
Total liabilities | 186,714 | |||
| ||||
Net assets applicable to shares outstanding | $ | 35,451,511 | ||
| ||||
Net assets consist of: | ||||
Shares of beneficial interest | $ | 46,326,000 | ||
| ||||
Distributable earnings (loss) | (10,874,489 | ) | ||
| ||||
$ | 35,451,511 | |||
|
Net Assets: | ||||
Class A | $ | 7,438,894 | ||
| ||||
Class C | $ | 1,276,867 | ||
| ||||
Class R | $ | 218,530 | ||
| ||||
Class Y | $ | 26,495,843 | ||
| ||||
Class R5 | $ | 11,109 | ||
| ||||
Class R6 | $ | 10,268 | ||
| ||||
Shares outstanding, no par value, with an unlimited number of shares authorized: |
| |||
Class A | 679,506 | |||
| ||||
Class C | 123,026 | |||
| ||||
Class R | 20,251 | |||
| ||||
Class Y | 2,388,339 | |||
| ||||
Class R5 | 1,001 | |||
| ||||
Class R6 | 926 | |||
| ||||
Class A: | ||||
Net asset value per share | $ | 10.95 | ||
| ||||
Maximum offering price per share | $ | 11.59 | ||
| ||||
Class C: | ||||
Net asset value and offering price per share | $ | 10.38 | ||
| ||||
Class R: | ||||
Net asset value and offering price per share | $ | 10.79 | ||
| ||||
Class Y: | ||||
Net asset value and offering price per share | $ | 11.09 | ||
| ||||
Class R5: | ||||
Net asset value and offering price per share | $ | 11.10 | ||
| ||||
Class R6: | ||||
Net asset value and offering price per share | $ | 11.09 | ||
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
8 Invesco Select Opportunities Fund
Statement of Operations
For the six months ended April 30, 2020
(Unaudited)
Investment income: | ||||
Dividends (net of foreign withholding taxes of $5,012) | $ | 149,465 | ||
| ||||
Dividends from affiliated money market funds | 8,048 | |||
| ||||
Total investment income | 157,513 | |||
| ||||
Expenses: | ||||
Advisory fees | 177,676 | |||
| ||||
Administrative services fees | 3,422 | |||
| ||||
Custodian fees | 2,057 | |||
| ||||
Distribution fees: | ||||
Class A | 12,591 | |||
| ||||
Class C | 9,847 | |||
| ||||
Class R | 646 | |||
| ||||
Transfer agent fees - A, C, R and Y | 45,037 | |||
| ||||
Transfer agent fees - R5 | 5 | |||
| ||||
Transfer agent fees - R6 | 5 | |||
| ||||
Trustees’ and officers’ fees and benefits | 6,887 | |||
| ||||
Registration and filing fees | 35,477 | |||
| ||||
Reports to shareholders | 5,043 | |||
| ||||
Professional services fees | 23,711 | |||
| ||||
Other | 3,950 | |||
| ||||
Total expenses | 326,354 | |||
| ||||
Less: Fees waived, expenses reimbursed and/or expense offset arrangement(s) | (132,947 | ) | ||
| ||||
Net expenses | 193,407 | |||
| ||||
Net investment income (loss) | (35,894 | ) | ||
| ||||
Realized and unrealized gain (loss) from: | ||||
Net realized gain from: | ||||
Investment securities | 1,614,351 | |||
| ||||
Foreign currencies | 6,608 | |||
| ||||
1,620,959 | ||||
| ||||
Change in net unrealized appreciation (depreciation) of: | ||||
Investment securities | (9,579,494 | ) | ||
| ||||
Foreign currencies | (266 | ) | ||
| ||||
(9,579,760 | ) | |||
| ||||
Net realized and unrealized gain (loss) | (7,958,801 | ) | ||
| ||||
Net increase (decrease) in net assets resulting from operations | $ | (7,994,695 | ) | |
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
9 Invesco Select Opportunities Fund
Statement of Changes in Net Assets
For the six months ended April 30, 2020 and the year ended October 31, 2019
(Unaudited)
April 30, 2020 | October 31, 2019 | |||||||
| ||||||||
Operations: | ||||||||
Net investment income (loss) | $ | (35,894 | ) | $ | 358,255 | |||
| ||||||||
Net realized gain | 1,620,959 | 2,039,620 | ||||||
| ||||||||
Change in net unrealized appreciation (depreciation) | (9,579,760 | ) | (3,355,104 | ) | ||||
| ||||||||
Net increase (decrease) in net assets resulting from operations | (7,994,695 | ) | (957,229 | ) | ||||
| ||||||||
Distributions to shareholders from distributable earnings: | ||||||||
Class A | (505,352 | ) | (573,902 | ) | ||||
| ||||||||
Class C | (111,210 | ) | (256,083 | ) | ||||
| ||||||||
Class R | (11,121 | ) | (13,600 | ) | ||||
| ||||||||
Class Y | (1,647,087 | ) | (1,368,466 | ) | ||||
| ||||||||
Class R5 | (682 | ) | (744 | ) | ||||
| ||||||||
Class R6 | (631 | ) | (688 | ) | ||||
| ||||||||
Total distributions from distributable earnings | (2,276,083 | ) | (2,213,483 | ) | ||||
| ||||||||
Share transactions-net: | ||||||||
Class A | (1,057,406 | ) | (935,804 | ) | ||||
| ||||||||
Class C | (961,038 | ) | (3,680,814 | ) | ||||
| ||||||||
Class R | (46,938 | ) | 36,971 | |||||
| ||||||||
Class Y | (251,751 | ) | 8,310,885 | |||||
| ||||||||
Net increase (decrease) in net assets resulting from share transactions | (2,317,133 | ) | 3,731,238 | |||||
| ||||||||
Net increase (decrease) in net assets | (12,587,911 | ) | 560,526 | |||||
| ||||||||
Net assets: | ||||||||
Beginning of period | 48,039,422 | 47,478,896 | ||||||
| ||||||||
End of period | $ | 35,451,511 | $ | 48,039,422 | ||||
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
10 Invesco Select Opportunities Fund
(Unaudited)
The following schedule presents financial highlights for a share of the Fund outstanding throughout the periods indicated.
Net asset value, beginning of period | Net investment income (loss)(a) | Net gains (losses) on securities (both realized and unrealized) | Total from investment operations | Dividends from net investment income | Distributions from net realized gains | Total distributions | Net asset value, end of period | Total return (b) | Net assets, end of period (000’s omitted) | Ratio of expenses to average net assets with fee waivers and/or expenses absorbed | Ratio of expenses to average net assets without fee waivers and/or expenses absorbed | Ratio of net to average | Portfolio turnover (c) | |||||||||||||||||||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 04/30/20 | $13.85 | $(0.02 | ) | $(2.23 | ) | $(2.25 | ) | $(0.05 | ) | $(0.60 | ) | $(0.65 | ) | $10.95 | (17.22 | )% | $ 7,439 | 1.02 | %(d) | 1.61 | %(d) | (0.31 | )%(d) | 27 | % | |||||||||||||||||||||||||||||||
Year ended 10/31/19 | 15.09 | 0.09 | (0.64 | ) | (0.55 | ) | (0.04 | ) | (0.65 | ) | (0.69 | ) | 13.85 | (3.42 | ) | 11,009 | 1.02 | 1.64 | 0.61 | 40 | ||||||||||||||||||||||||||||||||||||
Year ended 10/31/18 | 15.82 | 0.06 | (0.79 | ) | (0.73 | ) | - | - | - | 15.09 | (4.61 | ) | 12,796 | 1.02 | 1.73 | 0.37 | 23 | |||||||||||||||||||||||||||||||||||||||
Year ended 10/31/17 | 13.03 | 0.05 | 2.74 | 2.79 | - | - | - | 15.82 | 21.41 | 19,351 | 1.08 | 1.73 | 0.33 | 30 | ||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/16 | 12.96 | (0.04 | ) | 0.42 | 0.38 | - | (0.31 | ) | (0.31 | ) | 13.03 | 3.12 | 19,288 | 1.49 | 1.78 | (0.32 | ) | 26 | ||||||||||||||||||||||||||||||||||||||
Year ended 10/31/15 | 14.55 | (0.06 | ) | (1.25 | ) | (1.31 | ) | - | (0.28 | ) | (0.28 | ) | 12.96 | (9.07 | ) | 19,719 | 1.48 | 1.71 | (0.40 | ) | 18 | |||||||||||||||||||||||||||||||||||
Class C | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 04/30/20 | 13.16 | (0.06 | ) | (2.12 | ) | (2.18 | ) | - | (0.60 | ) | (0.60 | ) | 10.38 | (17.52 | ) | 1,277 | 1.77 | (d) | 2.36 | (d) | (1.06 | )(d) | 27 | |||||||||||||||||||||||||||||||||
Year ended 10/31/19 | 14.44 | (0.02 | ) | (0.61 | ) | (0.63 | ) | - | (0.65 | ) | (0.65 | ) | 13.16 | (4.17 | ) | 2,590 | 1.77 | 2.39 | (0.14 | ) | 40 | |||||||||||||||||||||||||||||||||||
Year ended 10/31/18 | 15.24 | (0.06 | ) | (0.74 | ) | (0.80 | ) | - | - | - | 14.44 | (5.25 | ) | 6,722 | 1.77 | 2.48 | (0.38 | ) | 23 | |||||||||||||||||||||||||||||||||||||
Year ended 10/31/17 | 12.65 | (0.06 | ) | 2.65 | 2.59 | - | - | - | 15.24 | 20.47 | 18,575 | 1.83 | 2.48 | (0.42 | ) | 30 | ||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/16 | 12.68 | (0.13 | ) | 0.41 | 0.28 | - | (0.31 | ) | (0.31 | ) | 12.65 | 2.38 | 18,859 | 2.24 | 2.53 | (1.07 | ) | 26 | ||||||||||||||||||||||||||||||||||||||
Year ended 10/31/15 | 14.35 | (0.16 | ) | (1.23 | ) | (1.39 | ) | - | (0.28 | ) | (0.28 | ) | 12.68 | (9.77 | ) | 14,226 | 2.23 | 2.46 | (1.15 | ) | 18 | |||||||||||||||||||||||||||||||||||
Class R | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 04/30/20 | 13.65 | (0.03 | ) | (2.22 | ) | (2.25 | ) | (0.01 | ) | (0.60 | ) | (0.61 | ) | 10.79 | (17.39 | ) | 219 | 1.27 | (d) | 1.86 | (d) | (0.56 | )(d) | 27 | ||||||||||||||||||||||||||||||||
Year ended 10/31/19 | 14.88 | 0.05 | (0.62 | ) | (0.57 | ) | (0.01 | ) | (0.65 | ) | (0.66 | ) | 13.65 | (3.65 | ) | 321 | 1.27 | 1.89 | 0.36 | 40 | ||||||||||||||||||||||||||||||||||||
Year ended 10/31/18 | 15.63 | 0.02 | �� | (0.77 | ) | (0.75 | ) | - | - | - | 14.88 | (4.80 | ) | 309 | 1.27 | 1.98 | 0.12 | 23 | ||||||||||||||||||||||||||||||||||||||
Year ended 10/31/17 | 12.91 | 0.01 | 2.71 | 2.72 | - | - | - | 15.63 | 21.07 | 385 | 1.33 | 1.98 | 0.08 | 30 | ||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/16 | 12.87 | (0.07 | ) | 0.42 | 0.35 | - | (0.31 | ) | (0.31 | ) | 12.91 | 2.90 | 283 | 1.74 | 2.03 | (0.57 | ) | 26 | ||||||||||||||||||||||||||||||||||||||
Year ended 10/31/15 | 14.49 | (0.09 | ) | (1.25 | ) | (1.34 | ) | - | (0.28 | ) | (0.28 | ) | 12.87 | (9.32 | ) | 279 | 1.73 | 1.96 | (0.65 | ) | 18 | |||||||||||||||||||||||||||||||||||
Class Y | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 04/30/20 | 14.04 | (0.00 | ) | (2.27 | ) | (2.27 | ) | (0.08 | ) | (0.60 | ) | (0.68 | ) | 11.09 | (17.16 | ) | 26,496 | 0.77 | (d) | 1.36 | (d) | (0.06 | )(d) | 27 | ||||||||||||||||||||||||||||||||
Year ended 10/31/19 | 15.32 | 0.12 | (0.65 | ) | (0.53 | ) | (0.10 | ) | (0.65 | ) | (0.75 | ) | 14.04 | (3.22 | ) | 34,092 | 0.77 | 1.39 | 0.86 | 40 | ||||||||||||||||||||||||||||||||||||
Year ended 10/31/18 | 16.01 | 0.10 | (0.79 | ) | (0.69 | ) | - | - | - | 15.32 | (4.31 | ) | 27,622 | 0.77 | 1.48 | 0.62 | 23 | |||||||||||||||||||||||||||||||||||||||
Year ended 10/31/17 | 13.16 | 0.09 | 2.76 | 2.85 | - | - | - | 16.01 | 21.66 | 14,430 | 0.83 | 1.48 | 0.58 | 30 | ||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/16 | 13.05 | (0.01 | ) | 0.43 | 0.42 | - | (0.31 | ) | (0.31 | ) | 13.16 | 3.41 | 7,350 | 1.24 | 1.53 | (0.07 | ) | 26 | ||||||||||||||||||||||||||||||||||||||
Year ended 10/31/15 | 14.61 | (0.02 | ) | (1.26 | ) | (1.28 | ) | - | (0.28 | ) | (0.28 | ) | 13.05 | (8.82 | ) | 25,663 | 1.23 | 1.46 | (0.15 | ) | 18 | |||||||||||||||||||||||||||||||||||
Class R5 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 04/30/20 | 14.05 | (0.00 | ) | (2.27 | ) | (2.27 | ) | (0.08 | ) | (0.60 | ) | (0.68 | ) | 11.10 | (17.14 | ) | 11 | 0.77 | (d) | 1.24 | (d) | (0.06 | )(d) | 27 | ||||||||||||||||||||||||||||||||
Year ended 10/31/19 | 15.32 | 0.12 | (0.64 | ) | (0.52 | ) | (0.10 | ) | (0.65 | ) | (0.75 | ) | 14.05 | (3.15 | ) | 14 | 0.77 | 1.27 | 0.86 | 40 | ||||||||||||||||||||||||||||||||||||
Year ended 10/31/18 | 16.02 | 0.10 | (0.80 | ) | (0.70 | ) | - | - | - | 15.32 | (4.37 | ) | 15 | 0.77 | 1.37 | 0.62 | 23 | |||||||||||||||||||||||||||||||||||||||
Year ended 10/31/17 | 13.17 | 0.09 | 2.76 | 2.85 | - | - | - | 16.02 | 21.64 | 16 | 0.83 | 1.38 | 0.58 | 30 | ||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/16 | 13.05 | (0.01 | ) | 0.44 | 0.43 | - | (0.31 | ) | (0.31 | ) | 13.17 | 3.49 | 13 | 1.24 | 1.43 | (0.07 | ) | 26 | ||||||||||||||||||||||||||||||||||||||
Year ended 10/31/15 | 14.62 | (0.02 | ) | (1.27 | ) | (1.29 | ) | - | (0.28 | ) | (0.28 | ) | 13.05 | (8.89 | ) | 13 | 1.23 | 1.32 | (0.15 | ) | 18 | |||||||||||||||||||||||||||||||||||
Class R6 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 04/30/20 | 14.04 | (0.00 | ) | (2.27 | ) | (2.27 | ) | (0.08 | ) | (0.60 | ) | (0.68 | ) | 11.09 | (17.15 | ) | 10 | 0.77 | (d) | 1.24 | (d) | (0.06 | )(d) | 27 | ||||||||||||||||||||||||||||||||
Year ended 10/31/19 | 15.31 | 0.12 | (0.64 | ) | (0.52 | ) | (0.10 | ) | (0.65 | ) | (0.75 | ) | 14.04 | (3.16 | ) | 13 | 0.77 | 1.27 | 0.86 | 40 | ||||||||||||||||||||||||||||||||||||
Year ended 10/31/18 | 16.01 | 0.10 | (0.80 | ) | (0.70 | ) | - | - | - | 15.31 | (4.37 | ) | 14 | 0.77 | 1.37 | 0.62 | 23 | |||||||||||||||||||||||||||||||||||||||
Year ended 10/31/17 | 13.16 | 0.09 | 2.76 | 2.85 | - | - | - | 16.01 | 21.66 | 15 | 0.83 | 1.38 | 0.58 | �� | 30 | |||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/16 | 13.05 | (0.01 | ) | 0.43 | 0.42 | - | (0.31 | ) | (0.31 | ) | 13.16 | 3.41 | 12 | 1.24 | 1.43 | (0.07 | ) | 26 | ||||||||||||||||||||||||||||||||||||||
Year ended 10/31/15 | 14.61 | (0.02 | ) | (1.26 | ) | (1.28 | ) | - | (0.28 | ) | (0.28 | ) | 13.05 | (8.82 | ) | 12 | 1.23 | 1.32 | (0.15 | ) | 18 |
(a) | Calculated using average shares outstanding. |
(b) | Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Does not include sales charges and is not annualized for periods less than one year, if applicable. |
(c) | Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable. |
(d) | Ratios are annualized and based on average daily net assets (000’s omitted) of $10,124, $1,980, $260, $32,273, $13 and $12 for Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares, respectively. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
11 Invesco Select Opportunities Fund
April 30, 2020
(Unaudited)
NOTE 1-Significant Accounting Policies
Invesco Select Opportunities Fund (the “Fund”) is a series portfolio of AIM International Mutual Funds (Invesco International Mutual 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 the Fund or each class.
The Fund’s investment objective is long-term growth of capital.
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. 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.
A security listed or traded on an exchange (except convertible securities) is valued at its last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded, or lacking any sales or official closing price on a particular day, the security may be valued at the closing bid price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued by an independent pricing service they may be considered fair valued. Futures contracts are valued at the final settlement price set by an exchange on which they are principally traded. Listed options are valued at the mean between the last bid and asked prices from the exchange on which they are principally traded. Options not listed on an exchange are valued by an independent source at the mean between the last bid and asked prices. For purposes of determining net asset value (“NAV”) per share, futures and option contracts generally are valued 15 minutes after the close of the customary trading session of the New York Stock Exchange (“NYSE”).
Investments in open-end and closed-end registered investment companies that do not trade on an exchange are valued at the end-of-day net asset value per share. Investments in open-end and closed-end registered investment companies that trade on an exchange are valued at the last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded.
Debt obligations (including convertible securities) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. Pricing services generally value debt obligations assuming orderly transactions of institutional round lot size, but a fund may hold or transact in the same securities in smaller, odd lot sizes. Odd lots often trade at lower prices than institutional round lots. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.
Foreign securities’ (including foreign exchange contracts) prices are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the NYSE. If market quotations are available and reliable for foreign exchange-traded equity securities, the securities will be valued at the market quotations. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become unreliable. If between the time trading ends on a particular security and the close of the customary trading session on the NYSE, events occur that the investment adviser determines are significant and make the closing price unreliable, the Fund may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith using procedures approved by the Board of Trustees. Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities’ prices meeting the approved degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economic upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.
Securities for which market prices are not provided by any of the above methods may be valued based upon quotes furnished by independent sources. The last bid price may be used to value equity securities. The mean between the last bid and asked prices is used to value debt obligations, including corporate loans.
Securities for which market quotations are not readily available or became unreliable are valued at fair value as determined in good faith by or under the supervision of the Trust’s officers following procedures approved by the Board of Trustees. Issuer specific events, market trends, bid/asked quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security’s fair value.
The Fund may invest in securities that are subject to interest rate risk, meaning the risk that the prices will generally fall as interest rates rise and, conversely, the prices will generally rise as interest rates fall. Specific securities differ in their sensitivity to changes in interest rates depending on their individual characteristics. Changes in interest rates may result in increased market volatility, which may affect the value and/or liquidity of certain Fund investments.
Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the issuer’s assets, general market conditions which are not specifically related to the particular issuer, such as real or perceived adverse economic conditions, changes in the general outlook for revenues or corporate earnings, changes in interest or currency rates, regional or global instability, natural or environmental disasters, widespread disease or other public health issues, war, acts of terrorism or adverse investor sentiment generally and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
B. | Securities Transactions and Investment Income - Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income (net of withholding tax, if any) is recorded on an accrual basis from settlement date. Dividend income (net of withholding tax, if any) is recorded on the ex-dividend date. |
The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Statement of Operations as realized gain (loss) for investments no longer held and as unrealized gain (loss) for investments still held.
Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of net realized and unrealized gain (loss) from investment
12 Invesco Select Opportunities Fund
securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the net realized and unrealized gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and the Statement of Changes in Net Assets, or the net investment income per share and the ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.
The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class.
C. | Country Determination - For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues and the country that has the primary market for the issuer’s securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted. |
D. | Distributions - Distributions from net investment income and net realized capital gain, if any, are generally declared and paid annually and recorded on the ex-dividend date. The Fund may elect to treat a portion of the proceeds from redemptions as distributions for federal income tax purposes. |
E. | Federal Income Taxes - The Fund intends to comply with the requirements of Subchapter M of the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”), necessary to qualify as a regulated investment company and to distribute substantially all of the Fund’s taxable earnings to shareholders. As such, the Fund will not be subject to federal income taxes on otherwise taxable income (including net realized capital gain) that is distributed to shareholders. Therefore, no provision for federal income taxes is recorded in the financial statements. |
The Fund recognizes the tax benefits of uncertain tax positions only when the position is more likely than not to be sustained. Management has analyzed the Fund’s uncertain tax positions and concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions. Management is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the next 12 months.
The Fund files tax returns in the U.S. Federal jurisdiction and certain other jurisdictions. Generally, the Fund is subject to examinations by such taxing authorities for up to three years after the filing of the return for the tax period.
F. | Expenses - Fees provided for under the Rule 12b-1 plan of a particular class of the Fund 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 preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print. |
H. | Indemnifications - Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of the performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements, that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote. |
I. | Foreign Currency Translations - Foreign currency is valued at the close of the NYSE based on quotations posted by banks and major currency dealers. Portfolio securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at the date of valuation. Purchases and sales of portfolio securities (net of foreign taxes withheld on disposition) and income items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. The Fund does not separately account for the portion of the results of operations resulting from changes in foreign exchange rates on investments and the fluctuations arising from changes in market prices of securities held. The combined results of changes in foreign exchange rates and the fluctuation of market prices on investments (net of estimated foreign tax withholding) are included with the net realized and unrealized gain or loss from investments in the Statement of Operations. Reported net realized foreign currency gains or losses arise from (1) sales of foreign currencies, (2) currency gains or losses realized between the trade and settlement dates on securities transactions, and (3) the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign currency gains and losses arise from changes in the fair values of assets and liabilities, other than investments in securities at fiscal period end, resulting from changes in exchange rates. |
The Fund may invest in foreign securities, which may be subject to foreign taxes on income, gains on investments or currency repatriation, a portion of which may be recoverable. Foreign taxes, if any, are recorded based on the tax regulations and rates that exist in the foreign markets in which the Fund invests and are shown in the Statement of Operations.
J. | Forward Foreign Currency Contracts - The Fund may engage in foreign currency transactions either on a spot (i.e. for prompt delivery and settlement) basis, or through forward foreign currency contracts, to manage or minimize currency or exchange rate risk. |
The Fund may also enter into forward foreign currency contracts for the purchase or sale of a security denominated in a foreign currency in order to “lock in” the U.S. dollar price of that security, or the Fund may also enter into forward foreign currency contracts that do not provide for physical settlement of the two currencies, but instead are settled by a single cash payment calculated as the difference between the agreed upon exchange rate and the spot rate at settlement based upon an agreed upon notional amount (non-deliverable forwards). The Fund will set aside liquid assets in an amount equal to the daily mark-to-market obligation for forward foreign currency contracts.
A forward foreign currency contract is an obligation between two parties (“Counterparties”) to purchase or sell a specific currency for an agreed-upon price at a future date. The use of forward foreign currency contracts does not eliminate fluctuations in the price of the underlying securities the Fund owns or intends to acquire but establishes a rate of exchange in advance. Fluctuations in the value of these contracts are measured by the difference in the contract date and reporting date exchange rates and are recorded as unrealized appreciation (depreciation) until the contracts are closed. When the contracts are closed, realized gains (losses) are recorded. Realized and unrealized gains (losses) on the contracts are included in the Statement of Operations. The primary risks associated with forward foreign currency contracts include failure of the Counterparty to meet the terms of the contract and the value of the foreign currency changing unfavorably. These risks may be in excess of the amounts reflected in the Statement of Assets and Liabilities.
K. | Other Risks - Emerging markets (also referred to as developing markets) are generally subject to greater market volatility, political, social and economic instability, uncertainty regarding the existence of trading markets and more governmental limitations on foreign investment than more developed markets. In addition, companies operating in emerging markets may be subject to lower trading volume and greater price fluctuations than companies in more developed markets. Securities law in many emerging market countries is relatively new and unsettled. Therefore, laws regarding foreign investment in emerging market securities, securities regulation, title to securities, and shareholder rights may change quickly and unpredictably. In addition, the enforcement of systems of |
13 Invesco Select Opportunities Fund
taxation at federal, regional and local levels in emerging market countries may be inconsistent, and subject to sudden change. Other risks of investing in emerging markets securities may include additional transaction costs, delays in settlement procedures, and lack of timely information. |
NOTE 2-Advisory Fees and Other Fees Paid to Affiliates
The Trust has entered into a master investment advisory agreement with Invesco Advisers, Inc. (the “Adviser” or “Invesco”). Under the terms of the investment advisory agreement, the Fund accrues daily and pays monthly an advisory fee to the Adviser based on the annual rate of the Fund’s average daily net assets as follows:
Average Daily Net Assets | Rate | |||
| ||||
First $250 million | 0.800% | |||
| ||||
Next $250 million | 0.780% | |||
| ||||
Next $500 million | 0.760% | |||
| ||||
Next $1.5 billion | 0.740% | |||
| ||||
Next $2.5 billion | 0.720% | |||
| ||||
Next $2.5 billion | 0.700% | |||
| ||||
Next $2.5 billion | 0.680% | |||
| ||||
Over $10 billion | 0.660% | |||
|
For the six months ended April 30, 2020, the effective advisory fee rate incurred by the Fund was 0.80%.
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 a separate sub-advisory agreement with Invesco Capital Management LLC (collectively, the “Affiliated Sub-Advisers”) the Adviser, not the Fund, will pay 40% of the fees paid to the Adviser to any such Affiliated Sub-Adviser(s) that provide(s) discretionary investment management services to the Fund based on the percentage of assets allocated to such Affiliated Sub-Adviser(s).
The Adviser has contractually agreed, through February 28, 2021, to waive advisory fees and/or reimburse expenses of all shares to the extent necessary to limit total annual fund operating expenses after fee waiver and/or expense reimbursement (excluding certain items discussed below) of Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares to 1.02%, 1.77%, 1.27%, 0.77%, 0.77% and 0.77%, respectively, of average daily net assets (the “expense limits”). In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause the total annual fund operating expenses after fee waiver and/or expense reimbursement to exceed the numbers reflected above: (1) interest; (2) taxes; (3) dividend expense on short sales; (4) extraordinary or non-routine items, 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 February 28, 2021. During its term, the fee waiver agreement cannot be terminated or amended to increase the expense limits or reduce the advisory fee waiver without approval of the Board of Trustees. To the extent that the annualized expense ratio does not exceed the expense limits, the Adviser will retain its ability to be reimbursed for such fee waivers or reimbursements prior to the end of each fiscal year. The Adviser did not waive fees and/or reimburse expenses during the period under these expense limits.
Further, the Adviser has contractually agreed, through at least June 30, 2022, to waive the advisory fee payable by the Fund in an amount equal to 100% of the net advisory fees the Adviser receives from the affiliated money market funds on investments by the Fund of uninvested cash in such affiliated money market funds.
For the six months ended April 30, 2020, the Adviser waived advisory fees of $87,578 and reimbursed class level expenses of $10,217, $1,997, $262, $32,562, $5 and $5 of Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares, respectively.
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 April 30, 2020, expenses incurred under the agreement are shown in the Statement of Operations as Administrative services fees. Invesco has entered into a sub-administration agreement whereby State Street Bank and Trust Company (“SSB”) serves as fund accountant and provides certain administrative services to the Fund. Pursuant to a custody agreement with the Trust on behalf of the Fund, SSB also serves as the Fund’s custodian.
The Trust has entered into a transfer agency and service agreement with Invesco Investment Services, Inc. (“IIS”) pursuant to which the Fund has agreed to pay IIS a fee for providing transfer agency and shareholder services to the Fund and reimburse IIS for certain expenses incurred by IIS in the course of providing such services. IIS may make payments to intermediaries that provide omnibus account services, sub-accounting services and/or networking services. All fees payable by IIS to intermediaries that provide omnibus account services or sub-accounting services are charged back to the Fund, subject to certain limitations approved by the Trust’s Board of Trustees. For the six months ended April 30, 2020, expenses incurred under the agreement are shown in the Statement of Operations as Transfer 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 “Plans”). The Fund, pursuant to the Plans, pays IDI compensation at the annual rate of 0.25% of the Fund’s average daily net assets of Class A shares, 1.00% of the average daily net assets of Class C shares 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 Plans 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. For the six-month period ended April 30, 2020, expenses incurred under the Plans are shown in the Statement of Operations as Distribution fees.
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 April 30, 2020, IDI advised the Fund that IDI retained $799 in front-end sales commissions from the sale of Class A shares and $0 and $107 from Class A and Class C shares, respectively, for CDSC imposed upon redemptions by shareholders.
For the six months ended April 30, 2020, the Fund incurred $102 in brokerage commissions with Invesco Capital Markets, Inc., an affiliate of the Adviser and IDI, for portfolio transactions executed on behalf of the Fund.
Certain officers and trustees of the Trust are officers and directors of the Adviser, IIS and/or IDI.
NOTE 3-Additional Valuation Information
GAAP defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, under current market conditions. GAAP establishes a hierarchy that prioritizes the inputs to valuation methods, giving the highest priority to readily available unadjusted quoted prices in an active market for identical assets (Level 1) and the lowest priority to significant unobservable inputs (Level 3), generally when
14 Invesco Select Opportunities Fund
market prices are not readily available or are unreliable. Based on the valuation inputs, the securities or other investments are tiered into one of three levels. Changes in valuation methods may result in transfers in or out of an investment’s assigned level:
Level 1 | - | Prices are determined using quoted prices in an active market for identical assets. | ||
Level 2 | - | Prices are determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk, yield curves, loss severities, default rates, discount rates, volatilities and others. | ||
Level 3 | - | Prices are determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Fund’s own assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information. |
The following is a summary of the tiered valuation input levels, as of April 30, 2020. The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Investments in Securities | ||||||||||||||||
Australia | $ | - | $ | 1,609,164 | $- | $ | 1,609,164 | |||||||||
Canada | 1,716,715 | - | - | 1,716,715 | ||||||||||||
France | - | 995,168 | - | 995,168 | ||||||||||||
Germany | - | 1,495,676 | - | 1,495,676 | ||||||||||||
Monaco | 1,061,205 | - | - | 1,061,205 | ||||||||||||
New Zealand | - | 504,766 | - | 504,766 | ||||||||||||
Poland | - | 1,558,762 | - | 1,558,762 | ||||||||||||
Switzerland | - | 1,126,424 | - | 1,126,424 | ||||||||||||
United Kingdom | - | 8,187,307 | - | 8,187,307 | ||||||||||||
United States | 16,605,052 | - | - | 16,605,052 | ||||||||||||
Money Market Funds | 591,908 | - | - | 591,908 | ||||||||||||
Total Investments | $ | 19,974,880 | $ | 15,477,267 | $- | $ | 35,452,147 |
NOTE 4-Expense Offset Arrangement(s)
The expense offset arrangement is comprised of transfer agency credits which result from balances in demand deposit accounts used by the transfer agent for clearing shareholder transactions. For the six months ended April 30, 2020, the Fund received credits from this arrangement, which resulted in the reduction of the Fund’s total expenses of $321.
NOTE 5-Trustees’ and Officers’ Fees and Benefits
Trustees’ and Officers’ Fees and Benefits include amounts accrued by the Fund to pay remuneration to certain Trustees and Officers of the Fund. Trustees have the option to defer compensation payable by the Fund, and Trustees’ and Officers’ Fees and Benefits also include amounts accrued by the Fund to fund such deferred compensation amounts. Those Trustees who defer compensation have the option to select various Invesco Funds in which their deferral accounts shall be deemed to be invested. Finally, certain current Trustees were eligible to participate in a retirement plan that provided for benefits to be paid upon retirement to Trustees over a period of time based on the number of years of service. The Fund may have certain former Trustees who also participate in a retirement plan and receive benefits under such plan. Trustees’ and Officers’ Fees and Benefits include amounts accrued by the Fund to fund such retirement benefits. Obligations under the deferred compensation and retirement plans represent unsecured claims against the general assets of the Fund.
NOTE 6-Cash Balances
The Fund is permitted to temporarily carry a negative or overdrawn balance in its account with SSB, the custodian bank. Such balances, if any at period-end, are shown in the Statement of Assets and Liabilities under the payable caption Amount due custodian. To compensate the custodian bank for such overdrafts, the overdrawn Fund may either (1) leave funds as a compensating balance in the account so the custodian bank can be compensated by earning the additional interest; or (2) compensate by paying the custodian bank at a rate agreed upon by the custodian bank and Invesco, not to exceed the contractually agreed upon rate. The Fund may not purchase additional securities when any borrowings from banks or broker-dealers exceed 5% of the Fund’s total assets, or when any borrowings from an Invesco Fund are outstanding.
NOTE 7-Tax Information
The amount and character of income and gains to be distributed are determined in accordance with income tax regulations, which may differ from GAAP. Reclassifications are made to the Fund’s capital accounts to reflect income and gains available for distribution (or available capital loss carryforward) under income tax regulations. The tax character of distributions paid during the year and the tax components of net assets will be reported at the Fund’s fiscal year-end.
Capital loss carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Fund to utilize. The ability to utilize capital loss carryforwards in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.
The Fund did not have a capital loss carryforward as of October 31, 2019.
15 Invesco Select Opportunities Fund
NOTE 8-Investment Transactions
The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Fund during the six months ended April 30, 2020 was $11,791,853 and $15,892,818, respectively. Cost of investments, including any derivatives, on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end.
Unrealized Appreciation (Depreciation) of Investments on a Tax Basis | ||||
| ||||
Aggregate unrealized appreciation of investments | $ | 3,340,400 | ||
| ||||
Aggregate unrealized (depreciation) of investments | (15,737,970 | ) | ||
| ||||
Net unrealized appreciation (depreciation) of investments | $ | (12,397,570 | ) | |
|
Cost of investments for tax purposes is $47,849,717.
NOTE 9-Share Information
Summary of Share Activity | ||||||||||||||||
| ||||||||||||||||
Six months ended | Year ended | |||||||||||||||
April 30, 2020(a) | October 31, 2019 | |||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||
| ||||||||||||||||
Sold: | ||||||||||||||||
Class A | 27,815 | $ | 357,516 | 197,165 | $ | 2,584,151 | ||||||||||
| ||||||||||||||||
Class C | 4,741 | 54,605 | 68,815 | 850,246 | ||||||||||||
| ||||||||||||||||
Class R | 2,080 | 27,618 | 1,863 | 25,916 | ||||||||||||
| ||||||||||||||||
Class Y | 157,860 | 1,881,568 | 977,303 | 13,257,719 | ||||||||||||
| ||||||||||||||||
Issued as reinvestment of dividends: | ||||||||||||||||
Class A | 35,973 | 495,705 | 39,440 | 517,055 | ||||||||||||
| ||||||||||||||||
Class C | 8,275 | 108,321 | 19,961 | 250,316 | ||||||||||||
| ||||||||||||||||
Class R | 773 | 10,508 | 1,001 | 12,949 | ||||||||||||
| ||||||||||||||||
Class Y | 117,869 | 1,644,277 | 95,734 | 1,269,431 | ||||||||||||
| ||||||||||||||||
Automatic conversion of Class C shares to Class A shares: | ||||||||||||||||
Class A | 145 | 2,082 | 31,858 | 446,486 | ||||||||||||
| ||||||||||||||||
Class C | (152 | ) | (2,082 | ) | (33,371 | ) | (446,486 | ) | ||||||||
| ||||||||||||||||
Reacquired: | ||||||||||||||||
Class A | (179,136 | ) | (1,912,709 | ) | (321,519 | ) | (4,483,496 | ) | ||||||||
| ||||||||||||||||
Class C | (86,664 | ) | (1,121,882 | ) | (324,194 | ) | (4,334,890 | ) | ||||||||
| ||||||||||||||||
Class R | (6,127 | ) | (85,064 | ) | (139 | ) | (1,894 | ) | ||||||||
| ||||||||||||||||
Class Y | (314,922 | ) | (3,777,596 | ) | (448,708 | ) | (6,216,265 | ) | ||||||||
| ||||||||||||||||
Net increase (decrease) in share activity | (231,470 | ) | $ | (2,317,133 | ) | 305,209 | $ | 3,731,238 | ||||||||
|
(a) | There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 79% 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. |
NOTE 10-Coronavirus (COVID-19) Pandemic
During the first quarter of 2020, the World Health Organization declared COVID-19 to be a public health emergency. COVID-19 has led to increased short-term market volatility and may have adverse long-term effects on U.S. and world economies and markets in general. COVID-19 may adversely impact the Fund’s ability to achieve its investment objective. Because of the uncertainties on valuation, the global economy and business operations, values reflected in these financial statements may materially differ from the value received upon actual sales of those investments.
The extent of the impact on the performance of the Fund and its investments will depend on future developments, including the duration and spread of the COVID-19 outbreak, related restrictions and advisories, and the effects on the financial markets and economy overall, all of which are highly uncertain and cannot be predicted.
16 Invesco Select Opportunities Fund
Calculating your ongoing Fund expenses
Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, which may include sales charges (loads) on purchase payments or contingent deferred sales charges on redemptions, if any; and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees, and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period November 1, 2019 through April 30, 2020.
Actual expenses
The table below provides information about actual account values and actual expenses. You may use the information in this table, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the table under the heading entitled “Actual Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Hypothetical example for comparison purposes
The table below also provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return.
The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads) on purchase payments or contingent deferred sales charges on redemptions, if any. Therefore, the hypothetical information 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 transaction costs were included, your costs would have been higher.
ACTUAL | HYPOTHETICAL (5% annual return before expenses) | |||||||||||||||||||||||||||||
Beginning Account Value (11/01/19) | Ending Account Value (04/30/20)1 | Expenses Paid During Period2 | Ending Account Value (04/30/20) | Expenses Paid During Period2 | Annualized Ratio | |||||||||||||||||||||||||
Class A | $ | 1,000.00 | $ | 827.80 | $ | 4.64 | $ | 1,019.79 | $ | 5.12 | 1.02 | % | ||||||||||||||||||
Class C | 1,000.00 | 824.80 | 8.03 | 1,016.06 | 8.87 | 1.77 | ||||||||||||||||||||||||
Class R | 1,000.00 | 826.10 | 5.77 | 1,018.55 | 6.37 | 1.27 | ||||||||||||||||||||||||
Class Y | 1,000.00 | 828.40 | 3.50 | 1,021.03 | 3.87 | 0.77 | ||||||||||||||||||||||||
Class R5 | 1,000.00 | 828.60 | 3.50 | 1,021.03 | 3.87 | 0.77 | ||||||||||||||||||||||||
Class R6 | 1,000.00 | 828.50 | 3.50 | 1,021.03 | 3.87 | 0.77 |
1 | The actual ending account value is based on the actual total return of the Fund for the period November 1, 2019 through April 30, 2020, after actual expenses and will differ from the hypothetical ending account value which is based on the Fund’s expense ratio and a hypothetical annual return of 5% before expenses. |
2 | Expenses are equal to the Fund’s annualized expense ratio as indicated above multiplied by the average account value over the period, multiplied by 182/366 to reflect the most recent fiscal half year. |
17 Invesco Select Opportunities Fund
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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
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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 list appears 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 Form N-PORT filings on the SEC website, sec.gov. The SEC file numbers for the Fund are shown below.
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. This 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. |
SEC file numbers: 811-06463 and 033-44611 | Invesco Distributors, Inc. | SOPP-SAR-1 |
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Semiannual Report 4/30/2020
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lnvesco | ||
Advantage International 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 February 28, 2020, the Fund’s name was lnvesco Oppenheimer Global Multi-Asset Growth Fund |
Class A Shares
AVERAGE ANNUAL TOTAL RETURNS AT 4/30/20
Class A Shares of the Fund | ||||||||||||||||||||
Without Sales Charge | With Sales Charge | MSCI All Country World ex-U.S. Index | MSCI All Country World Index | |||||||||||||||||
6-Month | -9.40 | % | -14.35 | % | -13.22 | % | -7.68 | % | ||||||||||||
1-Year | -6.84 | -11.98 | -11.51 | -4.96 | ||||||||||||||||
Since Inception (8/27/15) | 2.77 | 1.54 | 2.63 | 6.60 |
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 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.
2 INVESCO ADVANTAGE INTERNATIONAL FUND
TOP TEN COMMON STOCK HOLDINGS
Nestle SA | 2.6 | % | ||
Novartis AG | 2.5 | |||
ASML Holding NV | 2.0 | |||
Samsung Electronics Co. Ltd. | 1.8 | |||
Novo Nordisk AS, Cl. B | 1.8 | |||
British American Tobacco plc | 1.7 | |||
Toyota Motor Corp. | 1.6 | |||
Sanofi | 1.5 | |||
SK Hynix, Inc. | 1.5 | |||
Iberdrola SA | 1.3 |
Holdings and allocations are subject to change and are not buy/sell recommendations. Percentages are as of April 30, 2020, and are based on net assets.
TOP TEN GEOGRAPHICAL HOLDINGS
United States | 25.6 | % | ||
Japan | 13.7 | |||
China | 9.8 | |||
United Kingdom | 6.7 | |||
France | 5.9 | |||
Switzerland | 5.9 | |||
Germany | 4.3 | |||
Australia | 3.4 | |||
South Korea | 3.2 | |||
Netherlands | 3.1 |
Holdings and allocations are subject to change and are not buy/sell recommendations. Percentages are as of April 30, 2020 and are based on total market value of investments.
PORTFOLIO ALLOCATION
Common Stocks | 74.5 | % | ||
Investment Companies | 24.4 | |||
Preferred Stocks | 0.9 | |||
Event-Linked Bonds | 0.2 |
Holdings and allocations are subject to change and are not buy/sell recommendations. Percentages are as of April 30, 2020 and are based on total market value of investments.
REGIONAL ALLOCATION
Asia/Pacific | 34.8 | % | ||
Europe | 34.8 | |||
U.S./Canada | 25.6 | |||
Latin & South America | 1.5 | |||
Emerging Europe | 1.3 | |||
Supranational | 1.0 | |||
Middle East/Africa | 1.0 |
Holdings and allocations are subject to change and are not buy/sell recommendations. Percentages are as of April 30, 2020 and are based on total market value of investments.
For more current Fund holdings, please visit invesco.com.
3 INVESCO ADVANTAGE INTERNATIONAL FUND
Share Class Performance
AVERAGE ANNUAL TOTAL RETURNS WITHOUT SALES CHARGE AS OF 4/30/20
Inception Date | 6-Month | 1-Year | Since Inception | |||||||||||||
Class A (QMGAX) | 8/27/15 | -9.40 | % | -6.84 | % | 2.77 | % | |||||||||
Class C (QMGCX) | 8/27/15 | -9.71 | -7.54 | 2.01 | ||||||||||||
Class R (QMGRX) | 8/27/15 | -9.47 | -7.07 | 2.52 | ||||||||||||
Class Y (QMGYX) | 8/27/15 | -9.36 | -6.72 | 2.92 | ||||||||||||
Class R5 (GMAGX)1 | 5/24/19 | -9.30 | -6.65 | 2.82 | ||||||||||||
Class R6 (QMGIX)2 | 8/27/15 | -9.27 | -6.62 | 3.02 |
AVERAGE ANNUAL TOTAL RETURNS WITH SALES CHARGE AS OF 4/30/20
Inception Date | 6-Month | 1-Year | Since Inception | |||||||||||||
Class A (QMGAX) | 8/27/15 | -14.35 | % | -11.98 | % | 1.54 | % | |||||||||
Class C (QMGCX) | 8/27/15 | -10.60 | -8.46 | 2.01 | ||||||||||||
Class R (QMGRX) | 8/27/15 | -9.47 | -7.07 | 2.52 | ||||||||||||
Class Y (QMGYX) | 8/27/15 | -9.36 | -6.72 | 2.92 | ||||||||||||
Class R5 (GMAGX)1 | 5/24/19 | -9.30 | -6.65 | 2.82 | ||||||||||||
Class R6 (QMGIX)2 | 8/27/15 | -9.27 | -6.62 | 3.02 |
1. 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.
2. After the close of business on May 24, 2019, Class I shares were reorganized as Class R6 shares.
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 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 INVESCO ADVANTAGE INTERNATIONAL FUND
The Fund’s performance is compared to the performance of MSCI All Country World ex-USA® Index and the MSCI All Country World Index. The MSCI All Country World ex-USA Index is an index considered representative of developed and emerging stock markets, excluding the U.S. The MSCI All Country World Index is an unmanaged index considered representative of large- and mid-cap stocks across developed and emerging markets. 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.
Liquidity Risk Management Program
The Securities and Exchange Commission has adopted Rule 22e-4 under the Investment Company Act of 1940 (the “Liquidity Rule”) in order to promote effective liquidity risk management throughout the open-end investment company industry, thereby reducing the risk that funds will be unable to meet their redemption obligations and mitigating dilution of the interests of fund shareholders. The Fund has adopted and implemented a liquidity risk management program in accordance with the Liquidity Rule (the “Program”). The Program is reasonably designed to assess and manage the Fund’s liquidity risk, which is the risk that the Fund could not meet redemption requests without significant dilution of remaining investors’ interests in the Fund. The Board of Trustees of the Fund (the “Board”) has appointed Invesco Advisers, Inc. (“Invesco”), the Fund’s investment adviser, as the Program’s administrator, and Invesco has delegated oversight of the Program to the Liquidity Risk Management Committee (the “Committee”), which is composed of senior representatives from relevant business groups at Invesco.
As required by the Liquidity Rule, the Program includes policies and procedures providing for an assessment, no less frequently than annually, of the Fund’s liquidity risk that takes into account, as relevant to the Fund’s liquidity risk: (1) the Fund’s investment strategy and liquidity of portfolio investments during both normal and reasonably foreseeable stressed conditions; (2) short-term and long-term cash flow projections for the Fund during both normal and reasonably foreseeable stressed conditions; and (3) the Fund’s holdings of cash and cash equivalents and any borrowing arrangements. The Liquidity Rule also requires the classification of the Fund’s investments into categories that reflect the assessment of their relative liquidity under current market conditions. The Fund classifies its investments into one of four categories defined in the Liquidity Rule: “Highly Liquid,” “Moderately Liquid,” “Less Liquid” and “Illiquid.” Funds that are not invested primarily in “Highly Liquid Investments” that are assets (cash or investments that are reasonably expected to be convertible into cash within three business days without significantly changing the market value of the investment) are required to establish a “Highly Liquid Investment Minimum” (“HLIM”), which is the minimum percentage of net assets that must be invested in Highly Liquid Investments. Funds with HLIMs have procedures for addressing HLIM shortfalls, including reporting to the Board and the SEC (on a non-public basis) as required by the Program and the Liquidity Rule. In addition, the Fund may not acquire an investment if, immediately after the acquisition, over 15% of the Fund’s net assets would consist of “Illiquid Investments” that are assets (an investment that cannot reasonably be expected to be sold or disposed of in current market conditions in seven calendar days or less without the sale or disposition significantly changing the market value of the investment). The Liquidity Rule and the Program also require reporting
5 INVESCO ADVANTAGE INTERNATIONAL FUND
to the Board and the SEC (on a non-public basis) if a Fund’s holdings of Illiquid Investments exceed 15% of the Fund’s assets.
At a meeting held on March 30-April 1, 2020, the Committee presented a report to the Board that addressed the operation of the Program and assessed the Program’s adequacy and effectiveness of implementation (the “Report”). The Report covered the period from December 1, 2018 through December 31, 2019 (the “Program Reporting Period”).
The Report stated, in relevant part, that during the Program Reporting Period:
● | The Program, as adopted and implemented, remained reasonably designed to assess and manage the Fund’s liquidity risk and was operated effectively to achieve that goal; |
● | The Fund’s investment strategy remained appropriate for an open-end fund; |
● | The Fund was able to meet requests for redemption without significant dilution of remaining investors’ interests in the Fund; |
● | The Fund did not breach the 15% limit on Illiquid Investments; and |
● | The Fund primarily held Highly Liquid Investments and therefore has not adopted an HLIM. |
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.
6 INVESCO ADVANTAGE INTERNATIONAL FUND
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 April 30, 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 April 30, 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.
7 INVESCO ADVANTAGE INTERNATIONAL FUND
Actual | Beginning Account Value November 1, 2019 | Ending Account Value April 30, 2020 | Expenses Paid During 6 Months Ended April 30, 2020 | |||||||||
Class A | $ | 1,000.00 | $ | 906.00 | $ | 4.08 | ||||||
Class C | 1,000.00 | 902.90 | 7.60 | |||||||||
Class R | 1,000.00 | 905.30 | 5.32 | |||||||||
Class Y | 1,000.00 | 906.40 | 3.13 | |||||||||
Class R5 | 1,000.00 | 907.00 | 3.15 | |||||||||
Class R6 | 1,000.00 | 907.30 | 2.99 | |||||||||
Hypothetical | ||||||||||||
(5% return before expenses) | ||||||||||||
Class A | 1,000.00 | 1,020.59 | 4.33 | |||||||||
Class C | 1,000.00 | 1,016.91 | 8.06 | |||||||||
Class R | 1,000.00 | 1,019.29 | 5.64 | |||||||||
Class Y | 1,000.00 | 1,021.58 | 3.32 | |||||||||
Class R5 | 1,000.00 | 1,021.58 | 3.32 | |||||||||
Class R6 | 1,000.00 | 1,021.73 | 3.17 |
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 April 30, 2020 are as follows:
Class | Expense Ratios | |||
Class A | 0.86 | % | ||
Class C | 1.60 | |||
Class R | 1.12 | |||
Class Y | 0.66 | |||
Class R5 | 0.66 | |||
Class R6 | 0.63 |
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.
8 INVESCO ADVANTAGE INTERNATIONAL FUND
SCHEDULE OF INVESTMENTS April 30, 2020 Unaudited
Shares | Value | |||||||
Common Stocks—109.6% | ||||||||
Consumer Discretionary—14.1% | ||||||||
Auto Components—0.5% | ||||||||
Aisin Seiki Co. Ltd. | 400 | $ | 11,505 | |||||
Bridgestone Corp. | 1,900 | 59,422 | ||||||
Continental AG1 | 433 | 36,580 | ||||||
Denso Corp. | 1,000 | 35,248 | ||||||
Hyundai Mobis Co. Ltd. | 216 | 30,219 | ||||||
Sumitomo Electric Industries Ltd. | 1,200 | 12,338 | ||||||
Toyota Industries Corp. | 400 | 20,124 | ||||||
205,436 | ||||||||
Automobiles—3.4% | ||||||||
Astra International Tbk PT | 104,200 | 26,941 | ||||||
Bayerische Motoren Werke AG | 779 | 46,084 | ||||||
Brilliance China Automotive Holdings Ltd. | 20,000 | 18,119 | ||||||
Ferrari NV | 260 | 40,934 | ||||||
Fiat Chrysler Automobiles NV | 3,981 | 35,055 | ||||||
Geely Automobile Holdings Ltd. | 30,000 | 45,760 | ||||||
Great Wall Motor Co. Ltd., Cl. H | 28,500 | 19,169 | ||||||
Honda Motor Co. Ltd. | 4,700 | 113,475 | ||||||
Hyundai Motor Co. | 563 | 43,455 | ||||||
Isuzu Motors Ltd. | 3,400 | 25,940 | ||||||
Kia Motors Corp. | 1,469 | 35,923 | ||||||
Nissan Motor Co. Ltd. | 32,300 | 110,542 | ||||||
Porsche Automobil Holding SE | 692 | 34,855 | ||||||
Subaru Corp. | 800 | 16,102 | ||||||
Suzuki Motor Corp. | 600 | 19,256 | ||||||
Toyota Motor Corp. | 10,600 | 654,220 | ||||||
Volkswagen AG, Preference | 606 | 85,040 | ||||||
1,370,870 | ||||||||
Diversified Consumer Services—0.4% | ||||||||
New Oriental Education & Technology Group, Inc., Sponsored ADR1 | 1,107 | 141,319 | ||||||
TAL Education Group, ADR1 | 609 | 33,002 | ||||||
174,321 | ||||||||
Entertainment—0.4% | ||||||||
Nintendo Co. Ltd. | 300 | 124,243 | ||||||
Vivendi SA | 1,298 | 28,055 | ||||||
152,298 | ||||||||
Hotels, Restaurants & Leisure—0.6% | ||||||||
Carnival plc | 764 | 10,517 | ||||||
Compass Group plc | 2,337 | 39,374 | ||||||
Galaxy Entertainment Group Ltd. | 4,000 | 25,401 | ||||||
Genting Bhd | 19,000 | 18,307 | ||||||
Huazhu Group Ltd., ADR | 332 | 11,955 | ||||||
Melco Resorts & Entertainment Ltd., ADR | 803 | 12,703 | ||||||
Oriental Land Co. Ltd. (Japan) | 700 | 88,646 |
9 INVESCO ADVANTAGE INTERNATIONAL FUND
SCHEDULE OF INVESTMENTS Unaudited / Continued
Shares | Value | |||||||
Hotels, Restaurants & Leisure (Continued) | ||||||||
Whitbread plc | 563 | $ | 21,158 | |||||
228,061 | ||||||||
Household Durables—1.7% | ||||||||
Haier Electronics Group Co. Ltd. | 14,000 | 38,783 | ||||||
LG Electronics, Inc. | 1,255 | 56,780 | ||||||
Panasonic Corp. | 7,000 | 53,513 | ||||||
SEB SA | 80 | 9,634 | ||||||
SEB SA, Prime1 | 392 | 47,204 | ||||||
SEB SA, Private Shares1 | 130 | 15,655 | ||||||
Sekisui House Ltd. | 3,800 | 65,401 | ||||||
Sony Corp. | 6,300 | 404,178 | ||||||
691,148 | ||||||||
Interactive Media & Services—0.9% | ||||||||
58.com, Inc., ADR1 | 886 | 46,028 | ||||||
Baidu, Inc., Sponsored ADR1 | 1,024 | 103,352 | ||||||
Momo, Inc., Sponsored ADR | 803 | 19,336 | ||||||
NAVER Corp. | 822 | 133,826 | ||||||
Z Holdings Corp. | 10,100 | 39,071 | ||||||
341,613 | ||||||||
Internet & Catalog Retail—1.8% | ||||||||
JD.com, Inc., ADR1 | 6,281 | 270,711 | ||||||
Meituan Dianping, Cl. B1 | 20,300 | 269,663 | ||||||
Pinduoduo, Inc., ADR1 | 1,550 | 73,532 | ||||||
Rakuten, Inc. | 4,000 | 33,871 | ||||||
Trip.com Group Ltd., ADR1 | 1,910 | 49,201 | ||||||
Vipshop Holdings Ltd., ADR1 | 1,605 | 25,568 | ||||||
722,546 | ||||||||
Media—1.1% | ||||||||
Dentsu Group, Inc. | 600 | 12,609 | ||||||
Grupo Televisa SAB, Sponsored ADR | 1,964 | 10,507 | ||||||
Liberty Global plc, Cl. C1 | 1,190 | 21,789 | ||||||
Naspers Ltd., Cl. N | 1,558 | 243,688 | ||||||
Publicis Groupe SA | 519 | 15,446 | ||||||
RELX plc | 4,154 | 94,079 | ||||||
WPP plc | 4,233 | 33,164 | ||||||
Zee Entertainment Enterprises Ltd. | 10,544 | 22,133 | ||||||
453,415 | ||||||||
Multiline Retail—0.5% | ||||||||
Lojas Americanas SA, Preference | 3,487 | 15,954 | ||||||
Lojas Renner SA | 2,300 | 16,237 | ||||||
Magazine Luiza SA | 4,000 | 36,558 | ||||||
Next plc | 736 | 43,858 |
10 INVESCO ADVANTAGE INTERNATIONAL FUND
Shares | Value | |||||||
Multiline Retail (Continued) | ||||||||
Wesfarmers Ltd. | 2,899 | $ | 69,981 | |||||
182,588 | ||||||||
Specialty Retail—0.7% | ||||||||
Fast Retailing Co. Ltd. | 200 | 95,123 | ||||||
Hennes & Mauritz AB, Cl. B | 6,794 | 94,564 | ||||||
Hotai Motor Co. Ltd. | 1,000 | 18,185 | ||||||
Industria de Diseno Textil SA | 1,341 | 34,209 | ||||||
Nitori Holdings Co. Ltd. | 100 | 15,318 | ||||||
Zhongsheng Group Holdings Ltd. | 3,000 | 11,945 | ||||||
269,344 | ||||||||
Textiles, Apparel & Luxury Goods—2.1% | ||||||||
Adidas AG | 995 | 227,754 | ||||||
ANTA Sports Products Ltd. | 17,000 | 145,250 | ||||||
Burberry Group plc | 865 | 15,165 | ||||||
EssilorLuxottica SA | 736 | 90,965 | ||||||
Hermes International | 87 | 63,734 | ||||||
Kering SA | 87 | 43,937 | ||||||
LVMH Moet Hennessy Louis Vuitton SE | 606 | 234,394 | ||||||
Shenzhou International Group Holdings Ltd. | 1,400 | 15,925 | ||||||
Swatch Group AG (The) | 87 | 17,434 | ||||||
Yue Yuen Industrial Holdings Ltd. | 7,000 | 10,995 | ||||||
865,553 | ||||||||
Consumer Staples—13.4% | ||||||||
Beverages—1.7% | ||||||||
Anheuser-Busch InBev SA | 3,938 | 182,791 | ||||||
Arca Continental SAB de CV | 1,700 | 6,548 | ||||||
Asahi Group Holdings Ltd. | 1,300 | 44,947 | ||||||
Carlsberg AS, Cl. B | 470 | 59,331 | ||||||
Coca-Cola European Partners plc | 1,024 | 40,591 | ||||||
Compania Cervecerias Unidas SA | 2,186 | 15,710 | ||||||
Diageo plc | 4,717 | 163,512 | ||||||
Fomento Economico Mexicano SAB de CV, ADR | 775 | 49,856 | ||||||
Heineken NV | 303 | 25,797 | ||||||
Kirin Holdings Co. Ltd. | 3,000 | 57,800 | ||||||
Suntory Beverage & Food Ltd. | 400 | 15,029 | ||||||
Tsingtao Brewery Co. Ltd., Cl. H | 4,000 | 24,202 | ||||||
686,114 | ||||||||
Food & Staples Retailing—1.5% | ||||||||
China Resources Beer Holdings Co. Ltd. | 10,000 | 47,370 | ||||||
Coles Group Ltd. | 10,287 | 102,804 | ||||||
Jeronimo Martins SGPS SA | 865 | 14,621 | ||||||
Koninklijke Ahold Delhaize NV | 2,293 | 55,725 | ||||||
President Chain Store Corp. | 1,000 | 10,318 | ||||||
Raia Drogasil SA | 1,900 | 36,610 | ||||||
Seven & i Holdings Co. Ltd. | 1,400 | 46,127 |
11 INVESCO ADVANTAGE INTERNATIONAL FUND
SCHEDULE OF INVESTMENTS Unaudited / Continued
Shares | Value | |||||||
Food & Staples Retailing (Continued) | ||||||||
Sun Art Retail Group Ltd. | 10,500 | $ | 17,361 | |||||
Tesco plc | 33,017 | 97,855 | ||||||
Wal-Mart de Mexico SAB de CV | 21,973 | 52,851 | ||||||
Woolworths Group Ltd. | 5,020 | 115,699 | ||||||
597,341 | ||||||||
Food Products—4.2% | ||||||||
Ajinomoto Co., Inc. | 2,900 | 51,506 | ||||||
Associated British Foods plc | 1,058 | 25,244 | ||||||
BRF SA1 | 5,200 | 18,542 | ||||||
China Mengniu Dairy Co. Ltd.1 | 16,000 | 56,337 | ||||||
Chocoladefabriken Lindt & Spruengli AG | 3 | 23,405 | ||||||
Danone SA | 2,250 | 156,089 | ||||||
JBS SA | 10,400 | 45,594 | ||||||
Kerry Group plc, Cl. A | 649 | 74,515 | ||||||
MEIJI Holdings Co. Ltd. | 300 | 20,803 | ||||||
Nestle SA | 9,909 | 1,046,748 | ||||||
Orkla ASA | 1,904 | 17,255 | ||||||
Tiger Brands Ltd. | 2,423 | 23,628 | ||||||
Tingyi Cayman Islands Holding Corp. | 14,000 | 24,780 | ||||||
Uni-President Enterprises Corp. | 32,000 | 74,017 | ||||||
Vietnam Dairy Products JSC | 2 | 8 | ||||||
Want Want China Holdings Ltd. | 35,000 | 24,686 | ||||||
Wilmar International Ltd. | 5,700 | 14,378 | ||||||
1,697,535 | ||||||||
Household Products—0.4% | ||||||||
Essity AB, Cl. B | 822 | 26,707 | ||||||
Reckitt Benckiser Group plc | 1,601 | 133,782 | ||||||
160,489 | ||||||||
Personal Products—3.4% | ||||||||
Amorepacific Corp. | 59 | 8,525 | ||||||
Beiersdorf AG | 303 | 31,805 | ||||||
Hengan International Group Co. Ltd. | 4,500 | 39,634 | ||||||
Kao Corp. | 1,600 | 123,415 | ||||||
LG Household & Health Care Ltd. | 43 | 48,636 | ||||||
L’Oreal SA | 779 | 226,709 | ||||||
Peugeot SA | 2,467 | 35,407 | ||||||
Shiseido Co. Ltd. | 1,300 | 76,687 | ||||||
Unilever NV | 6,924 | 346,116 | ||||||
Unilever plc | 8,611 | 445,206 | ||||||
1,382,140 | ||||||||
Tobacco—2.2% | ||||||||
British American Tobacco plc | 17,482 | 678,908 | ||||||
Imperial Brands plc | 4,500 | 95,242 | ||||||
Japan Tobacco, Inc. | 4,700 | 87,853 |
12 INVESCO ADVANTAGE INTERNATIONAL FUND
Shares | Value | |||||||
Tobacco (Continued) | ||||||||
KT&G Corp. | 346 | $ | 23,080 | |||||
885,083 | ||||||||
Energy—5.3% | ||||||||
Oil, Gas & Consumable Fuels—5.3% | ||||||||
China Petroleum & Chemical Corp., Cl. H | 230,000 | 114,501 | ||||||
China Shenhua Energy Co. Ltd., Cl. H | 16,500 | 29,153 | ||||||
CNOOC Ltd. | 39,000 | 43,779 | ||||||
Cosan SA | 800 | 8,877 | ||||||
Eni SpA | 11,943 | 113,497 | ||||||
Equinor ASA | 7,919 | 111,163 | ||||||
Gazprom PJSC, Sponsored ADR | 50,066 | 254,135 | ||||||
Inpex Corp. | 9,200 | 58,633 | ||||||
JXTG Holdings, Inc. | 19,300 | 68,371 | ||||||
Kunlun Energy Co. Ltd. | 32,000 | 20,897 | ||||||
LUKOIL PJSC, ADR2 | 407 | 26,703 | ||||||
LUKOIL PJSC, Sponsored ADR2 | 3,185 | 205,655 | ||||||
MOL Hungarian Oil & Gas plc | 1,861 | 11,841 | ||||||
Novatek PJSC, Sponsored GDR | 173 | 24,322 | ||||||
OMV AG | 692 | 22,698 | ||||||
Origin Energy Ltd. | 5,231 | 18,575 | ||||||
PetroChina Co. Ltd., Cl. H | 124,000 | 44,383 | ||||||
Petroleo Brasileiro SA, Preference | 49,800 | 165,301 | ||||||
Renault SA | 587 | 11,666 | ||||||
Repsol SA | 15,492 | 141,396 | ||||||
Rosneft Oil Co. PJSC, GDR1 | 11,467 | 51,501 | ||||||
Royal Dutch Shell plc, Cl. A | 21,506 | 365,334 | ||||||
Tatneft PJSC, Sponsored ADR | 519 | 23,200 | ||||||
TOTAL SA | 5,366 | 193,484 | ||||||
Yanzhou Coal Mining Co. Ltd., Cl. H | 16,000 | 12,080 | ||||||
2,141,145 | ||||||||
Financials—20.4% | ||||||||
Capital Markets—2.2% | ||||||||
AXA SA | 9,130 | 162,287 | ||||||
B3 SA-Brasil Bolsa Balcao | 8,400 | 59,348 | ||||||
Deutsche Boerse AG | 692 | 107,639 | ||||||
London Stock Exchange Group plc | 2,943 | 276,634 | ||||||
Natixis SA | 2,769 | 6,570 | ||||||
Nomura Holdings, Inc. | 22,700 | 94,426 | ||||||
Partners Group Holding AG | 43 | 33,897 | ||||||
Schroders plc | 519 | 17,368 | ||||||
UBS Group AG1 | 9,520 | 102,131 | ||||||
860,300 | ||||||||
Commercial Banks—9.1% | ||||||||
ABN AMRO Bank NV3 | 2,943 | 22,608 | ||||||
Absa Group Ltd. | 5,236 | 25,825 | ||||||
Agricultural Bank of China Ltd., Cl. H | 142,000 | 58,928 |
13 INVESCO ADVANTAGE INTERNATIONAL FUND
SCHEDULE OF INVESTMENTS Unaudited / Continued
Shares | Value | |||||||
Commercial Banks (Continued) | ||||||||
Akbank TAS1 | 17,635 | $ | 14,699 | |||||
Banco Bilbao Vizcaya Argentaria SA | 44,484 | 145,843 | ||||||
Banco Bradesco SA, Cl. Preference | 5,720 | 20,143 | ||||||
Banco de Chile | 144,948 | 12,778 | ||||||
Banco do Brasil SA | 3,500 | 18,343 | ||||||
Banco Santander Mexico SA Institucion de Banca Multiple Grupo Financiero Santand, Cl. B | 16,700 | 9,299 | ||||||
Banco Santander SA | 60,235 | 134,681 | ||||||
Bank Central Asia Tbk PT | 40,500 | 70,322 | ||||||
Bank of China Ltd., Cl. H | 451,000 | 170,543 | ||||||
Bank of Communications Co. Ltd., Cl. H | 125,000 | 78,165 | ||||||
Bank Rakyat Indonesia Persero Tbk PT | 553,800 | 101,166 | ||||||
Barclays plc | 43,532 | 58,157 | ||||||
BNP Paribas SA | 4,717 | 148,470 | ||||||
CaixaBank SA | 11,164 | 20,104 | ||||||
China CITIC Bank Corp. Ltd., Cl. H | 53,000 | 25,819 | ||||||
China Construction Bank Corp., Cl. H | 454,000 | 366,041 | ||||||
China Merchants Bank Co. Ltd., Cl. H | 17,000 | 80,987 | ||||||
China Minsheng Banking Corp. Ltd., Cl. H | 82,000 | 60,686 | ||||||
CIMB Group Holdings Bhd | 28,000 | 22,335 | ||||||
Commerzbank AG | 7,313 | 27,079 | ||||||
Credit Agricole SA | 5,928 | 47,389 | ||||||
CTBC Financial Holding Co. Ltd. | 23,000 | 15,236 | ||||||
Danske Bank AS | 9,823 | 116,728 | ||||||
DNB ASA | 1,904 | 23,136 | ||||||
E.Sun Financial Holding Co. Ltd. | 30,000 | 27,009 | ||||||
Erste Group Bank AG | 1,176 | 25,580 | ||||||
First Financial Holding Co. Ltd. | 14,000 | 10,213 | ||||||
Grupo Elektra SAB de CV | 385 | 22,126 | ||||||
Grupo Financiero Banorte SAB de CV, Cl. O | 9,586 | 26,215 | ||||||
Hua Nan Financial Holdings Co. Ltd. | 33,000 | 21,255 | ||||||
Industrial & Commercial Bank of China Ltd., Cl. H | 430,000 | 288,653 | ||||||
ING Groep NV | 9,693 | 53,288 | ||||||
Intesa Sanpaolo SpA | 76,592 | 119,735 | ||||||
Itau Unibanco Holding SA | 6,700 | 28,055 | ||||||
Itausa - Investimentos Itau SA | 11,100 | 18,371 | ||||||
KB Financial Group, Inc. | 1,385 | 39,703 | ||||||
KBC Group NV | 476 | 25,735 | ||||||
Komercni banka AS1 | 995 | 21,110 | ||||||
Lloyds Banking Group plc | 255,956 | 104,107 | ||||||
Mega Financial Holding Co. Ltd. | 33,000 | 33,027 | ||||||
Mitsubishi UFJ Financial Group, Inc. | 55,500 | 223,023 | ||||||
OTP Bank Nyrt | 433 | 12,870 | ||||||
Postal Savings Bank of China Co. Ltd., Cl. H3 | 134,000 | 79,564 | ||||||
Powszechna Kasa Oszczednosci Bank Polski SA | 7,270 | 38,568 | ||||||
Resona Holdings, Inc. | 5,600 | 17,454 | ||||||
RHB Bank Bhd | 18,200 | 20,019 | ||||||
Royal Bank of Scotland Group plc | 8,784 | 12,247 | ||||||
Shinhan Financial Group Co. Ltd. | 1,644 | 40,881 |
14 INVESCO ADVANTAGE INTERNATIONAL FUND
Shares | Value | |||||||
Commercial Banks (Continued) |
| |||||||
Skandinaviska Enskilda Banken AB, Cl. A | 6,621 | $ | 54,405 | |||||
Societe Generale SA | 3,808 | 59,610 | ||||||
Standard Bank Group Ltd. | 3,419 | 18,859 | ||||||
Standard Chartered plc | 3,721 | 19,122 | ||||||
Sumitomo Mitsui Financial Group, Inc. | 5,300 | 139,580 | ||||||
Sumitomo Mitsui Trust Holdings, Inc. | 600 | 17,531 | ||||||
Swedbank AB | 3,289 | 38,818 | ||||||
Taiwan Cooperative Financial Holding Co. Ltd. | 15,000 | 9,980 | ||||||
Turkiye Garanti Bankasi AS1 | 13,344 | 15,723 | ||||||
Turkiye Is Bankasi AS, Cl. C1 | 35,830 | 25,089 | ||||||
UniCredit SpA | 8,871 | 68,527 | ||||||
3,671,562 | ||||||||
Diversified Financial Services—0.7% |
| |||||||
EXOR NV | 587 | 32,177 | ||||||
FirstRand Ltd. | 5,842 | 12,771 | ||||||
Groupe Bruxelles Lambert SA1 | 176 | 14,071 | ||||||
Investor AB, Cl. B | 2,467 | 123,910 | ||||||
ORIX Corp. | 7,100 | 84,517 | ||||||
Yuanta Financial Holding Co. Ltd. | 45,000 | 25,367 | ||||||
292,813 | ||||||||
Insurance—5.3% |
| |||||||
AIA Group Ltd. | 18,600 | 169,306 | ||||||
Allianz SE | 1,991 | 368,840 | ||||||
Aon plc | 636 | 109,818 | ||||||
Assicurazioni Generali SpA | 7,183 | 102,646 | ||||||
Aviva plc | 18,399 | 56,111 | ||||||
BB Seguridade Participacoes SA | 2,200 | 10,741 | ||||||
China Life Insurance Co. Ltd., Cl. H | 37,000 | 78,009 | ||||||
China Pacific Insurance Group Co. Ltd., Cl. H | 11,800 | 38,316 | ||||||
China Taiping Insurance Holdings Co. Ltd. | 10,200 | 17,081 | ||||||
Chubb Ltd. | 996 | 107,578 | ||||||
CNP Assurances | 764 | 7,903 | ||||||
Dai-ichi Life Holdings, Inc. | 6,100 | 76,601 | ||||||
Fubon Financial Holding Co. Ltd. | 8,000 | 11,223 | ||||||
Hannover Rueck SE | 260 | 41,521 | ||||||
MS&AD Insurance Group Holdings, Inc. | 800 | 23,121 | ||||||
Muenchener Rueckversicherungs-Gesellschaft AG in Muenchen | 692 | 152,492 | ||||||
NN Group NV | 563 | 16,315 | ||||||
PICC Property & Casualty Co. Ltd., Cl. H | 36,000 | 33,814 | ||||||
Ping An Insurance Group Co. of China Ltd., Cl. H | 30,000 | 304,193 | ||||||
Poste Italiane SpA3 | 6,760 | 57,549 | ||||||
Sompo Holdings, Inc. | 600 | 19,422 | ||||||
Swiss Re AG | 1,471 | 106,292 | ||||||
Tokio Marine Holdings, Inc. | 1,400 | 65,988 | ||||||
Willis Towers Watson plc | 277 | 49,386 |
15 INVESCO ADVANTAGE INTERNATIONAL FUND
SCHEDULE OF INVESTMENTS Unaudited / Continued
Shares | Value | |||||||
Insurance (Continued) |
| |||||||
Zurich Insurance Group AG | 389 | $ | 124,004 | |||||
2,148,270 | ||||||||
Real Estate Investment Trusts (REITs)—0.3% |
| |||||||
Fibra Uno Administracion SA de CV | 13,900 | 11,402 | ||||||
Gecina SA | 353 | 46,112 | ||||||
Goodman Group | 2,856 | 24,003 | ||||||
Klepierre SA | 2,467 | 49,944 | ||||||
131,461 | ||||||||
Real Estate Management & Development—2.8% |
| |||||||
Agile Group Holdings Ltd. | 14,000 | 15,491 | ||||||
Ayala Land, Inc. | 73,400 | 44,882 | ||||||
CapitaLand Ltd.1 | 4,900 | 10,342 | ||||||
China Jinmao Holdings Group Ltd. | 38,000 | 26,333 | ||||||
China Overseas Land & Investment Ltd. | 20,000 | 72,089 | ||||||
China Resources Land Ltd. | 24,000 | 96,422 | ||||||
China Vanke Co. Ltd., Cl. H | 7,400 | 24,118 | ||||||
CK Asset Holdings Ltd. | 16,500 | 102,013 | ||||||
Country Garden Holdings Co. Ltd. | 49,000 | 61,799 | ||||||
Daiwa House Industry Co. Ltd. | 1,700 | 43,326 | ||||||
Deutsche Wohnen SE | 779 | 31,609 | ||||||
Henderson Land Development Co. Ltd. | 4,000 | 16,146 | ||||||
Hongkong Land Holdings Ltd. | 13,900 | 58,400 | ||||||
Logan Property Holdings Co. Ltd. | 6,000 | 9,465 | ||||||
Longfor Group Holdings Ltd.3 | 13,500 | 66,905 | ||||||
Mitsubishi Estate Co. Ltd. | 4,900 | 79,745 | ||||||
Mitsui Fudosan Co. Ltd. | 2,100 | 38,773 | ||||||
New World Development Co. Ltd. | 22,000 | 25,837 | ||||||
Shimao Property Holdings Ltd. | 13,500 | 54,145 | ||||||
Sun Hung Kai Properties Ltd. | 9,000 | 121,783 | ||||||
Sunac China Holdings Ltd. | 6,000 | 25,961 | ||||||
Swire Pacific Ltd., Cl. A | 4,500 | 28,918 | ||||||
Vonovia SE | 1,039 | 51,373 | ||||||
Wharf Holdings Ltd. (The) | 4,000 | 7,473 | ||||||
Wharf Real Estate Investment Co. Ltd. | 3,000 | 12,738 | ||||||
1,126,086 | ||||||||
Health Care—15.4% |
| |||||||
Biotechnology—0.9% |
| |||||||
CSL Ltd. | 1,774 | 351,635 | ||||||
Grifols SA | 649 | 22,111 | ||||||
373,746 | ||||||||
Health Care Equipment & Supplies—1.8% |
| |||||||
Coloplast AS, Cl. B | 563 | 88,909 | ||||||
Hoya Corp. | 3,900 | 356,410 | ||||||
Koninklijke Philips NV | 2,813 | 122,606 | ||||||
Olympus Corp. | 4,500 | 71,659 |
16 INVESCO ADVANTAGE INTERNATIONAL FUND
Shares | Value | |||||||
Health Care Equipment & Supplies (Continued) |
| |||||||
Smith & Nephew plc | 4,068 | $ | 79,912 | |||||
719,496 | ||||||||
Health Care Providers & Services—0.6% |
| |||||||
Fresenius Medical Care AG & Co. KGaA | 1,168 | 91,534 | ||||||
Fresenius SE & Co. KGaA | 2,120 | 92,301 | ||||||
Hapvida Participacoes e Investimentos SA3 | 1,500 | 14,465 | ||||||
IHH Healthcare Bhd | 15,700 | 19,069 | ||||||
Sinopharm Group Co. Ltd., Cl. H | 6,024 | 16,240 | ||||||
233,609 | ||||||||
Life Sciences Tools & Services—0.2% |
| |||||||
Genscript Biotech Corp.1 | 8,000 | 13,948 | ||||||
Lonza Group AG | 87 | 38,024 | ||||||
Sartorius Stedim Biotech | 59 | 14,177 | ||||||
Wuxi Biologics Cayman, Inc.1,3 | 2,000 | 31,016 | ||||||
97,165 | ||||||||
Pharmaceuticals—11.9% |
| |||||||
Astellas Pharma, Inc. | 12,100 | 200,287 | ||||||
AstraZeneca plc | 1,644 | 172,463 | ||||||
Bayer AG | 2,034 | 134,606 | ||||||
Celltrion, Inc.1 | 130 | 22,375 | ||||||
China Resources Pharmaceutical Group Ltd.3 | 29,500 | 18,663 | ||||||
Chugai Pharmaceutical Co. Ltd. | 300 | 35,587 | ||||||
CSPC Pharmaceutical Group Ltd. | 22,000 | 42,895 | ||||||
Daiichi Sankyo Co. Ltd. | 4,400 | 300,537 | ||||||
Eisai Co. Ltd. | 800 | 55,737 | ||||||
GlaxoSmithKline plc | 15,794 | 330,666 | ||||||
Kalbe Farma Tbk PT | 149,000 | 14,411 | ||||||
Merck KGaA1 | 1,039 | 121,101 | ||||||
Mylan NV1 | 1,015 | 17,021 | ||||||
Novartis AG | 11,857 | 1,011,474 | ||||||
Novo Nordisk AS, Cl. B | 11,554 | 737,770 | ||||||
Ono Pharmaceutical Co. Ltd. | 1,500 | 35,993 | ||||||
Otsuka Holdings Co. Ltd. | 1,000 | 39,356 | ||||||
Roche Holding AG | 1,125 | 391,307 | ||||||
Sanofi | 6,361 | 622,320 | ||||||
Shionogi & Co. Ltd. | 2,500 | 137,183 | ||||||
Sino Biopharmaceutical Ltd. | 102,000 | 150,200 | ||||||
Takeda Pharmaceutical Co. Ltd. | 4,838 | 173,722 | ||||||
UCB SA1 | 260 | 23,822 | ||||||
4,789,496 | ||||||||
Industrials—9.4% |
| |||||||
Aerospace & Defense—0.4% |
| |||||||
Airbus SE | 649 | 41,259 | ||||||
BAE Systems plc | 5,842 | 37,450 | ||||||
Safran SA | 649 | 59,994 |
17 INVESCO ADVANTAGE INTERNATIONAL FUND
SCHEDULE OF INVESTMENTS Unaudited / Continued
Shares | Value | |||||||
Aerospace & Defense (Continued) |
| |||||||
Thales SA | 216 | $ | 16,381 | |||||
155,084 | ||||||||
Air Freight & Couriers—0.3% |
| |||||||
Deutsche Post AG | 2,467 | 73,492 | ||||||
DSV PANALPINA AS | 346 | 35,769 | ||||||
ZTO Express Cayman, Inc., ADR | 830 | 24,701 | ||||||
133,962 | ||||||||
Airlines—0.2% |
| |||||||
International Consolidated Airlines Group SA | 9,433 | 26,416 | ||||||
Japan Airlines Co. Ltd. | 600 | 10,752 | ||||||
Ryanair Holdings plc, Sponsored ADR1 | 677 | 42,969 | ||||||
80,137 | ||||||||
Building Products—0.4% |
| |||||||
Assa Abloy AB, Cl. B | 1,774 | 31,942 | ||||||
Daikin Industries Ltd. | 500 | 64,808 | ||||||
Geberit AG | 173 | 77,693 | ||||||
174,443 | ||||||||
Commercial Services & Supplies—0.1% |
| |||||||
Secom Co. Ltd. | 300 | 25,029 | ||||||
Construction & Engineering—0.6% |
| |||||||
ACS Actividades de Construccion y Servicios SA | 823 | 20,569 | ||||||
Cie de Saint-Gobain | 1,991 | 52,897 | ||||||
Ferrovial SA | 2,943 | 73,616 | ||||||
Vinci SA | 952 | 78,034 | ||||||
225,116 | ||||||||
Electrical Equipment—1.4% |
| |||||||
ABB Ltd. | 4,197 | 79,779 | ||||||
Legrand SA | 476 | 32,121 | ||||||
Mitsubishi Electric Corp. | 4,600 | 56,948 | ||||||
Nidec Corp. | 1,320 | 76,670 | ||||||
Schneider Electric SE1 | 3,072 | 281,436 | ||||||
Vestas Wind Systems AS | 346 | 29,838 | ||||||
WEG SA | 3,500 | 25,707 | ||||||
582,499 | ||||||||
Industrial Conglomerates—1.0% |
| |||||||
Beijing Enterprises Holdings Ltd. | 5,000 | 17,796 | ||||||
CITIC Ltd. | 36,000 | 36,829 | ||||||
CK Hutchison Holdings Ltd. | 10,000 | 72,516 | ||||||
Siemens AG | 2,120 | 196,924 | ||||||
Sime Darby Bhd | 44,300 | 20,515 |
18 INVESCO ADVANTAGE INTERNATIONAL FUND
Shares | Value | |||||||
Industrial Conglomerates (Continued) |
| |||||||
Toshiba Corp. | 3,200 | $ | 79,488 | |||||
424,068 | ||||||||
Machinery—1.2% |
| |||||||
Atlas Copco AB, Cl. A | 1,947 | 67,551 | ||||||
China Conch Venture Holdings Ltd. | 5,000 | 23,673 | ||||||
Epiroc AB, Cl. A | 1,558 | 15,635 | ||||||
FANUC Corp. | 600 | 98,937 | ||||||
Kone OYJ, Cl. B | 692 | 41,983 | ||||||
Kubota Corp. | 1,400 | 17,458 | ||||||
Mitsubishi Heavy Industries Ltd. | 1,400 | 35,800 | ||||||
Sandvik AB | 4,197 | 64,899 | ||||||
SMC Corp. (Japan) | 50 | 22,861 | ||||||
Volvo AB, Cl. B | 6,361 | 82,035 | ||||||
Weichai Power Co. Ltd., Cl. H | 10,000 | 17,147 | ||||||
487,979 | ||||||||
Marine—0.3% |
| |||||||
AP Moller - Maersk AS, Cl. B | 87 | 86,674 | ||||||
Kuehne + Nagel International AG | 117 | 16,751 | ||||||
MISC Bhd | 9,900 | 18,137 | ||||||
121,562 | ||||||||
Professional Services—1.2% |
| |||||||
Adecco Group AG | 882 | 38,707 | ||||||
Bureau Veritas SA | 779 | 16,186 | ||||||
Experian plc | 3,895 | 116,696 | ||||||
IHS Markit Ltd. | 1,190 | 80,087 | ||||||
Recruit Holdings Co. Ltd. | 4,900 | 143,746 | ||||||
SGS SA | 12 | 27,193 | ||||||
Wolters Kluwer NV | 995 | 73,260 | ||||||
495,875 | ||||||||
Road & Rail—0.4% |
| |||||||
Central Japan Railway Co. | 500 | 78,654 | ||||||
East Japan Railway Co. | 800 | 58,369 | ||||||
Localiza Rent a Car SA | 1,300 | 8,174 | ||||||
Rumo SA1 | 1,700 | 6,187 | ||||||
151,384 | ||||||||
Trading Companies & Distributors—1.4% |
| |||||||
Ferguson plc | 1,385 | 100,173 | ||||||
ITOCHU Corp. | 8,900 | 174,894 | ||||||
Marubeni Corp. | 10,900 | 52,796 | ||||||
Mitsubishi Corp. | 4,400 | 93,729 | ||||||
Mitsui & Co. Ltd. | 4,600 | 64,521 | ||||||
Sumitomo Corp. | 5,700 | 64,792 | ||||||
550,905 |
19 INVESCO ADVANTAGE INTERNATIONAL FUND
SCHEDULE OF INVESTMENTS Unaudited / Continued
Shares | Value | |||||||
Transportation Infrastructure—0.5% |
| |||||||
Aena SME SA3 | 346 | $ | 43,796 | |||||
Atlantia SpA | 2,164 | 35,315 | ||||||
China Tower Corp. Ltd., Cl. H1,3 | 240,000 | 53,547 | ||||||
Promotora y Operadora de Infraestructura SAB de CV1 | 1,000 | 6,947 | ||||||
Transurban Group | 4,803 | 42,925 | ||||||
182,530 | ||||||||
Information Technology—15.1% |
| |||||||
Communications Equipment—0.3% |
| |||||||
Nokia OYJ | 18,824 | 67,967 | ||||||
Telefonaktiebolaget LM Ericsson, Cl. B | 5,106 | 44,445 | ||||||
112,412 | ||||||||
Electronic Equipment, Instruments, & Components—2.8% |
| |||||||
AAC Technologies Holdings, Inc. | 9,500 | 45,571 | ||||||
Canon, Inc. | 3,400 | 71,835 | ||||||
Delta Electronics, Inc. | 5,000 | 23,192 | ||||||
Hexagon AB, Cl. B | 1,212 | 60,346 | ||||||
Hitachi Ltd. | 5,100 | 153,017 | ||||||
Hon Hai Precision Industry Co. Ltd. | 116,000 | 295,369 | ||||||
Keyence Corp. | 510 | 183,225 | ||||||
Kyocera Corp. | 1,000 | 53,450 | ||||||
Murata Manufacturing Co. Ltd. | 800 | 44,503 | ||||||
Sunny Optical Technology Group Co. Ltd. | 6,800 | 94,221 | ||||||
TE Connectivity Ltd. | 1,316 | 96,673 | ||||||
Yageo Corp. | 2,000 | 25,974 | ||||||
1,147,376 | ||||||||
Internet Software & Services—1.4% |
| |||||||
NetEase, Inc., ADR | 1,466 | 505,711 | ||||||
SINA Corp.1 | 581 | 19,620 | ||||||
Weibo Corp., Sponsored ADR1 | 665 | 24,958 | ||||||
550,289 | ||||||||
IT Services—0.9% |
| |||||||
Adyen NV1,3 | 87 | 85,582 | ||||||
Amadeus IT Group SA | 2,077 | 100,082 | ||||||
Capgemini SE | 1,039 | 97,722 | ||||||
Fujitsu Ltd. | 300 | 29,227 | ||||||
NTT Data Corp. | 1,200 | 12,249 | ||||||
Samsung SDS Co. Ltd. | 173 | 23,163 | ||||||
Wirecard AG | 173 | 17,170 | ||||||
365,195 | ||||||||
Semiconductors & Semiconductor Equipment—6.3% |
| |||||||
ASE Technology Holding Co. Ltd., ADR | 9,464 | 41,168 | ||||||
ASML Holding NV | 2,769 | 822,528 | ||||||
Globalwafers Co. Ltd. | 5,000 | 63,430 | ||||||
MediaTek, Inc. | 6,000 | 82,034 |
20 INVESCO ADVANTAGE INTERNATIONAL FUND
Shares | Value | |||||||
Semiconductors & Semiconductor Equipment (Continued) |
| |||||||
Nanya Technology Corp. | 30,000 | $ | 63,730 | |||||
NXP Semiconductors NV | 1,301 | 129,541 | ||||||
Renesas Electronics Corp.1 | 3,700 | 19,761 | ||||||
SK Hynix, Inc. | 8,828 | 600,735 | ||||||
STMicroelectronics NV | 2,596 | 67,648 | ||||||
Taiwan Semiconductor Manufacturing Co. Ltd., Sponsored ADR | 6,586 | 349,914 | ||||||
Tokyo Electron Ltd. | 1,100 | 232,703 | ||||||
United Microelectronics Corp., Sponsored ADR | 36,914 | 92,285 | ||||||
2,565,477 | ||||||||
Software—0.7% |
| |||||||
SAP SE | 2,293 | 273,481 | ||||||
Technology Hardware, Storage & Peripherals—2.7% |
| |||||||
Catcher Technology Co. Ltd. | 5,000 | 37,719 | ||||||
FUJIFILM Holdings Corp. | 1,400 | 66,919 | ||||||
Lenovo Group Ltd. | 60,000 | 32,127 | ||||||
Quanta Computer, Inc. | 27,000 | 58,032 | ||||||
Samsung Electronics Co. Ltd. | 17,958 | 739,997 | ||||||
Xiaomi Corp., Cl. B1,3 | 115,400 | 150,733 | ||||||
1,085,527 | ||||||||
Materials—7.3% |
| |||||||
Chemicals—2.0% |
| |||||||
Air Liquide SA | 1,601 | 203,888 | ||||||
BASF SE | 1,644 | 84,508 | ||||||
Covestro AG3 | 1,176 | 39,669 | ||||||
EMS-Chemie Holding AG | 43 | 27,895 | ||||||
Formosa Chemicals & Fibre Corp. | 10,000 | 25,094 | ||||||
Givaudan SA | 14 | 46,935 | ||||||
Koninklijke DSM NV | 303 | 37,149 | ||||||
LyondellBasell Industries NV, Cl. A | 609 | 35,292 | ||||||
Novozymes AS, Cl. B | 519 | 25,459 | ||||||
Sasol Ltd.1 | 6,924 | 32,513 | ||||||
Shin-Etsu Chemical Co. Ltd. | 1,000 | 110,792 | ||||||
Sika AG | 476 | 78,842 | ||||||
Solvay SA | 236 | 18,442 | ||||||
Toray Industries, Inc. | 6,200 | 28,575 | ||||||
795,053 | ||||||||
Construction Materials—0.6% |
| |||||||
Anhui Conch Cement Co. Ltd., Cl. H | 10,000 | 77,425 | ||||||
China Resources Cement Holdings Ltd. | 16,000 | 21,350 | ||||||
CRH plc | 1,298 | 39,241 | ||||||
HeidelbergCement AG | 563 | 26,862 | ||||||
LafargeHolcim Ltd.1 | 1,125 | 46,728 | ||||||
Taiwan Cement Corp. | 24,000 | 34,311 | ||||||
245,917 |
21 INVESCO ADVANTAGE INTERNATIONAL FUND
SCHEDULE OF INVESTMENTS Unaudited / Continued
Shares | Value | |||||||
Metals & Mining—4.6% |
| |||||||
Anglo American plc | 3,332 | $ | 59,492 | |||||
AngloGold Ashanti Ltd. | 2,423 | 59,506 | ||||||
ArcelorMittal SA | 4,414 | 48,481 | ||||||
BHP Group Ltd. | 15,189 | 311,096 | ||||||
BHP Group plc | 16,833 | 282,703 | ||||||
China Steel Corp. | 29,000 | 19,282 | ||||||
Cie Generale des Etablissements Michelin SCA | 216 | 21,113 | ||||||
Eregli Demir ve Celik Fabrikalari TAS | 29,252 | 33,620 | ||||||
Fortescue Metals Group Ltd. | 17,222 | 132,009 | ||||||
Glencore plc1 | 48,465 | 89,963 | ||||||
Grupo Mexico SAB de CV | 4,065 | 8,669 | ||||||
JFE Holdings, Inc. | 1,600 | 10,722 | ||||||
MMC Norilsk Nickel PJSC, ADR2 | 846 | 23,538 | ||||||
MMC Norilsk Nickel PJSC, ADR2 | 1,534 | 41,940 | ||||||
Newcrest Mining Ltd. | 2,856 | 51,255 | ||||||
Nippon Steel Corp. | 1,600 | 13,501 | ||||||
Polymetal International plc | 952 | 19,407 | ||||||
POSCO | 346 | 52,061 | ||||||
Rio Tinto Ltd. | 2,380 | 134,061 | ||||||
Rio Tinto plc | 5,496 | 255,436 | ||||||
Severstal PAO, GDR | 865 | 10,328 | ||||||
South32 Ltd. | 32,844 | 41,476 | ||||||
Vale SA | 16,800 | 138,592 | ||||||
1,858,251 | ||||||||
Paper & Forest Products—0.1% |
| |||||||
Stora Enso OYJ, Cl. R | 1,861 | 22,052 | ||||||
UPM-Kymmene OYJ | 1,039 | 28,792 | ||||||
50,844 | ||||||||
Telecommunication Services—4.5% |
| |||||||
Diversified Telecommunication Services—2.8% |
| |||||||
BT Group plc, Cl. A | 23,324 | 34,128 | ||||||
China Telecom Corp. Ltd., Cl. H | 34,000 | 11,646 | ||||||
China Unicom Hong Kong Ltd. | 26,000 | 16,703 | ||||||
Chunghwa Telecom Co. Ltd., Sponsored ADR | 775 | 28,528 | ||||||
Deutsche Telekom AG | 4,890 | 71,439 | ||||||
Koninklijke KPN NV | 10,645 | 24,659 | ||||||
Nippon Telegraph & Telephone Corp. | 21,100 | 480,706 | ||||||
Orange SA | 5,582 | 68,164 | ||||||
Swisscom AG | 43 | 22,368 | ||||||
Telefonica Deutschland Holding AG | 4,241 | 12,072 | ||||||
Telefonica SA | 13,328 | 60,810 | ||||||
Telekomunikasi Indonesia Persero Tbk PT | 288,800 | 67,875 | ||||||
Telenor ASA | 5,625 | 86,439 | ||||||
Telia Co. AB | 10,256 | 35,420 | ||||||
Telstra Corp. Ltd. | 50,066 | 98,597 | ||||||
1,119,554 |
22 INVESCO ADVANTAGE INTERNATIONAL FUND
Shares | Value | |||||||
Wireless Telecommunication Services—1.7% |
| |||||||
China Mobile Ltd. | 35,000 | $ | 279,941 | |||||
Far EasTone Telecommunications Co. Ltd. | 6,000 | 13,307 | ||||||
KDDI Corp. | 1,100 | 31,697 | ||||||
NTT DOCOMO, Inc. | 6,900 | 202,532 | ||||||
SK Telecom Co. Ltd. | 87 | 15,039 | ||||||
Softbank Corp. | 2,200 | 29,927 | ||||||
SoftBank Group Corp. | 1,300 | 55,601 | ||||||
Vodafone Group plc | 49,374 | 69,817 | ||||||
697,861 | ||||||||
Utilities—4.7% | ||||||||
Electric Utilities—3.0% |
| |||||||
Bouygues SA1 | 1,601 | 49,374 | ||||||
Centrais Eletricas Brasileiras SA1 | 2,700 | 12,041 | ||||||
Chubu Electric Power Co., Inc. | 2,200 | 29,714 | ||||||
CK Infrastructure Holdings Ltd. | 2,500 | 14,844 | ||||||
CLP Holdings Ltd. | 3,000 | 32,005 | ||||||
EDP - Energias de Portugal SA | 14,972 | 63,232 | ||||||
Endesa SA | 1,082 | 24,029 | ||||||
Enel Americas SA | 116,269 | 19,079 | ||||||
Enel Chile SA | 224,059 | 18,246 | ||||||
Enel SpA | 37,084 | 253,883 | ||||||
Fortum OYJ | 822 | 13,659 | ||||||
Iberdrola SA | 50,672 | 507,965 | ||||||
Kansai Electric Power Co., Inc. (The) | 5,000 | 51,232 | ||||||
Orsted AS3 | 519 | 52,549 | ||||||
SSE plc | 3,678 | 57,970 | ||||||
Tenaga Nasional Bhd | 7,700 | 21,881 | ||||||
1,221,703 | ||||||||
Gas Utilities—0.5% |
| |||||||
China Gas Holdings Ltd. | 6,800 | 24,821 | ||||||
China Resources Gas Group Ltd. | 6,000 | 33,606 | ||||||
ENN Energy Holdings Ltd. | 1,700 | 18,896 | ||||||
Hong Kong & China Gas Co. Ltd. | 27,000 | 47,781 | ||||||
Naturgy Energy Group SA | 822 | 14,526 | ||||||
Snam SpA | 2,337 | 10,487 | ||||||
Tokyo Gas Co. Ltd. | 1,400 | 30,608 | ||||||
180,725 | ||||||||
Independent Power and Renewable Electricity Producers—0.0% | ||||||||
China Resources Power Holdings Co. Ltd. | 12,000 | 14,170 | ||||||
Multi-Utilities—1.1% |
| |||||||
Engie SA | 9,174 | 99,661 | ||||||
National Grid plc | 16,444 | 193,558 | ||||||
RWE AG | 3,174 | 91,147 | ||||||
Suez | 3,592 | 40,644 |
23 INVESCO ADVANTAGE INTERNATIONAL FUND
SCHEDULE OF INVESTMENTS Unaudited / Continued
Shares | Value | |||||||
Multi-Utilities (Continued) |
| |||||||
Veolia Environnement SA | 1,082 | $ | 23,128 | |||||
448,138 | ||||||||
Water Utilities—0.1% |
| |||||||
Compania de Saneamento Basico do Estado de Sao Paulo | 1,300 | 9,581 | ||||||
Guangdong Investment Ltd. | 8,000 | 16,485 | ||||||
26,066 | ||||||||
Total Common Stocks (Cost $45,951,963) | 44,199,656 | |||||||
Preferred Stocks—1.3% |
| |||||||
Grab Holdings, Inc., H Shares, Preference1,4 | 11,374 | 70,097 | ||||||
Harambee Re Ltd., 2019-11,4 | 16,203 | 26,525 | ||||||
Lion Rock Re Ltd., 2019-11,4 | 25 | 36,036 | ||||||
Mt. Logan Re Ltd., 2019-11,4,5 | 250 | 234,089 | ||||||
NCM Re Ltd., 2019-11,4 | 30,022 | 48,404 | ||||||
Telefonica Brasil SA, Preference | 700 | 5,877 | ||||||
Thopas Re Ltd., 2019-11,4 | 500 | 25,345 | ||||||
Torricelli Re, 2019-11,4 | 276 | 23,464 | ||||||
Turing Re, 2019-120 (Cost $88,570, Acquisition Date 3/26/19)1,3,4 | 886 | 41,353 | ||||||
Viribus Re Ltd., 2019-11,4 | 38,090 | 3,207 | ||||||
Zee Entertainment Enterprises Ltd., 6% Cum. Non-Cv. | 32,510 | 1,372 | ||||||
Total Preferred Stocks (Cost $583,447) | 515,769 | |||||||
Principal Amount |
| |||||||
Event-Linked Bonds—0.3% |
| |||||||
Alturas Re Segregated Account 2019-1 Catastrophe Linked Nts., 0.00%, 6/30/20 (Cost $1,000, Acquisition Date 12/20/18)3,4,6 | $ | 1,000 | 26,527 | |||||
Eden Re II Ltd. Catastrophe Linked Nts., 0.00%, 3/22/23 (Cost $2,500, Acquisition Date 12/14/18)3,4,6 | 2,500 | 20,186 | ||||||
Limestone Re Ltd. Catastrophe Linked Nts., 0.00%, 6/30/20 (Cost $5,264, Acquisition Date 12/27/18)3,4,6 | 5,265 | 25,388 | ||||||
Sector Re V Ltd. Catastrophe Linked Nts., 0.00%, 3/1/2420 (Cost $120,000, Acquisition Date 4/23/19)3,4,6 | 120,000 | 47,285 | ||||||
Versutus Ltd., 2019-1, Cl. B Catastrophe Linked Nts., 0.00%, 6/30/204,6 | 19,472 | 20,963 | ||||||
Total Event-Linked Bonds (Cost $148,237) | 140,349 | |||||||
Shares | ||||||||
Investment Company—36.0% |
| |||||||
Invesco Government & Agency Portfolio, Institutional Class, 0.20%5,7 (Cost $14,513,552) | 14,513,552 | 14,513,552 | ||||||
Total Investments, at Value (Cost $61,197,199) | 147.2% | 59,369,326 | ||||||
Net Other Assets (Liabilities) | (47.2) | (19,031,594 | ) | |||||
Net Assets | 100.0% | $ | 40,337,732 | |||||
Footnotes to Schedule of Investments
1. Non-income producing security.
2. The Fund holds securities which have been issued by the same entity and that trade on separate exchanges.
24 INVESCO ADVANTAGE INTERNATIONAL FUND
Footnotes to Schedule of Investments (continued)
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 April 30, 2020 was $877,385, which represented 2.18% of the Fund’s Net Assets.
4. The value of this security was determined using significant unobservable inputs. See Note 3 of the accompanying Notes.
5. Affiliated issuer. The issuer is affiliated by having an investment adviser that is under common control of Invesco Ltd. and/or the Investment Company Act of 1940, as amended (the “1940 Act”), defines “affiliated person” to include an issuer of which a fund holds 5% or more of the outstanding voting securities. The Fund has not owned enough of the outstanding voting securities of the issuer to have control (as defined in the 1940 Act) of that issuer. Transactions during the reporting period in which the issuer was an affiliate are as follows:
Shares October 31, 2019 | Gross Additions | Gross Reductions | Shares April 30, 2020 | |||||||||||||
Preferred Stock | ||||||||||||||||
Mt. Logan Re Ltd., 2019-1 | 250 | — | — | 250 | ||||||||||||
Investment Company | ||||||||||||||||
Invesco Russell 1000 Dynamic Multifactor Exchange Traded Fund | 147,782 | — | 147,782 | — | ||||||||||||
Invesco Government & Agency Portfolio, Institutional Class, 0.20% | 30,485,214 | 36,567,789 | 52,539,451 | 14,513,552 | ||||||||||||
Value | Income | Realized Gain (Loss) | Change in Unrealized Gain (Loss) | |||||||||||||
Preferred Stock | ||||||||||||||||
Mt. Logan Re Ltd., 2019-1 | $ | 234,089 | $ | — | $ | — | $ | 12,749 | ||||||||
Investment Company | ||||||||||||||||
Invesco Russell 1000 Dynamic Multifactor Exchange Traded Fund | — | 27,657 | 571,156 | (599,336 | ) | |||||||||||
Invesco Government & Agency Portfolio, Institutional Class, 0.20% | 14,513,552 | 177,840 | — | — | ||||||||||||
|
| |||||||||||||||
Total | $ | 14,747,641 | $ | 205,497 | $ | 571,156 | $ | (586,587) | ||||||||
|
|
6. Zero coupon bond reflects effective yield on the original acquisition date.
7. The rate shown is the 7-day SEC standardized yield as of April 30, 2020.
Distribution of investments representing geographic holdings, as a percentage of total investments at value, is as follows:
Geographic Holdings (Unaudited) | Value | Percent | ||||||||
United States | $ | 15,165,691 | 25.6 | % | ||||||
Japan | 8,154,040 | 13.7 | ||||||||
China | 5,805,944 | 9.8 | ||||||||
United Kingdom | 3,992,920 | 6.7 | ||||||||
France | 3,519,162 | 5.9 | ||||||||
Switzerland | 3,515,219 | 5.9 | ||||||||
Germany | 2,568,979 | 4.3 | ||||||||
Australia | 2,032,255 | 3.4 | ||||||||
South Korea | 1,914,398 | 3.2 | ||||||||
Netherlands | 1,866,567 | 3.1 | ||||||||
Taiwan | 1,509,198 | 2.5 |
25 INVESCO ADVANTAGE INTERNATIONAL FUND
SCHEDULE OF INVESTMENTS Unaudited / Continued
Geographic Holdings (Continued) | Value | Percent | ||||||
Spain | $ | 1,343,738 | 2.3% | |||||
Denmark | 1,233,029 | 2.1 | ||||||
Italy | 802,573 | 1.4 | ||||||
Sweden | 740,678 | 1.3 | ||||||
Hong Kong | 733,458 | 1.2 | ||||||
Russia | 680,729 | 1.2 | ||||||
Brazil | 673,704 | 1.1 | ||||||
Supranational | 578,772 | 1.0 | ||||||
South Africa | 476,284 | 0.8 | ||||||
Indonesia | 280,714 | 0.5 | ||||||
Belgium | 264,861 | 0.5 | ||||||
Norway | 237,994 | 0.4 | ||||||
Mexico | 204,421 | 0.3 | ||||||
Finland | 174,453 | 0.3 | ||||||
Ireland | 156,726 | 0.3 | ||||||
Malaysia | 140,263 | 0.2 | ||||||
Singapore | 94,816 | 0.2 | ||||||
Turkey | 89,130 | 0.2 | ||||||
Portugal | 77,853 | 0.1 | ||||||
Chile | 65,812 | 0.1 | ||||||
Luxembourg | 48,481 | 0.1 | ||||||
Austria | 48,279 | 0.1 | ||||||
Philippines | 44,882 | 0.1 | ||||||
Poland | 38,568 | 0.1 | ||||||
Macau | 25,401 | 0.0 | ||||||
Hungary | 24,711 | 0.0 | ||||||
India | 23,505 | 0.0 | ||||||
Czech Republic | 21,110 | 0.0 | ||||||
Vietnam | 8 | 0.0 | ||||||
|
| |||||||
Total | $ | 59,369,326 | 100.0% | |||||
|
|
Futures Contracts as of April 30, 2020 |
| |||||||||||||||||||||||
Description | Buy/Sell | Expiration Date | Number of Contracts | Notional Amount (000’s) | Value | Unrealized Appreciation/ (Depreciation) | ||||||||||||||||||
Canadian Dollar | ||||||||||||||||||||||||
Index | Buy | 6/16/20 | 37 | USD 2,666 | $ | 2,657,525 | $ | (8,958 | ) | |||||||||||||||
S&P/TSX 60 Index | Buy | 6/18/20 | 20 | CAD 2,344 | 2,552,391 | 208,076 | ||||||||||||||||||
$ | 199,118 | |||||||||||||||||||||||
|
|
Over-the-Counter Total Return Swaps at April 30, 2020 |
| |||||||||||||||||||||||||||
Reference Asset | Counter- party | Pay/Receive Total Return* | Floating Rate | Maturity Date | Notional Amount (000’s) | Value | Unrealized Appreciation/ (Depreciation) | |||||||||||||||||||||
MSCI EAFE Minimum Volatility Notes | BOA | Receive | | One-Month USD BBA LIBOR minus 15 bps | | 6/3/20 | USD 5,001 | $ 372,033 | $ 372,033 | |||||||||||||||||||
MSCI EAFE Minimum Volatility Notes | GSCOI | Receive | | One-Month USD BBA LIBOR plus 20 bps | | 7/6/20 | USD 4,889 | 365,474 | 365,474 |
26 INVESCO ADVANTAGE INTERNATIONAL FUND
Over-the-Counter Total Return Swaps (Continued) |
Reference Asset | Counter- party | Pay/Receive Total Return* | Floating Rate | Maturity Date | Notional Amount (000’s) | Value | Unrealized Appreciation/ (Depreciation) | |||||||||||||||||||||
MSCI EM Minimum Volatility Notes | GSCOI | Receive | | One-Month USD BBA LIBOR plus 77 bps | | 6/2/20 | USD 2,074 | $ | 209,643 | $ | 209,643 | |||||||||||||||||
MSCI EM Minimum Volatility Notes | GSCOI | Receive | | One-Month USD BBA LIBOR plus 77 bps | | 7/2/20 | USD 2,093 | 207,314 | 207,314 | |||||||||||||||||||
|
| |||||||||||||||||||||||||||
Total Over-the-Counter Total Return Swaps | $ | 1,154,464 | $ | 1,154,464 | ||||||||||||||||||||||||
|
|
* 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 | ||
BOA | Bank of America NA | |
GSCOI | Goldman Sachs International | |
Currency abbreviations indicate amounts reporting in currencies | ||
CAD | Canadian Dollar | |
Definitions | ||
ADR | American Depositary Receipt | |
BBA LIBOR | British Bankers’ Association London-Interbank Offered Rate | |
EAFE | Europe, Australasia and Far East | |
EM | Emerging Markets | |
GDR | Global Depositary Receipt | |
JSC | Joint Stock Company | |
MSCI | Morgan Stanley Capital International | |
S&P | Standard & Poor’s | |
TSX 60 | 60 largest companies on the Toronto Stock Exchange |
See accompanying Notes to Financial Statements.
27 INVESCO ADVANTAGE INTERNATIONAL FUND
ASSETS AND LIABILITIES April 30, 2020 Unaudited
Assets | ||||
Investments, at value—see accompanying schedule of investments: | ||||
Unaffiliated companies (cost $46,433,647) | $ | 44,621,685 | ||
Affiliated companies (cost $14,763,552) | 14,747,641 | |||
|
| |||
59,369,326 | ||||
| ||||
Cash | 75,732 | |||
| ||||
Cash—foreign currencies (cost $51,355) | 51,430 | |||
| ||||
Swaps, at value | 1,154,464 | |||
| ||||
Receivables and other assets: | ||||
Investments sold | 2,192,187 | |||
Variation margin receivable - futures contracts | 1,907,173 | |||
Interest and dividends | 225,794 | |||
Shares of beneficial interest sold | 10,201 | |||
Other | 112,469 | |||
|
| |||
Total assets | 65,098,776 | |||
| ||||
Liabilities | ||||
Payables and other liabilities: | ||||
Shares of beneficial interest redeemed | 24,557,513 | |||
Shareholder communications | 47,767 | |||
Distribution and service plan fees | 14,842 | |||
Foreign capital gains tax | 12,633 | |||
Transfer and shareholder servicing agent fees | 12,248 | |||
Trustees’ compensation | 2,079 | |||
Advisory fees | 865 | |||
Administration fees | 693 | |||
Other | 112,404 | |||
|
| |||
Total liabilities | 24,761,044 | |||
| ||||
Net Assets | $ | 40,337,732 | ||
|
| |||
| ||||
Composition of Net Assets | ||||
Shares of beneficial interest | $ | 42,989,601 | ||
| ||||
Total accumulated loss | (2,651,869) | |||
|
| |||
Net Assets | $ | 40,337,732 | ||
|
|
28 INVESCO ADVANTAGE INTERNATIONAL FUND
Net Asset Value Per Share | ||||
Class A Shares: | ||||
Net asset value and redemption price per share (based on net assets of $33,430,359 and 3,402,786 shares of beneficial interest outstanding) | $9.82 | |||
Maximum offering price per share (net asset value plus sales charge of 5.50% of offering price) | $10.39 | |||
Class C Shares: | ||||
Net asset value, redemption price (excludes applicable contingent deferred sales charge) and offering price per share (based on net assets of $2,914,223 and 304,326 shares of beneficial interest outstanding) | $9.58 | |||
Class R Shares: | ||||
Net asset value, redemption price and offering price per share (based on net assets of $3,204,121 and 328,713 shares of beneficial interest outstanding) | $9.75 | |||
Class Y Shares: | ||||
Net asset value, redemption price and offering price per share (based on net assets of $769,549 and 77,890 shares of beneficial interest outstanding) | $9.88 | |||
Class R5 Shares: | ||||
Net asset value, redemption price and offering price per share (based on net assets of $9,588 and 973.71 shares of beneficial interest outstanding) | $9.85 | |||
Class R6 Shares: | ||||
Net asset value, redemption price and offering price per share (based on net assets of $9,892 and 1,000 shares of beneficial interest outstanding) | $9.89 |
See accompanying Notes to Financial Statements.
29 INVESCO ADVANTAGE INTERNATIONAL FUND
OPERATIONS For the Six Months Ended April 30, 2020 Unaudited
Investment Income | ||||
Dividends: | ||||
Unaffiliated companies (net of foreign withholding taxes of $54,163) | $ | 411,828 | ||
Affiliated companies | 205,497 | |||
Interest | 11,447 | |||
|
| |||
Total investment income | 628,772 | |||
Expenses | ||||
Advisory fees | 230,396 | |||
Administration fees | 6,584 | |||
Distribution and service plan fees: | ||||
Class A | 77,466 | |||
Class C | 16,050 | |||
Class R | 8,475 | |||
Transfer and shareholder servicing agent fees: | ||||
Class A | 32,633 | |||
Class C | 1,678 | |||
Class R | 1,768 | |||
Class Y | 626 | |||
Class R5 | 3 | |||
Class R6 | 2 | |||
Shareholder communications: | ||||
Class A | 14,836 | |||
Class C | 763 | |||
Class R | 801 | |||
Class Y | 285 | |||
Class R5 | 2 | |||
Class R6 | 2 | |||
Registration fees | 63,026 | |||
Legal, auditing and other professional fees | 44,202 | |||
Custodian fees and expenses | 24,897 | |||
Trustees’ compensation | 8,379 | |||
Other | 5,149 | |||
|
| |||
Total expenses | 538,023 | |||
Less waivers and reimbursement of expenses | (220,087) | |||
|
| |||
Net expenses |
| 317,936
|
| |
Net Investment Income | 310,836 |
30 INVESCO ADVANTAGE INTERNATIONAL FUND
Realized and Unrealized Gain (Loss) | ||||||
Net realized gain (loss) on: | ||||||
Investment transactions in: | ||||||
Unaffiliated companies (net of foreign capital gains tax of $ 9,552) | $ 1,777,611 | |||||
Affiliated companies | 571,156 | |||||
Option contracts written | (423,525) | |||||
Futures contracts | (1,368,446) | |||||
Foreign currency transactions | (15,418) | |||||
Swap contracts | (1,075,100) | |||||
| ||||||
Net realized loss | (533,722) | |||||
Net change in unrealized appreciation/(depreciation) on: | ||||||
Investment transactions in: | ||||||
Unaffiliated companies (net of foreign capital gains tax of $ 5,268) | (7,037,937) | |||||
Affiliated companies | (586,587) | |||||
Foreign currency transactions | (24,015) | |||||
Futures contracts | (139,924) | |||||
Option contracts written | 102,404 | |||||
Swap contracts | 1,154,464 | |||||
| ||||||
Net change in unrealized appreciation/(depreciation) | (6,531,595) | |||||
Net Decrease in Net Assets Resulting from Operations | $(6,754,481) | |||||
|
See accompanying Notes to Financial Statements.
31 INVESCO ADVANTAGE INTERNATIONAL FUND
STATEMENT OF CHANGES IN NET ASSETS
Six Months Ended April 30, 2020 (Unaudited) | Year Ended October 31, 2019 | |||||||||||
Operations | ||||||||||||
Net investment income | $ | 310,836 | $ | 590,217 | ||||||||
Net realized gain (loss) | (533,722 | ) | (593,439 | ) | ||||||||
Net change in unrealized appreciation/(depreciation) | (6,531,595 | ) | 6,133,644 | |||||||||
| ||||||||||||
Net increase (decrease) in net assets resulting from operations | (6,754,481 | ) | 6,130,422 | |||||||||
Dividends and/or Distributions to Shareholders | ||||||||||||
Distributions to shareholders from distributable earnings: | ||||||||||||
Class A | (368,886 | ) | (3,362,080 | ) | ||||||||
Class C | (19,719 | ) | (212,542 | ) | ||||||||
Class R | (19,406 | ) | (141,361 | ) | ||||||||
Class Y | (8,268 | ) | (24,701 | ) | ||||||||
Class R5 | (61 | ) | — | |||||||||
Class R6 | (63 | ) | (583 | ) | ||||||||
| ||||||||||||
Total distributions from distributable earnings | (416,403 | ) | (3,741,267 | ) | ||||||||
Beneficial Interest Transactions | ||||||||||||
Net increase (decrease) in net assets resulting from beneficial interest transactions: | ||||||||||||
Class A | (24,112,810 | ) | 934,186 | |||||||||
Class C | (49,319 | ) | (455,722 | ) | ||||||||
Class R | 334,351 | 616,194 | ||||||||||
Class Y | (557,160 | ) | 861,682 | |||||||||
Class R5 | — | 10,001 | ||||||||||
Class R6 | — | — | ||||||||||
| ||||||||||||
Total beneficial interest transactions | (24,384,938 | ) | 1,966,341 | |||||||||
Net Assets | ||||||||||||
Total increase (decrease) | (31,555,822 | ) | 4,355,496 | |||||||||
Beginning of period | 71,893,554 | 67,538,058 | ||||||||||
| ||||||||||||
End of period | $ | 40,337,732 | $ | 71,893,554 | ||||||||
|
See accompanying Notes to Financial Statements.
32 INVESCO ADVANTAGE INTERNATIONAL FUND
Class A | Six Months Ended April 30, 2020 (Unaudited) | Year Ended October 31, 2019 | Year Ended October 31, 2018 | Year Ended October 31, 2017 | Year Ended October 31, 2016 | Period Ended October 30, 20151,2 | ||||||||||||||||||
Per Share Operating Data | ||||||||||||||||||||||||
Net asset value, beginning of period | $10.90 | $10.57 | $11.62 | $10.49 | $10.30 | $10.00 | ||||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income3 | 0.05 | 0.09 | 0.17 | 0.15 | 0.14 | 0.02 | ||||||||||||||||||
Net realized and unrealized gain (loss) | (1.07) | 0.82 | (0.96) | 1.48 | 0.14 | 0.28 | ||||||||||||||||||
Total from investment operations | (1.02) | 0.91 | (0.79) | 1.63 | 0.28 | 0.30 | ||||||||||||||||||
Dividends and/or distributions to shareholders: | ||||||||||||||||||||||||
Dividends from net investment income | 0.00 | 0.00 | (0.05) | (0.50) | (0.09) | 0.00 | ||||||||||||||||||
Distributions from net realized gain | (0.06) | (0.58) | (0.21) | 0.00 | | (0.00)4 | | 0.00 | ||||||||||||||||
Total dividends and/or distributions to shareholders | (0.06) | (0.58) | (0.26) | (0.50) | (0.09) | 0.00 | ||||||||||||||||||
Net asset value, end of period | $9.82 | $10.90 | $10.57 | $11.62 | $10.49 | $10.30 | ||||||||||||||||||
Total Return, at Net Asset Value5 | (9.41)% | 9.51% | (6.98)% | 16.26% | 2.73% | 3.00% | ||||||||||||||||||
Ratios/Supplemental Data | ||||||||||||||||||||||||
Net assets, end of period (in thousands) | $33,430 | $63,878 | $60,916 | $64,323 | $53,579 | $51,525 | ||||||||||||||||||
Average net assets (in thousands) | $62,801 | $60,766 | $65,968 | $57,577 | $50,502 | $49,048 | ||||||||||||||||||
Ratios to average net assets:6 | ||||||||||||||||||||||||
Net investment income | 0.93% | 0.91%7 | 1.48%7 | 1.41%7 | 1.38%7 | 1.07% | ||||||||||||||||||
Expenses excluding specific expenses listed below | 1.49% | 1.53% | 1.49%8 | 1.47%8 | 1.42%8 | 1.61% | ||||||||||||||||||
Interest and fees from borrowings | 0.00% | 0.00%9 | 0.00%9 | 0.00% | 0.00% | 0.00% | ||||||||||||||||||
Total expenses10 | 1.49% | 1.53% | 1.49%8 | 1.47%8 | 1.42%8 | 1.61% | ||||||||||||||||||
Expenses after payments, waivers and/or reimbursements and reduction to custodian expenses | 0.86% | 1.14% | 1.17%8 | 1.10%8 | 1.10%8 | 1.05% | ||||||||||||||||||
Portfolio turnover rate11 | 120% | 43% | 126% | 54% | 61% | 8% |
33 INVESCO ADVANTAGE INTERNATIONAL FUND
FINANCIAL HIGHLIGHTS Continued
1. Represents the last business day of the Fund’s reporting period.
2. For the period from August 27, 2015 (commencement of operations) to October 30, 2015.
3. Calculated based on the average shares outstanding during the period.
4. Less than $0.005 per share.
5. 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.
6. Annualized for periods less than one full year.
7. Includes the Fund’s share of the allocated net investment income from Invesco Oppenheimer Master Event-Linked Bond Fund.
8. Includes the Fund’s share of the allocated expenses from Invesco Oppenheimer Master Event-Linked Bond Fund.
9. Less than 0.005%.
10. Total expenses including indirect expenses from fund fees and expenses were as follows:
Six Months Ended April 30, 2020 | 1.54 | % | ||||
Year Ended October 31, 2019 | 1.67 | % | ||||
Year Ended October 31, 2018 | 1.66 | % | ||||
Year Ended October 31, 2017 | 1.62 | % | ||||
Year Ended October 31, 2016 | 1.53 | % | ||||
Period Ended October 30, 2015 | 1.72 | % |
11. Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable.
See accompanying Notes to Financial Statements.
34 INVESCO ADVANTAGE INTERNATIONAL FUND
Class C | Six Months Ended April 30, 2020 (Unaudited) | Year Ended October 31, 2019 | Year Ended October 31, 2018 | Year Ended October 31, 2017 | Year Ended October 31, 2016 | Period Ended October 30, 20151,2 | ||||||||||||||||||
Per Share Operating Data | ||||||||||||||||||||||||
Net asset value, beginning of period | $10.66 | $10.42 | $11.50 | $10.41 | $10.29 | $10.00 | ||||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income3 | 0.01 | 0.02 | 0.08 | 0.07 | 0.04 | 0.01 | ||||||||||||||||||
Net realized and unrealized gain (loss) | (1.03) | 0.80 | (0.95) | 1.47 | 0.15 | 0.28 | ||||||||||||||||||
Total from investment operations | (1.02) | 0.82 | (0.87) | 1.54 | 0.19 | 0.29 | ||||||||||||||||||
Dividends and/or distributions to shareholders: | ||||||||||||||||||||||||
Dividends from net investment income | 0.00 | 0.00 | 0.00 | (0.45) | (0.07) | 0.00 | ||||||||||||||||||
Distributions from net realized gain | (0.06) | (0.58) | (0.21) | 0.00 | (0.00)4 | 0.00 | ||||||||||||||||||
Total dividends and/or distributions to shareholders | (0.06) | (0.58) | (0.21) | (0.45) | (0.07) | 0.00 | ||||||||||||||||||
Net asset value, end of period | $9.58 | $10.66 | $10.42 | $11.50 | $10.41 | $10.29 | ||||||||||||||||||
Total Return, at Net Asset Value5 | (9.62)% | 8.73% | (7.72)% | 15.42% | 1.88% | 2.90% | ||||||||||||||||||
Ratios/Supplemental Data | ||||||||||||||||||||||||
Net assets, end of period (in thousands) | $2,914 | $3,294 | $3,649 | $1,701 | $522 | $45 | ||||||||||||||||||
Average net assets (in thousands) | $3,226 | $3,637 | $3,483 | $997 | $308 | $28 | ||||||||||||||||||
Ratios to average net assets:6 | ||||||||||||||||||||||||
Net investment income | 0.19% | 0.16%7 | 0.73%7 | 0.67%7 | 0.36%7 | 0.42% | ||||||||||||||||||
Expenses excluding specific expenses listed below | 2.24% | 2.43% | 2.62%8 | 2.98%8 | 3.05%8 | 2.34% | ||||||||||||||||||
Interest and fees from borrowings | 0.00% | 0.00%9 | 0.00%9 | 0.00% | 0.00% | 0.00% | ||||||||||||||||||
Total expenses10 | 2.24% | 2.43% | 2.62%8 | 2.98%8 | 3.05%8 | 2.34% | ||||||||||||||||||
Expenses after payments, waivers and/or reimbursements and reduction to custodian expenses | 1.60% | 1.89% | 1.92%8 | 1.85%8 | 1.85%8 | 1.81% | ||||||||||||||||||
Portfolio turnover rate11 | 120% | 43% | 126% | 54% | 61% | 8% |
35 INVESCO ADVANTAGE INTERNATIONAL FUND
FINANCIAL HIGHLIGHTS Continued
1. Represents the last business day of the Fund’s reporting period.
2. For the period from August 27, 2015 (commencement of operations) to October 30, 2015.
3. Calculated based on the average shares outstanding during the period.
4. Less than $0.005 per share.
5. 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.
6. Annualized for periods less than one full year.
7. Includes the Fund’s share of the allocated net investment income from Invesco Oppenheimer Master Event-Linked Bond Fund.
8. Includes the Fund’s share of the allocated expenses from Invesco Oppenheimer Master Event-Linked Bond Fund.
9. Less than 0.005%.
10. Total expenses including indirect expenses from fund fees and expenses were as follows:
Six Months Ended April 30, 2020 | 2.29 | % | ||||
Year Ended October 31, 2019 | 2.57 | % | ||||
Year Ended October 31, 2018 | 2.79 | % | ||||
Year Ended October 31, 2017 | 3.13 | % | ||||
Year Ended October 31, 2016 | 3.16 | % | ||||
Period Ended October 30, 2015 | 2.45 | % |
11. Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable.
See accompanying Notes to Financial Statements.
36 INVESCO ADVANTAGE INTERNATIONAL FUND
Class R | Six Months Ended April 30, 2020 (Unaudited) | Year Ended October 31, 2019 | Year Ended October 31, 2018 | Year Ended October 31, 2017 | Year Ended October 31, 2016 | Period Ended October 30, 20151,2 | ||||||||||||||||||
Per Share Operating Data | ||||||||||||||||||||||||
Net asset value, beginning of period | $10.83 | $10.52 | $11.58 | $10.47 | $10.30 | $10.00 | ||||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income3 | 0.04 | 0.07 | 0.14 | 0.13 | 0.04 | 0.01 | ||||||||||||||||||
Net realized and unrealized gain (loss) | (1.06) | 0.82 | (0.96) | 1.47 | 0.21 | 0.29 | ||||||||||||||||||
Total from investment operations | (1.02) | 0.89 | (0.82) | 1.60 | 0.25 | 0.30 | ||||||||||||||||||
Dividends and/or distributions to shareholders: | ||||||||||||||||||||||||
Dividends from net investment income | 0.00 | 0.00 | (0.03) | (0.49) | (0.08) | 0.00 | ||||||||||||||||||
Distributions from net realized gain | (0.06) | (0.58) | (0.21) | 0.00 | (0.00)4 | 0.00 | ||||||||||||||||||
Total dividends and/or distributions to shareholders | (0.06) | (0.58) | (0.24) | (0.49) | (0.08) | 0.00 | ||||||||||||||||||
Net asset value, end of period | $9.75 | $10.83 | $10.52 | $11.58 | $10.47 | $10.30 | ||||||||||||||||||
Total Return, at Net Asset Value5 | (9.47)% | 9.35% | (7.29)% | 16.03% | 2.43% | 3.00% | ||||||||||||||||||
Ratios/Supplemental Data | ||||||||||||||||||||||||
Net assets, end of period (in thousands) | $3,204 | $3,266 | $2,513 | $2,533 | $1,204 | $10 | ||||||||||||||||||
Average net assets (in thousands) | $3,411 | $2,886 | $2,904 | $1,995 | $226 | $10 | ||||||||||||||||||
Ratios to average net assets:6 | ||||||||||||||||||||||||
Net investment income | 0.67% | 0.66%7 | 1.23%7 | 1.17%7 | 0.43%7 | 0.77% | ||||||||||||||||||
Expenses excluding specific expenses listed below | 1.74% | 1.94% | 2.15%8 | 2.57%8 | 2.07%8 | 1.48% | ||||||||||||||||||
Interest and fees from borrowings | 0.00% | 0.00%9 | 0.00%9 | 0.00% | 0.00% | 0.00% | ||||||||||||||||||
Total expenses10 | 1.74% | 1.94% | 2.15%8 | 2.57%8 | 2.07%8 | 1.48% | ||||||||||||||||||
Expenses after payments, waivers and/or reimbursements and reduction to custodian expenses | 1.12% | 1.39% | 1.42%8 | 1.35%8 | 1.33%8 | 1.33% | ||||||||||||||||||
Portfolio turnover rate11 | 120% | 43% | 126% | 54% | 61% | 8% |
37 INVESCO ADVANTAGE INTERNATIONAL FUND
FINANCIAL HIGHLIGHTS Continued
1. Represents the last business day of the Fund’s reporting period.
2. For the period from August 27, 2015 (commencement of operations) to October 30, 2015.
3. Calculated based on the average shares outstanding during the period.
4. Less than $0.005 per share.
5. 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.
6. Annualized for periods less than one full year.
7. Includes the Fund’s share of the allocated net investment income from Invesco Oppenheimer Master Event-Linked Bond Fund.
8. Includes the Fund’s share of the allocated expenses from Invesco Oppenheimer Master Event-Linked Bond Fund.
9. Less than 0.005%.
10. Total expenses including indirect expenses from fund fees and expenses were as follows:
Six Months Ended April 30, 2020 | 1.79 | % | ||||
Year Ended October 31, 2019 | 2.08 | % | ||||
Year Ended October 31, 2018 | 2.32 | % | ||||
Year Ended October 31, 2017 | 2.72 | % | ||||
Year Ended October 31, 2016 | 2.18 | % | ||||
Period Ended October 30, 2015 | 1.59 | % |
11. Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable.
See accompanying Notes to Financial Statements.
38 INVESCO ADVANTAGE INTERNATIONAL FUND
Class Y | Six Months Ended April 30, 2020 (Unaudited) | Year Ended October 31, 2019 | Year Ended October 31, 2018 | Year Ended October 31, 2017 | Year Ended October 31, 2016 | Period Ended October 30, 20151,2 | ||||||||||||||||||
Per Share Operating Data | ||||||||||||||||||||||||
Net asset value, beginning of period | $10.95 | $10.60 | $11.65 | $10.51 | $10.31 | $10.00 | ||||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income3 | 0.06 | 0.11 | 0.19 | 0.17 | 0.12 | 0.02 | ||||||||||||||||||
Net realized and unrealized gain (loss) | (1.07) | 0.82 | (0.97) | 1.47 | 0.17 | 0.29 | ||||||||||||||||||
Total from investment operations | (1.01) | 0.93 | (0.78) | 1.64 | 0.29 | 0.31 | ||||||||||||||||||
Dividends and/or distributions to shareholders: | ||||||||||||||||||||||||
Dividends from net investment income | 0.00 | 0.00 | (0.06) | (0.50) | (0.09) | 0.00 | ||||||||||||||||||
Distributions from net realized gain | (0.06) | (0.58) | (0.21) | 0.00 | (0.00)4 | 0.00 | ||||||||||||||||||
Total dividends and/or distributions to shareholders | (0.06) | (0.58) | (0.27) | (0.50) | (0.09) | 0.00 | ||||||||||||||||||
Net asset value, end of period | $9.88 | $10.95 | $10.60 | $11.65 | $10.51 | $10.31 | ||||||||||||||||||
Total Return, at Net Asset Value5 | (9.27)% | 9.67% | (6.86)% | 16.41% | 2.86% | 3.10% | ||||||||||||||||||
Ratios/Supplemental Data | ||||||||||||||||||||||||
Net assets, end of period (in thousands) | $770 | $1,433 | $450 | $271 | $89 | $10 | ||||||||||||||||||
Average net assets (in thousands) | $1,187 | $1,195 | $401 | $165 | $23 | $10 | ||||||||||||||||||
Ratios to average net assets:6 | ||||||||||||||||||||||||
Net investment income | 1.13% | 1.06%7 | 1.63%7 | 1.57%7 | 1.13%7 | 1.17% | ||||||||||||||||||
Expenses excluding specific expenses listed below | 1.24% | 1.36% | 1.63%8 | 2.65%8 | 1.52%8 | 1.48% | ||||||||||||||||||
Interest and fees from borrowings | 0.00% | 0.00%9 | 0.00%9 | 0.00% | 0.00% | 0.00% | ||||||||||||||||||
Total expenses10 | 1.24% | 1.36% | 1.63%8 | 2.65%8 | 1.52%8 | 1.48% | ||||||||||||||||||
Expenses after payments, waivers and/or reimbursements and reduction to custodian expenses | 0.66% | 0.99% | 1.02%8 | 0.95%8 | 0.94%8 | 0.94% | ||||||||||||||||||
Portfolio turnover rate11 | 120% | 43% | 126% | 54% | 61% | 8% |
39 INVESCO ADVANTAGE INTERNATIONAL FUND
FINANCIAL HIGHLIGHTS Continued
1. Represents the last business day of the Fund’s reporting period.
2. For the period from August 27, 2015 (commencement of operations) to October 30, 2015.
3. Calculated based on the average shares outstanding during the period.
4. Less than $0.005 per share.
5. 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.
6. Annualized for periods less than one full year.
7. Includes the Fund’s share of the allocated net investment income from Invesco Oppenheimer Master Event-Linked Bond Fund.
8. Includes the Fund’s share of the allocated expenses from Invesco Oppenheimer Master Event-Linked Bond Fund.
9. Less than 0.005%.
10. Total expenses including indirect expenses from fund fees and expenses were as follows:
Six Months Ended April 30, 2020 | 1.29 | % | ||||
Year Ended October 31, 2019 | 1.50 | % | ||||
Year Ended October 31, 2018 | 1.80 | % | ||||
Year Ended October 31, 2017 | 2.80 | % | ||||
Year Ended October 31, 2016 | 1.63 | % | ||||
Period Ended October 30, 2015 | 1.59 | % |
11. Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable.
See accompanying Notes to Financial Statements.
40 INVESCO ADVANTAGE INTERNATIONAL FUND
Class R5 | Six Months Ended April 30, 2020 (Unaudited) | Period Ended October 31, 20191 | ||||||
Per Share Operating Data | ||||||||
Net asset value, beginning of period | $10.91 | $10.27 | ||||||
Income (loss) from investment operations: | ||||||||
Net investment income2 | 0.06 | 0.05 | ||||||
Net realized and unrealized gain (loss) | (1.06) | 0.59 | ||||||
Total from investment operations | (1.00) | 0.64 | ||||||
Dividends and/or distributions to shareholders: | ||||||||
Dividends from net investment income | 0.00 | 0.00 | ||||||
Distributions from net realized gain | (0.06) | 0.00 | ||||||
Total dividends and/or distributions to shareholders | (0.06) | 0.00 | ||||||
Net asset value, end of period | $9.85 | $10.91 | ||||||
Total Return, at Net Asset Value3 | (9.22)% | 6.23% | ||||||
Ratios/Supplemental Data | ||||||||
Net assets, end of period (in thousands) | $10 | $11 | ||||||
Average net assets (in thousands) | $10 | $10 | ||||||
Ratios to average net assets:4 | ||||||||
Net investment income | 1.13% | 1.11%5 | ||||||
Expenses excluding specific expenses listed below | 1.19% | 1.26% | ||||||
Interest and fees from borrowings | 0.00% | 0.00% | ||||||
Total expenses6 | 1.19% | 1.26% | ||||||
Expenses after payments, waivers and/or reimbursements and reduction to custodian expenses | 0.66% | 0.94% | ||||||
Portfolio turnover rate7 | 120% | 43% |
1. For the period from after the close of business on May 24, 2019 (inception of offering) to October 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 Event-Linked Bond Fund.
6. Total expenses including indirect expenses from fund fees and expenses were as follows:
Six Months Ended April 30, 2020 | 1.24 | % | ||||
Period Ended October 31, 2019 | 1.40 | % |
7. Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable.
See accompanying Notes to Financial Statements.
41 INVESCO ADVANTAGE INTERNATIONAL FUND
FINANCIAL HIGHLIGHTS Continued
Class R6 | Six Months Ended April 30, 2020 (Unaudited) | Year Ended October 31, 2019 | Year Ended October 31, 2018 | Year Ended October 31, 2017 | Year Ended October 31, 2016 | Period Ended October 30, 20151,2 | ||||||||||||||||||
Per Share Operating Data | ||||||||||||||||||||||||
Net asset value, beginning of period | $10.96 | $10.59 | $11.65 | $10.51 | $10.31 | $10.00 | ||||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income3 | 0.06 | 0.12 | 0.20 | 0.18 | 0.16 | 0.02 | ||||||||||||||||||
Net realized and unrealized gain (loss) | (1.07) | 0.83 | (0.97) | 1.48 | 0.13 | 0.29 | ||||||||||||||||||
Total from investment operations | (1.01) | 0.95 | (0.77) | 1.66 | 0.29 | 0.31 | ||||||||||||||||||
Dividends and/or distributions to shareholders: | ||||||||||||||||||||||||
Dividends from net investment income | 0.00 | 0.00 | (0.08) | (0.52) | (0.09) | 0.00 | ||||||||||||||||||
Distributions from net realized gain | (0.06) | (0.58) | (0.21) | 0.00 | | (0.00)4 | | 0.00 | ||||||||||||||||
Total dividends and/or distributions to shareholders | (0.06) | (0.58) | (0.29) | (0.52) | (0.09) | 0.00 | ||||||||||||||||||
Net asset value, end of period | $9.89 | $10.96 | $10.59 | $11.65 | $10.51 | $10.31 | ||||||||||||||||||
Total Return, at Net Asset Value5 | (9.27)% | 9.88% | (6.84)% | 16.60% | 2.91% | 3.10% | ||||||||||||||||||
Ratios/Supplemental Data | ||||||||||||||||||||||||
Net assets, end of period (in thousands) | $10 | $11 | $10 | $12 | $11 | $10 | ||||||||||||||||||
Average net assets (in thousands) | $11 | $10 | $12 | $11 | $10 | $10 | ||||||||||||||||||
Ratios to average net assets:6 | ||||||||||||||||||||||||
Net investment income | 1.16% | 1.16%7 | 1.74%7 | 1.66%7 | 1.61%7 | 1.27% | ||||||||||||||||||
Expenses excluding specific expenses listed below | 1.16% | 1.21% | 1.24%8 | 1.21%8 | 1.19%8 | 1.30% | ||||||||||||||||||
Interest and fees from borrowings | 0.00% | 0.00%9 | 0.00%9 | 0.00% | 0.00% | 0.00% | ||||||||||||||||||
Total expenses10 | 1.16% | 1.21% | 1.24%8 | 1.21%8 | 1.19%8 | 1.30% | ||||||||||||||||||
Expenses after payments, waivers and/or reimbursements and reduction to custodian expenses | 0.63% | 0.89% | 0.92%8 | 0.85%8 | 0.85%8 | 0.84% | ||||||||||||||||||
Portfolio turnover rate11 | 120% | 43% | 126% | 54% | 61% | 8% |
42 INVESCO ADVANTAGE INTERNATIONAL FUND
1. Represents the last business day of the Fund’s reporting period.
2. For the period from August 27, 2015 (commencement of operations) to October 30, 2015.
3. Calculated based on the average shares outstanding during the period.
4. Less than $0.005 per share.
5. 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.
6. Annualized for periods less than one full year.
7. Includes the Fund’s share of the allocated net investment income from Invesco Oppenheimer Master Event-Linked Bond Fund.
8. Includes the Fund’s share of the allocated expenses from Invesco Oppenheimer Master Event-Linked Bond Fund.
9. Less than 0.005%.
10. Total expenses including indirect expenses from fund fees and expenses were as follows:
Six Months Ended April 30, 2020 | 1.21 | % | ||||
Year Ended October 31, 2019 | 1.35 | % | ||||
Year Ended October 31, 2018 | 1.41 | % | ||||
Year Ended October 31, 2017 | 1.36 | % | ||||
Year Ended October 31, 2016 | 1.30 | % | ||||
Period Ended October 30, 2015 | 1.41 | % |
11. Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable.
See accompanying Notes to Financial Statements.
43 INVESCO ADVANTAGE INTERNATIONAL FUND
FINANCIAL STATEMENTS April 30, 2020 Unaudited
Note 1 - Significant Accounting Policies
Invesco Advantage International Fund (the “Fund”) formerly Invesco Oppenheimer Global Multi-Asset Growth Fund, is a series portfolio of AIM International Mutual Funds (Invesco International Mutual 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 sought 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 10, 2020, the Subsidiary liquidated and ceased operations. For the period November 1, 2019 through February 10, 2020 and for the year ended October 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 capital appreciation.
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.
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
44 INVESCO ADVANTAGE INTERNATIONAL FUND
at the final settlement price set by an exchange on which they are principally traded. Listed options are valued at the mean between the last bid and asked prices from the exchange on which they are principally traded. Options not listed on an exchange are valued by an independent source at the mean between the last bid and asked prices. For purposes of determining net asset value (“NAV”) per share, futures and option contracts generally are valued 15 minutes after the close of the customary trading session of the New York Stock Exchange (“NYSE”).
Investments in open-end and closed-end registered investment companies that do not trade on an exchange are valued at the end-of-day net asset value per share. Investments in open-end and closed-end registered investment companies that trade on an exchange are valued at the last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded.
Debt obligations (including convertible securities) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. Pricing services generally value debt obligations assuming orderly transactions of institutional round lot size, but a fund may hold or transact in the same securities in smaller, odd lot sizes. Odd lots often trade at lower prices than institutional round lots.
Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.
Foreign securities’ (including foreign exchange contracts) prices are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the NYSE. If market quotations are available and reliable for foreign exchange-traded equity securities, the securities will be valued at the market quotations. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become unreliable. If between the time trading ends on a particular security and the close of the customary trading session on the NYSE, events occur that the investment adviser determines are significant and make the closing price unreliable, the Fund may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith using procedures approved by the Board of Trustees. Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities’ prices meeting the approved degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have
45
NOTES TO
FINANCIAL STATEMENTS Unaudited / Continued
additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economic upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.
Securities for which market prices are not provided by any of the above methods may be valued based upon quotes furnished by independent sources. The last bid price may be used to value equity securities. The mean between the last bid and asked prices is used to value debt obligations, including corporate loans.
Securities for which market quotations are not readily available or became unreliable are valued at fair value as determined in good faith by or under the supervision of the Trust’s officers following procedures approved by the Board of Trustees. Issuer specific events, market trends, bid/asked quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security’s fair value.
The Fund may invest in securities that are subject to interest rate risk, meaning the risk that the prices will generally fall as interest rates rise and, conversely, the prices will generally rise as interest rates fall. Specific securities differ in their sensitivity to changes in interest rates depending on their individual characteristics. Changes in interest rates may result in increased market volatility, which may affect the value and/or liquidity of certain Fund investments.
Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the issuer’s assets, general market conditions which are not specifically related to the particular issuer, such as real or perceived adverse economic conditions, changes in the general outlook for revenues or corporate earnings, changes in interest or currency rates, regional or global instability, natural or environmental disasters, widespread disease or other public health issues, war, acts of terrorism or adverse investor sentiment generally and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
B. Securities Transactions and Investment Income - Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income (net of withholding tax, if any) is recorded on 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.
Brokerage commissions and mark ups are considered transaction costs and are recorded
46 INVESCO ADVANTAGE INTERNATIONAL FUND
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 - Distributions from net investment income and net realized capital gain, if any are generally declared and paid annually and recorded on the ex-dividend date. The Fund may elect to treat a portion of the proceeds from redemptions as distributions for federal income tax purposes.
E. Federal Income Taxes - The Fund intends to comply with the requirements of Subchapter M of the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”), necessary to qualify as a regulated investment company and to distribute substantially all of the Fund’s taxable earnings to shareholders. As such, the Fund will not be subject to federal income taxes on otherwise taxable income (including net realized capital gain) that is distributed to shareholders. Therefore, no provision for federal income taxes is recorded in the financial statements.
The Fund recognizes the tax benefits of uncertain tax positions only when the position is more likely than not to be sustained. Management has analyzed the Fund’s uncertain tax positions and concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions. Management is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the next 12 months.
The Fund files tax returns in the U.S. Federal jurisdiction and certain other jurisdictions.
Generally, the Fund is subject to examinations by such taxing authorities for up to three
47 INVESCO ADVANTAGE INTERNATIONAL FUND
NOTES TO
FINANCIAL STATEMENTS Unaudited / Continued
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 accounting principles generally accepted in the United States of America (“GAAP”), which requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print.
H. Indemnifications - Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust, is indemnified against certain liabilities that may arise out of the performance of their duties to the Fund, 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 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
48 INVESCO ADVANTAGE INTERNATIONAL FUND
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. Futures Contracts - The Fund may enter into futures contracts to manage exposure to interest rate, equity and market price movements and/or currency risks. A futures contract is an agreement between two parties (“Counterparties”) to purchase or sell a specified underlying security, currency or commodity (or delivery of a cash settlement price, in the case of an index future) for a fixed price at a future date. The Fund currently invests only in exchange-traded futures and they are standardized as to maturity date and underlying financial instrument. Initial margin deposits required upon entering into futures contracts are satisfied by the segregation of specific securities or cash as collateral at the futures commission merchant (broker). During the period the futures contracts are open, changes in the value of the contracts are recognized as unrealized gains or losses by recalculating the value of the contracts on a daily basis. Subsequent or variation margin payments are received or made depending upon whether unrealized gains or losses are incurred. These amounts are reflected as receivables or payables on the Statement of Assets and Liabilities. When the contracts are closed or expire, the Fund recognizes a realized gain or loss equal to the difference between the proceeds from, or cost of, the closing transaction and the Fund’s basis in the contract. The net realized gain (loss) and the change in unrealized gain (loss) on futures contracts held during the period is included on the Statement of Operations. The primary risks associated with futures contracts are market risk and the absence of a liquid secondary market. If the Fund were unable to liquidate a futures contract and/or enter into an offsetting closing transaction, the Fund would continue to be subject to market risk with respect to the value of the contracts and continue to be required to maintain the margin deposits on the futures contracts. Futures contracts have minimal Counterparty risk since the exchange’s clearinghouse, as Counterparty to all exchange-traded futures, guarantees the futures against default. Risks may exceed amounts recognized in the Statement of Assets and Liabilities.
K. 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
49 INVESCO ADVANTAGE INTERNATIONAL FUND
NOTES TO
FINANCIAL STATEMENTS Unaudited / Continued
such agreement and request immediate payment in an amount equal to the net liability positions, if any.
Interest rate, total return, index, and currency swap agreements are two-party contracts entered into primarily to exchange the returns (or differentials in rates of returns) earned or realized on particular predetermined investments or instruments. The gross returns to be exchanged or “swapped” between the parties are calculated with respect to a notional amount, i.e., the return on or increase in value of a particular dollar amount invested at a particular interest rate or return of an underlying asset, in a particular foreign currency, or in a “basket” of securities representing a particular index.
In a centrally cleared swap, the Fund’s ultimate Counterparty is a central clearinghouse. The Fund initially will enter into centrally cleared swaps through an executing broker. When a fund enters into a centrally cleared swap, it must deliver to the central Counterparty (via the FCM) an amount referred to as “initial margin.” Initial margin requirements are determined by the central Counterparty, but an FCM may require additional initial margin above the amount required by the central Counterparty. Initial margin deposits required upon entering into centrally cleared swaps are satisfied by cash or securities as collateral at the FCM. Securities deposited as initial margin are designated on the Schedule of Investments and cash deposited is recorded on the Statement of Assets and Liabilities. During the term of a cleared swap agreement, a “variation margin” amount may be required to be paid by the Fund or may be received by the Fund, based on the daily change in price of the underlying reference instrument subject to the swap agreement and is recorded as a receivable or payable for variation margin in the Statement of Assets and Liabilities until the centrally cleared swap is terminated at which time a realized gain or loss is recorded.
A CDS is an agreement between Counterparties to exchange the credit risk of an issuer. A buyer of a CDS is said to buy protection by paying a fixed payment over the life of the agreement and in some situations an upfront payment to the seller of the CDS. If a defined credit event occurs (such as payment default or bankruptcy), the Fund as a protection buyer would cease paying its fixed payment, the Fund would deliver eligible bonds issued by the reference entity to the seller, and the seller would pay the full notional value, or the “par value”, of the referenced obligation to the Fund. A seller of a CDS is said to sell protection and thus would receive a fixed payment over the life of the agreement and an upfront payment, if applicable. If a credit event occurs, the Fund as a protection seller would cease to receive the fixed payment stream, the Fund would pay the buyer “par value” or the full notional value of the referenced obligation, and the Fund would receive the eligible bonds issued by the reference entity. In turn, these bonds may be sold in order to realize a recovery value. Alternatively, the seller of the CDS and its Counterparty may agree to net the notional amount and the market value of the bonds and make a cash payment equal to the difference to the buyer of protection. If no credit event occurs, the Fund receives the fixed payment over the life of the agreement. As the seller, the Fund would effectively add leverage to its portfolio because, in addition to its total net assets, the Fund would be subject to investment exposure on the notional amount of the CDS. In connection with these agreements, cash and securities may be identified as collateral in accordance with
50 INVESCO ADVANTAGE INTERNATIONAL FUND
the terms of the respective swap agreements to provide assets of value and recourse in the event of default under the swap agreement or bankruptcy/insolvency of a party to the swap agreement. If a Counterparty becomes bankrupt or otherwise fails to perform its obligations due to financial difficulties, the Fund may experience significant delays in obtaining any recovery in a bankruptcy or other reorganization proceeding. The Fund may obtain only limited recovery or may obtain no recovery in such circumstances. The Fund’s maximum risk of loss from Counterparty risk, either as the protection seller or as the protection buyer, is the value of the contract. The risk may be mitigated by having a master netting arrangement between the Fund and the Counterparty and by the designation of collateral by the Counterparty to cover the Fund’s exposure to the Counterparty.
Implied credit spreads represent the current level at which protection could be bought or sold given the terms of the existing CDS contract and serve as an indicator of the current status of the payment/performance risk of the CDS. An implied spread that has widened or increased since entry into the initial contract may indicate a deteriorating credit profile and increased risk of default for the reference entity. A declining or narrowing spread may indicate an improving credit profile or decreased risk of default for the reference entity. Alternatively, credit spreads may increase or decrease reflecting the general tolerance for risk in the credit markets.
An interest rate swap is an agreement between Counterparties pursuant to which the parties exchange a floating rate payment for a fixed rate payment based on a specified notional amount.
Changes in the value of centrally cleared and OTC swap agreements are recognized as unrealized gains (losses) in the Statement of Operations by “marking to market” on a daily basis to reflect the value of the swap agreement at the end of each trading day. Payments received or paid at the beginning of the agreement are reflected as such on the Statement of Assets and Liabilities and may be referred to as upfront payments. The Fund accrues for the fixed payment stream and amortizes upfront payments, if any, on swap agreements on a daily basis with the net amount, recorded as a component of realized gain (loss) on the Statement of Operations. A liquidation payment received or made at the termination of a swap agreement is recorded as realized gain (loss) on the Statement of Operations. The Fund segregates cash or liquid securities having a value at least equal to the amount of the potential obligation of a Fund under any swap transaction. Cash held as collateral is recorded as deposits with brokers on the Statement of Assets and Liabilities. Entering into these agreements involves, to varying degrees, lack of liquidity and elements of credit, market, and Counterparty risk in excess of amounts recognized on the Statement of Assets and Liabilities. Such risks involve the possibility that a swap is difficult to sell or liquidate; the Counterparty does not honor its obligations under the agreement and unfavorable interest rates and market fluctuations. It is possible that developments in the swaps market, including potential government regulation, could adversely affect the Fund’s ability to terminate existing swap agreements or to realize amounts to be received under such agreements. A short position in a security poses more risk than holding the same security long. As there is no limit on how much the price of the security can increase, the Fund’s exposure is unlimited.
51 INVESCO ADVANTAGE INTERNATIONAL FUND
NOTES TO
FINANCIAL STATEMENTS Unaudited / Continued
L. 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 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.
M. 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.
52 INVESCO ADVANTAGE INTERNATIONAL FUND
Note 2 – Advisory Fees and Other Fees Paid to Affiliates
The Trust has entered into a master investment advisory agreement with Invesco Advisers, Inc. (the “Adviser” or “Invesco”). Under the terms of the investment advisory agreement, the Fund accrues daily and pays monthly an advisory fee to the Adviser based on the annual rate of the Fund’s average daily net assets as follows:
Effective November 1, 2019 through February 27, 2020. Fee Schedule | |||||
Up to $500 million | 0.75 | % | |||
Next $500 million | 0.70 | ||||
Next $4.0 billion | 0.65 | ||||
Over $5.0 billion | 0.60 | ||||
Effective February 28, 2020. Fee Schedule | |||||
Up to $500 million | 0.49 | % | |||
Next $500 million | 0.47 | ||||
Next $4.0 billion | 0.44 | ||||
Over $5.0 billion | 0.42 |
For the six months ended April 30, 2020, the effective advisory fee rate incurred by the Fund was 0.66%.
Under the terms of a master sub-advisory agreement between the Adviser and each of Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Canada Ltd. and separate sub-advisory agreements with Invesco Capital Management LLC, and Invesco Asset Management (India) Private Limited (collectively, the “Affiliated Sub-Advisers”) the Adviser, not the Fund, will pay 40% of the fees paid to the Adviser to any such Affiliated Sub-Adviser(s) that provide(s) discretionary investment management services to the Fund based on the percentage of assets allocated to such Affiliated Sub-Adviser(s). Invesco has also entered into a Sub-Advisory Agreement with OppenheimerFunds, Inc. to provide discretionary management services to the 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 1.10%, 1.85%, 1.35%, 0.95%, 0.90% and 0.85%, respectively, of the Fund’s average daily net assets (the “expense limits”). Effective February 28, 2020, the Fund’s expense limitation agreement was amended to reflect a reduction to the Fund’s existing expense limits. Under the amended expense limitation agreement, the Adviser has contractually agreed to waive advisory fees and/or reimburse expenses to the extent necessary to limit the Fund’s Total Annual Fund Operating Expenses After Fee Waiver and/or Expense Reimbursement of Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares to 0.85%, 1.60%, 1.10%, 0.60%, 0.60%
53 INVESCO ADVANTAGE INTERNATIONAL FUND
NOTES TO
FINANCIAL STATEMENTS Unaudited / Continued
and 0.60%, respectively, of the Fund’s average daily net assets (the “expense limits”) from February 28, 2020 through May 31, 2021. 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 nonroutine items, including litigation expenses; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Unless Invesco continues the fee waiver agreement, it will terminate on May 31, 2021. During its term, the fee waiver agreement cannot be terminated or amended to increase the expense limits or reduce the advisory fee waiver without approval of the Board of Trustees. To the extent that the annualized expense ratio does not exceed the expense limits, the Adviser will retain its ability to be reimbursed for such fee waivers or reimbursements prior to the end of each fiscal year.
For the six months ended April 30, 2020, the Adviser waived advisory fees of $17,544 and reimbursed fund expenses of $180,254, $9,470, $9,638, $3,131, $25 and $25 for Class A, Class C, Class R, Class Y, Class R5 and Class R6, respectively.
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 April 30, 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 April 30, 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
54 INVESCO ADVANTAGE INTERNATIONAL FUND
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. For the six months ended April 30, 2020, expenses incurred under the plans are shown in the Statement of Operations as Distribution and service plan fees.
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 April 30, 2020, IDI advised the Fund that IDI retained $7,869 in front-end sales commissions from the sale of Class A shares and $51 from Class C shares, 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.
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 April 30, 2020. The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value
55 INVESCO ADVANTAGE INTERNATIONAL FUND
NOTES TO
FINANCIAL STATEMENTS Unaudited / Continued
received upon actual sale of those investments.
Level 1— Unadjusted Quoted Prices | Level 2— Other Significant Observable Inputs | Level 3— Significant Unobservable Inputs | Value | |||||||||||||
Assets Table | ||||||||||||||||
Investments, at Value: | ||||||||||||||||
Common Stocks | ||||||||||||||||
Consumer Discretionary | $ | 887,752 | $ | 4,769,441 | $ | — | $ | 5,657,193 | ||||||||
Consumer Staples | 266,302 | 5,142,400 | — | 5,408,702 | ||||||||||||
Energy | 681,490 | 1,459,655 | — | 2,141,145 | ||||||||||||
Financials | 503,603 | 7,726,889 | — | 8,230,492 | ||||||||||||
Health Care | 31,486 | 6,182,026 | — | 6,213,512 | ||||||||||||
Industrials | 194,772 | 3,595,801 | — | 3,790,573 | ||||||||||||
Information Technology | 1,259,870 | 4,839,887 | — | 6,099,757 | ||||||||||||
Materials | 234,821 | 2,715,244 | — | 2,950,065 | ||||||||||||
Telecommunication Services | 28,528 | 1,788,887 | — | 1,817,415 | ||||||||||||
Utilities | 58,947 | 1,831,855 | — | 1,890,802 | ||||||||||||
Preferred Stocks | 7,249 | — | 508,520 | 515,769 | ||||||||||||
Event-Linked Bonds | — | — | 140,349 | 140,349 | ||||||||||||
Investment Company | 14,513,552 | — | — | 14,513,552 | ||||||||||||
Total Investments, at Value | 18,668,372 | 40,052,085 | 648,869 | 59,369,326 | ||||||||||||
Other Financial Instruments: | ||||||||||||||||
Swaps, at value | — | 1,154,464 | — | 1,154,464 | ||||||||||||
Futures contracts | 208,076 | — | — | 208,076 | ||||||||||||
Total Assets | $ | 18,876,448 | $ | 41,206,549 | $ | 648,869 | $ | 60,731,866 | ||||||||
Liabilities Table | ||||||||||||||||
Other Financial Instruments: | ||||||||||||||||
Futures contracts | $ | (8,958 | ) | $ | — | $ | — | $ | (8,958 | ) | ||||||
Total Liabilities | $ | (8,958 | ) | $ | — | $ | — | $ | (8,958 | ) |
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.
The following is a reconciliation of assets in which significant unobservable inputs (level 3) were used in determining fair value:
Value as of October 31, 2019 | Realized gain (loss) | Change in unrealized appreciation/ depreciation | Accretion/ (amortization) of premium/ discounta | |||||||||||||
Assets Table | ||||||||||||||||
Investments, at Value: | ||||||||||||||||
Preferred Stocks | $ | 1,959,347 | $ | 127,452 | $ | 45,300 | $ | — | ||||||||
Event-Linked Bonds | 1,298,796 | 40,583 | (6,684 | ) | — | |||||||||||
Total Assets | $ | 3,258,143 | $ | 168,035 | $ | 38,616 | $ | — | ||||||||
a. Included in net investment income.
56 INVESCO ADVANTAGE INTERNATIONAL FUND
Purchases | Sales | Transfers into Level 3 | Transfers out of Level 3 | Value as of April 30, 2020 | ||||||||||||||||
Assets Table | ||||||||||||||||||||
Investments, at Value: | ||||||||||||||||||||
Preferred Stocks | $ | — | $ | (1,623,579 | ) | $ | — | $ | — | $ | 508,520 | |||||||||
Event-Linked Bonds | — | (1,192,346 | ) | — | — | 140,349 | ||||||||||||||
|
| |||||||||||||||||||
Total Assets | $ | — | $ | (2,815,925 | ) | $ | — | $ | — | $ | 648,869 | |||||||||
|
|
The total change in unrealized appreciation/depreciation included in the Statement of Operations attributable to Level 3 investments still held at period end:
Change in unrealized appreciation/ depreciation | ||||
Assets Table | ||||
Investments, at Value: | ||||
Preferred Stocks | $ | 45,300 | ||
Event-Linked Bonds | (6,684) | |||
|
| |||
Total Assets | $ | 38,616 | ||
|
|
The following table summarizes the valuation techniques and significant unobservable inputs used in determining fair value measurements for those investments classified as Level 3 as of April 30, 2020:
Value as of April 30, 2020 | Valuation Technique | Unobservable Input | Range of Unobservable Inputs | Unobservable Input Used | ||||||||||||||||
Assets Table | ||||||||||||||||||||
Investments, at Value: | ||||||||||||||||||||
Preferred Stocks | $ | 438,423 | Pricing Service | N/A | N/A | N/A (a) | ||||||||||||||
Recent Transac- | Recent Transac- | $6.1629/share | ||||||||||||||||||
Preferred Stocks | 70,097 | tion Price | tion Price | N/A | (b) | |||||||||||||||
Event-Linked Bonds | 140,349 | Pricing Service | N/A | N/A | N/A (a) | |||||||||||||||
|
| |||||||||||||||||||
Total | $ | 648,869 | �� | |||||||||||||||||
|
|
(a) Securities classified as Level 3 whose unadjusted values were provided by a pricing service and for which such inputs are unobservable. The Adviser periodically reviews pricing vendor methodologies and inputs to confirm they are determined using unobservable inputs and have been appropriately classified. Such securities’ fair valuations could change significantly based on changes in unobservable inputs used by the pricing service.
(b) The Fund fair values certain preferred stocks at the most recent transaction price occurring within the past three months. The Adviser periodically reviews the financial statements and monitors such investments for additional market information or the occurrence of a significant event which would warrant a re-evaluation of the security’s fair valuation.
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
57 INVESCO ADVANTAGE INTERNATIONAL FUND
NOTES TO
FINANCIAL STATEMENTS Unaudited / Continued
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 asset transactions as of April 30, 2020:
Gross Amounts Not Offset in the Statement of Assets & Liabilities | ||||||||||||||||||||
Counterparty | Gross Amounts Not Offset in the Statement of Assets & Liabilities* | Financial Instruments Available for Offset | Financial Instruments Collateral Received** | Cash Collateral Received** | Net Amount | |||||||||||||||
Bank of America NA | $ | 372,033 | $ | – | $ | – | $ | – | $ | 372,033 | ||||||||||
Goldman Sachs | ||||||||||||||||||||
International | 782,431 | – | – | – | 782,431 | |||||||||||||||
|
| |||||||||||||||||||
$ | 1,154,464 | $ | – | $ | – | $ | – | $ | 1,154,464 | |||||||||||
|
|
*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.
**Reported collateral posted for the benefit of the Fund within this table is limited to the net outstanding amount due from an individual counterparty. The collateral posted for the benefit of the Fund may exceed these amounts.
Value of Derivative Instruments at Period-End
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 April 30, 2020:
Asset Derivatives | Liability Derivatives | |||||||||||||||||
Derivatives Not Accounted for as Hedging Instruments | Statement of Assets and Liabilities Location | Value | Statement of Assets and Liabilities Location | Value | ||||||||||||||
Volatility contracts | Swaps, at value | $ | 1,154,464 | |||||||||||||||
Equity contracts | Futures contracts | 208,076 | * | |||||||||||||||
Currency contracts | Futures contracts | $ | 8,958 | * | ||||||||||||||
|
|
|
| |||||||||||||||
Total | $ | 1,362,540 | $ | 8,958 | ||||||||||||||
|
|
|
|
*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.
58 INVESCO ADVANTAGE INTERNATIONAL FUND
Effect of Derivative Investments for the Six Months Ended April 30, 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 Not Accounted for as Hedging Instruments | Option contracts written | Futures contracts | Swap contracts | Total | ||||||||||||
Currency contracts | $ | — | $ | (202,827) | $ | — | $ | (202,827) | ||||||||
Equity contracts | (423,525) | (1,165,619) | — | (1,589,144) | ||||||||||||
Volatility contracts | — | — | (1,075,100) | (1,075,100) | ||||||||||||
|
| |||||||||||||||
Total | $ | (423,525) | $ | (1,368,446) | �� | $ | (1,075,100) | $ | (2,867,071) | |||||||
|
| |||||||||||||||
Amount of Change in Unrealized Gain or (Loss) Recognized on Derivatives | ||||||||||||||||
Derivatives Not Accounted for as Hedging Instruments | Option contracts written | Futures contracts | Swap contracts | Total | ||||||||||||
Currency contracts | $ | — | $ | (12,158) | $ | — | $ | (12,158) | ||||||||
Equity contracts | 102,404 | (127,766) | — | (25,362) | ||||||||||||
Volatility contracts | — | — | 1,154,464 | 1,154,464 | ||||||||||||
|
| |||||||||||||||
Total | $ | 102,404 | $ | (139,924) | $ | 1,154,464 | $ | 1,116,944 | ||||||||
|
|
The table below summarizes the six months ended average notional value of futures contracts, swap agreements, and options agreements purchased during the period.
Futures contracts | Written Index Options * | Swap agreements * | ||||||||||
Average notional amount | $ | 17,565,040 | $ | 19,194,967 | $ | 11,097,245 | ||||||
Average contracts | 441 |
*Summarizes the three month average notional value of written index options and the two 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
59 INVESCO ADVANTAGE INTERNATIONAL FUND
NOTES TO
FINANCIAL STATEMENTS Unaudited / Continued
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 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. Effective May 5, 2020 the custodian changed to State Street Bank and Trust.
Note 7 – Tax Information
The amount and character of income and gains to be distributed are determined in accordance with income tax regulations, which may differ from GAAP. Reclassifications are made to the Fund’s capital accounts to reflect income and gains available for distribution (or available capital loss carryforward) under income tax regulations. The tax character of distributions paid during the year and the tax components of net assets will be reported at the Fund’s fiscal year-end.
Capital loss carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Fund to utilize. The ability to utilize capital loss carryforwards in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.
The Fund did not have a capital loss carryforward as of October 31, 2019.
Note 8 – Investment Transactions
The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Fund during the six months ended April 30, 2020 was $59,641,131 and $48,844,313, respectively. During the same period, sales of U.S. Treasury obligations were $254,678. Cost of investments, including any derivatives, on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end.
Unrealized Appreciation (Depreciation) of Investments on a Tax Basis | ||||
Aggregate unrealized appreciation of investments | $ | 3,600,208 | ||
Aggregate unrealized (depreciation) of investments | (4,105,396 | ) | ||
|
| |||
Net unrealized depreciation of investments | $ | (505,188 | ) | |
|
|
Cost of investments for tax purposes is $ 61,197,199.
60 INVESCO ADVANTAGE INTERNATIONAL FUND
Note 9 – Share Information
Transactions in shares of beneficial interest were as follows:
Six Months Ended April 30, 20201 | Year Ended October 31, 20192 | |||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||
Class A | ||||||||||||||||
Sold | 129,300 | $ | 1,382,158 | 265,160 | $ | 2,735,421 | ||||||||||
Automatic Conversion Class C to Class A Shares | 415 | 4,458 | 23,594 | 250,921 | ||||||||||||
Dividends and/or distributions reinvested | 4,863 | 55,103 | 47,840 | 450,172 | ||||||||||||
Redeemed | (2,592,493 | ) | (25,554,529 | ) | (241,099 | ) | (2,502,328 | ) | ||||||||
Net increase (decrease) | (2,457,915 | ) | $ | (24,112,810 | ) | 95,495 | $ | 934,186 | ||||||||
Class C | ||||||||||||||||
Sold | 43,060 | $ | 450,574 | 111,161 | $ | 1,133,228 | ||||||||||
Dividends and/or distributions reinvested | 1,776 | 19,657 | 22,865 | 211,959 | ||||||||||||
Automatic Conversion Class C to Class A Shares | (425 | ) | (4,458 | ) | (24,048 | ) | (250,921 | ) | ||||||||
Redeemed | (49,077 | ) | (515,092 | ) | (151,038 | ) | (1,549,988 | ) | ||||||||
Net increase (decrease) | (4,666 | ) | $ | (49,319 | ) | (41,060 | ) | $ | (455,722 | ) | ||||||
Class R | ||||||||||||||||
Sold | 65,103 | $ | 698,860 | 143,056 | $ | 1,463,383 | ||||||||||
Dividends and/or distributions reinvested | 1,720 | 19,343 | 15,024 | 140,779 | ||||||||||||
Redeemed | (39,844 | ) | (383,852 | ) | (95,106 | ) | (987,968 | ) | ||||||||
Net increase (decrease) | 26,979 | $ | 334,351 | 62,974 | $ | 616,194 | ||||||||||
Class Y | ||||||||||||||||
Sold | 34,825 | $ | 313,118 | 109,572 | $ | 1,079,142 | ||||||||||
Dividends and/or distributions reinvested | 720 | 8,205 | 2,552 | 24,118 | ||||||||||||
Redeemed | (88,434 | ) | (878,483 | ) | (23,788 | ) | (241,578 | ) | ||||||||
Net increase (decrease) | (52,889 | ) | $ | (557,160) | 88,336 | $ | 861,682 | |||||||||
Class R53 | ||||||||||||||||
Sold | — | $ | — | 974 | $ | 10,001 | ||||||||||
Dividends and/or distributions reinvested | — | — | — | — | ||||||||||||
Redeemed | — | — | — | — | ||||||||||||
Net increase (decrease) | — | $ | — | 974 | $ | 10,001 | ||||||||||
Class R6 | ||||||||||||||||
Sold | — | $ | — | — | $ | — | ||||||||||
Dividends and/or distributions reinvested | — | — | — | — | ||||||||||||
Redeemed | — | — | — | — | ||||||||||||
Net increase (decrease) | — | $ | — | — | $ | — | ||||||||||
1. There are entities that are record owners of more than 5% of the outstanding shares of the Fund and own 38% 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
61 INVESCO ADVANTAGE INTERNATIONAL FUND
NOTES TO
FINANCIAL STATEMENTS Unaudited / Continued
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 76% 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 - Coronavirus (COVID-19) Pandemic
During the first quarter of 2020, the World Health Organization declared COVID-19 to be a public health emergency. COVID-19 has led to increased short-term market volatility and may have adverse long-term effects on U.S. and world economies and markets in general. COVID-19 may adversely impact the 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 extent of the impact on the performance of the Fund and its investments will depend on future developments, including the duration and spread of the COVID-19 outbreak, related restrictions and advisories, and the effects on the financial markets and economy overall, all of which are highly uncertain and cannot be predicted.
62 INVESCO ADVANTAGE INTERNATIONAL FUND
PORTFOLIO PROXY VOTING POLICIES AND GUIDELINES;
UPDATES TO SCHEDULE OF INVESTMENTS Unaudited
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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.
63 INVESCO ADVANTAGE INTERNATIONAL FUND
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64 INVESCO ADVANTAGE INTERNATIONAL FUND
you will find the most relevant and to provide customer service and support.
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65 INVESCO ADVANTAGE INTERNATIONAL FUND
INVESCO’S PRIVACY NOTICE Continued
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Invesco Ltd.
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66 INVESCO ADVANTAGE INTERNATIONAL FUND
· | Request that we amend, rectify, delete or update the personal data we hold about you; |
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67 INVESCO ADVANTAGE INTERNATIONAL FUND
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Invesco mailing information
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Send general correspondence to Invesco Investment Services, Inc., P.O. Box 219078, Kansas City, MO 64121-9078. | ||||
Invesco Distributors, Inc. | O-GLMAG-SAR-1 06272020 |
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Semiannual Report to Shareholders | April 30, 2020 | |||
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Invesco Oppenheimer Global Fund | ||||
Nasdaq: A: OPPAX ⬛ C: OGLCX ⬛ R: OGLNX ⬛ Y: OGLYX ⬛ R5: GFDDX ⬛ R6: OGLIX |
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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.
For the most current month-end Fund performance and commentary, please visit invesco.com/performance.
Unless otherwise noted, all data provided by Invesco.
This report must be accompanied or preceded by a currently effective Fund prospectus, which contains more complete information, including sales charges and expenses. Investors should read it carefully before investing.
NOT FDIC INSURED | MAY LOSE VALUE | NO BANK GUARANTEE |
Bruce Crockett |
Dear Fellow Shareholders: As independent chair of the Invesco Funds Board, I can assure you that the members of the Board are strong advocates for the interests of investors in Invesco’s mutual funds. We work hard to represent your interests through oversight of the quality of the investment management services your funds receive and other matters important to your investment. This includes but is not limited to: monitoring how the portfolio management teams of the Invesco funds are performing in light of changing economic and market conditions; assessing each portfolio management team’s investment performance within the context of the investment strategy described in the fund’s prospectus; and monitoring for potential conflicts of interests that may impact the nature of the services that your funds receive. | |
We believe one of the most important services we provide our fund shareholders is the annual review of the funds’ advisory and sub-advisory contracts with Invesco Advisers and its affiliates. This review is required by the Investment Company Act of 1940 and focuses on the nature and quality of the services Invesco provides as the adviser to the Invesco funds and | ||
the reasonableness of the fees that it charges for those services. Each year, we spend months carefully reviewing information received from Invesco and a variety of independent sources, such as performance and fee data prepared by Lipper Inc. (a subsidiary of Broadridge Financial Solutions, Inc.), an independent, third-party firm widely recognized as a leader in its field. We also meet with our independent legal counsel and other independent advisers to review and help us assess the information that we have received. Our goal is to assure that you receive quality investment management services for a reasonable fee. | ||
On behalf of the Board, we look forward to continuing to represent your interests and serving your needs. |
Sincerely,
Bruce L. Crockett
Independent Chair
Invesco Funds Board of Trustees
Andrew Schlossberg | Dear Shareholders: This semiannual report includes information about your Fund, including performance data and a complete list of its investments as of the close of the reporting period. Invesco’s efforts to help investors achieve their financial objectives include providing timely information about the markets, the economy and investing. Our website, invesco.com/us, offers a wide range of market insights and investment perspectives. On the website, you’ll find detailed information about our funds, including performance, holdings and portfolio manager commentaries. You can access information about your account by completing a simple, secure online registration. To do so, select “Log In” on the right side of the homepage, and then select “Register for Individual Account Access.” In addition to the resources accessible on our website, you can obtain timely updates to help you stay informed by connecting with Invesco on Twitter, LinkedIn or Facebook. You can access our blog at blog.invesco.us.com. Our goal is to provide you with information you want, when and where you want it. | |
For questions about your account, feel free to contact an Invesco client services representative at 800 959 4246. | ||
All of us at Invesco look forward to serving your investment management needs. Thank you for investing with us. |
Sincerely,
Andrew Schlossberg
Head of the Americas,
Senior Managing Director, Invesco Ltd.
2 Invesco Oppenheimer Global Fund
Performance summary |
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Fund vs. Indexes |
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Cumulative total returns, October 31, 2019 to April 30, 2020, at net asset value (NAV). Performance shown does not include applicable contingent deferred sales charges (CDSC) or front-end sales charges, which would have reduced performance. |
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Class A Shares | –5.79 | % | ||
Class C Shares | –6.14 | |||
Class R Shares | –5.92 | |||
Class Y Shares | –5.67 | |||
Class R5 Shares | –5.63 | |||
Class R6 Shares | –5.60 | |||
MSCI All Country World Index | –7.68 | |||
Source(s): RIMES Technologies Corp. | ||||
The MSCI All Country World Index is an unmanaged index considered representative of large- and mid-cap stocks across developed and emerging markets. The index is computed using the net return, which withholds applicable taxes for non-resident investors. |
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The Fund is not managed to track the performance of any particular index, including the index(es) described here, and consequently, the performance of the Fund may deviate significantly from the performance of the index(es). |
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A direct investment cannot be made in an index. Unless otherwise indicated, index results include reinvested dividends, and they do not reflect sales charges. Performance of the peer group, if applicable, reflects fund expenses; performance of a market index does not. |
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For more information about your Fund Read the most recent quarterly commentary from your Fund’s portfolio managers by visiting invesco.com/us. Click on “Products” and select “Mutual Funds.” Use the “Product Finder” to locate your Fund; then click on its name to access its product detail page. There, you can learn more about your Fund’s investment strategies, holdings and performance. |
Also, visit blog.invesco.us.com, where many of Invesco’s investment professionals share their insights about market and economic news and trends.
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3 Invesco Oppenheimer Global Fund
Average Annual Total Returns |
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As of 4/30/20, including maximum applicable sales charges |
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Class A Shares | ||||
Inception (12/22/69) | 10.87 | % | ||
10 Years | 7.65 | |||
5 Years | 4.29 | |||
1 Year | –10.55 | |||
Class C Shares | ||||
Inception (10/2/95) | 8.74 | % | ||
10 Years | 7.45 | |||
5 Years | 4.67 | |||
1 Year | –6.98 | |||
Class R Shares | ||||
Inception (3/1/01) | 6.14 | % | ||
10 Years | 7.95 | |||
5 Years | 5.20 | |||
1 Year | –5.60 | |||
Class Y Shares | ||||
Inception (11/17/98) | 8.72 | % | ||
10 Years | 8.53 | |||
5 Years | 5.73 | |||
1 Year | –5.11 | |||
Class R5 Shares | ||||
10 Years | 8.29 | % | ||
5 Years | 5.55 | |||
1 Year | –5.04 | |||
Class R6 Shares | ||||
Inception (1/27/12) | 9.81 | % | ||
5 Years | 5.91 | |||
1 Year | –4.95 |
Effective May 24, 2019, Class A, Class C, Class R, Class Y, and Class I shares of the Oppenheimer Global Fund, (the predecessor fund), were reorganized into Class A, Class C, Class R, Class Y, and Class R6 shares, respectively, of the Invesco Oppenheimer Global Fund (the Fund). Returns shown above, prior to May 24, 2019, 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 the predecessor fund because of different expenses.
Class R5 shares incepted on May 24, 2019. Performance shown prior to that date is that of the predecessor fund’s Class A shares and includes the 12b-1 fees applicable to Class A shares.
The performance data quoted represent past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/ performance for the most recent month-end performance. Performance figures reflect reinvested distributions, changes in net asset value and the effect of the maximum sales charge unless otherwise stated. Performance figures do not reflect deduction of taxes a shareholder would pay on
Fund distributions or sale of Fund shares. Investment return and principal value will fluctuate so that you may have a gain or loss when you sell shares.
Class A share performance reflects the maximum 5.50% sales charge, and Class C share performance reflects the applicable contingent deferred sales charge (CDSC) for the period involved. The CDSC on Class C shares is 1% for the first year after purchase. Class R, Class Y, Class R5 and Class R6 shares do not have a front-end sales charge or a CDSC; therefore, performance is at net asset value.
The performance of the Fund’s share classes will differ primarily due to different sales charge structures and class expenses.
Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information.
4 Invesco Oppenheimer Global Fund
Liquidity Risk Management Program
The Securities and Exchange Commission has adopted Rule 22e-4 under the Investment Company Act of 1940 (the “Liquidity Rule”) in order to promote effective liquidity risk management throughout the open-end investment company industry, thereby reducing the risk that funds will be unable to meet their redemption obligations and mitigating dilution of the interests of fund shareholders. The Fund has adopted and implemented a liquidity risk management program in accordance with the Liquidity Rule (the “Program”). The Program is reasonably designed to assess and manage the Fund’s liquidity risk, which is the risk that the Fund could not meet redemption requests without significant dilution of remaining investors’ interests in the Fund. The Board of Trustees of the Fund (the “Board”) has appointed Invesco Advisers, Inc. (“Invesco”), the Fund’s investment adviser, as the Program’s administrator, and Invesco has delegated oversight of the Program to the Liquidity Risk Management Committee (the “Committee”), which is composed of senior representatives from relevant business groups at Invesco.
As required by the Liquidity Rule, the Program includes policies and procedures providing for an assessment, no less frequently than annually, of the Fund’s liquidity risk that takes into account, as relevant to the Fund’s liquidity risk: (1) the Fund’s investment strategy and liquidity of portfolio investments during both normal and reasonably foreseeable stressed conditions; (2) short-term and long-term cash flow projections for the Fund during both normal and reasonably foreseeable stressed conditions; and (3) the Fund’s holdings of cash and cash equivalents and any borrowing arrangements. The Liquidity Rule also requires the classification of the Fund’s investments into categories that reflect the assessment of their relative liquidity under current market conditions. The Fund classifies its investments into one of four categories defined in the Liquidity Rule: “Highly Liquid,” “Moderately Liquid,” “Less Liquid” and “Illiquid.” Funds that are not invested primarily in “Highly Liquid Investments” that are assets (cash or investments that are reasonably expected to be convertible into cash within three business days without significantly changing the market value of the investment) are required to establish a “Highly Liquid Investment Minimum” (“HLIM”), which is the minimum percentage of net assets that must be invested in Highly Liquid Investments. Funds with HLIMs have procedures for addressing HLIM shortfalls, including reporting to the Board and the SEC (on a non-public basis) as required by the Program and the Liquidity Rule. In addition, the Fund may not acquire an investment if, immediately after the acquisition, over 15% of the Fund’s net assets would consist of “Illiquid Investments” that are assets (an investment that cannot reasonably be expected to be sold or disposed of in current market conditions in seven calendar days or less without the sale or disposition significantly changing the market value of the investment). The Liquidity Rule and the Program also require reporting to the Board and the SEC (on a non-public basis) if a Fund’s holdings of Illiquid Investments exceed 15% of the Fund’s assets.
At a meeting held on March 30-April 1, 2020, the Committee presented a report to the Board that addressed the operation of the Program and assessed the Program’s adequacy and effectiveness of implementation (the “Report”). The Report covered the period from December 1, 2018 through December 31, 2019 (the “Program Reporting Period”).
The Report stated, in relevant part, that during the Program Reporting Period:
∎ | The Program, as adopted and implemented, remained reasonably designed to assess and manage the Fund’s liquidity risk and was operated effectively to achieve that goal; |
∎ | The Fund’s investment strategy remained appropriate for an open-end fund; |
∎ | The Fund was able to meet requests for redemption without significant dilution of remaining investors’ interests in the Fund; |
∎ | The Fund did not breach the 15% limit on Illiquid Investments; and |
∎ | The Fund primarily held Highly Liquid Investments and therefore has not adopted an HLIM. |
5 Invesco Oppenheimer Global Fund
April 30, 2020
(Unaudited)
Shares | Value | |||||
Common Stocks & Other Equity Interests–99.41% | ||||||
Argentina–0.30% | ||||||
Maternidad Swiss Medical Argentina(a)(b) | 1,029,617,880 | $ 27,831,601 | ||||
Brazil–0.45% | ||||||
StoneCo Ltd., Class A(a) | 1,618,900 | 42,706,582 | ||||
China–2.83% | ||||||
JD.com, Inc., ADR(a) | 6,161,480 | 265,559,788 | ||||
France–9.55% | ||||||
Airbus SE | 3,129,088 | 198,928,361 | ||||
Dassault Systemes SE | 145,957 | 21,383,382 | ||||
Kering S.A. | 458,595 | 231,600,361 | ||||
LVMH Moet Hennessy Louis Vuitton SE | 1,040,130 | 402,311,381 | ||||
Societe Generale S.A. | 2,733,850 | 42,795,061 | ||||
897,018,546 | ||||||
Germany–4.27% | ||||||
Allianz SE | 257,514 | 47,705,402 | ||||
Bayer AG | 1,003,294 | 66,395,820 | ||||
SAP SE | 2,404,878 | 286,824,324 | ||||
400,925,546 | ||||||
India–3.19% | ||||||
DLF Ltd. | 88,938,649 | 172,011,567 | ||||
ICICI Bank Ltd., ADR | 13,081,577 | 127,676,192 | ||||
299,687,759 | ||||||
Italy–0.27% | ||||||
Brunello Cucinelli S.p.A. | 773,116 | 24,926,934 | ||||
Japan–14.30% | ||||||
Capcom Co. Ltd. | 2,856,600 | 87,072,022 | ||||
FANUC Corp. | 598,400 | 98,672,657 | ||||
Keyence Corp. | 656,012 | 235,681,634 | ||||
MINEBEA MITSUMI, Inc. | 1,839,900 | 30,097,226 | ||||
Murata Manufacturing Co. Ltd. | 4,330,212 | 240,887,494 | ||||
Nidec Corp. | 3,819,432 | 221,844,797 | ||||
Omron Corp. | 2,246,400 | 131,898,267 | ||||
Takeda Pharmaceutical Co. Ltd. | 2,622,189 | 94,157,061 | ||||
TDK Corp. | 2,336,500 | 202,044,976 | ||||
1,342,356,134 | ||||||
Netherlands–0.95% | ||||||
ASML Holding N.V. | 79,142 | 23,509,031 | ||||
uniQure N.V.(a) | 1,031,898 | 65,669,989 | ||||
89,179,020 | ||||||
Spain–1.42% | ||||||
Industria de Diseno Textil S.A.(a) | 5,223,712 | 133,258,059 | ||||
Sweden–2.71% | ||||||
Assa Abloy AB, Class B | 6,401,588 | 115,264,202 | ||||
Atlas Copco AB, Class A | 3,998,937 | 138,742,339 | ||||
254,006,541 |
Shares | Value | |||||
Switzerland–0.21% | ||||||
Credit Suisse Group AG | 2,219,909 | $ 20,103,498 | ||||
United Kingdom–2.67% | ||||||
Farfetch Ltd., Class A(a) | 3,126,870 | 41,399,759 | ||||
Prudential PLC | 8,545,950 | 121,719,269 | ||||
Unilever PLC | 1,701,648 | 87,978,574 | ||||
251,097,602 | ||||||
United States–56.29% | ||||||
Adobe, Inc.(a) | 1,225,614 | 433,426,135 | ||||
Agilent Technologies, Inc. | 1,856,680 | 142,333,089 | ||||
Alphabet, Inc., Class A(a) | 615,013 | 828,238,007 | ||||
Amazon.com, Inc.(a) | 53,288 | 131,834,512 | ||||
Anthem, Inc. | 597,750 | 167,806,358 | ||||
Avantor, Inc.(a) | 5,874,297 | 98,746,933 | ||||
Blueprint Medicines Corp.(a) | 666,014 | 39,181,604 | ||||
Centene Corp.(a) | 1,696,120 | 112,927,670 | ||||
Citigroup, Inc. | 2,207,504 | 107,196,394 | ||||
Colgate-Palmolive Co. | 1,736,965 | 122,056,531 | ||||
Electronic Arts, Inc.(a) | 789,437 | 90,201,072 | ||||
Equifax, Inc. | 1,047,869 | 145,549,004 | ||||
Facebook, Inc., Class A(a) | 2,050,329 | 419,722,850 | ||||
Fidelity National Information Services, Inc. | 892,610 | 117,726,333 | ||||
GlycoMimetics, Inc.(a) | 962,998 | 2,686,764 | ||||
Illumina, Inc.(a) | 119,448 | 38,107,495 | ||||
Incyte Corp.(a) | 822,079 | 80,284,235 | ||||
Intel Corp. | 795,132 | 47,692,017 | ||||
International Game Technology PLC | 3,403,000 | 25,658,620 | ||||
Intuit, Inc. | 1,384,920 | 373,665,265 | ||||
Ionis Pharmaceuticals, Inc.(a) | 1,240,416 | 68,880,300 | ||||
IQVIA Holdings, Inc.(a) | 221,141 | 31,532,495 | ||||
MacroGenics, Inc.(a) | 2,401,800 | 17,292,960 | ||||
Maxim Integrated Products, Inc. | 4,220,473 | 232,041,606 | ||||
Microsoft Corp. | 571,949 | 102,498,980 | ||||
PayPal Holdings, Inc.(a) | 1,993,212 | 245,165,076 | ||||
Phathom Pharmaceuticals, Inc.(a) | 1,123,410 | 38,016,194 | ||||
S&P Global, Inc. | 1,519,633 | 445,070,113 | ||||
Sage Therapeutics, Inc.(a) | 565,744 | 22,052,701 | ||||
Sarepta Therapeutics, Inc.(a) | 523,480 | 61,707,822 | ||||
United Parcel Service, Inc., Class B | 1,263,180 | 119,572,619 | ||||
Veracyte, Inc.(a) | 1,307,840 | 35,272,445 | ||||
Visa, Inc., Class A | 463,805 | 82,891,230 | ||||
Walt Disney Co. (The) | 1,447,460 | 156,542,799 | ||||
Zimmer Biomet Holdings, Inc. | 852,879 | 102,089,616 | ||||
5,285,667,844 | ||||||
Total Common Stocks & Other Equity Interests |
| 9,334,325,454 | ||||
Preferred Stocks–0.01% |
| |||||
India–0.01% | ||||||
Zee Entertainment Enterprises Ltd., 6.00%, Pfd. | 15,040,130 | 634,892 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
6 Invesco Oppenheimer Global Fund
Shares | Value | |||||||
Money Market Funds–0.37% |
| |||||||
Invesco Government & Agency Portfolio, Institutional Class, 0.20%(c)(d) | 35,195,831 | $ | 35,195,831 | |||||
TOTAL INVESTMENTS IN SECURITIES–99.79% |
| 9,370,156,177 | ||||||
OTHER ASSETS LESS LIABILITIES–0.21% |
| 20,024,608 | ||||||
NET ASSETS–100.00% | $ | 9,390,180,785 |
Investment Abbreviations:
ADR - American Depositary Receipt
Pfd. - Preferred
Notes to Schedule of Investments:
(a) | Non-income producing security. |
(b) | Security valued using significant unobservable inputs (Level 3). See Note 3. |
(c) | Affiliated issuer. The issuer is affiliated by having an investment adviser that is under common control of Invesco Ltd. and/or the Investment Company Act of 1940, as amended (the “1940 Act”), defines “affiliated person” to include an issuer of which a fund holds 5% or more of the outstanding voting securities. The Fund has not owned enough of the outstanding voting securities of the issuer to have control (as defined in the 1940 Act) of that issuer. The table below shows the Fund’s transactions in, and earnings from, its investments in affiliates for the six months ended April 30, 2020. |
Change in | Realized | |||||||||||||||||||||||||
Value | Purchases | Proceeds | Unrealized | Gain | Value | Dividend | ||||||||||||||||||||
October 31, 2019 | at Cost | from Sales | Appreciation | (Loss) | April 30, 2020 | Income | ||||||||||||||||||||
Investments in Affiliated Money Market Funds: | ||||||||||||||||||||||||||
Invesco Government & Agency Portfolio, Institutional Class | $13,620,687 | $713,762,189 | $(692,187,045 | ) | $ | - | $ | - | $35,195,831 | $258,874 | ||||||||||||||||
Investments in Other Affiliates: | ||||||||||||||||||||||||||
GlycoMimetics, Inc.** | 13,509,355 | - | (3,755,097 | ) | 15,983,314 | (23,050,808 | ) | 2,686,764 | - | |||||||||||||||||
Total | $27,130,042 | $713,762,189 | $(695,942,142 | ) | $15,983,314 | $(23,050,808 | ) | $37,882,595 | $258,874 |
** | As of April 30, 2020, this security was not considered as an affiliate of the Fund. |
(d) | The rate shown is the 7-day SEC standardized yield as of April 30, 2020. |
Portfolio Composition
By sector, based on Net Assets
as of April 30, 2020
Information Technology | 30.03 | % | ||
Communication Services | 16.85 | |||
Health Care | 13.69 | |||
Consumer Discretionary | 13.38 | |||
Industrials | 11.68 | |||
Financials | 9.72 | |||
Consumer Staples | 2.24 | |||
Real Estate | 1.83 | |||
Money Market Funds Plus Other Assets Less Liabilities | 0.58 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
7 Invesco Oppenheimer Global Fund
Statement of Assets and Liabilities
April 30, 2020
(Unaudited)
Assets: | ||||
Investments in securities, at value | $ | 9,334,960,346 | ||
Investments in affiliated money market funds, at value | 35,195,831 | |||
Cash | 7,000,000 | |||
Receivable for: | ||||
Investments sold | 78,785 | |||
Fund shares sold | 4,223,729 | |||
Dividends | 23,817,968 | |||
Investment for trustee deferred compensation and retirement plans | 774,371 | |||
Other assets | 192,746 | |||
Total assets | 9,406,243,776 | |||
Liabilities: | ||||
Payable for: | ||||
Fund shares reacquired | 8,940,898 | |||
Accrued foreign taxes | 12,732 | |||
Accrued fees to affiliates | 4,310,537 | |||
Accrued interest expense | 1,746 | |||
Accrued trustees’ and officers’ fees and benefits | 610,639 | |||
Accrued other operating expenses | 1,412,068 | |||
Trustee deferred compensation and retirement plans | 774,371 | |||
Total liabilities | 16,062,991 | |||
Net assets applicable to shares outstanding | $ | 9,390,180,785 | ||
Net assets consist of: | ||||
Shares of beneficial interest | $ | 4,421,000,386 | ||
Distributable earnings | 4,969,180,399 | |||
$ | 9,390,180,785 |
Net Assets: | ||||
Class A | $ | 5,457,592,640 | ||
Class C | $ | 226,893,997 | ||
Class R | $ | 177,159,085 | ||
Class Y | $ | 1,838,047,798 | ||
Class R5 | $ | 9,950 | ||
Class R6 | $ | 1,690,477,315 | ||
Shares outstanding, no par value, with an unlimited number of shares authorized: |
| |||
Class A | 64,944,033 | |||
Class C | 3,002,177 | |||
Class R | 2,125,592 | |||
Class Y | 21,801,368 | |||
Class R5 | 118 | |||
Class R6 | 20,017,158 | |||
Class A: | ||||
Net asset value per share | $ | 84.04 | ||
Maximum offering price per share (Net asset value of $84.04 ÷ 94.50%) | $ | 88.93 | ||
Class C: | ||||
Net asset value and offering price per share | $ | 75.58 | ||
Class R: | ||||
Net asset value and offering price per share | $ | 83.35 | ||
Class Y: | ||||
Net asset value and offering price per share | $ | 84.31 | ||
Class R5: | ||||
Net asset value and offering price per share | $ | 84.32 | ||
Class R6: | ||||
Net asset value and offering price per share | $ | 84.45 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
8 Invesco Oppenheimer Global Fund
Statement of Operations
For the six months ended April 30, 2020
(Unaudited)
Investment income: | ||||
Dividends (net of foreign withholding taxes of $2,605,397) | $ | 46,241,855 | ||
| ||||
Dividends from affiliated money market funds | 258,874 | |||
| ||||
Total investment income | 46,500,729 | |||
| ||||
Expenses: | ||||
Advisory fees | 32,974,759 | |||
| ||||
Administrative services fees | 739,228 | |||
| ||||
Custodian fees | 449,347 | |||
| ||||
Distribution fees: | ||||
Class A | 6,980,673 | |||
| ||||
Class C | 1,301,889 | |||
| ||||
Class R | 493,746 | |||
| ||||
Transfer agent fees – A, C, R and Y | 6,931,004 | |||
| ||||
Transfer agent fees – R6 | 37,391 | |||
| ||||
Trustees’ and officers’ fees and benefits | 5,564 | |||
| ||||
Registration and filing fees | 41,481 | |||
| ||||
Reports to shareholders | 274,895 | |||
| ||||
Professional services fees | 45,733 | |||
| ||||
Other | (261,257 | ) | ||
| ||||
Total expenses | 50,014,453 | |||
| ||||
Less: Fees waived and/or expense offset arrangement(s) | (65,750 | ) | ||
| ||||
Net expenses | 49,948,703 | |||
| ||||
Net investment income (loss) | (3,447,974 | ) | ||
| ||||
Realized and unrealized gain (loss) from: | ||||
Net realized gain (loss) from: | ||||
Investment securities | 505,607,845 | |||
| ||||
Foreign currencies | (161,042 | ) | ||
| ||||
505,446,803 | ||||
| ||||
Change in net unrealized appreciation (depreciation) of: | ||||
Investment securities (net of foreign taxes of $493,851) | (1,082,661,151 | ) | ||
| ||||
Foreign currencies | 586,378 | |||
| ||||
(1,082,074,773 | ) | |||
| ||||
Net realized and unrealized gain (loss) | (576,627,970 | ) | ||
| ||||
Net increase (decrease) in net assets resulting from operations | $ | (580,075,944 | ) | |
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
9 Invesco Oppenheimer Global Fund
Statement of Changes in Net Assets
For the six months ended April 30, 2020, period ended October 31, 2019, and the year ended September 30, 2019
(Unaudited)
Six Months Ended | One Month Ended | Year Ended | ||||||||||
April 30, 2020 | October 31, 2019 | September 30, 2019 | ||||||||||
Operations: | ||||||||||||
Net investment income (loss) | $ | (3,447,974 | ) | $ | (1,206,978 | ) | $ | 59,306,843 | ||||
| ||||||||||||
Net realized gain | 505,446,803 | 53,613,182 | 158,096,896 | |||||||||
| ||||||||||||
Change in net unrealized appreciation (depreciation) | (1,082,074,773 | ) | 473,353,686 | (435,694,925 | ) | |||||||
| ||||||||||||
Net increase (decrease) in net assets resulting from operations | (580,075,944 | ) | 525,759,890 | (218,291,186 | ) | |||||||
| ||||||||||||
Distributions to shareholders from distributable earnings: | ||||||||||||
Class A | (88,258,392 | ) | – | (644,212,077 | ) | |||||||
| ||||||||||||
Class C | (4,268,184 | ) | – | (63,948,727 | ) | |||||||
| ||||||||||||
Class R | (2,930,692 | ) | – | (21,951,881 | ) | |||||||
| ||||||||||||
Class Y | (28,337,555 | ) | – | (209,603,608 | ) | |||||||
| ||||||||||||
Class R5 | (153 | ) | – | – | ||||||||
| ||||||||||||
Class R6 | (26,220,136 | ) | – | (184,803,850 | ) | |||||||
| ||||||||||||
Total distributions from distributable earnings | (150,015,112 | ) | – | (1,124,520,143 | ) | |||||||
| ||||||||||||
Share transactions–net: | ||||||||||||
Class A | (366,634,110 | ) | (80,658,315 | ) | 83,821,636 | |||||||
| ||||||||||||
Class C | (27,472,538 | ) | (6,132,258 | ) | (302,493,819 | ) | ||||||
| ||||||||||||
Class R | (18,652,784 | ) | (3,178,723 | ) | (6,781,822 | ) | ||||||
| ||||||||||||
Class Y | 5,428,700 | (10,692,619 | ) | 2,836,340 | ||||||||
| ||||||||||||
Class R5 | – | – | 10,000 | |||||||||
| ||||||||||||
Class R6 | (243,715,489 | ) | (6,371,881 | ) | 679,741,497 | |||||||
| ||||||||||||
Net increase (decrease) in net assets resulting from share transactions | (651,046,221 | ) | (107,033,796 | ) | 457,133,832 | |||||||
| ||||||||||||
Net increase (decrease) in net assets | (1,381,137,277 | ) | 418,726,094 | (885,677,497 | ) | |||||||
| ||||||||||||
Net assets: | ||||||||||||
Beginning of period | 10,771,318,062 | 10,352,591,968 | 11,238,269,465 | |||||||||
| ||||||||||||
End of period | $ | 9,390,180,785 | $ | 10,771,318,062 | $ | 10,352,591,968 | ||||||
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
10 Invesco Oppenheimer Global Fund
(Unaudited)
The following schedule presents financial highlights for a share of the Fund outstanding throughout the periods indicated.
Net asset value, beginning of period | Net investment income (loss)(a) | Net gains (losses) on securities (both realized and unrealized) | Total from investment operations | Dividends from net investment income | Distributions from net realized gains | Total distributions | Net asset value, end of period | Total return (b) | Net assets, end of period (000’s omitted) | Ratio of expenses to average net assets with fee waivers and/or expenses absorbed | Ratio of expenses to average net assets without fee waivers and/or expenses absorbed(c) | Ratio of net investment income (loss) to average net assets | Portfolio turnover (d) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 04/30/20 | $ | 90.42 | $ | (0.07 | ) | $ | (5.01 | ) | $ | (5.08 | ) | $ | (0.51 | ) | $ | (0.79 | ) | $ | (1.30 | ) | $ | 84.04 | (5.78 | )% | $ | 5,457,593 | 1.06 | %(e) | 1.06 | %(e) | (0.16 | )%(e) | 5 | % | ||||||||||||||||||||||||||||||||||||
One month ended 10/31/19 | 86.02 | (0.02 | ) | 4.42 | 4.40 | – | – | – | 90.42 | 5.11 | 6,250,324 | 1.06 | (f) | 1.06 | (f) | (0.23 | )(f) | 1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 09/30/19 | 98.63 | 0.42 | (3.48 | ) | (3.06 | ) | (0.40 | ) | (9.15 | ) | (9.55 | ) | 86.02 | (2.09 | ) | 6,026,243 | 1.09 | 1.09 | 0.49 | 10 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 09/30/18 | 95.03 | 0.38 | 8.90 | 9.28 | (0.53 | ) | (5.15 | ) | (5.68 | ) | 98.63 | 10.08 | 6,759,414 | 1.10 | 1.10 | 0.38 | 14 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 09/30/17 | 75.13 | 0.31 | 20.11 | 20.42 | (0.52 | ) | – | (0.52 | ) | 95.03 | 27.36 | 7,004,011 | 1.12 | 1.13 | 0.37 | 7 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 09/30/16 | 74.79 | 0.47 | 3.75 | 4.22 | (0.52 | ) | (3.36 | ) | (3.88 | ) | 75.13 | 5.62 | 6,391,711 | 1.13 | 1.13 | 0.64 | 6 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 09/30/15 | 80.61 | 0.61 | (g) | (1.95 | )(g) | (1.34 | ) | (0.66 | ) | (3.82 | ) | (4.48 | ) | 74.79 | (1.87 | ) | 6,935,324 | 1.13 | 1.13 | 0.76 | 11 | |||||||||||||||||||||||||||||||||||||||||||||||||
Class C | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 04/30/20 | 81.75 | (0.37 | ) | (4.50 | ) | (4.87 | ) | (0.51 | ) | (0.79 | ) | (1.30 | ) | 75.58 | (6.15 | ) | 226,894 | 1.83 | (e) | 1.83 | (e) | (0.92 | )(e) | 5 | ||||||||||||||||||||||||||||||||||||||||||||||
One month ended 10/31/19 | 77.82 | (0.07 | ) | 4.00 | 3.93 | – | – | – | 81.75 | 5.05 | 274,378 | 1.82 | (f) | 1.82 | (f) | (0.99 | )(f) | 1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 09/30/19 | 90.43 | (0.22 | ) | (3.24 | ) | (3.46 | ) | – | (9.15 | ) | (9.15 | ) | 77.82 | (2.85 | ) | 267,208 | 1.86 | 1.86 | (0.28 | ) | 10 | |||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 09/30/18 | 87.71 | (0.34 | ) | 8.21 | 7.87 | – | (5.15 | ) | (5.15 | ) | 90.43 | 9.24 | 646,353 | 1.86 | 1.86 | (0.38 | ) | 14 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 09/30/17 | 69.39 | (0.30 | ) | 18.62 | 18.32 | – | – | – | 87.71 | 26.40 | 647,114 | 1.88 | 1.89 | (0.40 | ) | 7 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 09/30/16 | 69.37 | (0.08 | ) | 3.46 | 3.38 | – | (3.36 | ) | (3.36 | ) | 69.39 | 4.80 | 626,045 | 1.90 | 1.90 | (0.12 | ) | 6 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 09/30/15 | 75.10 | (0.01 | )(g) | (1.79 | )(g) | (1.80 | ) | (0.11 | ) | (3.82 | ) | (3.93 | ) | 69.37 | (2.60 | ) | 674,573 | 1.90 | 1.90 | (0.01 | ) | 11 | ||||||||||||||||||||||||||||||||||||||||||||||||
Class R | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 04/30/20 | 89.81 | (0.19 | ) | (4.97 | ) | (5.16 | ) | (0.51 | ) | (0.79 | ) | (1.30 | ) | 83.35 | (5.91 | ) | 177,159 | 1.33 | (e) | 1.33 | (e) | (0.42 | )(e) | 5 | ||||||||||||||||||||||||||||||||||||||||||||||
One month ended 10/31/19 | 85.46 | (0.04 | ) | 4.39 | 4.35 | – | – | – | 89.81 | 5.09 | 209,838 | 1.32 | (f) | 1.32 | (f) | (0.49 | )(f) | 1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 09/30/19 | 98.01 | 0.19 | (3.44 | ) | (3.25 | ) | (0.15 | ) | (9.15 | ) | (9.30 | ) | 85.46 | (2.35 | ) | 202,819 | 1.35 | 1.35 | 0.22 | 10 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 09/30/18 | 94.48 | 0.12 | 8.86 | 8.98 | (0.30 | ) | (5.15 | ) | (5.45 | ) | 98.01 | 9.79 | 237,458 | 1.36 | 1.36 | 0.12 | 14 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 09/30/17 | 74.69 | 0.09 | 20.02 | 20.11 | (0.32 | ) | – | (0.32 | ) | 94.48 | 27.04 | 226,446 | 1.38 | 1.39 | 0.11 | 7 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 09/30/16 | 74.35 | 0.28 | 3.72 | 4.00 | (0.30 | ) | (3.36 | ) | (3.66 | ) | 74.69 | 5.33 | 210,141 | 1.39 | 1.39 | 0.39 | 6 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 09/30/15 | 80.17 | 0.39 | (g) | (1.93 | )(g) | (1.54 | ) | (0.46 | ) | (3.82 | ) | (4.28 | ) | 74.35 | (2.13 | ) | 224,577 | 1.40 | 1.40 | 0.49 | 11 | |||||||||||||||||||||||||||||||||||||||||||||||||
Class Y | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 04/30/20 | 90.61 | 0.03 | (5.03 | ) | (5.00 | ) | (0.51 | ) | (0.79 | ) | (1.30 | ) | 84.31 | (5.69 | ) | 1,838,048 | 0.83 | (e) | 0.83 | (e) | 0.08 | (e) | 5 | |||||||||||||||||||||||||||||||||||||||||||||||
One month ended 10/31/19 | 86.18 | – | 4.43 | 4.43 | – | – | – | 90.61 | 5.14 | 1,985,139 | 0.82 | (f) | 0.82 | (f) | 0.00 | (f) | 1 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 09/30/19 | 98.88 | 0.62 | (3.51 | ) | (2.89 | ) | (0.66 | ) | (9.15 | ) | (9.81 | ) | 86.18 | (1.88 | ) | 1,899,009 | 0.86 | 0.86 | 0.72 | 10 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 09/30/18 | 95.27 | 0.61 | 8.92 | 9.53 | (0.77 | ) | (5.15 | ) | (5.92 | ) | 98.88 | 10.33 | 2,158,393 | 0.87 | 0.87 | 0.62 | 14 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 09/30/17 | 75.32 | 0.49 | 20.16 | 20.65 | (0.70 | ) | – | (0.70 | ) | 95.27 | 27.66 | 1,589,161 | 0.88 | 0.89 | 0.59 | 7 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 09/30/16 | 75.00 | 0.65 | 3.76 | 4.41 | (0.73 | ) | (3.36 | ) | (4.09 | ) | 75.32 | 5.87 | 1,182,183 | 0.90 | 0.90 | 0.90 | 6 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 09/30/15 | 80.81 | 0.78 | (g) | (1.94 | )(g) | (1.16 | ) | (0.83 | ) | (3.82 | ) | (4.65 | ) | 75.00 | (1.64 | ) | 1,256,847 | 0.90 | 0.90 | 0.96 | 11 | |||||||||||||||||||||||||||||||||||||||||||||||||
Class R5 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 04/30/20 | 90.55 | 0.10 | (5.03 | ) | (4.93 | ) | (0.51 | ) | (0.79 | ) | (1.30 | ) | 84.32 | (5.61 | ) | 10 | 0.68 | (e) | 0.68 | (e) | 0.22 | (e) | 5 | |||||||||||||||||||||||||||||||||||||||||||||||
One month ended 10/31/19 | 86.12 | 0.01 | 4.42 | 4.43 | – | – | – | 90.55 | 5.15 | 11 | 0.66 | (f) | 0.66 | (f) | 0.17 | (f) | 1 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Period ended 09/30/19(h) | 84.75 | 0.26 | 1.11 | 1.37 | – | – | – | 86.12 | 1.61 | 10 | 0.75 | (f) | 0.75 | (f) | 0.83 | (f) | 10 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Class R6 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 04/30/20 | 90.69 | 0.11 | (5.05 | ) | (4.94 | ) | (0.51 | ) | (0.79 | ) | (1.30 | ) | 84.45 | (5.61 | ) | 1,690,477 | 0.67 | (e) | 0.67 | (e) | 0.23 | (e) | 5 | |||||||||||||||||||||||||||||||||||||||||||||||
One month ended 10/31/19 | 86.25 | 0.01 | 4.43 | 4.44 | – | – | – | 90.69 | 5.15 | 2,051,628 | 0.67 | (f) | 0.67 | (f) | 0.16 | (f) | 1 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 09/30/19 | 98.97 | 0.76 | (3.51 | ) | (2.75 | ) | (0.82 | ) | (9.15 | ) | (9.97 | ) | 86.25 | (1.70 | ) | 1,957,302 | 0.69 | 0.69 | 0.88 | 10 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 09/30/18 | 95.35 | 0.77 | 8.92 | 9.69 | (0.92 | ) | (5.15 | ) | (6.07 | ) | 98.97 | 10.52 | 1,436,651 | 0.69 | 0.69 | 0.78 | 14 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 09/30/17 | 75.40 | 0.70 | 20.10 | 20.80 | (0.85 | ) | – | (0.85 | ) | 95.35 | 27.91 | 1,005,841 | 0.70 | 0.70 | 0.84 | 7 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 09/30/16 | 75.07 | 0.80 | 3.77 | 4.57 | (0.88 | ) | (3.36 | ) | (4.24 | ) | 75.40 | 6.05 | 663,292 | 0.71 | 0.71 | 1.11 | 6 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 09/30/15 | 80.92 | 0.95 | (g) | (1.96 | )(g) | (1.01 | ) | (1.02 | ) | (3.82 | ) | (4.84 | ) | 75.07 | (1.44 | ) | 499,965 | 0.71 | 0.71 | 1.18 | 11 |
(a) | Calculated using average shares outstanding. |
(b) | Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Does not include sales charges and is not annualized for periods less than one year, if applicable. |
(c) | Does not include estimated acquired fund fees from underlying funds of 0.00% for the one month ended October 31, 2019 and the years ended September 30, 2019, 2018, 2017, 2016 and 2015, respectively. |
(d) | Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable. |
(e) | Ratios are annualized and based on average daily net assets (000’s omitted) of $6,045,442, $261,808, $198,583, $1,987,171, $11 and $1,869,228 for Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares, respectively. |
(f) | Annualized. |
(g) | Net investment income (loss) per share, net realized and unrealized gain (loss) per share and the net investment income (loss) ratio include an adjustment for a prior period reclassification for the year ended September 30, 2015. |
(h) | For the period from after the close of business on May 24, 2019 (inception of offering) to September 30, 2019. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
11 Invesco Oppenheimer Global Fund
April 30, 2020
(Unaudited)
NOTE 1–Significant Accounting Policies
Invesco Oppenheimer Global Fund (the “Fund”) is a series portfolio of AIM International Mutual Funds (Invesco International Mutual 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 the Fund or each class.
The Fund’s investment objective is to seek capital appreciation.
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. 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. |
A security listed or traded on an exchange (except convertible securities) is valued at its last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded, or lacking any sales or official closing price on a particular day, the security may be valued at the closing bid price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued by an independent pricing service they may be considered fair valued. Futures contracts are valued at the final settlement price set by an exchange on which they are principally traded. Listed options are valued at the mean between the last bid and asked prices from the exchange on which they are principally traded. Options not listed on an exchange are valued by an independent source at the mean between the last bid and asked prices. For purposes of determining net asset value (“NAV”) per share, futures and option contracts generally are valued 15 minutes after the close of the customary trading session of the New York Stock Exchange (“NYSE”).
Investments in open-end and closed-end registered investment companies that do not trade on an exchange are valued at the end-of-day net asset value per share. Investments in open-end and closed-end registered investment companies that trade on an exchange are valued at the last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded.
Debt obligations (including convertible securities) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. Pricing services generally value debt obligations assuming orderly transactions of institutional round lot size, but a fund may hold or transact in the same securities in smaller, odd lot sizes. Odd lots often trade at lower prices than institutional round lots. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.
Foreign securities’ (including foreign exchange contracts) prices are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the NYSE. If market quotations are available and reliable for foreign exchange-traded equity securities, the securities will be valued at the market quotations. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become unreliable. If between the time trading ends on a particular security and the close of the customary trading session on the NYSE, events occur that the investment adviser determines are significant and make the closing price unreliable, the Fund may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith using procedures approved by the Board of Trustees. Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities’ prices meeting the approved degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economic upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.
Securities for which market prices are not provided by any of the above methods may be valued based upon quotes furnished by independent sources. The last bid price may be used to value equity securities. The mean between the last bid and asked prices is used to value debt obligations, including corporate loans.
Securities for which market quotations are not readily available or became unreliable are valued at fair value as determined in good faith by or under the supervision of the Trust’s officers following procedures approved by the Board of Trustees. Issuer specific events, market trends, bid/asked quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security’s fair value.
The Fund may invest in securities that are subject to interest rate risk, meaning the risk that the prices will generally fall as interest rates rise and, conversely, the prices will generally rise as interest rates fall. Specific securities differ in their sensitivity to changes in interest rates depending on their individual characteristics. Changes in interest rates may result in increased market volatility, which may affect the value and/or liquidity of certain Fund investments.
Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the issuer’s assets, general market conditions which are not specifically related to the particular issuer, such as real or perceived adverse economic conditions, changes in the general outlook for revenues or corporate earnings, changes in interest or currency rates, regional or global instability, natural or environmental disasters, widespread disease or other public health issues, war, acts of terrorism or adverse investor sentiment generally and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
B. | Securities Transactions and Investment Income – Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income (net of withholding tax, if any) is recorded on an accrual basis from settlement date. Dividend income (net of withholding tax, if any) is recorded on the ex-dividend date. |
The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Statement of Operations as realized gain (loss) for investments no longer held and as unrealized gain (loss) for investments still held.
Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of net realized and unrealized gain (loss) from investment
12 Invesco Oppenheimer Global Fund
securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the net realized and unrealized gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and the Statement of Changes in Net Assets, or the net investment income per share and the ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.
The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class.
C. | Country Determination – For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues and the country that has the primary market for the issuer’s securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted. |
D. | Distributions – Distributions from net investment income and net realized capital gain, if any, are generally declared and paid annually and recorded on the ex-dividend date. The Fund may elect to treat a portion of the proceeds from redemptions as distributions for federal income tax purposes. |
E. | Federal Income Taxes – The Fund intends to comply with the requirements of Subchapter M of the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”), necessary to qualify as a regulated investment company and to distribute substantially all of the Fund’s taxable earnings to shareholders. As such, the Fund will not be subject to federal income taxes on otherwise taxable income (including net realized capital gain) that is distributed to shareholders. |
Therefore, no provision for federal income taxes is recorded in the financial statements.
The Fund recognizes the tax benefits of uncertain tax positions only when the position is more likely than not to be sustained. Management has analyzed the Fund’s uncertain tax positions and concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions. Management is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the next 12 months.
The Fund files tax returns in the U.S. Federal jurisdiction and certain other jurisdictions. Generally, the Fund is subject to examinations by such taxing authorities for up to three years after the filing of the return for the tax period.
F. | Expenses – Fees provided for under the Rule 12b-1 plan of a particular class of the Fund 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 preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print. |
H. | Indemnifications – Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of the performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements, that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote. |
I. | Foreign Currency Translations – Foreign currency is valued at the close of the NYSE based on quotations posted by banks and major currency dealers. Portfolio securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at the date of valuation. Purchases and sales of portfolio securities (net of foreign taxes withheld on disposition) and income items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. The Fund does not separately account for the portion of the results of operations resulting from changes in foreign exchange rates on investments and the fluctuations arising from changes in market prices of securities held. The combined results of changes in foreign exchange rates and the fluctuation of market prices on investments (net of estimated foreign tax withholding) are included with the net realized and unrealized gain or loss from investments in the Statement of Operations. Reported net realized foreign currency gains or losses arise from (1) sales of foreign currencies, (2) currency gains or losses realized between the trade and settlement dates on securities transactions, and (3) the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign currency gains and losses arise from changes in the fair values of assets and liabilities, other than investments in securities at fiscal period end, resulting from changes in exchange rates. |
The Fund may invest in foreign securities, which may be subject to foreign taxes on income, gains on investments or currency repatriation, a portion of which may be recoverable. Foreign taxes, if any, are recorded based on the tax regulations and rates that exist in the foreign markets in which the Fund invests and are shown in the Statement of Operations.
J. | Forward Foreign Currency Contracts –The Fund may engage in foreign currency transactions either on a spot (i.e. for prompt delivery and settlement) basis, or through forward foreign currency contracts, to manage or minimize currency or exchange rate risk. |
The Fund may also enter into forward foreign currency contracts for the purchase or sale of a security denominated in a foreign currency in order to “lock in” the U.S. dollar price of that security, or the Fund may also enter into forward foreign currency contracts that do not provide for physical settlement of the two currencies, but instead are settled by a single cash payment calculated as the difference between the agreed upon exchange rate and the spot rate at settlement based upon an agreed upon notional amount (non-deliverable forwards). The Fund will set aside liquid assets in an amount equal to the daily mark-to-market obligation for forward foreign currency contracts.
A forward foreign currency contract is an obligation between two parties (“Counterparties”) to purchase or sell a specific currency for an agreed-upon price at a future date. The use of forward foreign currency contracts does not eliminate fluctuations in the price of the underlying securities the Fund owns or intends to acquire but establishes a rate of exchange in advance. Fluctuations in the value of these contracts are measured by the difference in the contract date and reporting date exchange rates and are recorded as unrealized appreciation (depreciation) until the contracts are closed. When the contracts are closed, realized gains (losses) are recorded. Realized and unrealized gains (losses) on the contracts are included in the Statement of Operations. The primary risks associated with forward foreign currency contracts include failure of the Counterparty to meet the terms of the contract and the value of the foreign currency changing unfavorably. These risks may be in excess of the amounts reflected in the Statement of Assets and Liabilities.
13 Invesco Oppenheimer Global Fund
NOTE 2–Advisory Fees and Other Fees Paid to Affiliates
The Trust has entered into a master investment advisory agreement with Invesco Advisers, Inc. (the “Adviser” or “Invesco”). Under the terms of the investment advisory agreement, the Fund accrues daily and pays monthly an advisory fee to the Adviser based on the annual rate of the Fund’s average daily net assets as follows:
Average Daily Net Assets* | Rate | |||
Up to $250 million | 0.800 | % | ||
Next $250 million | 0.770 | % | ||
Next $500 million | 0.750 | % | ||
Next $1 billion | 0.690 | % | ||
Next $1.5 billion | 0.670 | % | ||
Next $2.5 billion | 0.650 | % | ||
Next $2.5 billion | 0.630 | % | ||
Next $2.5 billion | 0.600 | % | ||
Next $4 billion | 0.580 | % | ||
Next $8 billion | 0.560 | % | ||
Over $23 billion | 0.540 | % |
* | 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 April 30, 2020, the effective advisory fee rate incurred by the Fund was 0.65%.
Under the terms of a master sub-advisory agreement between the Adviser and each of Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Canada Ltd. (collectively, the “Affiliated Sub-Advisers”) the Adviser, not the Fund, will pay 40% of the fees paid to the Adviser to any such Affiliated Sub-Adviser(s) that provide(s) discretionary investment management services to the Fund based on the percentage of assets allocated to such Affiliated Sub-Adviser(s).
The Adviser has contractually agreed, through at least May 31, 2021, to waive advisory fees and/or reimburse expenses of all shares to the extent necessary to limit total annual fund operating expenses after fee waiver and/or expense reimbursement (excluding certain items discussed below) of Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares to 1.15%, 1.89%, 1.39%, 0.89%, 0.75%, and 0.70% , respectively, of average daily net assets (the “expense limits”) .In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause the total annual fund operating expenses after fee waiver and/or expense reimbursement to exceed the numbers reflected above: (1) interest; (2) taxes; (3) dividend expense on short sales; (4) extraordinary or non-routine items, including litigation expenses; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Unless Invesco continues the fee waiver agreement, it will terminate on May 31, 2021. During its term, the fee waiver agreement cannot be terminated or amended to increase the expense limits or reduce the advisory fee waiver without approval of the Board of Trustees. The Adviser did not waive fees and/or reimburse expenses during the period under these expense limits.
Further, the Adviser has contractually agreed, through at least June 30, 2022, to waive the advisory fee payable by the Fund in an amount equal to 100% of the net advisory fees the Adviser receives from the affiliated money market funds on investments by the Fund of uninvested cash in such affiliated money market funds.
For the six months ended April 30, 2020, the Adviser waived advisory fees of $18,509.
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 April 30, 2020, expenses incurred under the agreement are shown in the Statement of Operations as Administrative services fees. Invesco has entered into a sub-administration agreement whereby State Street Bank and Trust Company (“SSB”) serves as fund accountant and provides certain administrative services to the Fund. Pursuant to a custody agreement with the Trust on behalf of the Fund, SSB also serves as the Fund’s custodian.
The Trust has entered into a transfer agency and service agreement with Invesco Investment Services, Inc. (“IIS”) pursuant to which the Fund has agreed to pay IIS a fee for providing transfer agency and shareholder services to the Fund and reimburse IIS for certain expenses incurred by IIS in the course of providing such services. IIS may make payments to intermediaries that provide omnibus account services, sub-accounting services and/or networking services. All fees payable by IIS to intermediaries that provide omnibus account services or sub-accounting services are charged back to the Fund, subject to certain limitations approved by the Trust’s Board of Trustees. For the six months ended April 30, 2020, expenses incurred under the agreement are shown in the Statement of Operations as Transfer 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 “Plans”). The Fund, pursuant to the Plans, pays IDI compensation at the annual rate of 0.25% of the Fund’s average daily net assets of Class A shares, 1.00% of the average daily net assets of Class C shares 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 Plans 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. For the six-month period ended April 30, 2020, expenses incurred under the Plans are shown in the Statement of Operations as Distribution fees.
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 April 30, 2020, IDI advised the Fund that IDI retained $148,769 in front-end sales commissions from the sale of Class A shares and $4,305 and $5,856 from Class A and Class C shares, respectively, for CDSC imposed upon redemptions by shareholders.
Certain officers and trustees of the Trust are officers and directors of the Adviser, IIS and/or IDI.
NOTE 3–Additional Valuation Information
GAAP defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, under current market conditions. GAAP establishes a hierarchy that prioritizes the inputs to valuation methods, giving the highest priority to readily available unadjusted quoted prices in an active market for identical assets (Level 1) and the lowest priority to significant unobservable inputs (Level 3), generally when market prices are not readily available or are unreliable. Based on the valuation inputs, the securities or other investments are tiered into one of three levels. Changes in valuation methods may result in transfers in or out of an investment’s assigned level:
Level 1 – | Prices are determined using quoted prices in an active market for identical assets. |
14 Invesco Oppenheimer Global Fund
Level 2 – | Prices are determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk, yield curves, loss severities, default rates, discount rates, volatilities and others. | |
Level 3 – | Prices are determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Fund’s own assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information. |
The following is a summary of the tiered valuation input levels, as of April 30, 2020. The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Investments in Securities | ||||||||||||||||
Argentina | $ | – | $ | – | $ | 27,831,601 | $ | 27,831,601 | ||||||||
Brazil | 42,706,582 | – | – | 42,706,582 | ||||||||||||
China | 265,559,788 | – | – | 265,559,788 | ||||||||||||
France | – | 897,018,546 | – | 897,018,546 | ||||||||||||
Germany | – | 400,925,546 | – | 400,925,546 | ||||||||||||
India | 128,311,084 | 172,011,567 | – | 300,322,651 | ||||||||||||
Italy | – | 24,926,934 | – | 24,926,934 | ||||||||||||
Japan | – | 1,342,356,134 | – | 1,342,356,134 | ||||||||||||
Netherlands | 65,669,989 | 23,509,031 | – | 89,179,020 | ||||||||||||
Spain | – | 133,258,059 | – | 133,258,059 | ||||||||||||
Sweden | – | 254,006,541 | – | 254,006,541 | ||||||||||||
Switzerland | – | 20,103,498 | – | 20,103,498 | ||||||||||||
United Kingdom | 41,399,759 | 209,697,843 | – | 251,097,602 | ||||||||||||
United States | 5,285,667,844 | – | – | 5,285,667,844 | ||||||||||||
Money Market Funds | 35,195,831 | – | – | 35,195,831 | ||||||||||||
Total Investments | $ | 5,864,510,877 | $ | 3,477,813,699 | $ | 27,831,601 | $ | 9,370,156,177 |
NOTE 4–Security Transactions with Affiliated Funds
The Fund is permitted to purchase or sell securities from or to certain other Invesco Funds under specified conditions outlined in procedures adopted by the Board of Trustees of the Trust. The procedures have been designed to ensure that any purchase or sale of securities by the Fund from or to another fund or portfolio that is or could be considered an affiliate by virtue of having a common investment adviser (or affiliated investment advisers), common Trustees and/or common officers complies with Rule 17a-7 of the 1940 Act. Further, as defined under the procedures, each transaction is effected at the current market price. Pursuant to these procedures, for the six-month period ended April 30, 2020, the Fund engaged in securities purchases of $237,859.
NOTE 5–Expense Offset Arrangement(s)
The expense offset arrangement is comprised of transfer agency credits which result from balances in demand deposit accounts used by the transfer agent for clearing shareholder transactions. For the six months ended April 30, 2020, the Fund received credits from this arrangement, which resulted in the reduction of the Fund’s total expenses of $47,241.
NOTE 6–Trustees’ and Officers’ Fees and Benefits
Trustees’ and Officers’ Fees and Benefits include amounts accrued by the Fund to pay remuneration to certain Trustees and Officers of the Fund. Trustees have the option to defer compensation payable by the Fund, and Trustees’ and Officers’ Fees and Benefits also include amounts accrued by the Fund to fund such deferred compensation amounts. Those Trustees who defer compensation have the option to select various Invesco Funds in which their deferral accounts shall be deemed to be invested. Finally, certain current Trustees were eligible to participate in a retirement plan that provided for benefits to be paid upon retirement to Trustees over a period of time based on the number of years of service. The Fund may have certain former Trustees who also participate in a retirement plan and receive benefits under such plan. Trustees’ and Officers’ Fees and Benefits include amounts accrued by the Fund to fund such retirement benefits. Obligations under the deferred compensation and retirement plans represent unsecured claims against the general assets of the Fund.
NOTE 7–Cash Balances
The Fund is permitted to temporarily carry a negative or overdrawn balance in its account with SSB, the custodian bank. Such balances, if any at period-end, are shown in the Statement of Assets and Liabilities under the payable caption Amount due custodian. To compensate the custodian bank for such overdrafts, the overdrawn Fund may either (1) leave funds as a compensating balance in the account so the custodian bank can be compensated by earning the additional interest; or (2) compensate by paying the custodian bank at a rate agreed upon by the custodian bank and Invesco, not to exceed the contractually agreed upon rate. The Fund may not purchase additional securities when any borrowings from banks or broker-dealers exceed 5% of the Fund’s total assets, or when any borrowings from an Invesco Fund are outstanding.
NOTE 8–Tax Information
The amount and character of income and gains to be distributed are determined in accordance with income tax regulations, which may differ from GAAP.
Reclassifications are made to the Fund’s capital accounts to reflect income and gains available for distribution (or available capital loss carryforward) under income tax regulations. The tax character of distributions paid during the year and the tax components of net assets will be reported at the Fund’s fiscal year-end.
Capital loss carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Fund to utilize. The ability to utilize capital loss carryforwards in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.
The Fund did not have a capital loss carryforward as of October 31, 2019.
15 Invesco Oppenheimer Global Fund
NOTE 9–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 April 30, 2020 was $484,688,183 and $1,308,646,443, 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 | $ | 4,726,135,532 | ||
| ||||
Aggregate unrealized (depreciation) of investments | (256,369,735 | ) | ||
| ||||
Net unrealized appreciation of investments | $ | 4,469,765,797 | ||
|
Cost of investments for tax purposes is $4,900,390,380.
NOTE 10–Share Information
Summary of Share Activity | ||||||||||||||||||||||||
| ||||||||||||||||||||||||
Six months ended April 30, 2020(a) | One Month Ended October 31, 2019 | Year ended September 30, 2019 | ||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | |||||||||||||||||||
| ||||||||||||||||||||||||
Sold: | ||||||||||||||||||||||||
Class A | 2,184,060 | $ | 192,009,083 | 305,253 | $ | 26,612,228 | 7,833,389 | $ | 678,594,057 | |||||||||||||||
| ||||||||||||||||||||||||
Class C | 186,823 | 15,011,877 | 29,760 | 2,354,344 | 472,034 | 36,239,072 | ||||||||||||||||||
| ||||||||||||||||||||||||
Class R | 163,893 | 14,334,199 | 21,262 | 1,847,460 | 384,575 | 32,601,280 | ||||||||||||||||||
| ||||||||||||||||||||||||
Class Y | 3,269,757 | 297,900,831 | 340,470 | 29,957,811 | 4,797,756 | 408,527,888 | ||||||||||||||||||
| ||||||||||||||||||||||||
Class R5(b) | - | - | - | - | 118 | 10,000 | ||||||||||||||||||
| ||||||||||||||||||||||||
Class R6 | 1,618,083 | 145,448,263 | 259,683 | 22,532,695 | 11,105,303 | 948,086,377 | ||||||||||||||||||
| ||||||||||||||||||||||||
Issued as reinvestment of dividends: | ||||||||||||||||||||||||
Class A | 868,089 | 82,407,767 | - | - | 7,920,817 | 617,268,800 | ||||||||||||||||||
| ||||||||||||||||||||||||
Class C | 47,741 | 4,087,570 | - | - | 889,014 | 63,075,486 | ||||||||||||||||||
| ||||||||||||||||||||||||
Class R | 30,963 | 2,917,951 | - | - | 275,176 | 21,350,942 | ||||||||||||||||||
| ||||||||||||||||||||||||
Class Y | 266,718 | 25,378,194 | - | - | 2,569,730 | 200,259,104 | ||||||||||||||||||
| ||||||||||||||||||||||||
Class R6 | 273,804 | 26,082,561 | - | - | 2,346,782 | 182,790,847 | ||||||||||||||||||
| ||||||||||||||||||||||||
Automatic conversion of Class C shares to Class A shares: | ||||||||||||||||||||||||
Class A | 120,746 | 10,786,434 | - | - | - | - | ||||||||||||||||||
| ||||||||||||||||||||||||
Class C | (134,003 | ) | (10,786,434 | ) | - | - | - | - | ||||||||||||||||
| ||||||||||||||||||||||||
Reacquired: | ||||||||||||||||||||||||
Class A | (7,355,074 | ) | (651,837,394 | ) | (1,234,244 | ) | (107,270,543 | ) | (14,230,311 | ) | (1,212,041,221 | ) | ||||||||||||
| ||||||||||||||||||||||||
Class C | (454,703 | ) | (35,785,551 | ) | (106,938 | ) | (8,486,602 | ) | (5,075,155 | ) | (401,808,377 | ) | ||||||||||||
| ||||||||||||||||||||||||
Class R | (405,827 | ) | (35,904,934 | ) | (58,057 | ) | (5,026,183 | ) | (709,256 | ) | (60,734,044 | )�� | ||||||||||||
| ||||||||||||||||||||||||
Class Y | (3,644,864 | ) | (317,850,325 | ) | (465,691 | ) | (40,650,430 | ) | (7,161,948 | ) | (605,950,652 | ) | ||||||||||||
| ||||||||||||||||||||||||
Class R6 | (4,498,223 | ) | (415,246,313 | ) | (330,479 | ) | (28,904,576 | ) | (5,273,251 | ) | (451,135,727 | ) | ||||||||||||
| ||||||||||||||||||||||||
Net increase (decrease) in share activity | (7,462,017 | ) | $ | (651,046,221 | ) | (1,238,981 | ) | $ | (107,033,796 | ) | 6,144,773 | $ | 457,133,832 | |||||||||||
|
(a) | There is an entity that is a record owner of more than 5% of the outstanding shares of the Fund and owns 5% of the outstanding shares of the Fund. IDI has an agreement with this entity to sell Fund shares. The Fund, Invesco and/or Invesco affiliates may make payments to this entity, which is 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 this entity are also owned beneficially. |
In addition, 5% of the outstanding shares of the Fund are owned by the Adviser or an affiliate of the Adviser.
(b) | Commencement date after the close of business on May 24, 2019. |
NOTE 11–Coronavirus (COVID-19) Pandemic
During the first quarter of 2020, the World Health Organization declared COVID-19 to be a public health emergency. COVID-19 has led to increased short-term market volatility and may have adverse long-term effects on U.S. and world economies and markets in general. COVID-19 may adversely impact the Fund’s ability to achieve its investment objective. Because of the uncertainties on valuation, the global economy and business operations, values reflected in these financial statements may materially differ from the value received upon actual sales of those investments.
The extent of the impact on the performance of the Fund and its investments will depend on future developments, including the duration and spread of the COVID-19 outbreak, related restrictions and advisories, and the effects on the financial markets and economy overall, all of which are highly uncertain and cannot be predicted.
NOTE 12–Subsequent Event
Effective on or about September 30, 2020, the name of the Fund and all references thereto will change from Invesco Oppenheimer Global Fund to Invesco Global Fund.
16 Invesco Oppenheimer Global Fund
Calculating your ongoing Fund expenses
Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, which may include sales charges (loads) on purchase payments or contingent deferred sales charges on redemptions, if any; and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees, and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period November 1, 2019 through April 30, 2020.
Actual expenses
The table below provides information about actual account values and actual expenses. You may use the information in this table, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the table under the heading entitled “Actual Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Hypothetical example for comparison purposes
The table below also provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return.
The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads) on purchase payments or contingent deferred sales charges on redemptions, if any. Therefore, the hypothetical information is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, expenses shown in the table do not include the expenses of the underlying funds, which are borne indirectly by the Fund. If transaction costs and indirect expenses were included, your costs would have been higher.
ACTUAL | HYPOTHETICAL (5% annual return before expenses) | ||||||||||||||||||||||||||
Beginning | Ending | Expenses | Ending | Expenses | Annualized | ||||||||||||||||||||||
Account Value | Account Value | Paid During | Account Value | Paid During | Expense | ||||||||||||||||||||||
(11/01/19) | (04/30/20)1 | Period2 | (04/30/20) | Period2 | Ratio | ||||||||||||||||||||||
Class A | $1,000.00 | $942.10 | $5.12 | $1,019.59 | $5.32 | 1.06 | % | ||||||||||||||||||||
Class C | 1,000.00 | 938.60 | 8.82 | 1,015.76 | 9.17 | 1.83 | |||||||||||||||||||||
Class R | 1,000.00 | 940.80 | 6.42 | 1,018.25 | 6.67 | 1.33 | |||||||||||||||||||||
Class Y | 1,000.00 | 943.30 | 4.01 | 1,020.74 | 4.17 | 0.83 | |||||||||||||||||||||
Class R5 | 1,000.00 | 943.70 | 3.29 | 1,021.48 | 3.42 | 0.68 | |||||||||||||||||||||
Class R6 | 1,000.00 | 944.00 | 3.24 | 1,021.53 | 3.37 | 0.67 |
1 | The actual ending account value is based on the actual total return of the Fund for the period November 1, 2019 through April 30, 2020, after actual expenses and will differ from the hypothetical ending account value which is based on the Fund’s expense ratio and a hypothetical annual return of 5% before expenses. |
2 | Expenses are equal to the Fund’s annualized expense ratio as indicated above multiplied by the average account value over the period, multiplied by 182/366 to reflect the most recent fiscal half year. |
17 Invesco Oppenheimer Global Fund
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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 list appears 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 Form N-PORT filings on the SEC website, sec.gov. The SEC file numbers for the Fund are shown below.
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. This 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. |
SEC file numbers: 811-06463 and 033-44611 | Invesco Distributors, Inc. | O-GLBL-SAR-1 |
| ||||||
Semiannual Report to Shareholders | April 30, 2020 | |||||
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Invesco Oppenheimer Global Focus Fund |
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Nasdaq: | ||||||
A: GLVAX ⬛ C: GLVCX ⬛ R: GLVNX ⬛ Y: GLVYX ⬛ R5: GFFDX ⬛ R6: GLVIX |
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2 | ||
3 | ||
5 | ||
6 | ||
8 | ||
11 | ||
12 | ||
17 |
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.
For the most current month-end Fund performance and commentary, please visit invesco.com/performance.
Unless otherwise noted, all data provided by Invesco.
This report must be accompanied or preceded by a currently effective Fund prospectus, which contains more complete information, including sales charges and expenses. Investors should read it carefully before investing.
NOT FDIC INSURED | MAY LOSE VALUE | NO BANK GUARANTEE |
Bruce Crockett | Dear Fellow Shareholders: As independent chair of the Invesco Funds Board, I can assure you that the members of the Board are strong advocates for the interests of investors in Invesco’s mutual funds. We work hard to represent your interests through oversight of the quality of the investment management services your funds receive and other matters important to your investment. This includes but is not limited to: monitoring how the portfolio management teams of the Invesco funds are performing in light of changing economic and market conditions; assessing each portfolio management team’s investment performance within the context of the investment strategy described in the fund’s prospectus; and monitoring for potential conflicts of interests that may impact the nature of the services that your funds receive. We believe one of the most important services we provide our fund shareholders is the annual review of the funds’ advisory and sub-advisory contracts with Invesco Advisers and its affiliates. This review is required by the Investment Company Act of 1940 and focuses on the nature and quality of the services Invesco provides as the adviser to the Invesco funds and the reasonableness of the fees that it charges | |
for those services. Each year, we spend months carefully reviewing information received from Invesco and a variety of independent sources, such as performance and fee data prepared by Lipper Inc. (a subsidiary of Broadridge Financial Solutions, Inc.), an independent, third-party firm widely recognized as a leader in its field. We also meet with our independent legal counsel and other independent advisers to review and help us assess the information that we have received. Our goal is to assure that you receive quality investment management services for a reasonable fee. On behalf of the Board, we look forward to continuing to represent your interests and serving your needs. |
Sincerely,
Bruce L. Crockett
Independent Chair
Invesco Funds Board of Trustees
Andrew Schlossberg | Dear Shareholders: This semiannual report includes information about your Fund, including performance data and a complete list of its investments as of the close of the reporting period. Invesco’s efforts to help investors achieve their financial objectives include providing timely information about the markets, the economy and investing. Our website, invesco.com/us, offers a wide range of market insights and investment perspectives. On the website, you’ll find detailed information about our funds, including performance, holdings and portfolio manager commentaries. You can access information about your account by completing a simple, secure online registration. To do so, select “Log In” on the right side of the homepage, and then select “Register for Individual Account Access.” | |
In addition to the resources accessible on our website, you can obtain timely updates to help you stay informed by connecting with Invesco on Twitter, LinkedIn or Facebook. You can access our blog at blog.invesco.us.com. Our goal is to provide you with information you want, when and where you want it. | ||
For questions about your account, feel free to contact an Invesco client services representative at 800 959 4246. All of us at Invesco look forward to serving your investment management needs. Thank you for investing with us. |
Sincerely,
Andrew Schlossberg
Head of the Americas,
Senior Managing Director, Invesco Ltd.
2 Invesco Oppenheimer Global Focus Fund
Performance summary |
| |||
Fund vs. Indexes |
| |||
Cumulative total returns, October 31, 2019 to April 30, 2020, at net asset value (NAV). Performance shown does not include applicable contingent deferred sales charges (CDSC) or front-end sales charges, which would have reduced performance. |
| |||
Class A Shares | 12.03 | % | ||
Class C Shares | 11.61 | |||
Class R Shares | 11.90 | |||
Class Y Shares | 12.16 | |||
Class R5 Shares | 12.24 | |||
Class R6 Shares | 12.28 | |||
MSCI All Country World Index | -7.68 | |||
Source(s): RIMES Technologies Corp. | ||||
The MSCI All Country World Index is an unmanaged index considered representative of large- and mid-cap stocks across developed and emerging markets. The index is computed using the net return, which withholds applicable taxes for non-resident investors. |
| |||
The Fund is not managed to track the performance of any particular index(es), including the index(es) described here, and consequently, the performance of the Fund may deviate significantly from the performance of the index(es). |
| |||
A direct investment cannot be made in an index. Unless otherwise indicated, index results include reinvested dividends, and they do not reflect sales charges. Performance of the peer group, if applicable, reflects fund expenses; performance of a market index does not. |
|
For more information about your Fund |
Read the most recent quarterly commentary from your Fund’s portfolio managers by visiting invesco.com/us. Click on “Products” and select “Mutual Funds.” Use the “Product Finder” to locate your Fund; then click on its name to access its product detail page. There, you can learn more about your Fund’s investment strategies, holdings and performance. Also, visit blog.invesco.us.com, where many of Invesco’s investment professionals share their in-sights about market and economic news and trends.
|
3 Invesco Oppenheimer Global Focus Fund
Average Annual Total Returns |
| |||
As of 4/30/20, including maximum applicable sales charges |
| |||
Class A Shares | ||||
Inception (10/1/07) | 6.14 | % | ||
10 Years | 8.81 | |||
5 Years | 6.75 | |||
1 Year | 3.49 | |||
Class C Shares | ||||
Inception (10/1/07) | 6.03 | % | ||
10 Years | 8.59 | |||
5 Years | 7.15 | |||
1 Year | 7.72 | |||
Class R Shares | ||||
Inception (10/1/07) | 6.42 | % | ||
10 Years | 9.14 | |||
5 Years | 7.69 | |||
1 Year | 9.25 | |||
Class Y Shares | ||||
Inception (10/1/07) | 6.99 | % | ||
10 Years | 9.72 | |||
5 Years | 8.22 | |||
1 Year | 9.77 | |||
Class R5 Shares | ||||
10 Years | 9.46 | % | ||
5 Years | 8.04 | |||
1 Year | 9.90 | |||
Class R6 Shares | ||||
Inception (8/28/12) | 11.61 | % | ||
5 Years | 8.42 | |||
1 Year | 9.99 |
Effective May 24, 2019, Class A, Class C, Class R, Class Y, and Class I shares of the Oppenheimer Global Focus Fund, (the predecessor fund), were reorganized into Class A, Class C, Class R, Class Y, and Class R6 shares, respectively, of the Invesco Oppenheimer Global Focus Fund (the Fund). Returns shown above, prior to May 24, 2019, 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 the predecessor fund because of different expenses.
Class R5 shares incepted on May 24, 2019. Performance shown prior to that date is that of the predecessor fund’s Class A shares and includes the 12b-1 fees applicable to Class A shares.
The performance data quoted represent past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/ performance for the most recent month-end performance. Performance figures reflect reinvested distributions, changes in net asset value and the effect of the maximum sales charge unless otherwise stated. Performance figures do not reflect deduction of taxes a shareholder would pay on
Fund distributions or sale of Fund shares. Investment return and principal value will fluctuate so that you may have a gain or loss when you sell shares.
Class A share performance reflects the maximum 5.50% sales charge, and Class C share performance reflects the applicable contingent deferred sales charge (CDSC) for the period involved. The CDSC on Class C shares is 1% for the first year after purchase. Class R, Class Y, Class R5 and Class R6 shares do not have a front-end sales charge or a CDSC; therefore, performance is at net asset value.
The performance of the Fund’s share classes will differ primarily due to different sales charge structures and class expenses.
Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information.
4 Invesco Oppenheimer Global Focus Fund
Liquidity Risk Management Program
The Securities and Exchange Commission has adopted Rule 22e-4 under the Investment Company Act of 1940 (the “Liquidity Rule”) in order to promote effective liquidity risk management throughout the open-end investment company industry, thereby reducing the risk that funds will be unable to meet their redemption obligations and mitigating dilution of the interests of fund shareholders. The Fund has adopted and implemented a liquidity risk management program in accordance with the Liquidity Rule (the “Program”). The Program is reasonably designed to assess and manage the Fund’s liquidity risk, which is the risk that the Fund could not meet redemption requests without significant dilution of remaining investors’ interests in the Fund. The Board of Trustees of the Fund (the “Board”) has appointed Invesco Advisers, Inc. (“Invesco”), the Fund’s investment adviser, as the Program’s administrator, and Invesco has delegated oversight of the Program to the Liquidity Risk Management Committee (the “Committee”), which is composed of senior representatives from relevant business groups at Invesco.
As required by the Liquidity Rule, the Program includes policies and procedures providing for an assessment, no less frequently than annually, of the Fund’s liquidity risk that takes into account, as relevant to the Fund’s liquidity risk: (1) the Fund’s investment strategy and liquidity of portfolio investments during both normal and reasonably foreseeable stressed conditions; (2) short-term and long-term cash flow projections for the Fund during both normal and reasonably foreseeable stressed conditions; and (3) the Fund’s holdings of cash and cash equivalents and any borrowing arrangements. The Liquidity Rule also requires the classification of the Fund’s investments into categories that reflect the assessment of their relative liquidity under current market conditions. The Fund classifies its investments into one of four categories defined in the Liquidity Rule: “Highly Liquid,” “Moderately Liquid,” “Less Liquid” and “Illiquid.” Funds that are not invested primarily in “Highly Liquid Investments” that are assets (cash or investments that are reasonably expected to be convertible into cash within three business days without significantly changing the market value of the investment) are required to establish a “Highly Liquid Investment Minimum” (“HLIM”), which is the minimum percentage of net assets that must be invested in Highly Liquid Investments. Funds with HLIMs have procedures for addressing HLIM shortfalls, including reporting to the Board and the SEC (on a non-public basis) as required by the Program and the Liquidity Rule. In addition, the Fund may not acquire an investment if, immediately after the acquisition, over 15% of the Fund’s net assets would consist of “Illiquid Investments” that are assets (an investment that cannot reasonably be expected to be sold or disposed of in current market conditions in seven calendar days or less without the sale or disposition significantly changing the market value of the investment). The Liquidity Rule and the Program also require reporting to the Board and the SEC (on a non-public basis) if a Fund’s holdings of Illiquid Investments exceed 15% of the Fund’s assets.
At a meeting held on March 30-April 1, 2020, the Committee presented a report to the Board that addressed the operation of the Program and assessed the Program’s adequacy and effectiveness of implementation (the “Report”). The Report covered the period from December 1, 2018 through December 31, 2019 (the “Program Reporting Period”).
The Report stated, in relevant part, that during the Program Reporting Period:
∎ | The Program, as adopted and implemented, remained reasonably designed to assess and manage the Fund’s liquidity risk and was operated effectively to achieve that goal; |
∎ | The Fund’s investment strategy remained appropriate for an open-end fund; |
∎ | The Fund was able to meet requests for redemption without significant dilution of remaining investors’ interests in the Fund; |
∎ | The Fund did not breach the 15% limit on Illiquid Investments; and |
∎ | The Fund primarily held Highly Liquid Investments and therefore has not adopted an HLIM. |
5 Invesco Oppenheimer Global Focus Fund
April 30, 2020
(Unaudited)
Shares | Value | |||||
Common Stocks & Other Equity Interests–98.18% | ||||||
Aerospace & Defense–1.04% | ||||||
Airbus SE (France) | 66,042 | $ 4,198,548 | ||||
Application Software–13.70% | ||||||
Alteryx, Inc., Class A(b) | 89,086 | 10,082,754 | ||||
Nice Ltd., ADR (Israel)(b) | 73,144 | 12,017,559 | ||||
salesforce.com, inc.(b) | 125,651 | 20,349,179 | ||||
Splunk, Inc.(b) | 90,658 | 12,724,757 | ||||
55,174,249 | ||||||
Biotechnology–2.41% | ||||||
BeiGene Ltd., ADR (China)(b) | 45,549 | 6,961,254 | ||||
Twist Bioscience Corp.(b) | 83,644 | 2,735,995 | ||||
9,697,249 | ||||||
Data Processing & Outsourced Services–7.64% | ||||||
Mastercard, Inc., Class A | 57,078 | 15,694,738 | ||||
PayPal Holdings, Inc.(b) | 122,611 | 15,081,153 | ||||
30,775,891 | ||||||
Health Care Equipment–0.80% | ||||||
ABIOMED, Inc.(b) | 16,822 | 3,217,207 | ||||
Health Care Supplies–0.86% | ||||||
Coloplast A/S, Class B (Denmark) | 21,941 | 3,464,936 | ||||
Integrated Telecommunication Services–2.76% | ||||||
Cellnex Telecom S.A. (Spain)(b)(c) | 212,261 | 11,130,347 | ||||
Interactive Media & Services–15.96% | ||||||
Alphabet, Inc., Class A(b) | 12,551 | 16,902,432 | ||||
Facebook, Inc., Class A(b) | 153,439 | 31,410,498 | ||||
Tencent Holdings Ltd. (China) | 238,700 | 12,663,776 | ||||
Yandex N.V., Class A (Russia)(b) | 87,166 | 3,293,131 | ||||
64,269,837 | ||||||
Internet & Direct Marketing Retail–9.78% | ||||||
Alibaba Group Holding Ltd., ADR (China)(b) | 82,983 | 16,818,165 | ||||
Amazon.com, Inc.(b) | 9,124 | 22,572,776 | ||||
39,390,941 | ||||||
Internet Services & Infrastructure–5.19% | ||||||
Okta, Inc.(b) | 36,630 | 5,542,119 | ||||
Twilio, Inc., Class A(b) | 136,667 | 15,347,704 | ||||
20,889,823 |
Shares | Value | |||||
Life Sciences Tools & Services–14.49% | ||||||
Biotage AB (Sweden) | 174,659 | $ 2,174,493 | ||||
Illumina, Inc.(b) | 57,288 | 18,276,591 | ||||
Lonza Group AG (Switzerland) | 21,974 | 9,603,904 | ||||
Tecan Group AG, Class R (Switzerland) | 19,542 | 6,311,047 | ||||
Thermo Fisher Scientific, Inc. | 44,900 | 15,027,132 | ||||
Wuxi Biologics Cayman, Inc. | 450,000 | 6,978,632 | ||||
58,371,799 | ||||||
Pharmaceuticals–7.82% | ||||||
Bayer AG (Germany) | 122,716 | 8,121,079 | ||||
Bristol-Myers Squibb Co. | 182,710 | 11,110,595 | ||||
Novo Nordisk A/S, Class B (Denmark) | 191,815 | 12,248,163 | ||||
31,479,837 | ||||||
Research & Consulting Services–2.88% | ||||||
IHS Markit Ltd. | 172,157 | 11,586,166 | ||||
Semiconductors–1.05% | ||||||
QUALCOMM, Inc. | 53,995 | 4,247,787 | ||||
Specialty Chemicals–2.24% | ||||||
Chr. Hansen Holding A/S (Denmark) | 104,731 | 9,035,320 | ||||
Systems Software–7.90% | ||||||
Crowdstrike Holdings, Inc., Class A(b) | 152,392 | 10,310,843 | ||||
ServiceNow, Inc.(b) | 61,137 | 21,492,101 | ||||
31,802,944 | ||||||
Trucking–1.66% | ||||||
Uber Technologies, Inc.(b) | 220,691 | 6,680,317 | ||||
Total Common Stocks & Other Equity Interests |
| 395,413,198 | ||||
Money Market Funds–1.62% | ||||||
Invesco Government & Agency Portfolio, Institutional Class, 0.20% (Cost $6,502,452)(d)(e) | 6,502,452 | 6,502,452 | ||||
TOTAL INVESTMENTS IN SECURITIES–99.80% | 401,915,650 | |||||
OTHER ASSETS LESS LIABILITIES–0.20% |
| 823,174 | ||||
NET ASSETS–100.00% |
| $402,738,824 |
Investment Abbreviations:
ADR – American Depositary Receipt
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
6 Invesco Oppenheimer Global Focus Fund
Notes to Schedule of Investments:
(a) | Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s. |
(b) | Non-income producing security. |
(c) | 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 April 30, 2020 was $18,108,979, which represented 4.50% of the Fund’s Net Assets. |
(d) | Affiliated issuer. The issuer and/or the Fund is a wholly-owned subsidiary of Invesco Ltd., or is affiliated by having an investment adviser that is under common control of Invesco Ltd. The table below shows the Fund’s transactions in, and earnings from, its investments in affiliates for the six months ended April 30, 2020. |
Value October 31, 2019 | Purchases at Cost | Proceeds from Sales | Change in Unrealized Appreciation | Realized Gain | Value April 30, 2020 | Dividend Income | ||||||||
Investments in Affiliated Money Market Funds: | ||||||||||||||
Invesco Government & Agency Portfolio, Institutional Class | $- | $38,410,207 | $(31,907,755) | $- | $- | $6,502,452 | $4,654 |
(e) | The rate shown is the 7-day SEC standardized yield as of April 30, 2020. |
Portfolio Composition
By sector, based on Net Assets
as of April 30, 2020
Information Technology | 35.48 | % | ||
Health Care | 26.38 | |||
Communication Services | 18.72 | |||
Consumer Discretionary | 9.78 | |||
Industrials | 5.58 | |||
Materials | 2.24 | |||
Money Market Funds Plus Other Assets Less Liabilities | 1.82 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
7 Invesco Oppenheimer Global Focus Fund
Statement of Assets and Liabilities
April 30, 2020
(Unaudited)
Assets: | ||||
Investments in securities, at value | $ | 395,413,198 | ||
Investments in affiliated money market funds, at value | 6,502,452 | |||
Cash | 100,000 | |||
Foreign currencies, at value (Cost $98) | 101 | |||
Receivable for: | ||||
Fund shares sold | 1,478,703 | |||
Dividends | 1,018,729 | |||
Investment for trustee deferred compensation and retirement plans | 12,887 | |||
Other assets | 145,763 | |||
Total assets | 404,671,833 | |||
Liabilities: | ||||
Payable for: | ||||
Fund shares reacquired | 1,494,146 | |||
Accrued fees to affiliates | 245,976 | |||
Accrued other operating expenses | 180,000 | |||
Trustee deferred compensation and retirement plans | 12,887 | |||
Total liabilities | 1,933,009 | |||
Net assets applicable to shares outstanding | $ | 402,738,824 | ||
Net assets consist of: | ||||
Shares of beneficial interest | $ | 233,230,167 | ||
Distributable earnings | 169,508,657 | |||
$ | 402,738,824 |
Net Assets: | ||||
Class A | $ | 162,664,608 | ||
Class C | $ | 46,806,255 | ||
Class R | $ | 11,311,559 | ||
Class Y | $ | 160,091,548 | ||
Class R5 | $ | 10,587 | ||
Class R6 | $ | 21,854,267 | ||
Shares outstanding, no par value, with an unlimited number of shares authorized: |
| |||
Class A | 3,020,220 | |||
Class C | 952,417 | |||
Class R | 216,826 | |||
Class Y | 2,895,257 | |||
Class R5 | 195.85 | |||
Class R6 | 389,507 | |||
Class A: | ||||
Net asset value per share | $ | 53.86 | ||
Maximum offering price per share | $ | 56.99 | ||
Class C: | ||||
Net asset value and offering price per share | $ | 49.14 | ||
Class R: | ||||
Net asset value and offering price per share | $ | 52.17 | ||
Class Y: | ||||
Net asset value and offering price per share | $ | 55.29 | ||
Class R5: | ||||
Net asset value and offering price per share | $ | 54.06 | ||
Class R6: | ||||
Net asset value and offering price per share | $ | 56.11 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
8 Invesco Oppenheimer Global Focus Fund
Statement of Operations
For the six months ended April 30, 2020
(Unaudited)
Investment income: | ||||
Dividends (net of foreign withholding taxes of $159,084) | $ | 1,494,074 | ||
| ||||
Dividends from affiliated money market funds | 4,654 | |||
| ||||
Total investment income | 1,498,728 | |||
| ||||
Expenses: | ||||
Advisory fees | 1,584,283 | |||
| ||||
Administrative services fees | 28,902 | |||
| ||||
Custodian fees | 74,758 | |||
| ||||
Distribution fees: | ||||
Class A | 184,276 | |||
| ||||
Class C | 223,183 | |||
| ||||
Class R | 26,053 | |||
| ||||
Transfer agent fees – A, C, R and Y | 248,460 | |||
| ||||
Transfer agent fees – R6 | 1,261 | |||
| ||||
Trustees’ and officers’ fees and benefits | 1,122 | |||
| ||||
Registration and filing fees | 23,587 | |||
| ||||
Reports to shareholders | 58,927 | |||
| ||||
Professional services fees | 23,804 | |||
| ||||
Other | 11,167 | |||
| ||||
Total expenses | 2,489,783 | |||
| ||||
Less: Fees waived and/or expense offset arrangement(s) | (43,451 | ) | ||
| ||||
Net expenses | 2,446,332 | |||
| ||||
Net investment income (loss) | (947,604 | ) | ||
| ||||
Realized and unrealized gain (loss) from: | ||||
Net realized gain from: | ||||
Investment securities | 37,447,520 | |||
| ||||
Foreign currencies | 32,633 | |||
| ||||
37,480,153 | ||||
| ||||
Change in net unrealized appreciation (depreciation) of: | ||||
Investment securities | 9,719,128 | |||
| ||||
Foreign currencies | (188 | ) | ||
| ||||
9,718,940 | ||||
| ||||
Net realized and unrealized gain | 47,199,093 | |||
| ||||
Net increase in net assets resulting from operations | $ | 46,251,489 | ||
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
9 Invesco Oppenheimer Global Focus Fund
Statement of Changes in Net Assets
For the six months ended April 30, 2020, period ended October 31, 2019, and the year ended April 30, 2019
(Unaudited)
Six Months Ended April 30, 2020 | Six Months Ended October 31, 2019 | Year Ended April 30, 2019 | ||||||||||
| ||||||||||||
Operations: | ||||||||||||
Net investment income (loss) | $ | (947,604 | ) | $ | (1,314,341 | ) | $ | (928,007 | ) | |||
| ||||||||||||
Net realized gain | 37,480,153 | 40,571,189 | 662,042 | |||||||||
| ||||||||||||
Change in net unrealized appreciation (depreciation) | 9,718,940 | (58,586,566 | ) | 57,611,090 | ||||||||
| ||||||||||||
Net increase (decrease) in net assets resulting from operations | 46,251,489 | (19,329,718 | ) | 57,345,125 | ||||||||
| ||||||||||||
Distributions to shareholders from distributable earnings: | ||||||||||||
Class A | (14,079,191 | ) | – | (5,161,344 | ) | |||||||
| ||||||||||||
Class C | (4,595,162 | ) | – | (2,126,031 | ) | |||||||
| ||||||||||||
Class R | (980,122 | ) | – | (316,929 | ) | |||||||
| ||||||||||||
Class Y | (12,860,914 | ) | – | (9,705,305 | ) | |||||||
| ||||||||||||
Class R5 | (1,022 | ) | – | – | ||||||||
| ||||||||||||
Class R6 | (3,992,852 | ) | – | (3,303,642 | ) | |||||||
| ||||||||||||
Total distributions from distributable earnings | (36,509,263 | ) | – | (20,613,251 | ) | |||||||
| ||||||||||||
Share transactions–net: | ||||||||||||
Class A | 14,180,590 | (6,448,556 | ) | (919,943 | ) | |||||||
| ||||||||||||
Class C | 3,149,902 | (10,762,438 | ) | (4,647,399 | ) | |||||||
| ||||||||||||
Class R | 1,464,998 | 29,511 | 1,584,945 | |||||||||
| ||||||||||||
Class Y | 16,821,215 | (152,166,902 | ) | 20,840,692 | ||||||||
| ||||||||||||
Class R5 | – | 10,000 | – | |||||||||
| ||||||||||||
Class R6 | (93,465,535 | ) | (14,516,075 | ) | 20,421,920 | |||||||
| ||||||||||||
Net increase (decrease) in net assets resulting from share transactions | (57,848,830 | ) | (183,854,460 | ) | 37,280,215 | |||||||
| ||||||||||||
Net increase (decrease) in net assets | (48,106,604 | ) | (203,184,178 | ) | 74,012,089 | |||||||
| ||||||||||||
Net assets: | ||||||||||||
Beginning of period | 450,845,428 | 654,029,606 | 580,017,517 | |||||||||
| ||||||||||||
End of period | $ | 402,738,824 | $ | 450,845,428 | $ | 654,029,606 | ||||||
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
10 Invesco Oppenheimer Global Focus Fund
(Unaudited)
The following schedule presents financial highlights for a share of the Fund outstanding throughout the periods indicated.
Net asset value, beginning of period | Net investment income (loss)(a) | Net gains (losses) on securities (both realized and unrealized) | Total from investment operations | Distributions from net realized gains | Net asset value, end of period | Total return (b) | Net assets, end of period (000’s omitted) | Ratio of expenses to average net assets fee waivers and/or expenses absorbed | Ratio of expenses to average net assets without and/or | Ratio of net investment income (loss) to average net assets | Portfolio turnover (d) | |||||||||||||||||||||||||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 04/30/20 | $ | 52.99 | $ | (0.14 | ) | $ | 6.23 | $ | 6.09 | $ | (5.22 | ) | $ | 53.86 | 12.03 | % | $ | 162,665 | 1.27 | %(e) | 1.28 | %(e) | (0.53 | )%(e) | 24 | % | ||||||||||||||||||||||||||||||||||
Six months ended 10/31/19 | 54.20 | (0.16 | ) | (1.05 | ) | (1.21 | ) | – | 52.99 | (2.23 | ) | 145,332 | 1.27 | (f) | 1.31 | (f) | (0.60 | )(f) | 20 | |||||||||||||||||||||||||||||||||||||||||
Year ended 04/30/19 | 51.71 | (0.13 | ) | 4.48 | 4.35 | (1.86 | ) | 54.20 | 9.11 | 155,251 | 1.25 | 1.25 | (0.26 | ) | 46 | |||||||||||||||||||||||||||||||||||||||||||||
Year ended 04/30/18 | 45.73 | (0.24 | ) | 7.15 | 6.91 | (0.93 | ) | 51.71 | 15.17 | 148,492 | 1.27 | 1.28 | (0.47 | ) | 63 | |||||||||||||||||||||||||||||||||||||||||||||
Year ended 04/30/17 | 39.26 | (0.12 | ) | 6.59 | 6.47 | – | 45.73 | 16.51 | 145,248 | 1.30 | 1.30 | (0.29 | ) | 59 | ||||||||||||||||||||||||||||||||||||||||||||||
Year ended 04/30/16 | 42.91 | (0.08 | ) | (3.57 | ) | (3.65 | ) | – | 39.26 | (8.53 | ) | 176,181 | 1.30 | 1.30 | (0.20 | ) | 89 | |||||||||||||||||||||||||||||||||||||||||||
Year ended 04/30/15 | 42.01 | 0.02 | 1.63 | 1.65 | (0.75 | ) | 42.91 | 3.94 | 231,060 | 1.31 | 1.31 | 0.04 | 102 | |||||||||||||||||||||||||||||||||||||||||||||||
Class C | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 04/30/20 | 48.95 | (0.30 | ) | 5.71 | 5.41 | (5.22 | ) | 49.14 | 11.61 | 46,806 | 2.01 | (e) | 2.04 | (e) | (1.27 | )(e) | 24 | |||||||||||||||||||||||||||||||||||||||||||
Six months ended 10/31/19 | 50.26 | (0.33 | ) | (0.98 | ) | (1.31 | ) | – | 48.95 | (2.60 | ) | 43,574 | 2.01 | (f) | 2.07 | (f) | (1.34 | )(f) | 20 | |||||||||||||||||||||||||||||||||||||||||
Year ended 04/30/19 | 48.45 | (0.49 | ) | 4.16 | 3.67 | (1.86 | ) | 50.26 | 8.28 | 55,891 | 2.01 | 2.01 | (1.02 | ) | 46 | |||||||||||||||||||||||||||||||||||||||||||||
Year ended 04/30/18 | 43.23 | (0.59 | ) | 6.74 | 6.15 | (0.93 | ) | 48.45 | 14.29 | 58,385 | 2.02 | 2.03 | (1.23 | ) | 63 | |||||||||||||||||||||||||||||||||||||||||||||
Year ended 04/30/17 | 37.39 | (0.42 | ) | 6.26 | 5.84 | – | 43.23 | 15.62 | 54,019 | 2.06 | 2.06 | (1.06 | ) | 59 | ||||||||||||||||||||||||||||||||||||||||||||||
Year ended 04/30/16 | 41.18 | (0.37 | ) | (3.42 | ) | (3.79 | ) | – | 37.39 | (9.20 | ) | 70,795 | 2.06 | 2.06 | (0.96 | ) | 89 | |||||||||||||||||||||||||||||||||||||||||||
Year ended 04/30/15 | 40.65 | (0.30 | ) | 1.58 | 1.28 | (0.75 | ) | 41.18 | 3.16 | 89,540 | 2.07 | 2.07 | (0.75 | ) | 102 | |||||||||||||||||||||||||||||||||||||||||||||
Class R | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 04/30/20 | 51.54 | (0.20 | ) | 6.05 | 5.85 | (5.22 | ) | 52.17 | 11.90 | 11,312 | 1.52 | (e) | 1.54 | (e) | (0.78 | )(e) | 24 | |||||||||||||||||||||||||||||||||||||||||||
Six months ended 10/31/19 | 52.79 | (0.22 | ) | (1.03 | ) | (1.25 | ) | – | 51.54 | (2.37 | ) | 9,692 | 1.52 | (f) | 1.57 | (f) | (0.85 | )(f) | 20 | |||||||||||||||||||||||||||||||||||||||||
Year ended 04/30/19 | 50.53 | (0.26 | ) | 4.38 | 4.12 | (1.86 | ) | 52.79 | 8.84 | 9,895 | 1.51 | 1.51 | (0.52 | ) | 46 | |||||||||||||||||||||||||||||||||||||||||||||
Year ended 04/30/18 | 44.82 | (0.36 | ) | 7.00 | 6.64 | (0.93 | ) | 50.53 | 14.88 | 7,812 | 1.52 | 1.53 | (0.73 | ) | 63 | |||||||||||||||||||||||||||||||||||||||||||||
Year ended 04/30/17 | 38.57 | (0.23 | ) | 6.48 | 6.25 | – | 44.82 | 16.21 | 6,898 | 1.56 | 1.56 | (0.56 | ) | 59 | ||||||||||||||||||||||||||||||||||||||||||||||
Year ended 04/30/16 | 42.27 | (0.18 | ) | (3.52 | ) | (3.70 | ) | – | 38.57 | (8.76 | ) | 7,709 | 1.55 | 1.55 | (0.46 | ) | 89 | |||||||||||||||||||||||||||||||||||||||||||
Year ended 04/30/15 | 41.50 | (0.12 | ) | 1.64 | 1.52 | (0.75 | ) | 42.27 | 3.70 | 8,113 | 1.53 | 1.53 | (0.30 | ) | 102 | |||||||||||||||||||||||||||||||||||||||||||||
Class Y | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 04/30/20 | 54.21 | (0.07 | ) | 6.37 | 6.30 | (5.22 | ) | 55.29 | 12.16 | 160,092 | 1.02 | (e) | 1.04 | (e) | (0.28 | )(e) | 24 | |||||||||||||||||||||||||||||||||||||||||||
Six months ended 10/31/19 | 55.39 | (0.10 | ) | (1.08 | ) | (1.18 | ) | – | 54.21 | (2.13 | ) | 138,470 | 1.02 | (f) | 1.07 | (f) | (0.36 | )(f) | 20 | |||||||||||||||||||||||||||||||||||||||||
Year ended 04/30/19 | 52.67 | (0.01 | ) | 4.59 | 4.58 | (1.86 | ) | 55.39 | 9.36 | 301,919 | 1.02 | 1.02 | (0.03 | ) | 46 | |||||||||||||||||||||||||||||||||||||||||||||
Year ended 04/30/18 | 46.46 | (0.12 | ) | 7.26 | 7.14 | (0.93 | ) | 52.67 | 15.44 | 266,886 | 1.03 | 1.04 | (0.24 | ) | 63 | |||||||||||||||||||||||||||||||||||||||||||||
Year ended 04/30/17 | 39.78 | (0.00 | )(g) | 6.68 | 6.68 | – | 46.46 | 16.79 | 250,427 | 1.05 | 1.05 | (0.01 | ) | 59 | ||||||||||||||||||||||||||||||||||||||||||||||
Year ended 04/30/16 | 43.38 | 0.02 | (3.62 | ) | (3.60 | ) | – | 39.78 | (8.28 | ) | 109,761 | 1.05 | 1.05 | 0.04 | 89 | |||||||||||||||||||||||||||||||||||||||||||||
Year ended 04/30/15 | 42.35 | 0.08 | 1.70 | 1.78 | (0.75 | ) | 43.38 | 4.22 | 132,678 | 1.05 | 1.07 | 0.20 | 102 | |||||||||||||||||||||||||||||||||||||||||||||||
Class R5 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 04/30/20 | 53.08 | (0.04 | ) | 6.24 | 6.20 | (5.22 | ) | 54.06 | 12.24 | 11 | 0.90 | (e) | 0.90 | (e) | (0.16 | )(e) | 24 | |||||||||||||||||||||||||||||||||||||||||||
Period ended 10/31/19(h) | 51.06 | (0.05 | ) | 2.07 | 2.02 | – | 53.08 | 3.96 | 10 | 0.90 | (f) | 0.92 | (f) | (0.23 | )(f) | 20 | ||||||||||||||||||||||||||||||||||||||||||||
Class R6 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 04/30/20 | 54.89 | (0.03 | ) | 6.47 | 6.44 | (5.22 | ) | 56.11 | 12.28 | 21,854 | 0.85 | (e) | 0.90 | (e) | (0.11 | )(e) | 24 | |||||||||||||||||||||||||||||||||||||||||||
Six months ended 10/31/19 | 56.03 | (0.05 | ) | (1.09 | ) | (1.14 | ) | – | 54.89 | (2.03 | ) | 113,768 | 0.85 | (f) | 0.87 | (f) | (0.18 | )(f) | 20 | |||||||||||||||||||||||||||||||||||||||||
Year ended 04/30/19 | 53.16 | 0.08 | 4.65 | 4.73 | (1.86 | ) | 56.03 | 9.56 | 131,074 | 0.85 | 0.85 | 0.15 | 46 | |||||||||||||||||||||||||||||||||||||||||||||||
Year ended 04/30/18 | 46.80 | (0.02 | ) | 7.31 | 7.29 | (0.93 | ) | 53.16 | 15.65 | 98,443 | 0.85 | 0.85 | (0.05 | ) | 63 | |||||||||||||||||||||||||||||||||||||||||||||
Year ended 04/30/17 | 40.00 | 0.05 | 6.75 | 6.80 | – | 46.80 | 17.00 | 75,145 | 0.86 | 0.86 | 0.13 | 59 | ||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 04/30/16 | 43.53 | 0.08 | (3.61 | ) | (3.53 | ) | – | 40.00 | (8.11 | ) | 72,137 | 0.86 | 0.86 | 0.20 | 89 | |||||||||||||||||||||||||||||||||||||||||||||
Year ended 04/30/15 | 42.42 | 0.18 | 1.68 | 1.86 | (0.75 | ) | 43.53 | 4.40 | 18,703 | 0.87 | 0.87 | 0.43 | 102 |
(a) | Calculated using average shares outstanding. |
(b) | Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Does not include sales charges and is not annualized for periods less than one year, if applicable. |
(c) | Does not include indirect expenses from affiliated fund fees and expenses of 0.00% for the years ended October 31, 2019, 2018, 2017, 2016 and 2015, respectively. |
(d) | Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable. |
(e) | Ratios are annualized and based on average daily net assets (000’s omitted) of $152,324, $44,882, $10,479, $142,819, $10 and $54,998 for Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares, respectively. |
(f) | Annualized. |
(g) | Amount represents less than $0.005. |
(h) | Commencement date after the close of business on May 24,2019. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
11 Invesco Oppenheimer Global Focus Fund
April 30, 2020
(Unaudited)
NOTE 1–Significant Accounting Policies
Invesco Oppenheimer Global Focus Fund (the “Fund”) is a series portfolio of AIM International Mutual Funds (Invesco International Mutual 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 the Fund or each class.
The Fund’s investment objective is to seek capital appreciation.
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. 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. |
A security listed or traded on an exchange (except convertible securities) is valued at its last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded, or lacking any sales or official closing price on a particular day, the security may be valued at the closing bid price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued by an independent pricing service they may be considered fair valued. Futures contracts are valued at the final settlement price set by an exchange on which they are principally traded. Listed options are valued at the mean between the last bid and asked prices from the exchange on which they are principally traded. Options not listed on an exchange are valued by an independent source at the mean between the last bid and asked prices. For purposes of determining net asset value (“NAV”) per share, futures and option contracts generally are valued 15 minutes after the close of the customary trading session of the New York Stock Exchange (“NYSE”).
Investments in open-end and closed-end registered investment companies that do not trade on an exchange are valued at the end-of-day net asset value per share. Investments in open-end and closed-end registered investment companies that trade on an exchange are valued at the last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded.
Debt obligations (including convertible securities) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. Pricing services generally value debt obligations assuming orderly transactions of institutional round lot size, but a fund may hold or transact in the same securities in smaller, odd lot sizes. Odd lots often trade at lower prices than institutional round lots. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.
Foreign securities’ (including foreign exchange contracts) prices are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the NYSE. If market quotations are available and reliable for foreign exchange-traded equity securities, the securities will be valued at the market quotations. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become unreliable. If between the time trading ends on a particular security and the close of the customary trading session on the NYSE, events occur that the investment adviser determines are significant and make the closing price unreliable, the Fund may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith using procedures approved by the Board of Trustees. Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities’ prices meeting the approved degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economic upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.
Securities for which market prices are not provided by any of the above methods may be valued based upon quotes furnished by independent sources. The last bid price may be used to value equity securities. The mean between the last bid and asked prices is used to value debt obligations, including corporate loans.
Securities for which market quotations are not readily available or became unreliable are valued at fair value as determined in good faith by or under the supervision of the Trust’s officers following procedures approved by the Board of Trustees. Issuer specific events, market trends, bid/asked quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security’s fair value.
The Fund may invest in securities that are subject to interest rate risk, meaning the risk that the prices will generally fall as interest rates rise and, conversely, the prices will generally rise as interest rates fall. Specific securities differ in their sensitivity to changes in interest rates depending on their individual characteristics. Changes in interest rates may result in increased market volatility, which may affect the value and/or liquidity of certain Fund investments.
Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the issuer’s assets, general market conditions which are not specifically related to the particular issuer, such as real or perceived adverse economic conditions, changes in the general outlook for revenues or corporate earnings, changes in interest or currency rates, regional or global instability, natural or environmental disasters, widespread disease or other public health issues, war, acts of terrorism or adverse investor sentiment generally and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
B. | Securities Transactions and Investment Income – Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income (net of withholding tax, if any) is recorded on an accrual basis from settlement date. Dividend income (net of withholding tax, if any) is recorded on the ex-dividend date. |
The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Statement of Operations as realized gain (loss) for investments no longer held and as unrealized gain (loss) for investments still held.
Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of net realized and unrealized gain (loss) from investment
12 Invesco Oppenheimer Global Focus Fund
securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the net realized and unrealized gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and the Statement of Changes in Net Assets, or the net investment income per share and the ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.
The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class.
C. | Country Determination – For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues and the country that has the primary market for the issuer’s securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted. |
D. | Distributions – Distributions from net investment income and net realized capital gain, if any, are generally declared and paid annually and recorded on the ex-dividend date. The Fund may elect to treat a portion of the proceeds from redemptions as distributions for federal income tax purposes. |
E. | Federal Income Taxes – The Fund intends to comply with the requirements of Subchapter M of the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”), necessary to qualify as a regulated investment company and to distribute substantially all of the Fund’s taxable earnings to shareholders. As such, the Fund will not be subject to federal income taxes on otherwise taxable income (including net realized capital gain) that is distributed to shareholders. |
Therefore, no provision for federal income taxes is recorded in the financial statements.
The Fund recognizes the tax benefits of uncertain tax positions only when the position is more likely than not to be sustained. Management has analyzed the Fund’s uncertain tax positions and concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions. Management is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the next 12 months.
The Fund files tax returns in the U.S. Federal jurisdiction and certain other jurisdictions. Generally, the Fund is subject to examinations by such taxing authorities for up to three years after the filing of the return for the tax period.
F. | Expenses – Fees provided for under the Rule 12b-1 plan of a particular class of the Fund 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 preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print. |
H. | Indemnifications – Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of the performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements, that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote. |
I. | Foreign Currency Translations – Foreign currency is valued at the close of the NYSE based on quotations posted by banks and major currency dealers. Portfolio securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at the date of valuation. Purchases and sales of portfolio securities (net of foreign taxes withheld on disposition) and income items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. The Fund does not separately account for the portion of the results of operations resulting from changes in foreign exchange rates on investments and the fluctuations arising from changes in market prices of securities held. The combined results of changes in foreign exchange rates and the fluctuation of market prices on investments (net of estimated foreign tax withholding) are included with the net realized and unrealized gain or loss from investments in the Statement of Operations. Reported net realized foreign currency gains or losses arise from (1) sales of foreign currencies, (2) currency gains or losses realized between the trade and settlement dates on securities transactions, and (3) the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign currency gains and losses arise from changes in the fair values of assets and liabilities, other than investments in securities at fiscal period end, resulting from changes in exchange rates. |
The Fund may invest in foreign securities, which may be subject to foreign taxes on income, gains on investments or currency repatriation, a portion of which may be recoverable. Foreign taxes, if any, are recorded based on the tax regulations and rates that exist in the foreign markets in which the Fund invests and are shown in the Statement of Operations.
J. | Other Risks – Emerging markets (also referred to as developing markets) are generally subject to greater market volatility, political, social and economic instability, uncertainty regarding the existence of trading markets and more governmental limitations on foreign investment than more developed markets. In addition, companies operating in emerging markets may be subject to lower trading volume and greater price fluctuations than companies in more developed markets. Securities law in many emerging market countries is relatively new and unsettled. Therefore, laws regarding foreign investment in emerging market securities, securities regulation, title to securities, and shareholder rights may change quickly and unpredictably. In addition, the enforcement of systems of taxation at federal, regional and local levels in emerging market countries may be inconsistent, and subject to sudden change. Other risks of investing in emerging markets securities may include additional transaction costs, delays in settlement procedures, and lack of timely information. |
NOTE 2–Advisory Fees and Other Fees Paid to Affiliates
The Trust has entered into a master investment advisory agreement with Invesco Advisers, Inc. (the “Adviser” or “Invesco”). Under the terms of the investment advisory agreement, the Fund accrues daily and pays monthly an advisory fee to the Adviser based on the annual rate of the Fund’s average daily net assets as follows:
Average Daily Net Assets* | Rate | |
First $ 500 million | 0.800% | |
Next $500 million | 0.750% | |
Over $1 billion | 0.720% |
* | 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. |
13 Invesco Oppenheimer Global Focus Fund
For the six months ended April 30, 2020, the effective advisory fee rate incurred by the Fund was 0.80%.
Under the terms of a master sub-advisory agreement between the Adviser and each of Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Canada Ltd. and separate sub-advisory agreements with Invesco Capital Management LLC and Invesco Asset Management (India) Private Limited (collectively, the “Affiliated Sub-Advisers”) the Adviser, not the Fund, will pay 40% of the fees paid to the Adviser to any such Affiliated Sub-Adviser(s) that provide(s) discretionary investment management services to the Fund based on the percentage of assets allocated to such Affiliated Sub-Adviser(s).
The Adviser has contractually agreed, through at least May 31, 2021, to waive advisory fees and/or reimburse expenses of all shares to the extent necessary to limit total annual fund operating expenses after fee waiver and/or expense reimbursement (excluding certain items discussed below) of Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares to 1.27%, 2.01%, 1.52%, 1.02%, 0.90%, and 0.85%, respectively, of average daily net assets (the “expense limits”). In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause the total annual fund operating expenses after fee waiver and/or expense reimbursement to exceed the numbers reflected above: (1) interest; (2) taxes; (3) dividend expense on short sales; (4) extraordinary or non-routine items, including litigation expenses; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Unless Invesco continues the fee waiver agreement, it will terminate on May 31, 2021. To the extent that the annualized expense ratio does not exceed the expense limits, the Adviser will retain its ability to be reimbursed for such fee waivers or reimbursements prior to the end of each fiscal year. 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, 2022, to waive the advisory fee payable by the Fund in an amount equal to 100% of the net advisory fees the Adviser receives from the affiliated money market funds on investments by the Fund of uninvested cash in such affiliated money market funds.
For the six months ended April 30, 2020, the Adviser waived advisory fees of $439 and reimbursed class level expenses of $6,871, $5,538, $848, $13,180, $0 and $13,598 of Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares, respectively.
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 April 30, 2020, expenses incurred under the agreement are shown in the Statement of Operations as Administrative services fees. Invesco has entered into a sub-administration agreement whereby State Street Bank and Trust Company (“SSB”) serves as fund accountant and provides certain administrative services to the Fund. Pursuant to a custody agreement with the Trust on behalf of the Fund, SSB also serves as the Fund’s custodian.
The Trust has entered into a transfer agency and service agreement with Invesco Investment Services, Inc. (“IIS”) pursuant to which the Fund has agreed to pay IIS a fee for providing transfer agency and shareholder services to the Fund and reimburse IIS for certain expenses incurred by IIS in the course of providing such services. IIS may make payments to intermediaries that provide omnibus account services, sub-accounting services and/or networking services. All fees payable by IIS to intermediaries that provide omnibus account services or sub-accounting services are charged back to the Fund, subject to certain limitations approved by the Trust’s Board of Trustees. For the six months ended April 30, 2020, expenses incurred under the agreement are shown in the Statement of Operations as Transfer 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 “Plans”). The Fund, pursuant to the Class A Plan, reimburses IDI for its allocated share of expenses incurred for the period, up to a maximum 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 shares 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 Plans 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. For the six-month period ended April 30, 2020, expenses incurred under the Plans are shown in the Statement of Operations as Distribution fees.
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 April 30, 2020, IDI advised the Fund that IDI retained $17,221 in front-end sales commissions from the sale of Class A shares and $5,578 and $709 from Class A and Class C shares, respectively, for CDSC imposed upon redemptions by shareholders.
Certain officers and trustees of the Trust are officers and directors of the Adviser, IIS and/or IDI.
NOTE 3–Additional Valuation Information
GAAP defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, under current market conditions. GAAP establishes a hierarchy that prioritizes the inputs to valuation methods, giving the highest priority to readily available unadjusted quoted prices in an active market for identical assets (Level 1) and the lowest priority to significant unobservable inputs (Level 3), generally when market prices are not readily available or are unreliable. Based on the valuation inputs, the securities or other investments are tiered into one of three levels. Changes in valuation methods may result in transfers in or out of an investment’s assigned level:
Level 1 – | Prices are determined using quoted prices in an active market for identical assets. | |
Level 2 – | Prices are determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk, yield curves, loss severities, default rates, discount rates, volatilities and others. | |
Level 3 – | Prices are determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Fund’s own assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information. |
The following is a summary of the tiered valuation input levels, as of April 30, 2020. The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Investments in Securities | ||||||||||||||||
Common Stocks & Other Equity Interests | $309,482,952 | $85,930,246 | $– | $395,413,198 | ||||||||||||
Money Market Funds | 6,502,452 | – | – | 6,502,452 | ||||||||||||
Total Investments | $315,985,404 | $85,930,246 | $– | $401,915,650 |
14 Invesco Oppenheimer Global Focus Fund
NOTE 4–Expense Offset Arrangement(s)
The expense offset arrangement is comprised of transfer agency credits which result from balances in demand deposit accounts used by the transfer agent for clearing shareholder transactions. For the six months ended April 30, 2020, the Fund received credits from this arrangement, which resulted in the reduction of the Fund’s total expenses of $2,977.
NOTE 5–Trustees’ and Officers’ Fees and Benefits
Trustees’ and Officers’ Fees and Benefits include amounts accrued by the Fund to pay remuneration to certain Trustees and Officers of the Fund. Trustees have the option to defer compensation payable by the Fund, and Trustees’ and Officers’ Fees and Benefits also include amounts accrued by the Fund to fund such deferred compensation amounts. Those Trustees who defer compensation have the option to select various Invesco Funds in which their deferral accounts shall be deemed to be invested. Finally, certain current Trustees were eligible to participate in a retirement plan that provided for benefits to be paid upon retirement to Trustees over a period of time based on the number of years of service. The Fund may have certain former Trustees who also participate in a retirement plan and receive benefits under such plan. Trustees’ and Officers’ Fees and Benefits include amounts accrued by the Fund to fund such retirement benefits. Obligations under the deferred compensation and retirement plans represent unsecured claims against the general assets of the Fund.
NOTE 6–Cash Balances and Borrowings
The Fund is permitted to temporarily carry a negative or overdrawn balance in its account with SSB, the custodian bank. Such balances, if any at period-end, are shown in the Statement of Assets and Liabilities under the payable caption Amount due custodian. To compensate the custodian bank for such overdrafts, the overdrawn Fund may either (1) leave funds as a compensating balance in the account so the custodian bank can be compensated by earning the additional interest; or (2) compensate by paying the custodian bank at a rate agreed upon by the custodian bank and Invesco, not to exceed the contractually agreed upon rate. The Fund may not purchase additional securities when any borrowings from banks or broker-dealers exceed 5% of the Fund’s total assets, or when any borrowings from an Invesco Fund are outstanding.
NOTE 7–Tax Information
The amount and character of income and gains to be distributed are determined in accordance with income tax regulations, which may differ from GAAP.
Reclassifications are made to the Fund’s capital accounts to reflect income and gains available for distribution (or available capital loss carryforward) under income tax regulations. The tax character of distributions paid during the year and the tax components of net assets will be reported at the Fund’s fiscal year-end.
Capital loss carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Fund to utilize. The ability to utilize capital loss carryforwards in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.
The Fund did not have a capital loss carryforward as of October 31, 2019.
NOTE 8–Investment Transactions
The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Fund during the six months ended April 30, 2020 was $97,812,467 and $200,941,836, 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 | $ | 133,598,513 | ||
| ||||
Aggregate unrealized (depreciation) of investments | (600,165 | ) | ||
| ||||
Net unrealized appreciation of investments | $ | 132,998,348 | ||
|
Cost of investments for tax purposes is $268,917,302.
NOTE 9–Share Information
Summary of Share Activity | ||||||||||||||||||||||||
Six months ended | Six Months Ended | Year ended | ||||||||||||||||||||||
April 30, 2020(a) | October 31, 2019 | April 30, 2019 | ||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | |||||||||||||||||||
Sold: | ||||||||||||||||||||||||
Class A | 370,950 | $ | 18,802,013 | 138,031 | $ | 7,261,420 | 488,290 | $ | 25,088,454 | |||||||||||||||
Class C | 133,309 | 6,347,907 | 35,592 | 1,720,913 | 152,895 | 7,202,424 | ||||||||||||||||||
Class R | 38,079 | 1,929,284 | 23,105 | 1,176,671 | 60,022 | 3,005,653 | ||||||||||||||||||
Class Y | 784,055 | 39,945,480 | 442,609 | 23,782,088 | 2,297,925 | 118,606,099 | ||||||||||||||||||
Class R5(b) | – | – | 196 | 10,000 | – | – | ||||||||||||||||||
Class R6 | 74,322 | 3,958,829 | 92,795 | 4,987,731 | 908,696 | 43,054,151 | ||||||||||||||||||
Issued as reinvestment of dividends: | ||||||||||||||||||||||||
Class A | 261,532 | 13,338,156 | – | – | 111,675 | 5,092,381 | ||||||||||||||||||
Class C | 89,929 | 4,196,996 | – | – | 49,054 | 2,079,902 | ||||||||||||||||||
Class R | 19,687 | 973,520 | – | – | 7,118 | 316,388 | ||||||||||||||||||
Class Y | 207,499 | 10,856,339 | – | – | 205,504 | 9,566,198 | ||||||||||||||||||
Class R6 | 74,981 | 3,977,731 | – | – | 70,201 | 3,303,642 |
15 Invesco Oppenheimer Global Focus Fund
Summary of Share Activity | ||||||||||||||||||||||||
| ||||||||||||||||||||||||
Six months ended April 30, 2020(a) | Six Months Ended October 31, 2019 | Year ended April 30, 2019 | ||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | |||||||||||||||||||
| ||||||||||||||||||||||||
Automatic conversion of Class C shares to Class A shares: | ||||||||||||||||||||||||
Class A | 9,924 | $ | 498,324 | 120,423 | $ | 6,311,091 | – | $ | – | |||||||||||||||
| ||||||||||||||||||||||||
Class C | (10,862 | ) | (498,324 | ) | (130,062 | ) | (6,311,091 | ) | – | – | ||||||||||||||
| ||||||||||||||||||||||||
Reacquired: | ||||||||||||||||||||||||
Class A | (364,638 | ) | (18,457,903 | ) | (380,155 | ) | (20,021,067 | ) | (607,672 | ) | (31,100,778 | ) | ||||||||||||
| ||||||||||||||||||||||||
Class C | (150,062 | ) | (6,896,677 | ) | (127,445 | ) | (6,172,260 | ) | (294,971 | ) | (13,929,725 | ) | ||||||||||||
| ||||||||||||||||||||||||
Class R | (28,984 | ) | (1,437,806 | ) | (22,515 | ) | (1,147,160 | ) | (34,273 | ) | (1,737,096 | ) | ||||||||||||
| ||||||||||||||||||||||||
Class Y | (650,445 | ) | (33,980,604 | ) | (3,339,207 | ) | (175,948,990 | ) | (2,119,769 | ) | (107,331,605 | ) | ||||||||||||
| ||||||||||||||||||||||||
Class R6 | (1,832,427 | ) | (101,402,095 | ) | (359,610 | ) | (19,503,806 | ) | (491,186 | ) | (25,935,873 | ) | ||||||||||||
| ||||||||||||||||||||||||
Net increase (decrease) in share activity | (973,151 | ) | $ | (57,848,830 | ) | (3,506,243 | ) | $ | (183,854,460 | ) | 803,509 | $ | 37,280,215 | |||||||||||
|
(a) | There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 35% 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. |
(b) | Commencement date after the close of business on May 24, 2019. |
NOTE 10–Coronavirus (COVID-19) Pandemic
During the first quarter of 2020, the World Health Organization declared COVID-19 to be a public health emergency. COVID-19 has led to increased short-term market volatility and may have adverse long-term effects on U.S. and world economies and markets in general. COVID-19 may adversely impact the Fund’s ability to achieve its investment objective. Because of the uncertainties on valuation, the global economy and business operations, values reflected in these financial statements may materially differ from the value received upon actual sales of those investments.
The extent of the impact on the performance of the Fund and its investments will depend on future developments, including the duration and spread of the COVID-19 outbreak, related restrictions and advisories, and the effects on the financial markets and economy overall, all of which are highly uncertain and cannot be predicted.
NOTE 11–Subsequent Event
Effective on or about September 30, 2020, the name of the Fund and all references thereto will change from Invesco Oppenheimer Global Focus Fund to Invesco Global Focus Fund.
16 Invesco Oppenheimer Global Focus Fund
Calculating your ongoing Fund expenses
Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, which may include sales charges (loads) on purchase payments or contingent deferred sales charges on redemptions, if any; and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees, and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period November 1, 2019 through April 30, 2020.
Actual expenses
The table below provides information about actual account values and actual expenses. You may use the information in this table, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the table under the heading entitled “Actual Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Hypothetical example for comparison purposes
The table below also provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return.
The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads) on purchase payments or contingent deferred sales charges on redemptions, if any. Therefore, the hypothetical information 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 transaction costs were included, your costs would have been higher.
ACTUAL | HYPOTHETICAL (5% annual return before expenses) | |||||||||||
Beginning | Ending | Expenses | Ending | Expenses | Annualized | |||||||
Account Value | Account Value | Paid During | Account Value | Paid During | Expense | |||||||
(11/01/19) | (04/30/20)1 | Period2 | (04/30/20) | Period2 | Ratio | |||||||
Class A | $1,000.00 | $1,120.30 | $6.70 | $1,018.55 | $6.37 | 1.27% | ||||||
Class C | 1,000.00 | 1,116.10 | 10.58 | 1,014.87 | 10.07 | 2.01 | ||||||
Class R | 1,000.00 | 1,119.00 | 8.01 | 1,017.30 | 7.62 | 1.52 | ||||||
Class Y | 1,000.00 | 1,121.60 | 5.38 | 1,019.79 | 5.12 | 1.02 | ||||||
Class R5 | 1,000.00 | 1,122.40 | 4.75 | 1,020.39 | 4.52 | 0.90 | ||||||
Class R6 | 1,000.00 | 1,122.80 | 4.49 | 1,020.64 | 4.27 | 0.85 |
1 | The actual ending account value is based on the actual total return of the Fund for the period November 1, 2019 through April 30, 2020, after actual expenses and will differ from the hypothetical ending account value which is based on the Fund’s expense ratio and a hypothetical annual return of 5% before expenses. |
2 | Expenses are equal to the Fund’s annualized expense ratio as indicated above multiplied by the average account value over the period, multiplied by 182/366 to reflect the most recent fiscal half year. |
17 Invesco Oppenheimer Global Focus Fund
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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 list appears 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 Form N-PORT filings on the SEC website, sec.gov. The SEC file numbers for the Fund are shown below.
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. This 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. |
SEC file numbers: 811-06463 and 033-44611 | Invesco Distributors, Inc. | O-GLF-SAR-1 |
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Semiannual Report to Shareholders |
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April 30, 2020 |
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Invesco Oppenheimer Global Opportunities Fund |
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A: OPGIX ∎ C: OGICX ∎ R: OGINX ∎ Y: OGIYX ∎ R5: GOFFX ∎ R6: OGIIX |
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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.
For the most current month-end Fund performance and commentary, please visit invesco.com/performance.
Unless otherwise noted, all data provided by Invesco.
This report must be accompanied or preceded by a currently effective Fund prospectus, which contains more complete information, including sales charges and expenses. Investors should read it carefully before investing.
NOT FDIC INSURED | MAY LOSE VALUE | NO BANK GUARANTEE |
Bruce Crockett | Dear Fellow Shareholders: As independent chair of the Invesco Funds Board, I can assure you that the members of the Board are strong advocates for the interests of investors in Invesco’s mutual funds. We work hard to represent your interests through oversight of the quality of the investment management services your funds receive and other matters important to your investment. This includes but is not limited to: monitoring how the portfolio management teams of the Invesco funds are performing in light of changing economic and market conditions; assessing each portfolio management team’s investment performance within the context of the investment strategy described in the fund’s prospectus; and monitoring for potential conflicts of interests that may impact the nature of the services that your funds receive. | |
We believe one of the most important services we provide our fund shareholders is the annual review of the funds’ advisory and sub-advisory contracts with Invesco Advisers and its affiliates. This review is required by the Investment Company Act of 1940 and focuses on the nature and quality of the services Invesco provides as the adviser to the Invesco funds and the reasonableness of the fees that it charges | ||
for those services. Each year, we spend months carefully reviewing information received from Invesco and a variety of independent sources, such as performance and fee data prepared by Lipper Inc. (a subsidiary of Broadridge Financial Solutions, Inc.), an independent, third-party firm widely recognized as a leader in its field. We also meet with our independent legal counsel and other independent advisers to review and help us assess the information that we have received. Our goal is to assure that you receive quality investment management services for a reasonable fee. On behalf of the Board, we look forward to continuing to represent your interests and serving your needs. |
Sincerely,
Bruce L. Crockett
Independent Chair
Invesco Funds Board of Trustees
Andrew Schlossberg | Dear Shareholders: This semiannual report includes information about your Fund, including performance data and a complete list of its investments as of the close of the reporting period. Invesco’s efforts to help investors achieve their financial objectives include providing timely information about the markets, the economy and investing. Our website, invesco.com/us, offers a wide range of market insights and investment perspectives. On the website, you’ll find detailed information about our funds, including performance, holdings and portfolio manager commentaries. You can access information about your account by completing a simple, secure online registration. To do so, select “Log In” on the right side of the homepage, and then select “Register for Individual Account Access.” | |
In addition to the resources accessible on our website, you can obtain timely updates to help you stay informed by connecting with Invesco on Twitter, LinkedIn or Facebook. You can access our blog at blog.invesco.us.com. Our goal is to provide you with information you want, when and where you want it. | ||
For questions about your account, feel free to contact an Invesco client services representative at 800 959 4246. All of us at Invesco look forward to serving your investment management needs. Thank you for investing with us. |
Sincerely,
Andrew Schlossberg
Head of the Americas,
Senior Managing Director, Invesco Ltd.
2 Invesco Oppenheimer Global Opportunities Fund
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Performance summary
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Fund vs. Indexes |
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Cumulative total returns, October 31, 2019 to April 30, 2020, at net asset value (NAV). Performance shown does not include applicable contingent deferred sales charges (CDSC) or front-end sales charges, which would have reduced performance. |
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Class A Shares | –0.78 | % | ||
Class C Shares | –1.15 | |||
Class R Shares | –0.94 | |||
Class Y Shares | –0.66 | |||
Class R5 Shares | –0.62 | |||
Class R6 Shares | –0.58 | |||
MSCI All Country World Index | –7.68 | |||
Source(s): RIMES Technologies Corp. |
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The MSCI All Country World Index is an unmanaged index considered representative of large- and mid-cap stocks across developed and emerging markets. The index is computed using the net return, which withholds applicable taxes for non-resident investors. |
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The Fund is not managed to track the performance of any particular index, including the index(es) described here, and consequently, the performance of the Fund may deviate significantly from the performance of the index(es). |
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A direct investment cannot be made in an index. Unless otherwise indicated, index results include reinvested dividends, and they do not reflect sales charges. Performance of the peer group, if applicable, reflects fund expenses; performance of a market index does not. |
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For more information about your Fund |
Read the most recent quarterly commentary from your Fund’s portfolio managers by visiting invesco.com/us. Click on “Products” and select “Mutual Funds.” Use the “Product Finder” to locate your Fund; then click on its name to access its product detail page. There, you can learn more about your Fund’s investment strategies, holdings and performance. Also, visit blog.invesco.us.com, where many of Invesco’s investment professionals share their in-sights about market and economic news and trends. |
3 Invesco Oppenheimer Global Opportunities Fund
Average Annual Total Returns |
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As of 4/30/20, including maximum applicable sales charges |
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Class A Shares | ||||
Inception (10/22/90) | 11.08 | % | ||
10 Years | 9.27 | |||
5 Years | 10.96 | |||
1 Year | –11.36 | |||
Class C Shares | ||||
Inception (12/1/93) | 10.96 | % | ||
10 Years | 9.06 | |||
5 Years | 11.38 | |||
1 Year | –7.76 | |||
Class R Shares | ||||
Inception (3/1/01) | 8.46 | % | ||
10 Years | 9.57 | |||
5 Years | 11.93 | |||
1 Year | –6.46 | |||
Class Y Shares | ||||
Inception (2/1/01) | 8.41 | % | ||
10 Years | 10.17 | |||
5 Years | 12.49 | |||
1 Year | –5.97 | |||
Class R5 Shares | ||||
10 Years | 9.92 | % | ||
5 Years | 12.29 | |||
1 Year | –5.89 | |||
Class R6 Shares | ||||
Inception (1/27/12) | 11.77 | % | ||
5 Years | 12.69 | |||
1 Year | –5.82 |
Effective May 24, 2019, Class A, Class C, Class R, Class Y, and Class I shares of the Oppenheimer Global Opportunities Fund, (the predecessor fund), were reorganized into Class A, Class C, Class R, Class Y, and Class R6 shares, respectively, of the Invesco Oppenheimer Global Opportunities Fund (the Fund). Returns shown above, prior to May 24, 2019, 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 the predecessor fund because of different expenses.
Class R5 shares incepted on May 24, 2019. Performance shown prior to that date is that of the predecessor fund’s Class A shares and includes the 12b-1 fees applicable to Class A shares.
The performance data quoted represent past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/ performance for the most recent month-end performance. Performance figures reflect reinvested distributions, changes in net asset value and the effect of the maximum sales charge unless otherwise stated. Performance figures do not reflect deduction of taxes a shareholder would pay on
Fund distributions or sale of Fund shares. Investment return and principal value will fluctuate so that you may have a gain or loss when you sell shares.
Class A share performance reflects the maximum 5.50% sales charge, and Class C share performance reflects the applicable contingent deferred sales charge (CDSC) for the period involved. The CDSC on Class C shares is 1% for the first year after purchase. Class R, Class Y, Class R5 and Class R6 shares do not have a front-end sales charge or a CDSC; therefore, performance is at net asset value.
The performance of the Fund’s share classes will differ primarily due to different sales charge structures and class expenses.
Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information.
4 Invesco Oppenheimer Global Opportunities Fund
Liquidity Risk Management Program
The Securities and Exchange Commission has adopted Rule 22e-4 under the Investment Company Act of 1940 (the “Liquidity Rule”) in order to promote effective liquidity risk management throughout the open-end investment company industry, thereby reducing the risk that funds will be unable to meet their redemption obligations and mitigating dilution of the interests of fund shareholders. The Fund has adopted and implemented a liquidity risk management program in accordance with the Liquidity Rule (the “Program”). The Program is reasonably designed to assess and manage the Fund’s liquidity risk, which is the risk that the Fund could not meet redemption requests without significant dilution of remaining investors’ interests in the Fund. The Board of Trustees of the Fund (the “Board”) has appointed Invesco Advisers, Inc. (“Invesco”), the Fund’s investment adviser, as the Program’s administrator, and Invesco has delegated oversight of the Program to the Liquidity Risk Management Committee (the “Committee”), which is composed of senior representatives from relevant business groups at Invesco.
As required by the Liquidity Rule, the Program includes policies and procedures providing for an assessment, no less frequently than annually, of the Fund’s liquidity risk that takes into account, as relevant to the Fund’s liquidity risk: (1) the Fund’s investment strategy and liquidity of portfolio investments during both normal and reasonably foreseeable stressed conditions; (2) short-term and long-term cash flow projections for the Fund during both normal and reasonably foreseeable stressed conditions; and (3) the Fund’s holdings of cash and cash equivalents and any borrowing arrangements. The Liquidity Rule also requires the classification of the Fund’s investments into categories that reflect the assessment of their relative liquidity under current market conditions. The Fund classifies its investments into one of four categories defined in the Liquidity Rule: “Highly Liquid,” “Moderately Liquid,” “Less Liquid” and “Illiquid.” Funds that are not invested primarily in “Highly Liquid Investments” that are assets (cash or investments that are reasonably expected to be convertible into cash within three business days without significantly changing the market value of the investment) are required to establish a “Highly Liquid Investment Minimum” (“HLIM”), which is the minimum percentage of net assets that must be invested in Highly Liquid Investments. Funds with HLIMs have procedures for addressing HLIM shortfalls, including reporting to the Board and the SEC (on a non-public basis) as required by the Program and the Liquidity Rule. In addition, the Fund may not acquire an investment if, immediately after the acquisition, over 15% of the Fund’s net assets would consist of “Illiquid Investments” that are assets (an investment that cannot reasonably be expected to be sold or disposed of in current market conditions in seven calendar days or less without the sale or disposition significantly changing the market value of the investment). The Liquidity Rule and the Program also require reporting to the Board and the SEC (on a non-public basis) if a Fund’s holdings of Illiquid Investments exceed 15% of the Fund’s assets.
At a meeting held on March 30-April 1, 2020, the Committee presented a report to the Board that addressed the operation of the Program and assessed the Program’s adequacy and effectiveness of implementation (the “Report”). The Report covered the period from December 1, 2018 through December 31, 2019 (the “Program Reporting Period”).
The Report stated, in relevant part, that during the Program Reporting Period:
∎ | The Program, as adopted and implemented, remained reasonably designed to assess and manage the Fund’s liquidity risk and was operated effectively to achieve that goal; |
∎ | The Fund’s investment strategy remained appropriate for an open-end fund; |
∎ | The Fund was able to meet requests for redemption without significant dilution of remaining investors’ interests in the Fund; |
∎ | The Fund did not breach the 15% limit on Illiquid Investments; and |
∎ | The Fund primarily held Highly Liquid Investments and therefore has not adopted an HLIM. |
5 Invesco Oppenheimer Global Opportunities Fund
April 30, 2020
(Unaudited)
Shares | Value | |||||
Common Stocks & Other Equity Interests–99.06% | ||||||
Argentina–0.37% | ||||||
Globant S.A.(a) | 200,000 | $ 23,134,000 | ||||
Belgium–2.01% | ||||||
Biocartis N.V.(b)(c) | 6,000,000 | 32,909,415 | ||||
Ion Beam Applications(a) | 400,000 | 3,320,864 | ||||
Materialise N.V., ADR(c) | 3,100,000 | 63,426,000 | ||||
Umicore S.A. | 600,000 | 25,943,839 | ||||
125,600,118 | ||||||
Canada–0.27% | ||||||
BlackBerry Ltd.(a) | 4,000,000 | 17,120,000 | ||||
Denmark–4.30% | ||||||
Bang & Olufsen A/S(a) | 2,000,000 | 6,245,559 | ||||
Bavarian Nordic A/S(a)(c) | 2,880,000 | 68,007,867 | ||||
Genmab A/S(a) | 300,000 | 72,242,193 | ||||
H Lundbeck A/S | 2,000,000 | 72,952,057 | ||||
Novozymes A/S, Class B | 1,000,000 | 49,054,645 | ||||
268,502,321 | ||||||
Finland–0.45% | ||||||
Rovio Entertainment OYJ(b)(c) | 4,700,000 | 28,157,632 | ||||
France–1.30% | ||||||
Adevinta ASA, Class B(a) | 900,000 | 7,448,714 | ||||
Mersen S.A. | 1,000,000 | 21,998,962 | ||||
Technicolor S.A.(a)(c) | 29,700,000 | 6,864,659 | ||||
Teleperformance | 200,000 | 44,854,760 | ||||
81,167,095 | ||||||
Germany–4.90% | ||||||
AIXTRON SE(a) | 4,000,000 | 37,335,569 | ||||
Aumann AG(b)(c) | 1,000,000 | 11,119,992 | ||||
Basler AG(c) | 600,000 | 30,750,198 | ||||
Carl Zeiss Meditec AG, BR | 700,000 | 69,085,591 | ||||
Manz AG(a)(c) | 500,000 | 7,812,573 | ||||
MorphoSys AG(a) | 700,000 | 73,688,310 | ||||
PVA TePla AG(c) | 2,050,000 | 22,467,540 | ||||
Rational AG | 80,000 | 38,665,912 | ||||
SLM Solutions Group AG(c) | 2,000,000 | 14,786,439 | ||||
305,712,124 | ||||||
Ireland–0.80% | ||||||
Flutter Entertainment PLC | 406,701 | 49,988,881 | ||||
Israel–1.05% | ||||||
Wix.com Ltd.(a) | 500,000 | 65,405,000 | ||||
Italy–2.02% | ||||||
Amplifon S.p.A. | 1,000,000 | 22,969,529 | ||||
Brunello Cucinelli S.p.A. | 1,500,000 | 48,363,248 | ||||
Freni Brembo S.p.A. | 2,000,000 | 17,059,421 | ||||
Moncler S.p.A. | 1,000,000 | 37,677,061 | ||||
126,069,259 | ||||||
Japan–11.89% | ||||||
Comture Corp.(c) | 3,000,000 | 60,447,548 |
Shares | Value | |||||
Japan–(continued) | ||||||
CyberAgent, Inc. | 1,300,000 | $ 54,654,450 | ||||
Disco Corp. | 200,000 | 44,924,939 | ||||
Jeol Ltd.(c) | 2,500,000 | 74,074,945 | ||||
M3, Inc. | 4,000,000 | 143,860,439 | ||||
Nidec Corp. | 600,000 | 34,849,914 | ||||
Nikon Corp. | 2,000,000 | 18,636,355 | ||||
Optex Group Co. Ltd.(c) | 2,000,000 | 22,804,396 | ||||
PeptiDream, Inc.(a) | 3,000,000 | 112,461,120 | ||||
Rakuten, Inc. | 6,000,000 | 50,806,414 | ||||
Rheon Automatic Machinery Co. Ltd. | 1,000,000 | 11,318,263 | ||||
THK Co. Ltd. | 2,000,000 | 48,038,666 | ||||
Yaskawa Electric Corp. | 2,000,000 | 65,747,882 | ||||
742,625,331 | ||||||
Luxembourg–1.78% | ||||||
Eurofins Scientific SE | 200,000 | 110,782,855 | ||||
Norway–1.64% | ||||||
Mowi ASA | 4,000,000 | 68,654,991 | ||||
Nordic Semiconductor ASA(a) | 5,750,358 | 33,985,653 | ||||
102,640,644 | ||||||
Sweden–4.63% | ||||||
Addtech AB, Class B | 1,000,000 | 27,336,721 | ||||
Beijer Ref AB | 2,000,000 | 41,479,321 | ||||
Boozt AB(a)(b)(c) | 3,750,000 | 23,189,219 | ||||
Hansa Biopharma AB(a) | 1,938,841 | 23,424,521 | ||||
Indutrade AB | 2,000,000 | 64,395,940 | ||||
Midsona AB, Class B | 1,000,000 | 5,511,361 | ||||
Oncopeptides AB(a)(b) | 2,000,000 | 26,475,175 | ||||
RaySearch Laboratories AB(c) | 4,000,000 | 30,646,036 | ||||
Recipharm AB, Class B | 2,000,000 | 23,971,525 | ||||
Tobii AB(a) | 3,000,000 | 8,469,760 | ||||
Xvivo Perfusion AB(a) | 1,000,000 | 14,000,182 | ||||
288,899,761 | ||||||
Switzerland–0.50% | ||||||
GeNeuro S.A.(a)(c) | 1,661,017 | 5,424,969 | ||||
STMicroelectronics N.V. | 1,000,000 | 26,030,791 | ||||
31,455,760 | ||||||
United Kingdom–12.50% | ||||||
Allied Minds PLC | 10,000,000 | 3,968,734 | ||||
AO World PLC(a) | 20,000,000 | 14,412,305 | ||||
ASOS PLC(a) | 700,000 | 21,119,530 | ||||
Aston Martin Lagonda Global Holdings PLC(a)(b)(c) | 102,500,000 | 74,072,460 | ||||
Blue Prism Group PLC(a) | 3,000,000 | 48,905,336 | ||||
boohoo Group PLC(a) | 30,000,000 | 122,182,197 | ||||
EVR Holdings PLC(a) | 68,750,000 | 4,633,031 | ||||
Fevertree Drinks PLC | 2,000,000 | 43,881,040 | ||||
First Derivatives PLC | 1,200,000 | 39,171,872 | ||||
Frontier Developments PLC(a)(c) | 3,000,000 | 57,460,240 | ||||
Gooch & Housego PLC(c) | 2,000,000 | 26,720,459 | ||||
GW Pharmaceuticals PLC, ADR(a) | 100,000 | 10,014,000 | ||||
IG Group Holdings PLC | 3,000,000 | 28,535,745 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
6 Invesco Oppenheimer Global Opportunities Fund
Shares | Value | |||||
United Kingdom–(continued) | ||||||
IP Group PLC(a) | 20,785,545 | $ 14,548,279 | ||||
IQE PLC(c) | 140,000,000 | 72,378,162 | ||||
M&C Saatchi PLC(c) | 6,600,000 | 3,169,200 | ||||
Rentokil Initial PLC | 14,500,000 | 86,707,686 | ||||
Spirax-Sarco Engineering PLC | 464,285 | 51,089,846 | ||||
WANdisco PLC(c) | 5,000,000 | 35,318,716 | ||||
Xaar PLC(a)(c) | 4,000,000 | 2,137,537 | ||||
Zoo Digital Group PLC(c) | 7,000,000 | 6,658,749 | ||||
Zotefoams PLC(c) | 4,000,000 | 13,303,361 | ||||
780,388,485 | ||||||
United States–48.65% | ||||||
3D Systems Corp.(a)(c) | 8,000,000 | 67,920,000 | ||||
Acacia Research Corp.(a)(c) | 2,500,000 | 6,325,000 | ||||
Advanced Micro Devices, Inc.(a) | 8,000,000 | 419,120,000 | ||||
Align Technology, Inc.(a) | 200,000 | 42,970,000 | ||||
Applied Materials, Inc. | 1,000,000 | 49,680,000 | ||||
Arrowhead Pharmaceuticals, Inc.(a) | 3,000,000 | 103,290,000 | ||||
Cloudera, Inc.(a) | 8,220,000 | 68,061,600 | ||||
Cognex Corp. | 1,200,000 | 66,288,000 | ||||
Coherent, Inc.(a) | 600,000 | 76,722,000 | ||||
Corning, Inc. | 1,000,000 | 22,010,000 | ||||
Cree, Inc.(a) | 1,000,000 | 43,130,000 | ||||
Dolby Laboratories, Inc., Class A | 800,000 | 48,024,000 | ||||
Exact Sciences Corp.(a) | 2,500,000 | 197,450,000 | ||||
FireEye, Inc.(a) | 6,000,000 | 69,060,000 | ||||
First Solar, Inc.(a) | 2,000,000 | 88,020,000 | ||||
Halozyme Therapeutics, Inc.(a) | 1,000,000 | 22,655,000 | ||||
Illumina, Inc.(a) | 200,000 | 63,806,000 | ||||
IPG Photonics Corp.(a) | 600,000 | 77,598,000 |
Shares | Value | |||||
United States–(continued) | ||||||
iRobot Corp.(a) | 900,000 | $ 54,864,000 | ||||
Littelfuse, Inc. | 400,000 | 58,096,000 | ||||
Manhattan Associates, Inc.(a) | 600,000 | 42,564,000 | ||||
Nektar Therapeutics(a)(c) | 33,523,001 | 643,641,619 | ||||
Nevro Corp.(a) | 1,000,000 | 117,640,000 | ||||
ON Semiconductor Corp.(a) | 2,000,000 | 32,090,000 | ||||
PDF Solutions, Inc.(a)(c) | 3,000,000 | 47,910,000 | ||||
PTC, Inc.(a) | 1,200,000 | 83,100,000 | ||||
QUALCOMM, Inc. | 1,500,000 | 118,005,000 | ||||
Rigel Pharmaceuticals, Inc.(a) | 5,000,000 | 8,950,000 | ||||
Rite Aid Corp.(a) | 2,500,000 | 35,825,000 | ||||
Rollins, Inc. | 1,500,000 | 60,000,000 | ||||
Shake Shack, Inc., Class A(a) | 1,000,000 | 54,510,000 | ||||
Twitter, Inc.(a) | 1,000,000 | 28,680,000 | ||||
Veeco Instruments, Inc.(a)(c) | 4,000,000 | 43,720,000 | ||||
Vicor Corp.(a) | 500,000 | 26,585,000 | ||||
Xeris Pharmaceuticals, Inc.(a) | 1,000,000 | 2,700,000 | ||||
Zendesk, Inc.(a) | 600,000 | 46,128,000 | ||||
3,037,138,219 | ||||||
Total Common Stocks & Other Equity Interests |
| 6,184,787,485 | ||||
Money Market Funds–0.86% | ||||||
Invesco Government & Agency Portfolio, Institutional Class, 0.20%(c)(d) | 54,011,701 | 54,011,701 | ||||
TOTAL INVESTMENTS IN SECURITIES–99.92% |
| 6,238,799,186 | ||||
OTHER ASSETS LESS LIABILITIES–0.08% |
| 4,743,885 | ||||
NET ASSETS–100.00% |
| $6,243,543,071 |
Investment Abbreviations: | ||
ADR | – American Depositary Receipt | |
BR | – Bearer Shares |
Notes to Schedule of Investments:
(a) | Non-income producing security. |
(b) | Security purchased or received in a transaction exempt from registration under the Securities Act of 1933, as amended (the “1933 Act”). The security may be resold pursuant to an exemption from registration under the 1933 Act, typically to qualified institutional buyers. The aggregate value of these securities at April 30, 2020 was $195,923,893, which represented 3.14% of the Fund’s Net Assets. |
(c) | Affiliated issuer. The issuer is affiliated by having an investment adviser that is under common control of Invesco Ltd. and/or the Investment Company Act of 1940, as amended (the “1940 Act”), defines “affiliated person” to include an issuer of which a fund holds 5% or more of the outstanding voting securities. The Fund has not owned enough of the outstanding voting securities of the issuer to have control (as defined in the 1940 Act) of that issuer. The table below shows the Fund’s transactions in, and earnings from, its investments in affiliates for the six months ended April 30, 2020. |
Value October 31, 2019 | Purchases at Cost | Proceeds from Sales | Change in Unrealized Appreciation (Depreciation) | Realized Gain | Value April 30, 2020 | Dividend Income | ||||||||||||||||||||||
Investments in Affiliated Money Market Funds: | ||||||||||||||||||||||||||||
Invesco Government & Agency Portfolio, Institutional Class | $ | 202,009,160 | $ | 774,419,259 | $ | (922,416,718 | ) | $ | - | $- | $ | 54,011,701 | $ | 923,484 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
7 Invesco Oppenheimer Global Opportunities Fund
Value October 31, 2019 | Purchases at Cost | Proceeds from Sales | Change in Unrealized Appreciation (Depreciation) | Realized Gain | Value April 30, 2020 | Dividend Income | ||||||||||||||||||||
Investments in Other Affiliates: |
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3D Systems Corp. | $ | 75,920,000 | $ | - | $ | - | $ | (8,000,000 | ) | $- | $ | 67,920,000 | $ - | |||||||||||||
Acacia Research Corp. | 6,350,000 | - | - | (25,000 | ) | - | 6,325,000 | - | ||||||||||||||||||
Aston Martin Lagonda Global Holdings PLC | 54,351,585 | 299,067,773 | - | (279,346,898 | ) | - | 74,072,460 | - | ||||||||||||||||||
Aumann AG | 13,351,769 | - | - | (2,231,777 | ) | - | 11,119,992 | - | ||||||||||||||||||
Basler AG | 30,938,468 | - | - | (188,270 | ) | - | 30,750,198 | - | ||||||||||||||||||
Bavarian Nordic A/S | 37,629,040 | - | - | 30,378,827 | - | 68,007,867 | - | |||||||||||||||||||
Biocartis N.V. | 21,488,283 | 19,106,968 | - | (7,685,836 | ) | - | 32,909,415 | - | ||||||||||||||||||
Boozt AB | 25,006,956 | - | - | (1,817,737 | ) | - | 23,189,219 | - | ||||||||||||||||||
Comture Corp. | 56,920,881 | - | - | 3,526,667 | - | 60,447,548 | 360,283 | |||||||||||||||||||
Frontier Developments PLC | 42,523,380 | - | - | 14,936,860 | - | 57,460,240 | - | |||||||||||||||||||
GeNeuro S.A. | - | 5,434,343 | - | (9,374 | ) | - | 5,424,969 | - | ||||||||||||||||||
Gooch & Housego PLC | 28,894,340 | - | - | (2,173,881 | ) | - | 26,720,459 | 188,798 | ||||||||||||||||||
IQE PLC | 67,965,522 | 43,400,190 | - | (38,987,550 | ) | - | 72,378,162 | - | ||||||||||||||||||
Jeol Ltd. | 66,229,962 | - | - | 7,844,983 | - | 74,074,945 | 235,934 | |||||||||||||||||||
M&C Saatchi PLC | - | 6,947,954 | - | (3,778,754 | ) | - | 3,169,200 | - | ||||||||||||||||||
Manz AG | 10,687,288 | - | - | (2,874,715 | ) | - | 7,812,573 | - | ||||||||||||||||||
Materialise N.V., ADR | - | 51,708,000 | - | 11,718,000 | - | 63,426,000 | - | |||||||||||||||||||
Nektar Therapeutics | 536,012,500 | 34,016,122 | - | 73,612,997 | - | 643,641,619 | - | |||||||||||||||||||
Optex Group Co. Ltd. | 30,597,058 | - | - | (7,792,662 | ) | - | 22,804,396 | 246,621 | ||||||||||||||||||
PDF Solutions, Inc. | 48,480,000 | - | - | (570,000 | ) | - | 47,910,000 | - | ||||||||||||||||||
PVA TePla AG | 24,334,731 | - | - | (1,867,191 | ) | - | 22,467,540 | - | ||||||||||||||||||
RaySearch Laboratories AB | 24,085,284 | 28,275,261 | - | (21,714,509 | ) | - | 30,646,036 | - | ||||||||||||||||||
Rovio Entertainment OYJ | 21,096,633 | - | - | 7,060,999 | - | 28,157,632 | 392,755 | |||||||||||||||||||
SLM Solutions Group AG | 17,981,027 | 17,081,772 | - | (20,276,360 | ) | - | 14,786,439 | - | ||||||||||||||||||
Technicolor S.A. | 24,799,848 | - | - | (17,935,189 | ) | - | 6,864,659 | - | ||||||||||||||||||
Veeco Instruments, Inc. | 54,560,000 | - | - | (10,840,000 | ) | - | 43,720,000 | - | ||||||||||||||||||
WANdisco PLC | 16,337,599 | 8,968,272 | - | 10,012,845 | - | 35,318,716 | - | |||||||||||||||||||
Xaar PLC | 2,456,756 | - | - | (319,219 | ) | - | 2,137,537 | - | ||||||||||||||||||
Zoo Digital Group PLC | 7,813,467 | - | - | (1,154,718 | ) | - | 6,658,749 | - | ||||||||||||||||||
Zotefoams PLC | - | 23,164,974 | - | (9,861,613 | ) | - | 13,303,361 | - | ||||||||||||||||||
Total | $ | 1,548,821,537 | $ | 1,311,590,888 | $ | (922,416,718 | ) | $ | (280,359,075 | ) | $- | $ | 1,657,636,632 | $2,347,875 |
(d) | The rate shown is the 7-day SEC standardized yield as of April 30, 2020. |
Portfolio Composition
By sector, based on Net Assets
as of April 30, 2020
Information Technology | 36.31 | % | ||
Health Care | 35.13 | |||
Industrials | 10.50 | |||
Consumer Discretionary | 9.50 | |||
Communication Services | 2.99 | |||
Consumer Staples | 2.46 | |||
Other Sectors, Each Less than 2% of Net Assets | 2.16 | |||
Money Market Funds Plus Other Assets Less Liabilities | 0.95 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
8 Invesco Oppenheimer Global Opportunities Fund
Statement of Assets and Liabilities
April 30, 2020
(Unaudited)
Assets: | ||
Investments in securities, at value | $4,581,162,554 | |
Investments in affiliates, at value | 1,657,636,632 | |
Cash | 4,377,783 | |
Foreign currencies, at value (Cost $1,287,795) | 1,281,295 | |
Receivable for: | ||
Investments sold | 186,953 | |
Fund shares sold | 8,994,333 | |
Dividends | 6,868,387 | |
Interest | 842 | |
Investment for trustee deferred compensation and retirement plans | 260,023 | |
Other assets | 123,544 | |
Total assets | 6,260,892,346 | |
Liabilities: | ||
Payable for: | ||
Fund shares reacquired | 13,542,138 | |
Accrued fees to affiliates | 2,560,971 | |
Accrued trustees’ and officers’ fees and benefits | 152,741 | |
Accrued other operating expenses | 833,402 | |
Trustee deferred compensation and retirement plans | 260,023 | |
Total liabilities | 17,349,275 | |
Net assets applicable to shares outstanding | $6,243,543,071 | |
Net assets consist of: | ||
Shares of beneficial interest | $5,417,790,687 | |
Distributable earnings | 825,752,384 | |
$6,243,543,071 |
Net Assets: | ||||
Class A | $ | 2,780,955,070 | ||
Class C | $ | 384,176,494 | ||
Class R | $ | 200,774,358 | ||
Class Y | $ | 1,648,434,993 | ||
Class R5 | $ | 9,272 | ||
Class R6 | $ | 1,229,192,884 | ||
Shares outstanding, no par value, with an unlimited number of shares authorized: |
| |||
Class A | 51,459,643 | |||
Class C | 8,384,834 | |||
Class R | 3,912,627 | |||
Class Y | 29,912,998 | |||
Class R5 | 171 | |||
Class R6 | 22,112,826 | |||
Class A: | ||||
Net asset value per share | $ | 54.04 | ||
Maximum offering price per share | $ | 57.19 | ||
Class C: | ||||
Net asset value and offering price per share | $ | 45.82 | ||
Class R: | ||||
Net asset value and offering price per share | $ | 51.31 | ||
Class Y: | ||||
Net asset value and offering price per share | $ | 55.11 | ||
Class R5: | ||||
Net asset value and offering price per share | $ | 54.22 | ||
Class R6: | ||||
Net asset value and offering price per share | $ | 55.59 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
9 Invesco Oppenheimer Global Opportunities Fund
Statement of Operations
For the six months ended April 30, 2020
(Unaudited)
Investment income: | ||||
Dividends (net of foreign withholding taxes of $1,432,143) | $ | 14,254,109 | ||
| ||||
Dividends from affiliates | 2,347,875 | |||
| ||||
Interest | 14,179 | |||
| ||||
Total investment income | 16,616,163 | |||
| ||||
Expenses: | ||||
Advisory fees | 22,955,782 | |||
| ||||
Administrative services fees | 498,750 | |||
| ||||
Custodian fees | 219,570 | |||
| ||||
Distribution fees: | ||||
Class A | 3,670,912 | |||
| ||||
Class C | 2,225,514 | |||
| ||||
Class R | 541,662 | |||
| ||||
Transfer agent fees – A, C, R and Y | 4,426,046 | |||
| ||||
Transfer agent fees – R6 | 13,097 | |||
| ||||
Trustees’ and officers’ fees and benefits | 30,378 | |||
| ||||
Registration and filing fees | 98,244 | |||
| ||||
Reports to shareholders | 194,300 | |||
| ||||
Professional services fees | 36,268 | |||
| ||||
Other | (112,651 | ) | ||
| ||||
Total expenses | 34,797,872 | |||
| ||||
Less: Fees waived and/or expense offset arrangement(s) | (97,224 | ) | ||
| ||||
Net expenses | 34,700,648 | |||
| ||||
Net investment income (loss) | (18,084,485 | ) | ||
| ||||
Realized and unrealized gain (loss) from: | ||||
Net realized gain (loss) from: | ||||
Investment securities (includes net gains from securities sold to affiliates of $6,765,662) | 430,866,949 | |||
| ||||
Foreign currencies | (631,312 | ) | ||
| ||||
430,235,637 | ||||
| ||||
Change in net unrealized appreciation (depreciation) of: | ||||
Investment securities | (477,155,888 | ) | ||
| ||||
Foreign currencies | (75,921 | ) | ||
| ||||
(477,231,809 | ) | |||
| ||||
Net realized and unrealized gain (loss) | (46,996,172 | ) | ||
| ||||
Net increase (decrease) in net assets resulting from operations | $ | (65,080,657 | ) | |
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
10 Invesco Oppenheimer Global Opportunities Fund
Statement of Changes in Net Assets
For the six months ended April 30, 2020, period ended October 31, 2019, and the year ended September 30, 2019
(Unaudited)
Six Months Ended April 30, 2020 | One Month Ended October 31, 2019 | Year Ended September 30, 2019 | ||||||||||
Operations: | ||||||||||||
Net investment income (loss) | $ | (18,084,485 | ) | $ | (4,911,418 | ) | $ | (14,771,743 | ) | |||
| ||||||||||||
Net realized gain | 430,235,637 | 163,014,465 | 243,432,285 | |||||||||
| ||||||||||||
Change in net unrealized appreciation (depreciation) | (477,231,809 | ) | 62,681,537 | (1,944,841,823 | ) | |||||||
| ||||||||||||
Net increase (decrease) in net assets resulting from operations | (65,080,657 | ) | 220,784,584 | (1,716,121,281 | ) | |||||||
| ||||||||||||
Distributions to shareholders from distributable earnings: | ||||||||||||
Class A | (197,648,894 | ) | – | (294,422,937 | ) | |||||||
| ||||||||||||
Class C | (34,384,347 | ) | – | (78,670,553 | ) | |||||||
| ||||||||||||
Class R | (14,772,771 | ) | – | (21,281,297 | ) | |||||||
| ||||||||||||
Class Y | (130,780,055 | ) | – | (215,972,897 | ) | |||||||
| ||||||||||||
Class R5 | (645 | ) | – | – | ||||||||
| ||||||||||||
Class R6 | (80,621,014 | ) | – | (106,613,747 | ) | |||||||
| ||||||||||||
Total distributions from distributable earnings | (458,207,726 | ) | – | (716,961,431 | ) | |||||||
| ||||||||||||
Share transactions–net: | ||||||||||||
Class A | (96,345,783 | ) | (55,270,289 | ) | (45,089,774 | ) | ||||||
| ||||||||||||
Class C | (42,804,944 | ) | (15,343,596 | ) | (248,602,819 | ) | ||||||
| ||||||||||||
Class R | (4,648,736 | ) | (3,710,957 | ) | 11,721,377 | |||||||
| ||||||||||||
Class Y | (309,584,447 | ) | (72,231,746 | ) | (182,833,851 | ) | ||||||
| ||||||||||||
Class R5 | – | – | 10,000 | |||||||||
| ||||||||||||
Class R6 | 28,781,330 | (24,328,174 | ) | 222,420,238 | ||||||||
| ||||||||||||
Net increase (decrease) in net assets resulting from share transactions | (424,602,580 | ) | (170,884,762 | ) | (242,374,829 | ) | ||||||
| ||||||||||||
Net increase (decrease) in net assets | (947,890,963 | ) | 49,899,822 | (2,675,457,541 | ) | |||||||
| ||||||||||||
Net assets: | ||||||||||||
Beginning of period | 7,191,434,034 | 7,141,534,212 | 9,816,991,753 | |||||||||
| ||||||||||||
End of period | $ | 6,243,543,071 | $ | 7,191,434,034 | $ | 7,141,534,212 | ||||||
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
11 Invesco Oppenheimer Global Opportunities Fund
(Unaudited)
The following schedule presents financial highlights for a share of the Fund outstanding throughout the periods indicated.
Net asset value, beginning of period | Net investment income (loss)(a) | Net gains (losses) on securities (both realized and unrealized) | Total from investment operations | Dividends from net investment income | Distributions from net realized gains | Total distributions | Net asset value, end of period | Total return (b) | Net assets, end of period (000’s omitted) | Ratio of expenses to average net assets fee waivers and/or expenses absorbed | Ratio of expenses to average net assets without and/or | Ratio of net investment income (loss) to average net assets | Portfolio turnover (d) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 04/30/20 | $57.92 | $ | (0.17 | ) | $ | 0.06 | $ | (0.11 | ) | $ | – | $ | (3.77 | ) | $ | (3.77 | ) | $ | 54.04 | (0.78 | )%(e) | $ | 2,780,955 | 1.09 | %(e)(f) | 1.09 | %(e)(f) | (0.61 | )%(e)(f) | 11 | % | ||||||||||||||||||||||||||||||||||||
One month ended 10/31/19 | 56.16 | (0.04 | ) | 1.80 | 1.76 | – | – | – | 57.92 | 3.13 | 3,099,689 | 1.09 | (g) | 1.09 | (g) | (0.90 | )(g) | 3 | |||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 09/30/19 | 75.01 | (0.15 | ) | (13.16 | ) | (13.31 | ) | – | (5.54 | ) | (5.54 | ) | 56.16 | (17.48 | ) | 3,059,916 | 1.12 | 1.12 | (0.25 | ) | 12 | ||||||||||||||||||||||||||||||||||||||||||||||
Year ended 09/30/18 | 61.40 | (0.22 | ) | 15.42 | 15.20 | – | (1.59 | ) | (1.59 | ) | 75.01 | 25.09 | 4,124,481 | 1.12 | 1.12 | (0.31 | ) | 21 | |||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 09/30/17 | 50.76 | (0.23 | ) | 14.49 | 14.26 | (0.13 | ) | (3.49 | ) | (3.62 | ) | 61.40 | 30.48 | 3,085,024 | 1.17 | 1.17 | (0.43 | ) | 18 | ||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 09/30/16 | 39.42 | (0.17 | ) | 11.81 | 11.64 | (0.05 | ) | (0.25 | ) | (0.30 | ) | 50.76 | 29.66 | 2,529,288 | 1.18 | 1.18 | (0.39 | ) | 26 | ||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 09/30/15 | 38.67 | (0.27 | ) | 1.13 | 0.86 | (0.11 | ) | – | (0.11 | ) | 39.42 | 2.22 | 2,118,295 | 1.18 | 1.18 | (0.66 | ) | 16 | |||||||||||||||||||||||||||||||||||||||||||||||||
Class C | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 04/30/20 | 49.81 | (0.33 | ) | 0.11 | (0.22 | ) | – | (3.77 | ) | (3.77 | ) | 45.82 | (1.15 | ) | 384,176 | 1.85 | (f) | 1.85 | (f) | (1.37 | )(f) | 11 | |||||||||||||||||||||||||||||||||||||||||||||
One month ended 10/31/19 | 48.32 | (0.07 | ) | 1.56 | 1.49 | – | – | – | 49.81 | 3.08 | 467,908 | 1.84 | (g) | 1.84 | (g) | (1.65 | )(g) | 3 | |||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 09/30/19 | 65.97 | (0.52 | ) | (11.59 | ) | (12.11 | ) | – | (5.54 | ) | (5.54 | ) | 48.32 | (18.12 | ) | 469,174 | 1.88 | 1.88 | (1.01 | ) | 12 | ||||||||||||||||||||||||||||||||||||||||||||||
Year ended 09/30/18 | 54.57 | (0.67 | ) | 13.66 | 12.99 | – | (1.59 | ) | (1.59 | ) | 65.97 | 24.15 | 955,893 | 1.87 | 1.87 | (1.06 | ) | 21 | |||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 09/30/17 | 45.72 | (0.56 | ) | 12.90 | 12.34 | – | (3.49 | ) | (3.49 | ) | 54.57 | 29.47 | 648,270 | 1.92 | 1.92 | (1.18 | ) | 18 | |||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 09/30/16 | 35.75 | (0.45 | ) | 10.67 | 10.22 | – | (0.25 | ) | (0.25 | ) | 45.72 | 28.71 | 475,199 | 1.94 | 1.94 | (1.14 | ) | 26 | |||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 09/30/15 | 35.24 | (0.52 | ) | 1.03 | 0.51 | – | – | – | 35.75 | 1.45 | 385,550 | 1.94 | 1.94 | (1.41 | ) | 16 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Class R | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 04/30/20 | 55.25 | (0.23 | ) | 0.06 | (0.17 | ) | – | (3.77 | ) | (3.77 | ) | 51.31 | (0.94 | ) | 200,774 | 1.35 | (f) | 1.35 | (f) | (0.87 | )(f) | 11 | |||||||||||||||||||||||||||||||||||||||||||||
One month ended 10/31/19 | 53.58 | (0.05 | ) | 1.72 | 1.67 | – | – | – | 55.25 | 3.12 | 221,803 | 1.34 | (g) | 1.34 | (g) | (1.15 | )(g) | 3 | |||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 09/30/19 | 72.06 | (0.28 | ) | (12.66 | ) | (12.94 | ) | – | (5.54 | ) | (5.54 | ) | 53.58 | (17.71 | ) | 218,747 | 1.37 | 1.37 | (0.51 | ) | 12 | ||||||||||||||||||||||||||||||||||||||||||||||
Year ended 09/30/18 | 59.18 | (0.39 | ) | 14.86 | 14.47 | – | (1.59 | ) | (1.59 | ) | 72.06 | 24.79 | 276,790 | 1.37 | 1.37 | (0.56 | ) | 21 | |||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 09/30/17 | 49.10 | (0.35 | ) | 13.98 | 13.63 | (0.06 | ) | (3.49 | ) | (3.55 | ) | 59.18 | 30.15 | 199,696 | 1.42 | 1.42 | (0.67 | ) | 18 | ||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 09/30/16 | 38.19 | (0.27 | ) | 11.43 | 11.16 | – | (0.25 | ) | (0.25 | ) | 49.10 | 29.34 | 123,310 | 1.44 | 1.44 | (0.64 | ) | 26 | |||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 09/30/15 | 37.46 | (0.36 | ) | 1.09 | 0.73 | – | – | – | 38.19 | 1.95 | 85,548 | 1.43 | 1.43 | (0.91 | ) | 16 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Class Y | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 04/30/20 | 58.93 | (0.11 | ) | 0.06 | (0.05 | ) | – | (3.77 | ) | (3.77 | ) | 55.11 | (0.66 | ) | 1,648,435 | 0.85 | (f) | 0.85 | (f) | (0.37 | )(f) | 11 | |||||||||||||||||||||||||||||||||||||||||||||
One month ended 10/31/19 | 57.13 | (0.03 | ) | 1.83 | 1.80 | – | – | – | 58.93 | 3.15 | 2,113,652 | 0.84 | (g) | 0.84 | (g) | (0.65 | )(g) | 3 | |||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 09/30/19 | 76.02 | – | (13.35 | ) | (13.35 | ) | – | (5.54 | ) | (5.54 | ) | 57.13 | (17.29 | ) | 2,120,749 | 0.87 | 0.87 | (0.01 | ) | 12 | |||||||||||||||||||||||||||||||||||||||||||||||
Year ended 09/30/18 | 62.05 | (0.05 | ) | 15.61 | 15.56 | – | (1.59 | ) | (1.59 | ) | 76.02 | 25.40 | 3,055,996 | 0.87 | 0.87 | (0.07 | ) | 21 | |||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 09/30/17 | 51.28 | (0.09 | ) | 14.61 | 14.52 | (0.26 | ) | (3.49 | ) | (3.75 | ) | 62.05 | 30.79 | 1,241,346 | 0.92 | 0.92 | (0.16 | ) | 18 | ||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 09/30/16 | 39.82 | (0.06 | ) | 11.92 | 11.86 | (0.15 | ) | (0.25 | ) | (0.40 | ) | 51.28 | 29.98 | 544,742 | 0.94 | 0.94 | (0.14 | ) | 26 | ||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 09/30/15 | 39.07 | (0.17 | ) | 1.13 | 0.96 | (0.21 | ) | – | (0.21 | ) | 39.82 | 2.46 | 360,040 | 0.94 | 0.94 | (0.41 | ) | 16 | |||||||||||||||||||||||||||||||||||||||||||||||||
Class R5 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 04/30/20 | 58.01 | (0.06 | ) | 0.04 | (0.02 | ) | – | (3.77 | ) | (3.77 | ) | 54.22 | (0.62 | ) | 9 | 0.70 | (f) | 0.70 | (f) | (0.22 | )(f) | 11 | |||||||||||||||||||||||||||||||||||||||||||||
One month ended 10/31/19 | 56.23 | (0.02 | ) | 1.80 | 1.78 | – | – | – | 58.01 | 3.16 | 10 | 0.68 | (g) | 0.68 | (g) | (0.50 | )(g) | 3 | |||||||||||||||||||||||||||||||||||||||||||||||||
Period ended 09/30/19(h) | 58.48 | 0.03 | (2.28 | ) | (2.25 | ) | – | – | – | 56.23 | (3.85 | ) | 10 | 0.74 | (g) | 0.74 | (g) | 0.12 | (g) | 12 | |||||||||||||||||||||||||||||||||||||||||||||||
Class R6 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 04/30/20 | 59.37 | (0.06 | ) | 0.05 | (0.01 | ) | – | (3.77 | ) | (3.77 | ) | 55.59 | (0.58 | ) | 1,229,193 | 0.69 | (f) | 0.69 | (f) | (0.21 | )(f) | 11 | |||||||||||||||||||||||||||||||||||||||||||||
One month ended 10/31/19 | 57.55 | (0.02 | ) | 1.84 | 1.82 | – | – | – | 59.37 | 3.16 | 1,288,373 | 0.69 | (g) | 0.69 | (g) | (0.50 | )(g) | 3 | |||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 09/30/19 | 76.41 | 0.09 | (13.41 | ) | (13.32 | ) | – | (5.54 | ) | (5.54 | ) | 57.55 | (17.16 | ) | 1,272,938 | 0.71 | 0.71 | 0.15 | 12 | ||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 09/30/18 | 62.26 | 0.07 | 15.67 | 15.74 | – | (1.59 | ) | (1.59 | ) | 76.41 | 25.61 | 1,403,832 | 0.71 | 0.71 | 0.10 | 21 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 09/30/17 | 51.43 | – | 14.66 | 14.66 | (0.34 | ) | (3.49 | ) | (3.83 | ) | 62.26 | 31.01 | 662,176 | 0.73 | 0.73 | 0.01 | 18 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 09/30/16 | 39.93 | 0.02 | 11.97 | 11.99 | (0.24 | ) | (0.25 | ) | (0.49 | ) | 51.43 | 30.21 | 127,643 | 0.75 | 0.75 | 0.04 | 26 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 09/30/15 | 39.18 | (0.09 | ) | 1.13 | 1.04 | (0.29 | ) | – | (0.29 | ) | 39.93 | 2.67 | 69,700 | 0.75 | 0.75 | (0.21 | ) | 16 |
(a) | Calculated using average shares outstanding. |
(b) | Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Does not include sales charges and is not annualized for periods less than one year, if applicable. |
(c) | Does not include estimated acquired fund fees from underlying funds of 0.00% for the one month ended October 31, 2019 and the years ended September 30, 2019, 2018, 2017, 2016 and 2015, respectively. |
(d) | Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable. |
(e) | The total return, ratio of expenses to average net assets and ratio of net investment income (loss) to average net assets reflect actual 12b-1 fees of 0.24% for the six months ended April 30, 2020. |
(f) | Ratios are annualized and based on average daily net assets (000’s omitted) of $3,044,962, $447,549, $217,855, $1,991,072, $10 and $1,297,252 for Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares, respectively. |
(g) | Annualized. |
(h) | For the period from after the close of business on May 24, 2019 (inception of offering) to September 30, 2019. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
12 Invesco Oppenheimer Global Opportunities Fund
April 30, 2020
(Unaudited)
NOTE 1–Significant Accounting Policies
Invesco Oppenheimer Global Opportunities Fund (the “Fund”) is a series portfolio of AIM International Mutual Funds (Invesco International Mutual 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 the Fund or each class.
The Fund’s investment objective is to seek capital appreciation.
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. 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. |
A security listed or traded on an exchange (except convertible securities) is valued at its last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded, or lacking any sales or official closing price on a particular day, the security may be valued at the closing bid price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued by an independent pricing service they may be considered fair valued. Futures contracts are valued at the final settlement price set by an exchange on which they are principally traded. Listed options are valued at the mean between the last bid and asked prices from the exchange on which they are principally traded. Options not listed on an exchange are valued by an independent source at the mean between the last bid and asked prices. For purposes of determining net asset value (“NAV”) per share, futures and option contracts generally are valued 15 minutes after the close of the customary trading session of the New York Stock Exchange (“NYSE”).
Investments in open-end and closed-end registered investment companies that do not trade on an exchange are valued at the end-of-day net asset value per share. Investments in open-end and closed-end registered investment companies that trade on an exchange are valued at the last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded.
Debt obligations (including convertible securities) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. Pricing services generally value debt obligations assuming orderly transactions of institutional round lot size, but a fund may hold or transact in the same securities in smaller, odd lot sizes. Odd lots often trade at lower prices than institutional round lots. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.
Foreign securities’ (including foreign exchange contracts) prices are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the NYSE. If market quotations are available and reliable for foreign exchange-traded equity securities, the securities will be valued at the market quotations. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become unreliable. If between the time trading ends on a particular security and the close of the customary trading session on the NYSE, events occur that the investment adviser determines are significant and make the closing price unreliable, the Fund may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith using procedures approved by the Board of Trustees. Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities’ prices meeting the approved degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economic upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.
Securities for which market prices are not provided by any of the above methods may be valued based upon quotes furnished by independent sources. The last bid price may be used to value equity securities. The mean between the last bid and asked prices is used to value debt obligations, including corporate loans.
Securities for which market quotations are not readily available or became unreliable are valued at fair value as determined in good faith by or under the supervision of the Trust’s officers following procedures approved by the Board of Trustees. Issuer specific events, market trends, bid/asked quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security’s fair value.
The Fund may invest in securities that are subject to interest rate risk, meaning the risk that the prices will generally fall as interest rates rise and, conversely, the prices will generally rise as interest rates fall. Specific securities differ in their sensitivity to changes in interest rates depending on their individual characteristics. Changes in interest rates may result in increased market volatility, which may affect the value and/or liquidity of certain Fund investments.
Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the issuer’s assets, general market conditions which are not specifically related to the particular issuer, such as real or perceived adverse economic conditions, changes in the general outlook for revenues or corporate earnings, changes in interest or currency rates, regional or global instability, natural or environmental disasters, widespread disease or other public health issues, war, acts of terrorism or adverse investor sentiment generally and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
B. | Securities Transactions and Investment Income – Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income (net of withholding tax, if any) is recorded on an accrual basis from settlement date. Dividend income (net of withholding tax, if any) is recorded on the ex-dividend date. |
The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Statement of Operations as realized gain (loss) for investments no longer held and as unrealized gain (loss) for investments still held.
Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of net realized and unrealized gain (loss) from investment
13 Invesco Oppenheimer Global Opportunities Fund
securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the net realized and unrealized gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and the Statement of Changes in Net Assets, or the net investment income per share and the ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.
The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class.
C. | Country Determination – For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues and the country that has the primary market for the issuer’s securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted. |
D. | Distributions – Distributions from net investment income and net realized capital gain, if any, are generally declared and paid annually and recorded on the ex-dividend date. The Fund may elect to treat a portion of the proceeds from redemptions as distributions for federal income tax purposes. |
E. | Federal Income Taxes – The Fund intends to comply with the requirements of Subchapter M of the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”), necessary to qualify as a regulated investment company and to distribute substantially all of the Fund’s taxable earnings to shareholders. As such, the Fund will not be subject to federal income taxes on otherwise taxable income (including net realized capital gain) that is distributed to shareholders. Therefore, no provision for federal income taxes is recorded in the financial statements. |
The Fund recognizes the tax benefits of uncertain tax positions only when the position is more likely than not to be sustained. Management has analyzed the Fund’s uncertain tax positions and concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions. Management is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the next 12 months.
The Fund files tax returns in the U.S. Federal jurisdiction and certain other jurisdictions. Generally, the Fund is subject to examinations by such taxing authorities for up to three years after the filing of the return for the tax period.
F. | Expenses – Fees provided for under the Rule 12b-1 plan of a particular class of the Fund 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 preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print. |
H. | Indemnifications – Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of the performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements, that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote. |
I. | Foreign Currency Translations – Foreign currency is valued at the close of the NYSE based on quotations posted by banks and major currency dealers. Portfolio securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at the date of valuation. Purchases and sales of portfolio securities (net of foreign taxes withheld on disposition) and income items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. The Fund does not separately account for the portion of the results of operations resulting from changes in foreign exchange rates on investments and the fluctuations arising from changes in market prices of securities held. The combined results of changes in foreign exchange rates and the fluctuation of market prices on investments (net of estimated foreign tax withholding) are included with the net realized and unrealized gain or loss from investments in the Statement of Operations. Reported net realized foreign currency gains or losses arise from (1) sales of foreign currencies, (2) currency gains or losses realized between the trade and settlement dates on securities transactions, and (3) the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign currency gains and losses arise from changes in the fair values of assets and liabilities, other than investments in securities at fiscal period end, resulting from changes in exchange rates. |
The Fund may invest in foreign securities, which may be subject to foreign taxes on income, gains on investments or currency repatriation, a portion of which may be recoverable. Foreign taxes, if any, are recorded based on the tax regulations and rates that exist in the foreign markets in which the Fund invests and are shown in the Statement of Operations.
J. | Forward Foreign Currency Contracts – The Fund may engage in foreign currency transactions either on a spot (i.e. for prompt delivery and settlement) basis, or through forward foreign currency contracts, to manage or minimize currency or exchange rate risk. |
The Fund may also enter into forward foreign currency contracts for the purchase or sale of a security denominated in a foreign currency in order to “lock in” the U.S. dollar price of that security, or the Fund may also enter into forward foreign currency contracts that do not provide for physical settlement of the two currencies, but instead are settled by a single cash payment calculated as the difference between the agreed upon exchange rate and the spot rate at settlement based upon an agreed upon notional amount (non-deliverable forwards). The Fund will set aside liquid assets in an amount equal to the daily mark-to-market obligation for forward foreign currency contracts.
A forward foreign currency contract is an obligation between two parties (“Counterparties”) to purchase or sell a specific currency for an agreed-upon price at a future date. The use of forward foreign currency contracts does not eliminate fluctuations in the price of the underlying securities the Fund owns or intends to acquire but establishes a rate of exchange in advance. Fluctuations in the value of these contracts are measured by the difference in the contract date and reporting date exchange rates and are recorded as unrealized appreciation (depreciation) until the contracts are closed. When the contracts are closed, realized gains (losses) are recorded. Realized and unrealized gains (losses) on the contracts are included in the Statement of Operations. The primary risks associated with forward foreign currency contracts include failure of the Counterparty to meet the terms of the contract and the value of the foreign currency changing unfavorably. These risks may be in excess of the amounts reflected in the Statement of Assets and Liabilities.
14 Invesco Oppenheimer Global Opportunities Fund
NOTE 2–Advisory Fees and Other Fees Paid to Affiliates
The Trust has entered into a master investment advisory agreement with Invesco Advisers, Inc. (the “Adviser” or “Invesco”). Under the terms of the investment advisory agreement, the Fund accrues daily and pays monthly an advisory fee to the Adviser based on the annual rate of the Fund’s average daily net assets as follows:
Average Daily Net Assets* | Rate | |
First $250 million | 0.800% | |
Next $250 million | 0.770% | |
Next $500 million | 0.750% | |
Next $1 billion | 0.690% | |
Next $1.5 billion | 0.670% | |
Next $2.5 billion | 0.650% | |
Next $4 billion | 0.630% | |
Over $10 billion | 0.610% |
* | 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 April 30, 2020, the effective advisory fee rate incurred by the Fund was 0.67%.
Under the terms of a master sub-advisory agreement between the Adviser and each of Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Canada Ltd. and separate sub-advisory agreements with Invesco Capital Management LLC and Invesco Asset Management (India) Private Limited (collectively, the “Affiliated Sub-Advisers”) the Adviser, not the Fund, will pay 40% of the fees paid to the Adviser to any such Affiliated Sub-Adviser(s) that provide(s) discretionary investment management services to the Fund based on the percentage of assets allocated to such Affiliated Sub-Adviser(s).
The Adviser has contractually agreed, through at least May 31, 2021, to waive advisory fees and/or reimburse expenses of all shares to the extent necessary to limit total annual fund operating expenses after fee waiver and/or expense reimbursement (excluding certain items discussed below) of Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares to 1.17%, 1.92%, 1.42%, 0.92%, 0.78%, and 0.73% , respectively, of average daily net assets (the “expense limits”). In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause the total annual fund operating expenses after fee waiver and/or expense reimbursement to exceed the numbers reflected above: (1) interest; (2) taxes; (3) dividend expense on short sales; (4) extraordinary or non-routine items, including litigation expenses; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Unless Invesco continues the fee waiver agreement, it will terminate on May 31, 2021. During its term, the fee waiver agreement cannot be terminated or amended to increase the expense limits or reduce the advisory fee waiver without approval of the Board of Trustees. The Adviser did not waive fees and/or reimburse expenses during the period under these expense limits.
Further, the Adviser has contractually agreed, through at least June 30, 2022, to waive the advisory fee payable by the Fund in an amount equal to 100% of the net advisory fees the Adviser receives from the affiliated money market funds on investments by the Fund of uninvested cash in such affiliated money market funds.
For the six months ended April 30, 2020, the Adviser waived advisory fees of $65,451.
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 April 30, 2020, expenses incurred under the agreement are shown in the Statement of Operations as Administrative services fees. Invesco has entered into a sub-administration agreement whereby State Street Bank and Trust Company (“SSB”) serves as fund accountant and provides certain administrative services to the Fund. Pursuant to a custody agreement with the Trust on behalf of the Fund, SSB also serves as the Fund’s custodian.
The Trust has entered into a transfer agency and service agreement with Invesco Investment Services, Inc. (“IIS”) pursuant to which the Fund has agreed to pay IIS a fee for providing transfer agency and shareholder services to the Fund and reimburse IIS for certain expenses incurred by IIS in the course of providing such services. IIS may make payments to intermediaries that provide omnibus account services, sub-accounting services and/or networking services. All fees payable by IIS to intermediaries that provide omnibus account services or sub-accounting services are charged back to the Fund, subject to certain limitations approved by the Trust’s Board of Trustees. For the six months ended April 30, 2020, expenses incurred under the agreement are shown in the Statement of Operations as Transfer 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 Y 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 and Class C shares (collectively, the “Plans”). The Fund, pursuant to the Plans, pays IDI compensation at the annual rate of 0.25% of the Fund’s average daily net assets of Class A shares and 1.00% of the average daily net assets of Class C 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 Plans 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. For the six-month period ended April 30, 2020, expenses incurred under the Plans are shown in the Statement of Operations as Distribution fees.
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 April 30, 2020, IDI advised the Fund that IDI retained $203,557 in front-end sales commissions from the sale of Class A shares and $11,875 and $14,724 from Class A and Class C shares, respectively, for CDSC imposed upon redemptions by shareholders.
Certain officers and trustees of the Trust are officers and directors of the Adviser, IIS and/or IDI.
NOTE 3–Additional Valuation Information
GAAP defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, under current market conditions. GAAP establishes a hierarchy that prioritizes the inputs to valuation methods, giving the highest priority to readily available unadjusted quoted prices in an active market for identical assets (Level 1) and the lowest priority to significant unobservable inputs (Level 3), generally when market prices are not readily available or are unreliable. Based on the valuation inputs, the securities or other investments are tiered into one of three levels. Changes in valuation methods may result in transfers in or out of an investment’s assigned level:
Level 1 – | Prices are determined using quoted prices in an active market for identical assets. | |
Level 2 – | Prices are determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk, yield curves, loss severities, default rates, discount rates, volatilities and others. |
15 Invesco Oppenheimer Global Opportunities Fund
Level 3 – | Prices are determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Fund’s own assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information. |
The following is a summary of the tiered valuation input levels, as of April 30, 2020. The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
Level 1 | Level 2 | Level 3 | Total | |||||||||||
Investments in Securities | ||||||||||||||
Argentina | $ | 23,134,000 | $ | – | $– | $ 23,134,000 | ||||||||
Belgium | 63,426,000 | 62,174,118 | – | 125,600,118 | ||||||||||
Canada | 17,120,000 | – | – | 17,120,000 | ||||||||||
Denmark | – | 268,502,321 | – | 268,502,321 | ||||||||||
Finland | – | 28,157,632 | – | 28,157,632 | ||||||||||
France | – | 81,167,095 | – | 81,167,095 | ||||||||||
Germany | – | 305,712,124 | – | 305,712,124 | ||||||||||
Ireland | – | 49,988,881 | – | 49,988,881 | ||||||||||
Israel | 65,405,000 | – | – | 65,405,000 | ||||||||||
Italy | – | 126,069,259 | – | 126,069,259 | ||||||||||
Japan | – | 742,625,331 | – | 742,625,331 | ||||||||||
Luxembourg | – | 110,782,855 | – | 110,782,855 | ||||||||||
Norway | – | 102,640,644 | – | 102,640,644 | ||||||||||
Sweden | – | 288,899,761 | – | 288,899,761 | ||||||||||
Switzerland | – | 31,455,760 | – | 31,455,760 | ||||||||||
United Kingdom | 10,014,000 | 770,374,485 | – | 780,388,485 | ||||||||||
United States | 3,037,138,219 | – | – | 3,037,138,219 | ||||||||||
Money Market Funds | 54,011,701 | – | – | 54,011,701 | ||||||||||
Total Investments | $ | 3,270,248,920 | $ | 2,968,550,266 | $– | $6,238,799,186 |
NOTE 4–Security Transactions with Affiliated Funds
The Fund is permitted to purchase or sell securities from or to certain other Invesco Funds under specified conditions outlined in procedures adopted by the Board of Trustees of the Trust. The procedures have been designed to ensure that any purchase or sale of securities by the Fund from or to another fund or portfolio that is or could be considered an affiliate by virtue of having a common investment adviser (or affiliated investment advisers), common Trustees and/or common officers complies with Rule 17a–7 of the 1940 Act. Further, as defined under the procedures, each transaction is effected at the current market price. Pursuant to these procedures, for the six–month period ended April 30, 2020, the Fund engaged in securities purchases of $277,366,935 and securities sales of $15,255,238, which resulted in net realized gains of $6,765,662.
NOTE 5–Expense Offset Arrangement(s)
The expense offset arrangement is comprised of transfer agency credits which result from balances in demand deposit accounts used by the transfer agent for clearing shareholder transactions. For the six months ended April 30, 2020, the Fund received credits from this arrangement, which resulted in the reduction of the Fund’s total expenses of $31,773.
NOTE 6–Trustees’ and Officers’ Fees and Benefits
Trustees’ and Officers’ Fees and Benefits include amounts accrued by the Fund to pay remuneration to certain Trustees and Officers of the Fund. Trustees have the option to defer compensation payable by the Fund, and Trustees’ and Officers’ Fees and Benefits also include amounts accrued by the Fund to fund such deferred compensation amounts. Those Trustees who defer compensation have the option to select various Invesco Funds in which their deferral accounts shall be deemed to be invested. Finally, certain current Trustees were eligible to participate in a retirement plan that provided for benefits to be paid upon retirement to Trustees over a period of time based on the number of years of service. The Fund may have certain former Trustees who also participate in a retirement plan and receive benefits under such plan. Trustees’ and Officers’ Fees and Benefits include amounts accrued by the Fund to fund such retirement benefits. Obligations under the deferred compensation and retirement plans represent unsecured claims against the general assets of the Fund.
NOTE 7–Cash Balances
The Fund is permitted to temporarily carry a negative or overdrawn balance in its account with SSB, the custodian bank. Such balances, if any at period–end, are shown in the Statement of Assets and Liabilities under the payable caption Amount due custodian. To compensate the custodian bank for such overdrafts, the overdrawn Fund may either (1) leave funds as a compensating balance in the account so the custodian bank can be compensated by earning the additional interest; or (2) compensate by paying the custodian bank at a rate agreed upon by the custodian bank and Invesco, not to exceed the contractually agreed upon rate. The Fund may not purchase additional securities when any borrowings from banks or broker–dealers exceed 5% of the Fund’s total assets, or when any borrowings from an Invesco Fund are outstanding.
NOTE 8–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.
16 Invesco Oppenheimer Global Opportunities Fund
Capital loss carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Fund to utilize. The ability to utilize capital loss carryforwards in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.
The Fund did not have a capital loss carryforward as of October 31, 2019.
NOTE 9–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 April 30, 2020 was $716,820,113 and $1,429,055,346, respectively. Cost of investments, including any derivatives, on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end.
Unrealized Appreciation (Depreciation) of Investments on a Tax Basis |
| |||
| ||||
Aggregate unrealized appreciation of investments | $ | 1,992,746,862 | ||
| ||||
Aggregate unrealized (depreciation) of investments | (1,578,098,831 | ) | ||
| ||||
Net unrealized appreciation of investments | $ | 414,648,031 | ||
|
Cost of investments for tax purposes is $5,824,151,155.
NOTE 10–Share Information
Summary of Share Activity | ||||||||||||||||||||||||
| ||||||||||||||||||||||||
Six months ended | One Month Ended | Year ended | ||||||||||||||||||||||
April 30, 2020(a) | October 31, 2019 | September 30, 2019 | ||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | |||||||||||||||||||
| ||||||||||||||||||||||||
Sold: | ||||||||||||||||||||||||
Class A | 2,548,707 | $ | 142,505,484 | 382,626 | $ | 21,670,522 | 10,144,937 | $ | 599,301,813 | |||||||||||||||
| ||||||||||||||||||||||||
Class C | 500,706 | 23,627,082 | 64,925 | 3,164,942 | 1,968,469 | 100,466,518 | ||||||||||||||||||
| ||||||||||||||||||||||||
Class R | 347,214 | 18,268,792 | 51,037 | 2,753,995 | 1,017,950 | 57,289,117 | ||||||||||||||||||
| ||||||||||||||||||||||||
Class Y | 4,865,071 | 274,075,156 | 820,606 | 47,588,593 | 18,833,466 | 1,135,577,841 | ||||||||||||||||||
| ||||||||||||||||||||||||
Class R5(b) | - | - | - | - | 171 | 10,000 | ||||||||||||||||||
| ||||||||||||||||||||||||
Class R6 | 3,216,286 | 182,140,215 | 437,568 | 25,400,178 | 9,163,740 | 549,075,698 | ||||||||||||||||||
| ||||||||||||||||||||||||
Issued as reinvestment of dividends: | ||||||||||||||||||||||||
Class A | 3,133,465 | 186,315,811 | - | - | 5,232,780 | 283,773,684 | ||||||||||||||||||
| ||||||||||||||||||||||||
Class C | 645,609 | 32,635,540 | - | - | 1,628,745 | 76,469,589 | ||||||||||||||||||
| ||||||||||||||||||||||||
Class R | 260,276 | 14,710,786 | - | - | 399,943 | 20,737,042 | ||||||||||||||||||
| ||||||||||||||||||||||||
Class Y | 1,884,458 | 114,160,464 | - | - | 3,517,773 | 193,688,586 | ||||||||||||||||||
| ||||||||||||||||||||||||
Class R6 | 1,286,607 | 78,585,952 | - | - | 1,913,847 | 106,027,116 | ||||||||||||||||||
| ||||||||||||||||||||||||
Automatic conversion of Class C shares to Class A shares: | ||||||||||||||||||||||||
Class A | 188,811 | 10,704,368 | - | - | - | - | ||||||||||||||||||
| ||||||||||||||||||||||||
Class C | (221,997 | ) | (10,704,368 | ) | - | - | - | - | ||||||||||||||||
| ||||||||||||||||||||||||
Reacquired: | ||||||||||||||||||||||||
Class A | (7,927,695 | ) | (435,871,446 | ) | (1,353,782 | ) | (76,940,811 | ) | (15,873,831 | ) | (928,165,271 | ) | ||||||||||||
| ||||||||||||||||||||||||
Class C | (1,933,701 | ) | (88,363,198 | ) | (379,879 | ) | (18,508,538 | ) | (8,377,888 | ) | (425,538,926 | ) | ||||||||||||
| ||||||||||||||||||||||||
Class R | (709,322 | ) | (37,628,314 | ) | (119,113 | ) | (6,464,952 | ) | (1,176,633 | ) | (66,304,782 | ) | ||||||||||||
| ||||||||||||||||||||||||
Class Y | (12,700,752 | ) | (697,820,067 | ) | (2,078,135 | ) | (119,820,339 | ) | (25,430,630 | ) | (1,512,100,278 | ) | ||||||||||||
| ||||||||||||||||||||||||
Class R6 | (4,089,247 | ) | (231,944,837 | ) | (857,941 | ) | (49,728,352 | ) | (7,330,503 | ) | (432,682,576 | ) | ||||||||||||
| ||||||||||||||||||||||||
Net increase (decrease) in share activity | (8,705,504 | ) | $ | (424,602,580 | ) | (3,032,088 | ) | $ | (170,884,762 | ) | (4,367,664 | ) | $ | (242,374,829 | ) | |||||||||
|
(a) | There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 27% 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. |
(b) | Commencement date after the close of business on May 24, 2019. |
NOTE 11–Coronavirus (COVID-19) Pandemic
During the first quarter of 2020, the World Health Organization declared COVID-19 to be a public health emergency. COVID-19 has led to increased short-term market volatility and may have adverse long-term effects on U.S. and world economies and markets in general. COVID-19 may adversely impact the Fund’s ability to achieve its investment objective. Because of the uncertainties on valuation, the global economy and business operations, values reflected in these financial statements may materially differ from the value received upon actual sales of those investments.
The extent of the impact on the performance of the Fund and its investments will depend on future developments, including the duration and spread of the COVID-19 outbreak, related restrictions and advisories, and the effects on the financial markets and economy overall, all of which are highly uncertain and cannot be predicted.
17 Invesco Oppenheimer Global Opportunities Fund
NOTE 12–Subsequent Event
Effective on or about September 30, 2020, the name of the Fund and all references thereto will change from Invesco Oppenheimer Global Opportunities Fund to Invesco Global Opportunities Fund.
18 Invesco Oppenheimer Global Opportunities Fund
Calculating your ongoing Fund expenses
Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, which may include sales charges (loads) on purchase payments or contingent deferred sales charges on redemptions, if any; and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees, and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period November 1, 2019 through April 30, 2020.
Actual expenses
The table below provides information about actual account values and actual expenses. You may use the information in this table, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the table under the heading entitled “Actual Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Hypothetical example for comparison purposes
The table below also provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return.
The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads) on purchase payments or contingent deferred sales charges on redemptions, if any. Therefore, the hypothetical information is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, expenses shown in the table do not include the expenses of the underlying funds, which are borne indirectly by the Fund. If transaction costs and indirect expenses were included, your costs would have been higher.
HYPOTHETICAL (5% annual return before | ||||||||||||||||||||||||||||||
ACTUAL | expenses) | |||||||||||||||||||||||||||||
Beginning | Ending | Expenses | Ending | Expenses | Annualized | |||||||||||||||||||||||||
Account Value | Account Value | Paid During | Account Value | Paid During | Expense | |||||||||||||||||||||||||
(11/01/19) | (04/30/20)1 | Period2 | (04/30/20) | Period2 | Ratio | |||||||||||||||||||||||||
Class A | $1,000.00 | $992.20 | $5.40 | $1,019.44 | $5.47 | 1.09 | % | |||||||||||||||||||||||
Class C | 1,000.00 | 988.50 | 9.15 | 1,015.66 | 9.27 | 1.85 | ||||||||||||||||||||||||
Class R | 1,000.00 | 990.60 | 6.68 | 1,018.15 | 6.77 | 1.35 | ||||||||||||||||||||||||
Class Y | 1,000.00 | 993.40 | 4.21 | 1,020.64 | 4.27 | 0.85 | ||||||||||||||||||||||||
Class R5 | 1,000.00 | 993.80 | 3.47 | 1,021.38 | 3.52 | 0.70 | ||||||||||||||||||||||||
Class R6 | 1,000.00 | 994.20 | 3.42 | 1,021.43 | 3.47 | 0.69 |
1 | The actual ending account value is based on the actual total return of the Fund for the period November 1, 2019 through April 30, 2020, after actual expenses and will differ from the hypothetical ending account value which is based on the Fund’s expense ratio and a hypothetical annual return of 5% before expenses. |
2 | Expenses are equal to the Fund’s annualized expense ratio as indicated above multiplied by the average account value over the period, multiplied by 182/366 to reflect the most recent fiscal half year. |
19 Invesco Oppenheimer Global Opportunities Fund
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 list appears 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 Form N-PORT filings on the SEC website, sec.gov. The SEC file numbers for the Fund are shown below.
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. This 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. |
SEC file numbers: 811-06463 and 033-44611 | Invesco Distributors, Inc. | O-GLOPP-SAR-1 |
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Semiannual Report to Shareholders | April 30, 2020 | |||||
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Invesco Oppenheimer International Equity Fund |
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Nasdaq: | ||||||
A: QIVAX ∎ C: QIVCX ∎ R: QIVNX ∎ Y: QIVYX ∎ R5: INEQX ∎ R6: QIVIX |
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3 | ||
5 | ||
6 | ||
9 | ||
12 | ||
13 | ||
19 |
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.
For the most current month-end Fund performance and commentary, please visit invesco.com/performance.
Unless otherwise noted, all data provided by Invesco.
This report must be accompanied or preceded by a currently effective Fund prospectus, which contains more complete information, including sales charges and expenses. Investors should read it carefully before investing.
NOT FDIC INSURED | MAY LOSE VALUE | NO BANK GUARANTEE |
Bruce Crockett | Dear Fellow Shareholders: As independent chair of the Invesco Funds Board, I can assure you that the members of the Board are strong advocates for the interests of investors in Invesco’s mutual funds. We work hard to represent your interests through oversight of the quality of the investment management services your funds receive and other matters important to your investment. This includes but is not limited to: monitoring how the portfolio management teams of the Invesco funds are performing in light of changing economic and market conditions; assessing each portfolio management team’s investment performance within the context of the investment strategy described in the fund’s prospectus; and monitoring for potential conflicts of interests that may impact the nature of the services that your funds receive. | |
We believe one of the most important services we provide our fund shareholders is the annual review of the funds’ advisory and sub-advisory contracts with Invesco Advisers and its affiliates. This review is required by the Investment Company Act of 1940 and focuses on the nature and quality of the services Invesco provides as the adviser to the Invesco funds and the reasonableness of the fees that it charges | ||
for those services. Each year, we spend months carefully reviewing information received from Invesco and a variety of independent sources, such as performance and fee data prepared by Lipper Inc. (a subsidiary of Broadridge Financial Solutions, Inc.), an independent, third-party firm widely recognized as a leader in its field. We also meet with our independent legal counsel and other independent advisers to review and help us assess the information that we have received. Our goal is to assure that you receive quality investment management services for a reasonable fee. | ||
On behalf of the Board, we look forward to continuing to represent your interests and serving your needs. |
Sincerely,
Bruce L. Crockett
Independent Chair
Invesco Funds Board of Trustees
Andrew Schlossberg | Dear Shareholders: This semiannual report includes information about your Fund, including performance data and a complete list of its investments as of the close of the reporting period. Invesco’s efforts to help investors achieve their financial objectives include providing timely information about the markets, the economy and investing. Our website, invesco.com/us, offers a wide range of market insights and investment perspectives. On the website, you’ll find detailed information about our funds, including performance, holdings and portfolio manager commentaries. You can access information about your account by completing a simple, secure online registration. To do so, select “Log In” on the right side of the homepage, and then select “Register for Individual Account Access.” | |
In addition to the resources accessible on our website, you can obtain timely updates to help you stay informed by connecting with Invesco on Twitter, LinkedIn or Facebook. You can access our blog at blog.invesco.us.com. Our goal is to provide you with information you want, when and where you want it. | ||
For questions about your account, feel free to contact an Invesco client services representative at 800 959 4246. | ||
All of us at Invesco look forward to serving your investment management needs. Thank you for investing with us. |
Sincerely,
Andrew Schlossberg
Head of the Americas,
Senior Managing Director, Invesco Ltd.
2 Invesco Oppenheimer International Equity Fund
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Performance summary
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Fund vs. Indexes |
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Cumulative total returns, October 31, 2019 to April 30, 2020, at net asset value (NAV). Performance shown does not include applicable contingent deferred sales charges (CDSC) or front-end sales charges, which would have reduced performance. |
| |||
Class A Shares | –8.20 | % | ||
Class C Shares | –8.51 | |||
Class R Shares | –8.34 | |||
Class Y Shares | –8.06 | |||
Class R5 Shares | –8.00 | |||
Class R6 Shares | –7.99 | |||
MSCI All Country World ex USA Index | –13.22 | |||
Source(s): RIMES Technologies Corp. |
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The MSCI All Country World ex USA® Index is an index considered representative of developed and emerging stock markets, excluding the US. The index is computed using the net return, which withholds applicable taxes for non-resident investors. |
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The Fund is not managed to track the performance of any particular index, including the index(es) described here, and consequently, the performance of the Fund may deviate significantly from the performance of the index(es). |
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A direct investment cannot be made in an index. Unless otherwise indicated, index results include reinvested dividends, and they do not reflect sales charges. Performance of the peer group, if applicable, reflects fund expenses; performance of a market index does not. |
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For more information about your Fund |
Read the most recent quarterly commentary from your Fund’s portfolio managers by visiting invesco.com/us. Click on “Products” and select “Mutual Funds.” Use the “Product Finder” to locate your Fund; then click on its name to access its product detail page. There, you can learn more about your Fund’s investment strategies, holdings and performance. Also, visit blog.invesco.us.com, where many of Invesco’s investment professionals share their insights about market and economic news and trends. |
3 Invesco Oppenheimer International Equity Fund
Average Annual Total Returns |
| |||
As of 4/30/20, including maximum applicable sales charges |
| |||
Class A Shares | ||||
Inception (7/2/90) | 5.61 | % | ||
10 Years | 2.61 | |||
5 Years | –0.21 | |||
1 Year | –12.29 | |||
Class C Shares | ||||
Inception (9/1/93) | 5.38 | % | ||
10 Years | 2.42 | |||
5 Years | 0.17 | |||
1 Year | –8.78 | |||
Class R Shares | ||||
Inception (3/1/01) | 2.83 | % | ||
10 Years | 2.93 | |||
5 Years | 0.66 | |||
1 Year | –7.44 | |||
Class Y Shares | ||||
Inception (11/13/08) | 7.64 | % | ||
10 Years | 3.56 | |||
5 Years | 1.23 | |||
1 Year | –6.82 | |||
Class R5 Shares | ||||
10 Years | 3.24 | % | ||
5 Years | 1.01 | |||
1 Year | –6.79 | |||
Class R6 Shares | ||||
Inception (3/28/13) | 3.52 | % | ||
5 Years | 1.36 | |||
1 Year | –6.77 |
Effective May 24, 2019, Class A, Class C, Class R, Class Y, and Class I shares of the Oppenheimer International Equity Fund, (the predecessor fund), were reorganized into Class A, Class C, Class R, Class Y, and Class R6 shares, respectively, of the Invesco Oppenheimer International Equity Fund (the Fund). Returns shown above, prior to May 24, 2019, 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 the predecessor fund because of different expenses.
Class R5 shares incepted on May 24, 2019. Performance shown prior to that date is that of the predecessor fund’s Class A shares and includes the 12b-1 fees applicable to Class A shares.
The performance data quoted represent past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/ performance for the most recent month-end performance. Performance figures reflect reinvested distributions, changes in net asset value and the effect of the maximum sales charge unless otherwise stated. Performance figures do not reflect deduction of taxes a shareholder would pay on
Fund distributions or sale of Fund shares. Investment return and principal value will fluctuate so that you may have a gain or loss when you sell shares.
Class A share performance reflects the maximum 5.50% sales charge, and Class C share performance reflects the applicable contingent deferred sales charge (CDSC) for the period involved. The CDSC on Class C shares is 1% for the first year after purchase. Class R, Class Y, Class R5 and Class R6 shares do not have a front-end sales charge or a CDSC; therefore, performance is at net asset value.
The performance of the Fund’s share classes will differ primarily due to different sales charge structures and class expenses.
Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information.
4 Invesco Oppenheimer International Equity Fund
Liquidity Risk Management Program
The Securities and Exchange Commission has adopted Rule 22e-4 under the Investment Company Act of 1940 (the “Liquidity Rule”) in order to promote effective liquidity risk management throughout the open-end investment company industry, thereby reducing the risk that funds will be unable to meet their redemption obligations and mitigating dilution of the interests of fund shareholders. The Fund has adopted and implemented a liquidity risk management program in accordance with the Liquidity Rule (the “Program”). The Program is reasonably designed to assess and manage the Fund’s liquidity risk, which is the risk that the Fund could not meet redemption requests without significant dilution of remaining investors’ interests in the Fund. The Board of Trustees of the Fund (the “Board”) has appointed Invesco Advisers, Inc. (“Invesco”), the Fund’s investment adviser, as the Program’s administrator, and Invesco has delegated oversight of the Program to the Liquidity Risk Management Committee (the “Committee”), which is composed of senior representatives from relevant business groups at Invesco.
As required by the Liquidity Rule, the Program includes policies and procedures providing for an assessment, no less frequently than annually, of the Fund’s liquidity risk that takes into account, as relevant to the Fund’s liquidity risk: (1) the Fund’s investment strategy and liquidity of portfolio investments during both normal and reasonably foreseeable stressed conditions; (2) short-term and long-term cash flow projections for the Fund during both normal and reasonably foreseeable stressed conditions; and (3) the Fund’s holdings of cash and cash equivalents and any borrowing arrangements. The Liquidity Rule also requires the classification of the Fund’s investments into categories that reflect the assessment of their relative liquidity under current market conditions. The Fund classifies its investments into one of four categories defined in the Liquidity Rule: “Highly Liquid,” “Moderately Liquid,” “Less Liquid” and “Illiquid.” Funds that are not invested primarily in “Highly Liquid Investments” that are assets (cash or investments that are reasonably expected to be convertible into cash within three business days without significantly changing the market value of the investment) are required to establish a “Highly Liquid Investment Minimum” (“HLIM”), which is the minimum percentage of net assets that must be invested in Highly Liquid Investments. Funds with HLIMs have procedures for addressing HLIM shortfalls, including reporting to the Board and the SEC (on a non-public basis) as required by the Program and the Liquidity Rule. In addition, the Fund may not acquire an investment if, immediately after the acquisition, over 15% of the Fund’s net assets would consist of “Illiquid Investments” that are assets (an investment that cannot reasonably be expected to be sold or disposed of in current market conditions in seven calendar days or less without the sale or disposition significantly changing the market value of the investment). The Liquidity Rule and the Program also require reporting to the Board and the SEC (on a non-public basis) if a Fund’s holdings of Illiquid Investments exceed 15% of the Fund’s assets.
At a meeting held on March 30-April 1, 2020, the Committee presented a report to the Board that addressed the operation of the Program and assessed the Program’s adequacy and effectiveness of implementation (the “Report”). The Report covered the period from December 1, 2018 through December 31, 2019 (the “Program Reporting Period”).
The Report stated, in relevant part, that during the Program Reporting Period:
∎ | The Program, as adopted and implemented, remained reasonably designed to assess and manage the Fund’s liquidity risk and was operated effectively to achieve that goal; |
∎ | The Fund’s investment strategy remained appropriate for an open-end fund; |
∎ | The Fund was able to meet requests for redemption without significant dilution of remaining investors’ interests in the Fund; |
∎ | The Fund did not breach the 15% limit on Illiquid Investments; and |
∎ | The Fund primarily held Highly Liquid Investments and therefore has not adopted an HLIM. |
5 Invesco Oppenheimer International Equity Fund
April 30, 2020
(Unaudited)
Shares | Value | |||||
Common Stocks & Other Equity Interests–98.00% | ||||||
Aerospace & Defense–0.37% | ||||||
Airbus SE (France) | 85,360 | $ 5,426,669 | ||||
Apparel Retail–0.41% | ||||||
Industria de Diseno Textil S.A. (Spain)(b) | 234,752 | 5,988,576 | ||||
Apparel, Accessories & Luxury Goods–1.39% | ||||||
adidas AG (Germany) | 47,536 | 10,880,906 | ||||
Kering S.A. (France) | 18,357 | 9,270,681 | ||||
20,151,587 | ||||||
Application Software–4.51% | ||||||
SAP SE (Germany) | 453,387 | 54,074,435 | ||||
Weimob, Inc. (China)(b)(c) | 14,822,000 | 11,190,923 | ||||
65,265,358 | ||||||
Automobile Manufacturers–1.20% | ||||||
Volkswagen AG, Preference Shares (Germany) | 123,728 | 17,362,852 | ||||
Brewers–0.83% | ||||||
Carlsberg A/S, Class B (Denmark) | 94,913 | 11,981,585 | ||||
Casinos & Gaming–0.56% | ||||||
Sands China Ltd. (Macau) | 2,009,600 | 8,080,413 | ||||
Construction & Engineering–0.79% |
| |||||
Vinci S.A. (France) | 139,336 | 11,421,221 | ||||
Construction Materials–0.44% | ||||||
James Hardie Industries PLC, CDI | 436,124 | 6,371,769 | ||||
Consumer Electronics–4.37% | ||||||
Sony Corp. (Japan) | 985,800 | 63,244,183 | ||||
Data Processing & Outsourced Services–0.43% | ||||||
Worldline S.A. (France)(b)(c) | 91,192 | 6,205,926 | ||||
Distillers & Vintners–3.28% | ||||||
Diageo PLC (United Kingdom) | 1,154,138 | 40,007,504 | ||||
Pernod Ricard S.A. (France) | 49,161 | 7,501,184 | ||||
47,508,688 | ||||||
Diversified Banks–1.08% | ||||||
BNP Paribas S.A. (France) | 313,973 | 9,882,474 | ||||
ING Groep N.V. (Netherlands) | 1,046,387 | 5,752,550 | ||||
15,635,024 | ||||||
Diversified Metals & Mining–3.01% |
| |||||
Anglo American PLC (South Africa) | 1,572,419 | 28,075,359 | ||||
BHP Group Ltd., ADR (Australia) | 379,862 | 15,452,786 | ||||
43,528,145 | ||||||
Electronic Components–4.88% | ||||||
Murata Manufacturing Co. Ltd. (Japan) | 500,300 | 27,831,435 | ||||
Samsung Electro-Mechanics Co. Ltd. (South Korea) | 137,663 | 12,887,736 | ||||
TDK Corp. (Japan) | 346,900 | 29,997,604 | ||||
70,716,775 |
Shares | Value | |||||
Footwear–0.00% | ||||||
China Hongxing Sports Ltd. | 36,005,000 | $ 26 | ||||
Gold–7.64% | ||||||
AngloGold Ashanti Ltd., ADR (South Africa) | 399,095 | 9,733,927 | ||||
Barrick Gold Corp. (Canada) | 733,900 | 18,875,908 | ||||
Gold Fields Ltd., ADR (South Africa) | 1,214,303 | 8,912,984 | ||||
Shandong Gold Mining Co. Ltd., H Shares (China)(c) | 3,820,000 | 11,297,389 | ||||
Wheaton Precious Metals Corp. (Canada) | 1,639,741 | 61,916,620 | ||||
110,736,828 | ||||||
Health Care Equipment–2.03% | ||||||
Medtronic PLC | 207,372 | 20,245,729 | ||||
Siemens Healthineers AG (Germany)(c) | 209,109 | 9,219,925 | ||||
29,465,654 | ||||||
Health Care Services–2.17% | ||||||
Fresenius Medical Care AG & Co. KGaA (Germany) | 401,637 | 31,475,484 | ||||
Heavy Electrical Equipment–0.64% |
| |||||
Mitsubishi Electric Corp. (Japan) | 745,600 | 9,230,597 | ||||
Homebuilding–1.15% | ||||||
Taylor Wimpey PLC (United Kingdom) | 9,005,782 | 16,700,237 | ||||
Human Resource & Employment Services–1.66% | ||||||
Recruit Holdings Co. Ltd. (Japan) | 817,700 | 23,987,938 | ||||
Industrial Gases–3.00% | ||||||
Air Liquide S.A. (France) | 340,809 | 43,402,120 | ||||
Integrated Telecommunication Services–3.17% | ||||||
Nippon Telegraph & Telephone Corp. (Japan) | 1,185,900 | 27,017,514 | ||||
Spark New Zealand Ltd. (New Zealand) | 7,026,615 | 18,957,518 | ||||
45,975,032 | ||||||
Interactive Home Entertainment–4.14% |
| |||||
Nexon Co. Ltd. (Japan) | 651,200 | 10,532,507 | ||||
Nintendo Co. Ltd. (Japan) | 119,400 | 49,448,531 | ||||
59,981,038 | ||||||
Interactive Media & Services–2.18% |
| |||||
Tencent Holdings Ltd. (China) | 595,800 | 31,609,039 | ||||
Internet & Direct Marketing Retail–4.58% |
| |||||
Alibaba Group Holding Ltd., ADR (China)(b) | 327,179 | 66,309,368 | ||||
Leisure Products–0.90% | ||||||
Bandai Namco Holdings, Inc. (Japan) | 260,600 | 13,101,921 | ||||
Life & Health Insurance–1.02% | ||||||
Prudential PLC (United Kingdom) | 1,037,502 | 14,777,056 | ||||
Packaged Foods & Meats–5.43% | ||||||
Danone S.A. (France) | 418,041 | 29,000,704 | ||||
Kikkoman Corp. (Japan) | 289,900 | 13,338,897 | ||||
WH Group Ltd. (Hong Kong) | 38,000,500 | 36,374,471 | ||||
78,714,072 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
6 Invesco Oppenheimer International Equity Fund
Shares | Value | |||||
Personal Products–2.90% | ||||||
Amorepacific Corp. (South Korea) | 85,990 | $ 12,425,364 | ||||
Hengan International Group Co. Ltd. (China) | 984,500 | 8,670,942 | ||||
L’Oreal S.A. (France) | 37,618 | 10,947,784 | ||||
Unilever PLC (United Kingdom) | 191,699 | 9,911,218 | ||||
41,955,308 | ||||||
Pharmaceuticals–5.58% | ||||||
Bayer AG (Germany) | 457,307 | 30,263,585 | ||||
Novo Nordisk A/S, Class B (Denmark) | 386,243 | 24,663,177 | ||||
Takeda Pharmaceutical Co. Ltd. (Japan) | 719,400 | 25,832,078 | ||||
80,758,840 | ||||||
Research & Consulting Services–0.63% |
| |||||
IHS Markit Ltd. | 136,451 | 9,183,152 | ||||
Restaurants–0.38% | ||||||
Yum China Holdings, Inc. | 112,375 | 5,445,693 | ||||
Semiconductor Equipment–1.89% | ||||||
Advantest Corp. (Japan) | 204,800 | 9,959,977 | ||||
Disco Corp. (Japan) | 25,800 | 5,795,317 | ||||
SCREEN Holdings Co. Ltd. (Japan) | 238,600 | 11,561,768 | ||||
27,317,062 | ||||||
Semiconductors–9.01% | ||||||
NXP Semiconductors N.V. (Netherlands) | 123,670 | 12,313,822 | ||||
QUALCOMM, Inc. | 420,686 | 33,095,368 | ||||
SK Hynix, Inc. (South Korea) | 439,134 | 29,882,540 | ||||
STMicroelectronics N.V., New York Shares (Switzerland) | 1,314,026 | 33,599,645 | ||||
Taiwan Semiconductor Manufacturing Co. Ltd., ADR (Taiwan) | 405,983 | 21,569,877 | ||||
130,461,252 | ||||||
Soft Drinks–1.28% | ||||||
Coca-Cola European Partners PLC (United Kingdom) | 467,780 | 18,542,799 |
Shares | Value | |||||
Specialty Chemicals–1.74% | ||||||
Akzo Nobel N.V. (Netherlands) | 331,694 | $ 25,180,472 | ||||
Systems Software–1.37% | ||||||
Oracle Corp. Japan (Japan) | 193,300 | 19,869,724 | ||||
Technology Hardware, Storage & Peripherals–1.47% | ||||||
Samsung Electronics Co. Ltd. (South Korea) | 517,231 | 21,313,593 | ||||
Tobacco–2.51% | ||||||
Philip Morris International, Inc. | 235,530 | 17,570,538 | ||||
Swedish Match AB (Sweden) | 303,986 | 18,833,372 | ||||
36,403,910 | ||||||
Trading Companies & Distributors–1.64% |
| |||||
Ashtead Group PLC (United Kingdom) | 429,020 | 11,772,558 | ||||
ITOCHU Corp. (Japan) | 611,800 | 12,022,498 | ||||
23,795,056 | ||||||
Wireless Telecommunication Services–0.34% | ||||||
Rogers Communications, Inc., Class B (Canada) | 118,608 | 4,967,741 | ||||
Total Common Stocks & Other Equity Interests |
| 1,419,549,783 | ||||
Money Market Funds–1.68% | ||||||
Invesco Government & Agency Portfolio, Institutional Class, 0.20% | 24,360,904 | 24,360,904 | ||||
TOTAL INVESTMENTS IN SECURITIES–99.68% |
| 1,443,910,687 | ||||
OTHER ASSETS LESS LIABILITIES–0.32% |
| 4,631,116 | ||||
NET ASSETS–100.00% | $1,448,541,803 |
Investment Abbreviations: | ||
ADR | – American Depositary Receipt | |
CDI | – CREST Depository Interest |
Notes to Schedule of Investments:
(a) | Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s. |
(b) | Non-income producing security. |
(c) | Security purchased or received in a transaction exempt from registration under the Securities Act of 1933, as amended (the “1933 Act”). The security may be resold pursuant to an exemption from registration under the 1933 Act, typically to qualified institutional buyers. The aggregate value of these securities at April 30, 2020 was $37,914,163, which represented 2.62% of the Fund’s Net Assets. |
(d) | Security valued using significant unobservable inputs (Level 3). See Note 3. |
(e) | Affiliated issuer. The issuer and/or the Fund is a wholly-owned subsidiary of Invesco Ltd., or is affiliated by having an investment adviser that is under common control of Invesco Ltd. The table below shows the Fund’s transactions in, and earnings from, its investments in affiliates for the six months ended April 30, 2020. |
Value October 31, 2019 | Purchases at Cost | Proceeds from Sales | Change in Unrealized Appreciation | Realized Gain | Value April 30, 2020 | Dividend Income | ||||||||||||||||||
Investments in Affiliated Money Market Funds: | ||||||||||||||||||||||||
Invesco Government & Agency Portfolio, Institutional Class | $66,249,700 | $489,859,163 | $ | (531,747,959) | $- | $- | $24,360,904 | $247,373 |
(f) | The rate shown is the 7-day SEC standardized yield as of April 30, 2020. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
7 Invesco Oppenheimer International Equity Fund
Portfolio Composition
By sector, based on Net Assets
as of April 30, 2020
Information Technology | 23.55 | % | ||
Consumer Staples | 16.23 | |||
Materials | 15.83 | |||
Consumer Discretionary | 14.94 | |||
Communication Services | 9.84 | |||
Health Care | 9.78 | |||
Industrials | 5.73 | |||
Financials | 2.10 | |||
Money Market Funds Plus Other Assets Less Liabilities | 2.00 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
8 Invesco Oppenheimer International Equity Fund
Statement of Assets and Liabilities
April 30, 2020
(Unaudited)
Assets: | ||
Investments in securities, at value | $1,419,549,783 | |
Investments in affiliated money market funds, at value | 24,360,904 | |
Cash | 2,197,562 | |
Foreign currencies, at value (Cost $16,404) | 17,087 | |
Receivable for: | ||
Investments sold | 9,484,121 | |
Fund shares sold | 151,330 | |
Dividends | 8,718,769 | |
Interest | 1,766 | |
Investment for trustee deferred compensation and retirement plans | 69,560 | |
Other assets | 146,194 | |
Total assets | 1,464,697,076 | |
Liabilities: | ||
Payable for: | ||
Investments purchased | 15,224,696 | |
Fund shares reacquired | 398,812 | |
Accrued fees to affiliates | 189,005 | |
Accrued trustees’ and officers’ fees and benefits | 5,609 | |
Accrued other operating expenses | 197,542 | |
Trustee deferred compensation and retirement plans | 139,609 | |
Total liabilities | 16,155,273 | |
Net assets applicable to shares outstanding | $1,448,541,803 | |
Net assets consist of: | ||
Shares of beneficial interest | $1,604,144,771 | |
Distributable earnings (loss) | (155,602,968) | |
$1,448,541,803 |
Net Assets: | ||||
Class A | $ | 153,090,718 | ||
Class C | $ | 15,288,340 | ||
Class R | $ | 17,935,878 | ||
Class Y | $ | 57,486,806 | ||
Class R5 | $ | 9,758 | ||
Class R6 | $ | 1,204,730,303 | ||
Shares outstanding, no par value, with an unlimited number of shares authorized: |
| |||
Class A | 8,130,276 | |||
Class C | 913,308 | |||
Class R | 965,580 | |||
Class Y | 3,025,257 | |||
Class R5 | 518 | |||
Class R6 | 64,284,430 | |||
Class A: | ||||
Net asset value per share | $ | 18.83 | ||
Maximum offering price per share (Net asset value of $18.83 ÷ 94.50%) | $ | 19.93 | ||
Class C: | ||||
Net asset value and offering price per share | $ | 16.74 | ||
Class R: | ||||
Net asset value and offering price per share | $ | 18.58 | ||
Class Y: | ||||
Net asset value and offering price per share | $ | 19.00 | ||
Class R5: | ||||
Net asset value and offering price per share | $ | 18.84 | ||
Class R6: | ||||
Net asset value and offering price per share | $ | 18.74 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
9 Invesco Oppenheimer International Equity Fund
Statement of Operations
For the six months ended April 30, 2020
(Unaudited)
Investment income: | ||||
Dividends (net of foreign withholding taxes of $1,615,002) | $ | 12,997,827 | ||
| ||||
Dividends from affiliated money market funds | 247,373 | |||
| ||||
Interest | 24,143 | |||
| ||||
Total investment income | 13,269,343 | |||
| ||||
Expenses: | ||||
Advisory fees | 6,316,056 | |||
| ||||
Administrative services fees | 121,588 | |||
| ||||
Custodian fees | 95,510 | |||
| ||||
Distribution fees: | ||||
Class A | 214,926 | |||
| ||||
Class C | 91,884 | |||
| ||||
Class R | 48,607 | |||
| ||||
Transfer agent fees – A, C, R and Y | 301,550 | |||
| ||||
Transfer agent fees – R5 | 3 | |||
| ||||
Transfer agent fees – R6 | 7,098 | |||
| ||||
Trustees’ and officers’ fees and benefits | 10,234 | |||
| ||||
Registration and filing fees | 53,558 | |||
| ||||
Reports to shareholders | 32,115 | |||
| ||||
Professional services fees | 31,422 | |||
| ||||
Other | (27,922 | ) | ||
| ||||
Total expenses | 7,296,629 | |||
| ||||
Less: Fees waived, expenses reimbursed and/or expense offset arrangement(s) | (95,600 | ) | ||
| ||||
Net expenses | 7,201,029 | |||
| ||||
Net investment income | 6,068,314 | |||
| ||||
Realized and unrealized gain (loss) from: | ||||
Net realized gain (loss) from: | ||||
Investment securities | (46,234,640 | ) | ||
| ||||
Foreign currencies | 227,474 | |||
| ||||
Forward foreign currency contracts | (13,995 | ) | ||
| ||||
(46,021,161 | ) | |||
| ||||
Change in net unrealized appreciation (depreciation) of: | ||||
Investment securities | (102,579,979 | ) | ||
| ||||
Foreign currencies | 64,002 | |||
| ||||
(102,515,977 | ) | |||
| ||||
Net realized and unrealized gain (loss) | (148,537,138 | ) | ||
| ||||
Net increase (decrease) in net assets resulting from operations | $ | (142,468,824 | ) | |
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
10 Invesco Oppenheimer International Equity Fund
Statement of Changes in Net Assets
For the six months ended April 30, 2020, period ended October 31, 2019, and the year ended November 30, 2018
(Unaudited)
Six Months Ended April 30, 2020 | Eleven Months Ended October 31, 2019 | Year Ended November 30, 2018 | ||||||||||
Operations: | ||||||||||||
Net investment income | $ | 6,068,314 | $ 34,381,411 | $ | 32,418,485 | |||||||
| ||||||||||||
Net realized gain (loss) | (46,021,161 | ) | (155,299,052 | ) | (102,608,346 | ) | ||||||
| ||||||||||||
Change in net unrealized appreciation (depreciation) | (102,515,977 | ) | 273,721,261 | (208,208,094 | ) | |||||||
| ||||||||||||
Net increase (decrease) in net assets resulting from operations | (142,468,824 | ) | 152,803,620 | (278,397,955 | ) | |||||||
| ||||||||||||
Distributions to shareholders from distributable earnings: | ||||||||||||
Class A | (2,775,294 | ) | (2,117,061 | ) | (12,105 | ) | ||||||
| ||||||||||||
Class C | (169,923 | ) | (159,566 | ) | – | |||||||
| ||||||||||||
Class R | (265,548 | ) | (172,591 | ) | – | |||||||
| ||||||||||||
Class Y | (1,354,131 | ) | (2,162,116 | ) | (174,428 | ) | ||||||
| ||||||||||||
Class R5 | (208 | ) | – | – | ||||||||
| ||||||||||||
Class R6 | (29,039,080 | ) | (25,558,438 | ) | (5,822,882 | ) | ||||||
| ||||||||||||
Total distributions from distributable earnings | (33,604,184 | ) | (30,169,772 | ) | (6,009,415 | ) | ||||||
| ||||||||||||
Share transactions–net: | ||||||||||||
Class A | (11,613,775 | ) | (20,130,272 | ) | (5,403,575 | ) | ||||||
| ||||||||||||
Class B | – | – | (599,517 | ) | ||||||||
| ||||||||||||
Class C | (3,012,808 | ) | (16,653,799 | ) | 175,780 | |||||||
| ||||||||||||
Class R | (125,221 | ) | 1,570,884 | 6,304,881 | ||||||||
| ||||||||||||
Class Y | (10,211,449 | ) | (69,713,314 | ) | 104,397,177 | |||||||
| ||||||||||||
Class R5 | – | 10,000 | – | |||||||||
| ||||||||||||
Class R6 | (163,215,302 | ) | (151,142,043 | ) | 286,648,395 | |||||||
| ||||||||||||
Net increase (decrease) in net assets resulting from share transactions | (188,178,555 | ) | (256,058,544 | ) | 391,523,141 | |||||||
| ||||||||||||
Net increase (decrease) in net assets | (364,251,563 | ) | (133,424,696 | ) | 107,115,771 | |||||||
| ||||||||||||
Net assets: | ||||||||||||
Beginning of period | 1,812,793,366 | 1,946,218,062 | 1,839,102,291 | |||||||||
| ||||||||||||
End of period | $ | 1,448,541,803 | $ 1,812,793,366 | $ | 1,946,218,062 | |||||||
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
11 Invesco Oppenheimer International Equity Fund
(Unaudited)
The following schedule presents financial highlights for a share of the Fund outstanding throughout the periods indicated.
Net asset value, of period | Net investment income (loss)(a) | Net gains (losses) on securities (both realized and | Total from investment | Dividends from net investment income | Net asset value, end of period | Total return (b) | Net assets, end of period (000’s omitted) | Ratio of expenses | Ratio of fee waivers | Ratio of net investment income (loss) to average net assets | Portfolio turnover (d) | |||||||||||||||||||||||||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 04/30/20 | $ | 20.82 | $ | 0.03 | $ | (1.70 | ) | $ | (1.67 | ) | $ | (0.32 | ) | $ | 18.83 | (8.20 | )% | $ | 153,091 | 1.23 | %(e) | 1.25 | %(e) | 0.34 | %(e) | 35 | % | |||||||||||||||||||||||||||||||||
Eleven months ended 10/31/19 | 19.44 | 0.31 | 1.29 | 1.60 | (0.22 | ) | 20.82 | 8.38 | 181,695 | 1.24 | (f) | 1.24 | (f) | 1.69 | (f) | 54 | ||||||||||||||||||||||||||||||||||||||||||||
Year ended 11/30/18 | 22.23 | 0.27 | (3.06 | ) | (2.79 | ) | (0.00 | )(g) | 19.44 | (12.55 | ) | 189,130 | 1.24 | 1.24 | 1.23 | 85 | ||||||||||||||||||||||||||||||||||||||||||||
Year ended 11/30/17 | 17.40 | 0.18 | 5.00 | 5.18 | (0.35 | ) | 22.23 | 30.33 | 222,358 | 1.28 | 1.28 | 0.92 | 83 | |||||||||||||||||||||||||||||||||||||||||||||||
Year ended 11/30/16 | 17.56 | 0.25 | (0.31 | ) | (0.06 | ) | (0.10 | ) | 17.40 | (0.31 | ) | 166,493 | 1.32 | 1.32 | 1.43 | 79 | ||||||||||||||||||||||||||||||||||||||||||||
Year ended 11/30/15 | 18.39 | 0.11 | (0.60 | ) | (0.49 | ) | (0.34 | ) | 17.56 | (2.60 | ) | 169,107 | 1.30 | 1.30 | 0.59 | 79 | ||||||||||||||||||||||||||||||||||||||||||||
Year ended 11/30/14 | 19.53 | 0.15 | (0.96 | ) | (0.81 | ) | (0.33 | ) | 18.39 | (4.20 | ) | 185,609 | 1.30 | 1.30 | 0.80 | 68 | ||||||||||||||||||||||||||||||||||||||||||||
Class C | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 04/30/20 | 18.45 | (0.04 | ) | (1.51 | ) | (1.55 | ) | (0.16 | ) | 16.74 | (8.51 | ) | 15,288 | 1.98 | (e) | 2.00 | (e) | (0.41 | )(e) | 35 | ||||||||||||||||||||||||||||||||||||||||
Eleven months ended 10/31/19 | 17.23 | 0.15 | 1.15 | 1.30 | (0.08 | ) | 18.45 | 7.59 | 20,057 | 1.99 | (f) | 1.99 | (f) | 0.93 | (f) | 54 | ||||||||||||||||||||||||||||||||||||||||||||
Year ended 11/30/18 | 19.84 | 0.09 | (2.70 | ) | (2.61 | ) | – | 17.23 | (13.20 | ) | 34,738 | 1.99 | 1.99 | 0.48 | 85 | |||||||||||||||||||||||||||||||||||||||||||||
Year ended 11/30/17 | 15.56 | 0.03 | 4.47 | 4.50 | (0.22 | ) | 19.84 | 29.42 | 40,178 | 2.04 | 2.04 | 0.19 | 83 | |||||||||||||||||||||||||||||||||||||||||||||||
Year ended 11/30/16 | 15.73 | 0.10 | (0.27 | ) | (0.17 | ) | – | 15.56 | (1.08 | ) | 30,895 | 2.08 | 2.08 | 0.66 | 79 | |||||||||||||||||||||||||||||||||||||||||||||
Year ended 11/30/15 | 16.51 | (0.03 | ) | (0.53 | ) | (0.56 | ) | (0.22 | ) | 15.73 | (3.34 | ) | 35,938 | 2.06 | 2.06 | (0.17 | ) | 79 | ||||||||||||||||||||||||||||||||||||||||||
Year ended 11/30/14 | 17.59 | 0.01 | (0.87 | ) | (0.86 | ) | (0.22 | ) | 16.51 | (4.93 | ) | 38,418 | 2.05 | 2.05 | 0.06 | 68 | ||||||||||||||||||||||||||||||||||||||||||||
Class R | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 04/30/20 | 20.52 | 0.01 | (1.68 | ) | (1.67 | ) | (0.27 | ) | 18.58 | (8.29 | ) | 17,936 | 1.48 | (e) | 1.50 | (e) | 0.09 | (e) | 35 | |||||||||||||||||||||||||||||||||||||||||
Eleven months ended 10/31/19 | 19.18 | 0.26 | 1.27 | 1.53 | (0.19 | ) | 20.52 | 8.10 | 20,044 | 1.49 | (f) | 1.49 | (f) | 1.44 | (f) | 54 | ||||||||||||||||||||||||||||||||||||||||||||
Year ended 11/30/18 | 21.98 | 0.21 | (3.01 | ) | (2.80 | ) | – | 19.18 | (12.74 | ) | 17,112 | 1.49 | 1.49 | 0.98 | 85 | |||||||||||||||||||||||||||||||||||||||||||||
Year ended 11/30/17 | 17.21 | 0.13 | 4.94 | 5.07 | (0.30 | ) | 21.98 | 29.99 | 13,223 | 1.53 | 1.53 | 0.65 | 83 | |||||||||||||||||||||||||||||||||||||||||||||||
Year ended 11/30/16 | 17.37 | 0.20 | (0.30 | ) | (0.10 | ) | (0.06 | ) | 17.21 | (0.55 | ) | 8,410 | 1.57 | 1.57 | 1.18 | 79 | ||||||||||||||||||||||||||||||||||||||||||||
Year ended 11/30/15 | 18.20 | 0.06 | (0.59 | ) | (0.53 | ) | (0.30 | ) | 17.37 | (2.89 | ) | 8,098 | 1.56 | 1.56 | 0.33 | 79 | ||||||||||||||||||||||||||||||||||||||||||||
Year ended 11/30/14 | 19.33 | 0.10 | (0.94 | ) | (0.84 | ) | (0.29 | ) | 18.20 | (4.42 | ) | 8,641 | 1.56 | 1.56 | 0.55 | 68 | ||||||||||||||||||||||||||||||||||||||||||||
Class Y | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 04/30/20 | 21.04 | 0.07 | (1.72 | ) | (1.65 | ) | (0.39 | ) | 19.00 | (8.06 | ) | 57,487 | 0.85 | (e) | 1.00 | (e) | 0.72 | (e) | 35 | |||||||||||||||||||||||||||||||||||||||||
Eleven months ended 10/31/19 | 19.67 | 0.38 | 1.30 | 1.68 | (0.31 | ) | 21.04 | 8.73 | 74,540 | 0.99 | (f) | 0.99 | (f) | 2.06 | (f) | 54 | ||||||||||||||||||||||||||||||||||||||||||||
Year ended 11/30/18 | 22.46 | 0.35 | (3.07 | ) | (2.72 | ) | (0.07 | ) | 19.67 | (12.16 | ) | 138,750 | 1.00 | 1.00 | 1.63 | 85 | ||||||||||||||||||||||||||||||||||||||||||||
Year ended 11/30/17 | 17.59 | 0.21 | 5.06 | 5.27 | (0.40 | ) | 22.46 | 30.63 | 57,166 | 1.03 | 1.03 | 1.01 | 83 | |||||||||||||||||||||||||||||||||||||||||||||||
Year ended 11/30/16 | 17.75 | 0.27 | (0.28 | ) | (0.01 | ) | (0.15 | ) | 17.59 | (0.03 | ) | 15,965 | 1.07 | 1.07 | 1.54 | 79 | ||||||||||||||||||||||||||||||||||||||||||||
Year ended 11/30/15 | 18.59 | 0.15 | (0.60 | ) | (0.45 | ) | (0.39 | ) | 17.75 | (2.37 | ) | 10,789 | 1.06 | 1.06 | 0.84 | 79 | ||||||||||||||||||||||||||||||||||||||||||||
Year ended 11/30/14 | 19.44 | 0.17 | (0.94 | ) | (0.77 | ) | (0.08 | ) | 18.59 | (3.98 | ) | 10,065 | 1.06 | 1.06 | 0.91 | 68 | ||||||||||||||||||||||||||||||||||||||||||||
Class R5 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 04/30/20 | 20.86 | 0.07 | (1.69 | ) | (1.62 | ) | (0.40 | ) | 18.84 | (8.00 | ) | 10 | 0.83 | (e) | 0.83 | (e) | 0.74 | (e) | 35 | |||||||||||||||||||||||||||||||||||||||||
Period ended 10/31/19(h) | 19.31 | 0.18 | 1.37 | 1.55 | – | 20.86 | 8.03 | 11 | 0.82 | (f) | 0.82 | (f) | 2.09 | (f) | 54 | |||||||||||||||||||||||||||||||||||||||||||||
Class R6 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 04/30/20 | 20.75 | 0.08 | (1.69 | ) | (1.61 | ) | (0.40 | ) | 18.74 | (7.99 | ) | 1,204,730 | 0.78 | (e) | 0.78 | (e) | 0.79 | (e) | 35 | |||||||||||||||||||||||||||||||||||||||||
Eleven months ended 10/31/19 | 19.40 | 0.38 | 1.29 | 1.67 | (0.32 | ) | 20.75 | 8.77 | 1,516,446 | 0.80 | (f) | 0.80 | (f) | 2.11 | (f) | 54 | ||||||||||||||||||||||||||||||||||||||||||||
Year ended 11/30/18 | 22.17 | 0.35 | (3.03 | ) | (2.68 | ) | (0.09 | ) | 19.40 | (12.20 | ) | 1,566,488 | 0.82 | 0.82 | 1.65 | 85 | ||||||||||||||||||||||||||||||||||||||||||||
Year ended 11/30/17 | 17.36 | 0.23 | 5.01 | 5.24 | (0.43 | ) | 22.17 | 30.96 | 1,505,578 | 0.83 | 0.83 | 1.17 | 83 | |||||||||||||||||||||||||||||||||||||||||||||||
Year ended 11/30/16 | 17.53 | 0.32 | (0.30 | ) | 0.02 | (0.19 | ) | 17.36 | 0.11 | 689,409 | 0.87 | 0.87 | 1.85 | 79 | ||||||||||||||||||||||||||||||||||||||||||||||
Year ended 11/30/15 | 18.37 | 0.19 | (0.60 | ) | (0.41 | ) | (0.43 | ) | 17.53 | (2.16 | ) | 716,793 | 0.86 | 0.86 | 1.03 | 79 | ||||||||||||||||||||||||||||||||||||||||||||
Year ended 11/30/14 | 19.51 | 0.23 | (0.95 | ) | (0.72 | ) | (0.42 | ) | 18.37 | (3.78 | ) | 737,126 | 0.86 | 0.86 | 1.24 | 68 |
(a) | Calculated using average shares outstanding. |
(b) | Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Does not include sales charges and is not annualized for periods less than one year, if applicable. |
(c) | Does not include estimated acquired fund fees from underlying funds of 0.01%, 0.01%, 0.00%, 0.01%, 0.01% and 0.00% for the eleven months ended October 31, 2019 and the years ended November 30, 2018, 2017, 2016, 2015 and 2014, respectively. |
(d) | Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable. |
(e) | Ratios are annualized and based on average daily net assets (000’s omitted) of $172,885, $18,478, $19,550, $68,318, $11 and $1,427,335 for Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares, respectively. |
(f) | Annualized. |
(g) | Amount represents less than $(0.005). |
(h) | For the period after the close of business on May 24, 2019 (inception of offering) to October 31, 2019. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
12 Invesco Oppenheimer International Equity Fund
April 30, 2020
(Unaudited)
NOTE 1–Significant Accounting Policies
Invesco Oppenheimer International Equity Fund (the “Fund”) is a series portfolio of AIM International Mutual Funds (Invesco International Mutual 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 the Fund or each class.
The Fund’s investment objective is to seek capital appreciation.
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. 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. |
A security listed or traded on an exchange (except convertible securities) is valued at its last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded, or lacking any sales or official closing price on a particular day, the security may be valued at the closing bid price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued by an independent pricing service they may be considered fair valued. Futures contracts are valued at the final settlement price set by an exchange on which they are principally traded. Listed options are valued at the mean between the last bid and asked prices from the exchange on which they are principally traded. Options not listed on an exchange are valued by an independent source at the mean between the last bid and asked prices. For purposes of determining net asset value (“NAV”) per share, futures and option contracts generally are valued 15 minutes after the close of the customary trading session of the New York Stock Exchange (“NYSE”).
Investments in open-end and closed-end registered investment companies that do not trade on an exchange are valued at the end-of-day net asset value per share. Investments in open-end and closed-end registered investment companies that trade on an exchange are valued at the last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded.
Debt obligations (including convertible securities) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. Pricing services generally value debt obligations assuming orderly transactions of institutional round lot size, but a fund may hold or transact in the same securities in smaller, odd lot sizes. Odd lots often trade at lower prices than institutional round lots. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.
Foreign securities’ (including foreign exchange contracts) prices are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the NYSE. If market quotations are available and reliable for foreign exchange-traded equity securities, the securities will be valued at the market quotations. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become unreliable. If between the time trading ends on a particular security and the close of the customary trading session on the NYSE, events occur that the investment adviser determines are significant and make the closing price unreliable, the Fund may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith using procedures approved by the Board of Trustees. Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities’ prices meeting the approved degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economic upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.
Securities for which market prices are not provided by any of the above methods may be valued based upon quotes furnished by independent sources. The last bid price may be used to value equity securities. The mean between the last bid and asked prices is used to value debt obligations, including corporate loans.
Securities for which market quotations are not readily available or became unreliable are valued at fair value as determined in good faith by or under the supervision of the Trust’s officers following procedures approved by the Board of Trustees. Issuer specific events, market trends, bid/asked quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security’s fair value.
The Fund may invest in securities that are subject to interest rate risk, meaning the risk that the prices will generally fall as interest rates rise and, conversely, the prices will generally rise as interest rates fall. Specific securities differ in their sensitivity to changes in interest rates depending on their individual characteristics. Changes in interest rates may result in increased market volatility, which may affect the value and/or liquidity of certain Fund investments.
Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the issuer’s assets, general market conditions which are not specifically related to the particular issuer, such as real or perceived adverse economic conditions, changes in the general outlook for revenues or corporate earnings, changes in interest or currency rates, regional or global instability, natural or environmental disasters, widespread disease or other public health issues, war, acts of terrorism or adverse investor sentiment generally and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
B. | Securities Transactions and Investment Income – Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income (net of withholding tax, if any) is recorded on an accrual basis from settlement date. Dividend income (net of withholding tax, if any) is recorded on the ex-dividend date. |
The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Statement of Operations as realized gain (loss) for investments no longer held and as unrealized gain (loss) for investments still held.
Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of net realized and unrealized gain (loss) from investment
13 Invesco Oppenheimer International Equity Fund
securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the net realized and unrealized gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and the Statement of Changes in Net Assets, or the net investment income per share and the ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.
The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class.
C. | Country Determination – For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues and the country that has the primary market for the issuer’s securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted. |
D. | Distributions – Distributions from net investment income and net realized capital gain, if any, are generally declared and paid annually and recorded on the ex-dividend date. The Fund may elect to treat a portion of the proceeds from redemptions as distributions for federal income tax purposes. |
E. | Federal Income Taxes – The Fund intends to comply with the requirements of Subchapter M of the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”), necessary to qualify as a regulated investment company and to distribute substantially all of the Fund’s taxable earnings to shareholders. As such, the Fund will not be subject to federal income taxes on otherwise taxable income (including net realized capital gain) that is distributed to shareholders. |
Therefore, no provision for federal income taxes is recorded in the financial statements.
The Fund recognizes the tax benefits of uncertain tax positions only when the position is more likely than not to be sustained. Management has analyzed the Fund’s uncertain tax positions and concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions. Management is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the next 12 months.
The Fund files tax returns in the U.S. Federal jurisdiction and certain other jurisdictions. Generally, the Fund is subject to examinations by such taxing authorities for up to three years after the filing of the return for the tax period.
F. | Expenses – Fees provided for under the Rule 12b-1 plan of a particular class of the Fund 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 preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print. |
H. | Indemnifications – Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of the performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements, that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote. |
I. | Foreign Currency Translations – Foreign currency is valued at the close of the NYSE based on quotations posted by banks and major currency dealers. Portfolio securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at the date of valuation. Purchases and sales of portfolio securities (net of foreign taxes withheld on disposition) and income items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. The Fund does not separately account for the portion of the results of operations resulting from changes in foreign exchange rates on investments and the fluctuations arising from changes in market prices of securities held. The combined results of changes in foreign exchange rates and the fluctuation of market prices on investments (net of estimated foreign tax withholding) are included with the net realized and unrealized gain or loss from investments in the Statement of Operations. Reported net realized foreign currency gains or losses arise from (1) sales of foreign currencies, (2) currency gains or losses realized between the trade and settlement dates on securities transactions, and (3) the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign currency gains and losses arise from changes in the fair values of assets and liabilities, other than investments in securities at fiscal period end, resulting from changes in exchange rates. |
The Fund may invest in foreign securities, which may be subject to foreign taxes on income, gains on investments or currency repatriation, a portion of which may be recoverable. Foreign taxes, if any, are recorded based on the tax regulations and rates that exist in the foreign markets in which the Fund invests and are shown in the Statement of Operations.
J. | Forward Foreign Currency Contracts – The Fund may engage in foreign currency transactions either on a spot (i.e. for prompt delivery and settlement) basis, or through forward foreign currency contracts, to manage or minimize currency or exchange rate risk. |
The Fund may also enter into forward foreign currency contracts for the purchase or sale of a security denominated in a foreign currency in order to “lock in” the U.S. dollar price of that security, or the Fund may also enter into forward foreign currency contracts that do not provide for physical settlement of the two currencies, but instead are settled by a single cash payment calculated as the difference between the agreed upon exchange rate and the spot rate at settlement based upon an agreed upon notional amount (non-deliverable forwards). The Fund will set aside liquid assets in an amount equal to the daily mark-to-market obligation for forward foreign currency contracts.
A forward foreign currency contract is an obligation between two parties (“Counterparties”) to purchase or sell a specific currency for an agreed-upon price at a future date. The use of forward foreign currency contracts does not eliminate fluctuations in the price of the underlying securities the Fund owns or intends to acquire but establishes a rate of exchange in advance. Fluctuations in the value of these contracts are measured by the difference in the contract date and reporting date exchange rates and are recorded as unrealized appreciation (depreciation) until the contracts are closed. When the contracts are closed, realized gains (losses) are recorded. Realized and unrealized gains (losses) on the contracts are included in the Statement of Operations. The primary risks associated with forward foreign currency contracts include failure of the Counterparty to meet the terms of the contract and the value of the foreign currency changing unfavorably. These risks may be in excess of the amounts reflected in the Statement of Assets and Liabilities.
K. | Other Risks – Emerging markets (also referred to as developing markets) are generally subject to greater market volatility, political, social and economic instability, uncertainty regarding the existence of trading markets and more governmental limitations on foreign investment than more developed markets. In addition, companies operating in emerging markets may be subject to lower trading volume and greater price fluctuations than companies in more developed markets. Securities law in many emerging market countries is relatively new and unsettled. Therefore, laws regarding foreign investment in emerging market securities, securities regulation, title to securities, and shareholder rights may change quickly and unpredictably. In addition, the enforcement of systems of |
14 Invesco Oppenheimer International Equity Fund
taxation at federal, regional and local levels in emerging market countries may be inconsistent, and subject to sudden change. Other risks of investing in emerging markets securities may include additional transaction costs, delays in settlement procedures, and lack of timely information.
NOTE 2–Advisory Fees and Other Fees Paid to Affiliates
The Trust has entered into a master investment advisory agreement with Invesco Advisers, Inc. (the “Adviser” or “Invesco”). Under the terms of the investment advisory agreement, the Fund accrues daily and pays monthly an advisory fee to the Adviser based on the annual rate of the Fund’s average daily net assets as follows:
Average Daily Net Assets | Rate | |||
Up to $500 million | 0.850 | % | ||
Next $500 million | 0.750 | % | ||
Next $1 billion | 0.700 | % | ||
Next $3 billion | 0.670 | % | ||
Over $5 billion | 0.650 | % |
For the six months ended April 30, 2020, the effective advisory fee rate incurred by the Fund was 0.76%.
Under the terms of a master sub-advisory agreement between the Adviser and each of Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Canada Ltd. and separate sub-advisory agreements with Invesco Capital Management LLC and Invesco Asset Management (India) Private Limited (collectively, the “Affiliated Sub-Advisers”) the Adviser, not the Fund, will pay 40% of the fees paid to the Adviser to any such Affiliated Sub-Adviser(s) that provide(s) discretionary investment management services to the Fund based on the percentage of assets allocated to such Affiliated Sub-Adviser(s).
The Adviser has contractually agreed, through at least May 31, 2021, to waive advisory fees and/or reimburse expenses of all shares to the extent necessary to limit total annual fund operating expenses after fee waiver and/or expense reimbursement (excluding certain items discussed below) of Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares to 1.23%, 1.98%, 1.48%, 0.85%, 0.85% and 0.80%, respectively, of average daily net assets (the “expense limits”). In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause the total annual fund operating expenses after fee waiver and/or expense reimbursement to exceed the numbers reflected above: (1) interest; (2) taxes; (3) dividend expense on short sales; (4) extraordinary or non-routine items, including litigation expenses; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Unless Invesco continues the fee waiver agreement, it will terminate on May 31, 2021. During its term, the fee waiver agreement cannot be terminated or amended to increase the expense limits or reduce the advisory fee waiver without approval of the Board of Trustees. To the extent that the annualized expense ratio does not exceed the expense limits, the Adviser will retain its ability to be reimbursed for such fee waivers or reimbursements prior to the end of each fiscal year.
Further, the Adviser has contractually agreed, through at least June 30, 2022, to waive the advisory fee payable by the Fund in an amount equal to 100% of the net advisory fees the Adviser receives from the affiliated money market funds on investments by the Fund of uninvested cash in such affiliated money market funds.
For the six months ended April 30, 2020, the Adviser waived advisory fees of $25,192 and reimbursed class level expenses of $13,513, $1,446, $1,532, $49,511, $0 and $0 of Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares, respectively.
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 April 30, 2020, expenses incurred under the agreement are shown in the Statement of Operations as Administrative services fees. Invesco has entered into a sub-administration agreement whereby State Street Bank and Trust Company (“SSB”) serves as fund accountant and provides certain administrative services to the Fund. Pursuant to a custody agreement with the Trust on behalf of the Fund, SSB also serves as the Fund’s custodian.
The Trust has entered into a transfer agency and service agreement with Invesco Investment Services, Inc. (“IIS”) pursuant to which the Fund has agreed to pay IIS a fee for providing transfer agency and shareholder services to the Fund and reimburse IIS for certain expenses incurred by IIS in the course of providing such services. IIS may make payments to intermediaries that provide omnibus account services, sub-accounting services and/or networking services. All fees payable by IIS to intermediaries that provide omnibus account services or sub-accounting services are charged back to the Fund, subject to certain limitations approved by the Trust’s Board of Trustees. For the six months ended April 30, 2020, expenses incurred under the agreement are shown in the Statement of Operations as Transfer 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 “Plans”). The Fund, pursuant to the Plans, pays IDI compensation at the annual rate of 0.25% of the Fund’s average daily net assets of Class A shares, 1.00% of the average daily net assets of Class C shares 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 Plans 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. For the six-month period ended April 30, 2020, expenses incurred under the Plans are shown in the Statement of Operations as Distribution fees.
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 April 30, 2020, IDI advised the Fund that IDI retained $11,724 in front-end sales commissions from the sale of Class A shares and $0 and $472 from Class A and Class C shares, respectively, for CDSC imposed upon redemptions by shareholders.
Certain officers and trustees of the Trust are officers and directors of the Adviser, IIS and/or IDI.
NOTE 3–Additional Valuation Information
GAAP defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, under current market conditions. GAAP establishes a hierarchy that prioritizes the inputs to valuation methods, giving the highest priority to readily available unadjusted quoted prices in an active market for identical assets (Level 1) and the lowest priority to significant unobservable inputs (Level 3), generally when market prices are not readily available or are unreliable. Based on the valuation inputs, the securities or other investments are tiered into one of three levels. Changes in valuation methods may result in transfers in or out of an investment’s assigned level:
Level 1 – | Prices are determined using quoted prices in an active market for identical assets. | |
Level 2 – | Prices are determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk, yield curves, loss severities, default rates, discount rates, volatilities and others. | |
Level 3 – | Prices are determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Fund’s |
15 Invesco Oppenheimer International Equity Fund
own assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information. |
The following is a summary of the tiered valuation input levels, as of April 30, 2020. The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
Level 1 | Level 2 | Level 3 | Total | |||||||||||
Investments in Securities | ||||||||||||||
Common Stocks & Other Equity Interests | $ | 357,735,955 | $ | 1,061,813,802 | $26 | $ | 1,419,549,783 | |||||||
Money Market Funds | 24,360,904 | – | – | 24,360,904 | ||||||||||
Total Investments | $ | 382,096,859 | $ | 1,061,813,802 | $26 | $ | 1,443,910,687 |
NOTE 4–Derivative Investments
The Fund may enter into an International Swaps and Derivatives Association Master Agreement (“ISDA Master Agreement”) under which a fund may trade OTC derivatives. An OTC transaction entered into under an ISDA Master Agreement typically involves a collateral posting arrangement, payment netting provisions and close-out netting provisions. These netting provisions allow for reduction of credit risk through netting of contractual obligations. The enforceability of the netting provisions of the ISDA Master Agreement depends on the governing law of the ISDA Master Agreement, among other factors.
For financial reporting purposes, the Fund does not offset OTC derivative assets or liabilities that are subject to ISDA Master Agreements in the Statement of Assets and Liabilities.
Effect of Derivative Investments for the six months ended April 30, 2020
The table below summarizes the gains (losses) on derivative investments, detailed by primary risk exposure, recognized in earnings during the period:
Location of Gain (Loss) on Statement of Operations | ||||
Currency Risk | ||||
| ||||
Realized Gain (Loss): | ||||
Forward foreign currency contracts | $(13,995) | |||
|
The table below summarizes the average notional value of derivatives held during the period.
Forward Foreign Currency Contracts | ||||
| ||||
Average notional value | $2,951,139 | |||
|
NOTE 5–Expense Offset Arrangement(s)
The expense offset arrangement is comprised of transfer agency credits which result from balances in demand deposit accounts used by the transfer agent for clearing shareholder transactions. For the six months ended April 30, 2020, the Fund received credits from this arrangement, which resulted in the reduction of the Fund’s total expenses of $4,406.
NOTE 6–Trustees’ and Officers’ Fees and Benefits
Trustees’ and Officers’ Fees and Benefits include amounts accrued by the Fund to pay remuneration to certain Trustees and Officers of the Fund. Trustees have the option to defer compensation payable by the Fund, and Trustees’ and Officers’ Fees and Benefits also include amounts accrued by the Fund to fund such deferred compensation amounts. Those Trustees who defer compensation have the option to select various Invesco Funds in which their deferral accounts shall be deemed to be invested. Finally, certain current Trustees were eligible to participate in a retirement plan that provided for benefits to be paid upon retirement to Trustees over a period of time based on the number of years of service. The Fund may have certain former Trustees who also participate in a retirement plan and receive benefits under such plan. Trustees’ and Officers’ Fees and Benefits include amounts accrued by the Fund to fund such retirement benefits. Obligations under the deferred compensation and retirement plans represent unsecured claims against the general assets of the Fund.
NOTE 7–Cash Balances
The Fund is permitted to temporarily carry a negative or overdrawn balance in its account with SSB, the custodian bank. Such balances, if any at period-end, are shown in the Statement of Assets and Liabilities under the payable caption Amount due custodian. To compensate the custodian bank for such overdrafts, the overdrawn Fund may either (1) leave funds as a compensating balance in the account so the custodian bank can be compensated by earning the additional interest; or (2) compensate by paying the custodian bank at a rate agreed upon by the custodian bank and Invesco, not to exceed the contractually agreed upon rate. The Fund may not purchase additional securities when any borrowings from banks or broker-dealers exceed 5% of the Fund’s total assets, or when any borrowings from an Invesco Fund are outstanding.
NOTE 8–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.
16 Invesco Oppenheimer International Equity Fund
The Fund had a capital loss carryforward as of October 31, 2019, as follows:
Capital Loss Carryforward* | ||||||
| ||||||
Expiration | Short-Term | Long-Term | Total | |||
| ||||||
Not subject to expiration | $183,574,808 | $66,463,300 | $250,038,108 | |||
|
* | Capital loss carryforward is reduced for limitations, if any, to the extent required by the Internal Revenue Code and may be further limited depending upon a variety of factors, including the realization of net unrealized gains or losses as of the date of any reorganization. |
NOTE 9–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 April 30, 2020 was $558,153,928 and $722,636,466, 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 | $ | 197,550,405 | ||
| ||||
Aggregate unrealized (depreciation) of investments | (62,936,791 | ) | ||
| ||||
Net unrealized appreciation of investments | $ | 134,613,614 | ||
|
Cost of investments for tax purposes is $1,309,297,073.
NOTE 10–Share Information
Summary of Share Activity | ||||||||||||||||||||||||
| ||||||||||||||||||||||||
Six months ended April 30, 2020(a) | Eleven Months Ended October 31, 2019 | Year ended November 30, 2018 | ||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | |||||||||||||||||||
| ||||||||||||||||||||||||
Sold: | ||||||||||||||||||||||||
Class A | 401,381 | $ | 7,851,323 | 1,640,929 | $ | 31,165,329 | 3,048,686 | $ | 66,743,236 | |||||||||||||||
| ||||||||||||||||||||||||
Class B(b) | - | - | - | - | 435 | 9,083 | ||||||||||||||||||
| ||||||||||||||||||||||||
Class C | 64,029 | 1,147,615 | 249,928 | 4,250,853 | 457,323 | 9,033,495 | ||||||||||||||||||
| ||||||||||||||||||||||||
Class R | 123,371 | 2,508,005 | 339,596 | 6,581,641 | 498,228 | 10,740,591 | ||||||||||||||||||
| ||||||||||||||||||||||||
Class Y | 435,130 | 8,623,252 | 1,828,775 | 36,331,191 | 7,787,432 | 173,301,233 | ||||||||||||||||||
| ||||||||||||||||||||||||
Class R5(c) | - | - | 518 | 10,000 | - | - | ||||||||||||||||||
| ||||||||||||||||||||||||
Class R6 | 230,388 | 4,384,485 | 6,784,562 | 130,936,421 | 21,215,246 | 461,196,633 | ||||||||||||||||||
| ||||||||||||||||||||||||
Issued as reinvestment of dividends: | ||||||||||||||||||||||||
Class A | 116,636 | 2,519,332 | 109,652 | 2,061,465 | 529 | 11,736 | ||||||||||||||||||
| ||||||||||||||||||||||||
Class C | 8,410 | 161,897 | 9,476 | 158,911 | - | - | ||||||||||||||||||
| ||||||||||||||||||||||||
Class R | 12,437 | 265,283 | 8,865 | 164,617 | - | - | ||||||||||||||||||
| ||||||||||||||||||||||||
Class Y | 55,002 | 1,196,848 | 114,130 | 2,160,492 | 7,669 | 171,486 | ||||||||||||||||||
| ||||||||||||||||||||||||
Class R6 | 1,352,711 | 29,029,172 | 1,365,818 | 25,499,813 | 264,076 | 5,822,882 | ||||||||||||||||||
| ||||||||||||||||||||||||
Automatic conversion of Class C shares to Class A shares: | ||||||||||||||||||||||||
Class A | 41,023 | 821,832 | 542,209 | 10,941,224 | - | - | ||||||||||||||||||
| ||||||||||||||||||||||||
Class C | (46,111 | ) | (821,832 | ) | (610,311 | ) | (10,941,224 | ) | - | - | ||||||||||||||
| ||||||||||||||||||||||||
Reacquired: | ||||||||||||||||||||||||
Class A | (1,155,648 | ) | (22,806,262 | ) | (3,293,850 | ) | (64,298,290 | ) | (3,324,106 | ) | (72,158,547 | ) | ||||||||||||
| ||||||||||||||||||||||||
Class B(b) | - | - | - | - | (29,993 | ) | (608,600 | ) | ||||||||||||||||
| ||||||||||||||||||||||||
Class C | (199,910 | ) | (3,500,488 | ) | (578,794 | ) | (10,122,339 | ) | (465,394 | ) | (8,857,715 | ) | ||||||||||||
| ||||||||||||||||||||||||
Class R | (146,996 | ) | (2,898,509 | ) | (264,043 | ) | (5,175,374 | ) | (207,447 | ) | (4,435,710 | ) | ||||||||||||
| ||||||||||||||||||||||||
Class Y | (1,008,477 | ) | (20,031,549 | ) | (5,454,878 | ) | (108,204,997 | ) | (3,284,612 | ) | (69,075,542 | ) | ||||||||||||
| ||||||||||||||||||||||||
Class R6 | (10,367,277 | ) | (196,628,959 | ) | (15,831,394 | ) | (307,578,277 | ) | (8,630,768 | ) | (180,371,120 | ) | ||||||||||||
| ||||||||||||||||||||||||
Net increase (decrease) in share activity | (10,083,901 | ) | $ | (188,178,555 | ) | (13,038,812 | ) | $ | (256,058,544 | ) | 17,337,304 | $ | 391,523,141 | |||||||||||
|
(a) | There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 72% of the outstanding shares of the Fund. 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. |
(b) | All outstanding Class B shares converted to Class A shares on June 1, 2018. |
(c) | Commencement date after the close of business on May 24, 2019. |
17 Invesco Oppenheimer International Equity Fund
NOTE 11–Coronavirus (COVID-19) Pandemic
During the first quarter of 2020, the World Health Organization declared COVID-19 to be a public health emergency. COVID-19 has led to increased short-term market volatility and may have adverse long-term effects on U.S. and world economies and markets in general. COVID-19 may adversely impact the Fund’s ability to achieve its investment objective. Because of the uncertainties on valuation, the global economy and business operations, values reflected in these financial statements may materially differ from the value received upon actual sales of those investments.
The extent of the impact on the performance of the Fund and its investments will depend on future developments, including the duration and spread of the COVID-19 outbreak, related restrictions and advisories, and the effects on the financial markets and economy overall, all of which are highly uncertain and cannot be predicted.
NOTE 12–Subsequent Event
Effective on or about September 30, 2020, the name of the Fund and all references thereto will change from Invesco Oppenheimer International Equity Fund to Invesco International Equity Fund.
18 Invesco Oppenheimer International Equity Fund
Calculating your ongoing Fund expenses
Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, which may include sales charges (loads) on purchase payments or contingent deferred sales charges on redemptions, if any; and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees, and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period November 1, 2019 through April 30, 2020.
Actual expenses
The table below provides information about actual account values and actual expenses. You may use the information in this table, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the table under the heading entitled “Actual Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Hypothetical example for comparison purposes
The table below also provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return.
The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads) on purchase payments or contingent deferred sales charges on redemptions, if any. Therefore, the hypothetical information 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 transaction costs were included, your costs would have been higher.
ACTUAL | HYPOTHETICAL (5% annual return before expenses) | |||||||||||
Beginning | Ending | Expenses | Ending | Expenses | Annualized | |||||||
Account Value | Account Value | Paid During | Account Value | Paid During | Expense | |||||||
(11/01/19) | (04/30/20)1 | Period2 | (04/30/20) | Period2 | Ratio | |||||||
Class A | $1,000.00 | $918.00 | $5.87 | $1,018.75 | $6.17 | 1.23% | ||||||
Class C | 1,000.00 | 914.90 | 9.43 | 1,015.02 | 9.92 | 1.98 | ||||||
Class R | 1,000.00 | 916.60 | 7.05 | 1,017.50 | 7.42 | 1.48 | ||||||
Class Y | 1,000.00 | 919.40 | 4.06 | 1,020.64 | 4.27 | 0.85 | ||||||
Class R5 | 1,000.00 | 920.00 | 3.96 | 1,020.74 | 4.17 | 0.83 | ||||||
Class R6 | 1,000.00 | 920.10 | 3.72 | 1,020.98 | 3.92 | 0.78 |
1 | The actual ending account value is based on the actual total return of the Fund for the period November 1, 2019 through April 30, 2020, after actual expenses and will differ from the hypothetical ending account value which is based on the Fund’s expense ratio and a hypothetical annual return of 5% before expenses. |
2 | Expenses are equal to the Fund’s annualized expense ratio as indicated above multiplied by the average account value over the period, multiplied by 182/366 to reflect the most recent fiscal half year. |
19 Invesco Oppenheimer International Equity Fund
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 list appears 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 Form N-PORT filings on the SEC website, sec.gov. The SEC file numbers for the Fund are shown below.
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. This 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. |
SEC file numbers: 811-06463 and 033-44611 | Invesco Distributors, Inc. | O-IEQ-SAR-1 |
Semiannual Report to Shareholders
| April 30, 2020
| |||
Invesco Oppenheimer International Growth Fund
| ||||
Nasdaq: A: OIGAX ∎ C: OIGCX ∎ R: OIGNX ∎ Y: OIGYX ∎ R5: INGFX ∎ R6: OIGIX |
2 | Letters to Shareholders | |
3 | Fund Performance | |
5 | Liquidity Risk Management Program | |
6 | Schedule of Investments | |
9 | Financial Statements | |
12 | Financial Highlights | |
13 | Notes to Financial Statements | |
19 | Fund Expenses |
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.
For the most current month-end Fund performance and commentary, please visit invesco.com/performance.
Unless otherwise noted, all data provided by Invesco.
This report must be accompanied or preceded by a currently effective Fund prospectus, which contains more complete information, including sales charges and expenses. Investors should read it carefully before investing.
NOT FDIC INSURED | MAY LOSE VALUE | NO BANK GUARANTEE |
Bruce Crockett |
Dear Fellow Shareholders: As independent chair of the Invesco Funds Board, I can assure you that the members of the Board are strong advocates for the interests of investors in Invesco’s mutual funds. We work hard to represent your interests through oversight of the quality of the investment management services your funds receive and other matters important to your investment. This includes but is not limited to: monitoring how the portfolio management teams of the Invesco funds are performing in light of changing economic and market conditions; assessing each portfolio management team’s investment performance within the context of the investment strategy described in the fund’s prospectus; and monitoring for potential conflicts of interests that may impact the nature of the services that your funds receive. | |
We believe one of the most important services we provide our fund shareholders is the annual review of the funds’ advisory and sub-advisory contracts with Invesco Advisers and its affiliates. This review is required by the Investment Company Act of 1940 and focuses on the nature and quality of the services Invesco provides as the adviser to the Invesco funds and the reasonableness of the fees that it charges | ||
for those services. Each year, we spend months carefully reviewing information received from Invesco and a variety of independent sources, such as performance and fee data prepared by Lipper Inc. (a subsidiary of Broadridge Financial Solutions, Inc.), an independent, third-party firm widely recognized as a leader in its field. We also meet with our independent legal counsel and other independent advisers to review and help us assess the information that we have received. Our goal is to assure that you receive quality investment management services for a reasonable fee. On behalf of the Board, we look forward to continuing to represent your interests and serving your needs. |
Sincerely, |
|
Bruce L. Crockett |
Independent Chair |
Invesco Funds Board of Trustees |
Andrew Schlossberg | Dear Shareholders: This semiannual report includes information about your Fund, including performance data and a complete list of its investments as of the close of the reporting period. Invesco’s efforts to help investors achieve their financial objectives include providing timely information about the markets, the economy and investing. Our website, invesco.com/us, offers a wide range of market insights and investment perspectives. On the website, you’ll find detailed information about our funds, including performance, holdings and portfolio manager commentaries. You can access information about your account by completing a simple, secure online registration. To do so, select “Log In” on the right side of the homepage, and then select “Register for Individual Account Access.” | |
In addition to the resources accessible on our website, you can obtain timely updates to help you stay informed by connecting with Invesco on Twitter, LinkedIn or Facebook. You can access our blog at blog.invesco.us.com. Our goal is to provide you with information you want, when and where you want it. | ||
For questions about your account, feel free to contact an Invesco client services representative at 800 959 4246. All of us at Invesco look forward to serving your investment management needs. Thank you for investing with us. |
Sincerely, |
Andrew Schlossberg |
Head of the Americas, |
Senior Managing Director, Invesco Ltd. |
2 Invesco Oppenheimer International Growth Fund
Performance summary
| ||||
Fund vs. Indexes | ||||
Cumulative total returns, October 31, 2019 to April 30, 2020, at net asset value (NAV). Performance shown does not include applicable contingent deferred sales charges (CDSC) or front-end sales charges, which would have reduced performance. |
| |||
Class A Shares | -6.22 | % | ||
Class C Shares | -6.55 | |||
Class R Shares | -6.33 | |||
Class Y Shares | -6.09 | |||
Class R5 Shares | -6.04 | |||
Class R6 Shares | -6.01 | |||
MSCI All Country World ex USA Index▼ | -13.22 | |||
Source(s): ▼RIMES Technologies Corp. | ||||
The MSCI All Country World ex USA® Index is an index considered representative of developed and emerging stock markets, excluding the US. The index is computed using the net return, which withholds applicable taxes for non-resident investors. |
| |||
The Fund is not managed to track the performance of any particular index, including the index(es) described here, and consequently, the performance of the Fund may deviate significantly from the performance of the index(es). |
| |||
A direct investment cannot be made in an index. Unless otherwise indicated, index results include reinvested dividends, and they do not reflect sales charges. Performance of the peer group, if applicable, reflects fund expenses; performance of a market index does not. |
|
For more information about your Fund |
Read the most recent quarterly commentary from your Fund’s portfolio managers by visiting invesco.com/us. Click on “Products” and select “Mutual Funds.” Use the “Product Finder” to locate your Fund; then click on its name to access its product detail page. There, you can learn more about your Fund’s investment strategies, holdings and performance. Also, visit blog.invesco.us.com, where many of Invesco’s investment professionals share their insights about market and economic news and trends. |
3 Invesco Oppenheimer International Growth Fund
Average Annual Total Returns |
| |||
As of 4/30/20, including maximum applicable sales charges |
| |||
Class A Shares | ||||
Inception (3/25/96) | 6.83 | % | ||
10 Years | 4.70 | |||
5 Years | 0.03 | |||
1 Year | -9.75 | |||
Class C Shares | ||||
Inception (3/25/96) | 6.74 | % | ||
10 Years | 4.52 | |||
5 Years | 0.41 | |||
1 Year | -6.15 | |||
Class R Shares | ||||
Inception (3/1/01) | 4.45 | % | ||
10 Years | 5.03 | |||
5 Years | 0.92 | |||
1 Year | -4.72 | |||
Class Y Shares | ||||
Inception (9/7/05) | 5.66 | % | ||
10 Years | 5.62 | |||
5 Years | 1.42 | |||
1 Year | -4.25 | |||
Class R5 Shares | ||||
10 Years | 5.33 | % | ||
5 Years | 1.24 | |||
1 Year | -4.16 | |||
Class R6 Shares | ||||
Inception (3/29/12) | 5.11 | % | ||
5 Years | 1.60 | |||
1 Year | -4.07 |
Effective May 24, 2019, Class A, Class C, Class R, Class Y, and Class I shares of the Oppenheimer International Growth Fund, (the predecessor fund), were reorganized into Class A, Class C, Class R, Class Y, and Class R6 shares, respectively, of the Invesco Oppenheimer International Growth Fund (the Fund). Returns shown above, prior to May 24, 2019, 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 the predecessor fund because of different expenses.
Class R5 shares incepted on May 24, 2019. Performance shown prior to that date is that of the predecessor fund’s Class A shares and includes the 12b-1 fees applicable to Class A shares.
The performance data quoted represent past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/ performance for the most recent month-end performance. Performance figures reflect reinvested distributions, changes in net asset value and the effect of the maximum sales charge unless otherwise stated. Performance figures do not reflect deduction of taxes a shareholder would pay on
Fund distributions or sale of Fund shares. Investment return and principal value will fluctuate so that you may have a gain or loss when you sell shares.
Class A share performance reflects the maximum 5.50% sales charge, and Class C share performance reflects the applicable contingent deferred sales charge (CDSC) for the period involved. The CDSC on Class C shares is 1% for the first year after purchase. Class R, Class Y, Class R5 and Class R6 shares do not have a front-end sales charge or a CDSC; therefore, performance is at net asset value.
The performance of the Fund’s share classes will differ primarily due to different sales charge structures and class expenses.
Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information.
4 Invesco Oppenheimer International Growth Fund
Liquidity Risk Management Program
The Securities and Exchange Commission has adopted Rule 22e-4 under the Investment Company Act of 1940 (the “Liquidity Rule”) in order to promote effective liquidity risk management throughout the open-end investment company industry, thereby reducing the risk that funds will be unable to meet their redemption obligations and mitigating dilution of the interests of fund shareholders. The Fund has adopted and implemented a liquidity risk management program in accordance with the Liquidity Rule (the “Program”). The Program is reasonably designed to assess and manage the Fund’s liquidity risk, which is the risk that the Fund could not meet redemption requests without significant dilution of remaining investors’ interests in the Fund. The Board of Trustees of the Fund (the “Board”) has appointed Invesco Advisers, Inc. (“Invesco”), the Fund’s investment adviser, as the Program’s administrator, and Invesco has delegated oversight of the Program to the Liquidity Risk Management Committee (the “Committee”), which is composed of senior representatives from relevant business groups at Invesco.
As required by the Liquidity Rule, the Program includes policies and procedures providing for an assessment, no less frequently than annually, of the Fund’s liquidity risk that takes into account, as relevant to the Fund’s liquidity risk: (1) the Fund’s investment strategy and liquidity of portfolio investments during both normal and reasonably foreseeable stressed conditions; (2) short-term and long-term cash flow projections for the Fund during both normal and reasonably foreseeable stressed conditions; and (3) the Fund’s holdings of cash and cash equivalents and any borrowing arrangements. The Liquidity Rule also requires the classification of the Fund’s investments into categories that reflect the assessment of their relative liquidity under current market conditions. The Fund classifies its investments into one of four categories defined in the Liquidity Rule: “Highly Liquid,” “Moderately Liquid,” “Less Liquid” and “Illiquid.” Funds that are not invested primarily in “Highly Liquid Investments” that are assets (cash or investments that are reasonably expected to be convertible into cash within three business days without significantly changing the market value of the investment) are required to establish a “Highly Liquid Investment Minimum” (“HLIM”), which is the minimum percentage of net assets that must be invested in Highly Liquid Investments. Funds with HLIMs have procedures for addressing HLIM shortfalls, including reporting to the Board and the SEC (on a non-public basis) as required by the Program and the Liquidity Rule. In addition, the Fund may not acquire an investment if, immediately after the acquisition, over 15% of the Fund’s net assets would consist of “Illiquid Investments” that are assets (an investment that cannot reasonably be expected to be sold or disposed of in current market conditions in seven calendar days or less without the sale or disposition significantly changing the market value of the investment). The Liquidity Rule and the Program also require reporting to the Board and the SEC (on a non-public basis) if a Fund’s holdings of Illiquid Investments exceed 15% of the Fund’s assets.
At a meeting held on March 30-April 1, 2020, the Committee presented a report to the Board that addressed the operation of the Program and assessed the Program’s adequacy and effectiveness of implementation (the “Report”). The Report covered the period from December 1, 2018 through December 31, 2019 (the “Program Reporting Period”).
The Report stated, in relevant part, that during the Program Reporting Period:
∎ | The Program, as adopted and implemented, remained reasonably designed to assess and manage the Fund’s liquidity risk and was operated effectively to achieve that goal; |
∎ | The Fund’s investment strategy remained appropriate for an open-end fund; |
∎ | The Fund was able to meet requests for redemption without significant dilution of remaining investors’ interests in the Fund; |
∎ | The Fund did not breach the 15% limit on Illiquid Investments; and |
∎ | The Fund primarily held Highly Liquid Investments and therefore has not adopted an HLIM. |
5 Invesco Oppenheimer International Growth Fund
April 30, 2020
(Unaudited)
Shares | Value | |||||
Common Stocks & Other Equity Interests–94.81% | ||||||
Australia–2.26% | ||||||
CSL Ltd. | 1,420,786 | $ 281,622,196 | ||||
Belgium–0.86% | ||||||
Galapagos N.V.(a) | 482,281 | 106,662,934 | ||||
Canada–5.13% | ||||||
Alimentation Couche-Tard, Inc., Class B | 9,471,466 | 264,285,168 | ||||
CAE, Inc.(a) | 1,990,552 | 32,891,049 | ||||
CCL Industries, Inc., Class B | 100,784 | 3,150,337 | ||||
Dollarama, Inc. | 4,984,603 | 156,347,403 | ||||
Saputo, Inc. | 4,728,148 | 118,887,302 | ||||
Shopify, Inc., Class A(a) | 98,604 | 62,535,033 | ||||
638,096,292 | ||||||
China–2.03% | ||||||
Alibaba Group Holding Ltd., | 923,013 | 187,067,045 | ||||
Tencent Holdings Ltd. | 1,224,700 | 64,974,136 | ||||
252,041,181 | ||||||
Denmark–3.30% | ||||||
Ascendis Pharma A/S, ADR(a) | 441,150 | 59,877,289 | ||||
Novo Nordisk A/S, Class B | 5,492,447 | 350,714,947 | ||||
410,592,236 | ||||||
France–16.13% | ||||||
Airbus SE | 1,907,125 | 121,243,394 | ||||
Dassault Systemes SE | 951,205 | 139,355,976 | ||||
Edenred | 2,773,797 | 111,871,503 | ||||
EssilorLuxottica S.A. | 533,976 | 65,995,827 | ||||
Hermes International | 503,480 | 368,837,004 | ||||
Kering S.A. | 129,594 | 65,447,764 | ||||
Legrand S.A. | 1,759,917 | 118,759,739 | ||||
L’Oreal S.A. | 209,144 | 60,866,163 | ||||
LVMH Moet Hennessy Louis Vuitton SE | 593,960 | 229,737,501 | ||||
Pernod Ricard S.A. | 726,958 | 110,922,190 | ||||
Sartorius Stedim Biotech | 240,936 | 57,891,872 | ||||
SEB S.A.(a) | 1,763,577 | 212,368,143 | ||||
Ubisoft Entertainment S.A.(a) | 2,653,458 | 197,712,027 | ||||
Worldline S.A.(a)(b) | 2,146,474 | 146,074,865 | ||||
2,007,083,968 | ||||||
Germany–7.13% | ||||||
Fresenius Medical Care AG & Co. KGaA | 2,638,466 | 206,771,276 | ||||
Infineon Technologies AG | 7,258,121 | 134,863,160 | ||||
SAP SE | 3,037,060 | 362,223,233 | ||||
Siemens Healthineers AG(b) | 4,161,481 | 183,485,854 | ||||
887,343,523 | ||||||
Hong Kong–1.05% | ||||||
WH Group Ltd. | 135,888,000 | 130,073,396 | ||||
India–0.12% | ||||||
ICICI Bank Ltd., ADR | 1,513,466 | 14,771,428 | ||||
Ireland–1.00% | ||||||
Flutter Entertainment PLC(a) | 1,013,484 | 124,570,460 |
Shares | Value | |||||
Italy–0.65% | ||||||
Davide Campari-Milano S.p.A. | 10,463,269 | $ 81,209,784 | ||||
Japan–9.42% | ||||||
Daikin Industries Ltd. | 909,600 | 117,899,281 | ||||
Hitachi Ltd. | 7,630,900 | 228,951,932 | ||||
Hoya Corp. | 2,903,910 | 265,380,231 | ||||
Keyence Corp. | 686,084 | 246,485,427 | ||||
Nidec Corp. | 2,164,140 | 125,700,156 | ||||
Nihon M&A Center, Inc. | 1,985,600 | 65,291,228 | ||||
Nitori Holdings Co. Ltd. | 797,900 | 122,220,320 | ||||
1,171,928,575 | ||||||
Netherlands–5.74% | ||||||
Aalberts N.V. | 3,825,221 | 107,880,614 | ||||
Adyen N.V.(a)(b) | 67,887 | 66,780,739 | ||||
ASML Holding N.V. | 1,314,840 | 390,571,560 | ||||
Boskalis Westminster | 1,036,159 | 18,017,480 | ||||
Heineken N.V.(a) | 1,544,852 | 131,526,157 | ||||
714,776,550 | ||||||
New Zealand–1.34% | ||||||
Xero Ltd.(a) | 3,268,047 | 166,192,231 | ||||
Spain–3.96% | ||||||
Amadeus IT Group S.A. | 2,736,029 | 131,837,045 | ||||
Grifols S.A. | 9,317,309 | 317,444,849 | ||||
Prosegur Cash S.A.(b) | 50,298,553 | 44,037,457 | ||||
493,319,351 | ||||||
Sweden–4.56% | ||||||
Atlas Copco AB, Class A | 6,936,352 | 240,655,379 | ||||
Epiroc AB, Class A | 11,975,737 | 120,181,332 | ||||
Swedish Match AB | 3,337,257 | 206,758,875 | ||||
567,595,586 | ||||||
Switzerland–12.59% | ||||||
Barry Callebaut AG | 118,349 | 232,113,930 | ||||
Lonza Group AG | 284,179 | 124,202,595 | ||||
Novartis AG | 438,455 | 37,402,873 | ||||
Roche Holding AG | 1,004,556 | 349,413,255 | ||||
Sika AG | 796,584 | 131,940,872 | ||||
STMicroelectronics N.V. | 12,804,930 | 333,322,459 | ||||
Temenos AG | 1,119,524 | 145,881,694 | ||||
VAT Group AG(b) | 1,281,767 | 211,675,022 | ||||
1,565,952,700 | ||||||
Taiwan–2.13% | ||||||
Taiwan Semiconductor Manufacturing Co. Ltd. | 26,361,000 | 264,914,017 | ||||
Thailand–0.55% | ||||||
CP ALL PCL, Foreign Shares | 31,299,100 | 68,146,994 | ||||
United Kingdom–7.59% | ||||||
Blue Prism Group PLC(a) | 2,075,800 | 33,839,232 | ||||
boohoo Group PLC(a) | 25,464,297 | 103,709,458 | ||||
Britvic PLC | 10,918,749 | 100,804,887 | ||||
Compass Group PLC | 5,011,462 | 84,434,462 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
6 Invesco Oppenheimer International Growth Fund
Shares | Value | |||||
United Kingdom–(continued) | ||||||
GVC Holdings PLC | 7,747,972 | $ 73,670,843 | ||||
Legal & General Group PLC | 60,263,308 | 155,577,302 | ||||
London Stock Exchange Group PLC | 581,940 | 54,700,750 | ||||
Melrose Industries PLC | 68,788,267 | 86,592,628 | ||||
Next PLC | 1,965,763 | 117,138,825 | ||||
Ocado Group PLC(a) | 3,439,482 | 69,566,797 | ||||
Trainline PLC(a)(b) | 13,444,574 | 64,346,455 | ||||
944,381,639 | ||||||
United States–7.27% | ||||||
Atlassian Corp. PLC, Class A(a) | 547,738 | 85,167,782 | ||||
EPAM Systems, Inc.(a) | 1,087,158 | 240,142,331 | ||||
Ferguson PLC | 1,261,597 | 91,247,406 | ||||
James Hardie Industries PLC, CDI | 6,491,083 | 93,076,447 | ||||
LivaNova PLC(a) | 1,192,012 | 63,319,677 | ||||
Medtronic PLC | 1,479,760 | 144,468,969 | ||||
ResMed, Inc. | 1,200,570 | 186,472,532 | ||||
903,895,144 | ||||||
Total Common Stocks & Other Equity Interests (Cost $7,725,269,976) |
| 11,795,170,185 |
Shares | Value | |||||
Preferred Stocks–0.00% | ||||||
India–0.00% | ||||||
Zee Entertainment Enterprises Ltd., 6.00%, Pfd. (Cost $0) | 17,213,928 | $ 726,655 | ||||
Money Market Funds–2.41% | ||||||
Invesco Government & Agency Portfolio, Institutional Class, 0.20%(c)(d) | 299,384,826 | 299,384,826 | ||||
TOTAL INVESTMENTS IN SECURITIES–97.22% (Cost $8,024,654,802) |
| 12,095,281,666 | ||||
OTHER ASSETS LESS LIABILITIES–2.78% |
| 345,955,588 | ||||
NET ASSETS–100.00% | $12,441,237,254 |
Investment Abbreviations:
ADR – American Depositary Receipt
CDI – CREST Depository Interest
Pfd. – Preferred
Notes to Schedule of Investments:
(a) | Non-income producing security. |
(b) | Security purchased or received in a transaction exempt from registration under the Securities Act of 1933, as amended (the “1933 Act”). The security may be resold pursuant to an exemption from registration under the 1933 Act, typically to qualified institutional buyers. The aggregate value of these securities at April 30, 2020 was $716,400,392, which represented 5.76% of the Fund’s Net Assets. |
(c) | Affiliated issuer. The issuer and/or the Fund is a wholly-owned subsidiary of Invesco Ltd., or is affiliated by having an investment adviser that is under common control of Invesco Ltd. The table below shows the Fund’s transactions in, and earnings from, its investments in affiliates for the six months ended April 30, 2020. |
Value October 31, 2019 | Purchases at Cost | Proceeds from Sales | Change in Unrealized Appreciation | Realized Gain (Loss) | Value April 30, 2020 | Dividend Income | ||||||||||||||||||||||
Investments in Affiliated Money Market Funds: | ||||||||||||||||||||||||||||
Invesco Government & Agency Portfolio, Institutional Class | $196,446,145 | $1,798,635,564 | $(1,695,696,883 | ) | $ | - | $ | - | $299,384,826 | $ | 809,764 | |||||||||||||||||
Investments in Other Affiliates: | ||||||||||||||||||||||||||||
Prosegur Cia de Seguridad S.A.* | 112,217,841 | - | (110,496,967 | ) | 16,252,174 | (17,973,048 | ) | - | 462,112 | |||||||||||||||||||
VAT Group AG** | 272,526,250 | - | (87,502,869 | ) | 29,179,487 | (2,527,846 | ) | 211,675,022 | - | |||||||||||||||||||
Total | $581,190,236 | $1,798,635,564 | $(1,893,696,719 | ) | $ | 45,431,661 | $ | (20,500,894 | ) | $511,059,848 | $ | 1,271,876 |
* | At April 30, 2020, this security was no longer held. |
** | As of April 30, 2020, this security was not considered as an affiliate of the Fund. |
(d) | The rate shown is the 7-day SEC standardized yield as of April 30, 2020. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
7 Invesco Oppenheimer International Growth Fund
Portfolio Composition
By sector, based on Net Assets
as of April 30, 2020
Information Technology | 26.45 | % | ||
Health Care | 21.99 | |||
Consumer Discretionary | 16.44 | |||
Consumer Staples | 12.10 | |||
Industrials | 12.07 | |||
Communication Services | 2.12 | |||
Other Sectors, Each Less than 2% of Net Assets | 3.63 | |||
Money Market Funds Plus Other Assets Less Liabilities | 5.20 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
8 Invesco Oppenheimer International Growth Fund
Statement of Assets and Liabilities
April 30, 2020
(Unaudited)
Assets: | ||||
Investments in securities, at value | $ | 11,795,896,840 | ||
Investments in affiliated money market funds, at value (Cost $299,384,826) | 299,384,826 | |||
Cash | 20,000,000 | |||
Foreign currencies, at value | 228,528 | |||
Receivable for: | ||||
Investments sold | 299,542,037 | |||
Fund shares sold | 6,274,910 | |||
Dividends | 86,480,642 | |||
Investment for trustee deferred compensation and retirement plans | 578,555 | |||
Other assets | 91,820 | |||
Total assets | 12,508,478,158 | |||
Liabilities: | ||||
Payable for: | ||||
Investments purchased | 38,769,588 | |||
Fund shares reacquired | 16,987,462 | |||
Accrued foreign taxes | 4,140,889 | |||
Accrued fees to affiliates | 3,374,475 | |||
Accrued trustees’ and officers’ fees and benefits | 33,168 | |||
Accrued other operating expenses | 3,356,767 | |||
Trustee deferred compensation and retirement plans | 578,555 | |||
Total liabilities | 67,240,904 | |||
Net assets applicable to shares outstanding | $ | 12,441,237,254 | ||
Net assets consist of: | ||||
Shares of beneficial interest | $ | 7,956,459,359 | ||
Distributable earnings | 4,484,777,895 | |||
$ | 12,441,237,254 |
Net Assets: | ||||
Class A | $ | 1,368,160,658 | ||
Class C | $ | 192,737,669 | ||
Class R | $ | 244,866,206 | ||
Class Y | $ | 4,881,258,318 | ||
Class R5 | $ | 10,015 | ||
Class R6 | $ | 5,754,204,388 | ||
Shares outstanding, no par value, with an unlimited number of shares authorized: |
| |||
Class A | 35,248,442 | |||
Class C | 5,239,944 | |||
Class R | 6,434,540 | |||
Class Y | 126,585,496 | |||
Class R5 | 258 | |||
Class R6 | 149,195,754 | |||
Class A: | ||||
Net asset value per share | $ | 38.81 | ||
Maximum offering price per share (Net asset value of $38.81 ÷ 94.50%) | $ | 41.07 | ||
Class C: | ||||
Net asset value and offering price per share | $ | 36.78 | ||
Class R: | ||||
Net asset value and offering price per share | $ | 38.05 | ||
Class Y: | ||||
Net asset value and offering price per share | $ | 38.56 | ||
Class R5: | ||||
Net asset value and offering price per share | $ | 38.82 | ||
Class R6: | ||||
Net asset value and offering price per share | $ | 38.57 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
9 Invesco Oppenheimer International Growth Fund
Statement of Operations
For the six months ended April 30, 2020
(Unaudited)
Investment income: | ||||
Dividends (net of foreign withholding taxes of $10,897,217) | $ | 92,617,476 | ||
| ||||
Dividends from affiliated money market funds | 809,764 | |||
| ||||
Interest | 59,775 | |||
| ||||
Total investment income | 93,487,015 | |||
| ||||
Expenses: | ||||
Advisory fees | 46,839,063 | |||
| ||||
Administrative services fees | 1,041,819 | |||
| ||||
Custodian fees | 920,087 | |||
| ||||
Distribution fees: | ||||
Class A | 1,955,868 | |||
| ||||
Class C | 1,129,664 | |||
| ||||
Class R | 719,728 | |||
| ||||
Transfer agent fees – A, C, R and Y | 8,015,983 | |||
| ||||
Transfer agent fees – R6 | 171,435 | |||
| ||||
Trustees’ and officers’ fees and benefits | 8,426 | |||
| ||||
Registration and filing fees | 114,640 | |||
| ||||
Reports to shareholders | 795,030 | |||
| ||||
Professional services fees | 58,810 | |||
| ||||
Other | (234,478 | ) | ||
| ||||
Total expenses | 61,536,075 | |||
| ||||
Less: Fees waived, expenses reimbursed and/or expense offset arrangement(s) | (1,589,035 | ) | ||
| ||||
Net expenses | 59,947,040 | |||
| ||||
Net investment income | 33,539,975 | |||
| ||||
Realized and unrealized gain (loss) from: | ||||
Net realized gain (loss) from: | ||||
Investment securities (net of foreign taxes of $3,211,169) | 729,780,650 | |||
| ||||
Foreign currencies | (443,318 | ) | ||
| ||||
Forward foreign currency contracts | (72,096 | ) | ||
| ||||
729,265,236 | ||||
| ||||
Change in net unrealized appreciation (depreciation) of: | ||||
Investment securities (net of foreign taxes of $6,609,748) | (1,638,409,060 | ) | ||
| ||||
Foreign currencies | 11,398,427 | |||
| ||||
(1,627,010,633 | ) | |||
| ||||
Net realized and unrealized gain (loss) | (897,745,397 | ) | ||
| ||||
Net increase (decrease) in net assets resulting from operations | $ | (864,205,422 | ) | |
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
10 Invesco Oppenheimer International Growth Fund
Statement of Changes in Net Assets
For the six months ended April 30, 2020, period ended October 31, 2019, and the year ended November 30, 2018
(Unaudited)
Six Months Ended April 30, 2020 | Eleven Months Ended October 31, 2019 | Year Ended November 30, 2018 | ||||||||||
Operations: | ||||||||||||
Net investment income | $ 33,539,975 | $ 197,677,641 | $ 276,978,576 | |||||||||
| ||||||||||||
Net realized gain | 729,265,236 | 2,184,765 | 362,454,853 | |||||||||
| ||||||||||||
Change in net unrealized appreciation (depreciation) | (1,627,010,633 | ) | 2,124,910,396 | (4,324,008,212 | ) | |||||||
| ||||||||||||
Net increase (decrease) in net assets resulting from operations | (864,205,422 | ) | 2,324,772,802 | (3,684,574,783 | ) | |||||||
| ||||||||||||
Distributions to shareholders from distributable earnings: | ||||||||||||
Class A | (14,967,697 | ) | (21,472,225 | ) | (19,117,217 | ) | ||||||
| ||||||||||||
Class C | (389,252 | ) | (664,356 | ) | – | |||||||
| ||||||||||||
Class R | (2,024,284 | ) | (2,973,185 | ) | (2,152,886 | ) | ||||||
| ||||||||||||
Class Y | (66,722,610 | ) | (124,261,284 | ) | (110,353,712 | ) | ||||||
| ||||||||||||
Class R5 | (136 | ) | – | – | ||||||||
| ||||||||||||
Class R6 | (92,899,212 | ) | (135,457,439 | ) | (111,069,812 | ) | ||||||
| ||||||||||||
Total distributions from distributable earnings | (177,003,191 | ) | (284,828,489 | ) | (242,693,627 | ) | ||||||
| ||||||||||||
Share transactions–net: | ||||||||||||
Class A | (276,284,115 | ) | (625,772,217 | ) | (703,314,792 | ) | ||||||
| ||||||||||||
Class B | – | – | (3,096,841 | ) | ||||||||
| ||||||||||||
Class C | (34,160,234 | ) | (140,057,632 | ) | (58,174,703 | ) | ||||||
| ||||||||||||
Class R | (50,191,187 | ) | (107,203,986 | ) | (37,402,650 | ) | ||||||
| ||||||||||||
Class Y | (727,760,580 | ) | (4,174,878,050 | ) | (1,480,027,724 | ) | ||||||
| ||||||||||||
Class R5 | – | 10,000 | – | |||||||||
| ||||||||||||
Class R6 | (1,113,636,740 | ) | (2,189,411,468 | ) | (203,189,913 | ) | ||||||
| ||||||||||||
Net increase (decrease) in net assets resulting from share transactions | (2,202,032,856 | ) | (7,237,313,353 | ) | (2,485,206,623 | ) | ||||||
| ||||||||||||
Net increase (decrease) in net assets | (3,243,241,469 | ) | (5,197,369,040 | ) | (6,412,475,033 | ) | ||||||
| ||||||||||||
Net assets: | ||||||||||||
Beginning of period | 15,684,478,723 | 20,881,847,763 | 27,294,322,796 | |||||||||
| ||||||||||||
End of period | $12,441,237,254 | $15,684,478,723 | $20,881,847,763 | |||||||||
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
11 Invesco Oppenheimer International Growth Fund
(Unaudited)
The following schedule presents financial highlights for a share of the Fund outstanding throughout the periods indicated.
Net asset value, beginning of period | Net investment income (loss)(a) | Net gains on securities | Total from investment operations | Dividends from net investment income | Net asset value, end of period | Total return (b) | Net assets, end of period (000’s omitted) | Ratio of expenses to average fee waivers | Ratio of expenses to average net assets without fee waivers and/or expenses absorbed(c) | Ratio of net investment income to average | Portfolio turnover (d) | |||||||||||||||||||||||||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 04/30/20 | $ | 41.74 | $ | 0.04 | $ | (2.59 | ) | $ | (2.55 | ) | $ | (0.38 | ) | $ | 38.81 | (6.22 | )% | $ | 1,368,161 | 1.10 | %(e) | 1.14 | %(e) | 0.19 | %(e) | 11 | % | |||||||||||||||||||||||||||||||||
Eleven months ended 10/31/19 | 37.08 | 0.33 | 4.71 | 5.04 | (0.38 | ) | 41.74 | 13.75 | 1,746,483 | 1.10 | (f) | 1.10 | (f) | 0.93 | (f) | 10 | ||||||||||||||||||||||||||||||||||||||||||||
Year ended 11/30/18 | 43.71 | 0.34 | (6.71 | ) | (6.37 | ) | (0.26 | ) | 37.08 | (14.66 | ) | 2,146,246 | 1.11 | 1.11 | 0.79 | 18 | ||||||||||||||||||||||||||||||||||||||||||||
Year ended 11/30/17 | 34.34 | 0.35 | 9.38 | 9.73 | (0.36 | ) | 43.71 | 28.61 | 3,249,744 | 1.13 | 1.13 | 0.89 | 22 | |||||||||||||||||||||||||||||||||||||||||||||||
Year ended 11/30/16 | 37.14 | 0.38 | (2.87 | ) | (2.49 | ) | (0.31 | ) | 34.34 | (6.73 | ) | 4,253,937 | 1.14 | 1.14 | 1.08 | 9 | ||||||||||||||||||||||||||||||||||||||||||||
Year ended 11/30/15 | 36.45 | 0.31 | 0.68 | 0.99 | (0.30 | ) | 37.14 | 2.76 | 5,394,512 | 1.14 | 1.14 | 0.85 | 10 | |||||||||||||||||||||||||||||||||||||||||||||||
Year ended 11/30/14 | 37.45 | 0.38 | (1.11 | ) | (0.73 | ) | (0.27 | ) | 36.45 | (1.95 | ) | 4,726,302 | 1.14 | 1.14 | 1.02 | 12 | ||||||||||||||||||||||||||||||||||||||||||||
Class C | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 04/30/20 | 39.42 | (0.11 | ) | (2.46 | ) | (2.57 | ) | (0.07 | ) | 36.78 | (6.55 | ) | 192,738 | 1.85 | (e) | 1.89 | (e) | (0.56 | )(e) | 11 | ||||||||||||||||||||||||||||||||||||||||
Eleven months ended 10/31/19 | 34.97 | 0.06 | 4.46 | 4.52 | (0.07 | ) | 39.42 | 12.95 | 241,807 | 1.85 | (f) | 1.85 | (f) | 0.18 | (f) | 10 | ||||||||||||||||||||||||||||||||||||||||||||
Year ended 11/30/18 | 41.29 | 0.02 | (6.34 | ) | (6.32 | ) | — | 34.97 | (15.31 | ) | 345,228 | 1.86 | 1.86 | 0.04 | 18 | |||||||||||||||||||||||||||||||||||||||||||||
Year ended 11/30/17 | 32.44 | 0.03 | 8.91 | 8.94 | (0.09 | ) | 41.29 | 27.64 | 468,753 | 1.88 | 1.88 | 0.09 | 22 | |||||||||||||||||||||||||||||||||||||||||||||||
Year ended 11/30/16 | 35.10 | 0.10 | (2.70 | ) | (2.60 | ) | (0.06 | ) | 32.44 | (7.42 | ) | 453,990 | 1.89 | 1.89 | 0.30 | 9 | ||||||||||||||||||||||||||||||||||||||||||||
Year ended 11/30/15 | 34.49 | 0.05 | 0.63 | 0.68 | (0.07 | ) | 35.10 | 1.99 | 543,536 | 1.89 | 1.89 | 0.14 | 10 | |||||||||||||||||||||||||||||||||||||||||||||||
Year ended 11/30/14 | 35.54 | 0.09 | (1.04 | ) | (0.95 | ) | (0.10 | ) | 34.49 | (2.68 | ) | 498,041 | 1.89 | 1.89 | 0.25 | 12 | ||||||||||||||||||||||||||||||||||||||||||||
Class R | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 04/30/20 | 40.88 | (0.01 | ) | (2.55 | ) | (2.56 | ) | (0.27 | ) | 38.05 | (6.33 | ) | 244,866 | 1.35 | (e) | 1.39 | (e) | (0.06 | )(e) | 11 | ||||||||||||||||||||||||||||||||||||||||
Eleven months ended 10/31/19 | 36.32 | 0.24 | 4.61 | 4.85 | (0.29 | ) | 40.88 | 13.47 | 313,081 | 1.35 | (f) | 1.35 | (f) | 0.68 | (f) | 10 | ||||||||||||||||||||||||||||||||||||||||||||
Year ended 11/30/18 | 42.86 | 0.23 | (6.58 | ) | (6.35 | ) | (0.19 | ) | 36.32 | (14.88 | ) | 377,926 | 1.36 | 1.36 | 0.54 | 18 | ||||||||||||||||||||||||||||||||||||||||||||
Year ended 11/30/17 | 33.70 | 0.21 | 9.25 | 9.46 | (0.30 | ) | 42.86 | 28.31 | 486,089 | 1.38 | 1.38 | 0.55 | 22 | |||||||||||||||||||||||||||||||||||||||||||||||
Year ended 11/30/16 | 36.44 | 0.27 | (2.79 | ) | (2.52 | ) | (0.22 | ) | 33.70 | (6.96 | ) | 390,589 | 1.38 | 1.38 | 0.78 | 9 | ||||||||||||||||||||||||||||||||||||||||||||
Year ended 11/30/15 | 35.80 | 0.23 | 0.65 | 0.88 | (0.24 | ) | 36.44 | 2.50 | 400,622 | 1.39 | 1.39 | 0.64 | 10 | |||||||||||||||||||||||||||||||||||||||||||||||
Year ended 11/30/14 | 36.81 | 0.28 | (1.09 | ) | (0.81 | ) | (0.20 | ) | 35.80 | (2.19 | ) | 369,630 | 1.39 | 1.39 | 0.74 | 12 | ||||||||||||||||||||||||||||||||||||||||||||
Class Y | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 04/30/20 | 41.51 | 0.09 | (2.56 | ) | (2.47 | ) | (0.48 | ) | 38.56 | (6.09 | ) | 4,881,258 | 0.85 | (e) | 0.89 | (e) | 0.44 | (e) | 11 | |||||||||||||||||||||||||||||||||||||||||
Eleven months ended 10/31/19 | 36.92 | 0.42 | 4.67 | 5.09 | (0.50 | ) | 41.51 | 14.01 | 5,993,234 | 0.85 | (f) | 0.85 | (f) | 1.18 | (f) | 10 | ||||||||||||||||||||||||||||||||||||||||||||
Year ended 11/30/18 | 43.55 | 0.44 | (6.69 | ) | (6.25 | ) | (0.38 | ) | 36.92 | (14.47 | ) | 9,329,538 | 0.86 | 0.86 | 1.04 | 18 | ||||||||||||||||||||||||||||||||||||||||||||
Year ended 11/30/17 | 34.23 | 0.41 | 9.37 | 9.78 | (0.46 | ) | 43.55 | 28.96 | 12,543,811 | 0.88 | 0.88 | 1.04 | 22 | |||||||||||||||||||||||||||||||||||||||||||||||
Year ended 11/30/16 | 37.01 | 0.47 | (2.85 | ) | (2.38 | ) | (0.40 | ) | 34.23 | (6.49 | ) | 9,929,295 | 0.89 | 0.89 | 1.33 | 9 | ||||||||||||||||||||||||||||||||||||||||||||
Year ended 11/30/15 | 36.36 | 0.42 | 0.64 | 1.06 | (0.41 | ) | 37.01 | 2.99 | 10,782,234 | 0.89 | 0.89 | 1.13 | 10 | |||||||||||||||||||||||||||||||||||||||||||||||
Year ended 11/30/14 | 37.35 | 0.46 | (1.10 | ) | (0.64 | ) | (0.35 | ) | 36.36 | (1.71 | ) | 8,774,567 | 0.89 | 0.89 | 1.23 | 12 | ||||||||||||||||||||||||||||||||||||||||||||
Class R5 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 04/30/20 | 41.80 | 0.12 | (2.57 | ) | (2.45 | ) | (0.53 | ) | 38.82 | (6.02 | ) | 10 | 0.69 | (e) | 0.69 | (e) | 0.60 | (e) | 11 | |||||||||||||||||||||||||||||||||||||||||
Period ended 10/31/19(g) | 38.79 | 0.23 | 2.78 | 3.01 | — | 41.80 | 7.76 | 11 | 0.74 | (f) | 0.74 | (f) | 1.29 | (f) | 10 | |||||||||||||||||||||||||||||||||||||||||||||
Class R6 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 04/30/20 | 41.55 | 0.12 | (2.55 | ) | (2.43 | ) | (0.55 | ) | 38.57 | (6.01 | ) | 5,754,204 | 0.69 | (e) | 0.69 | (e) | 0.60 | (e) | 11 | |||||||||||||||||||||||||||||||||||||||||
Eleven months ended 10/31/19 | 36.98 | 0.48 | 4.67 | 5.15 | (0.58 | ) | 41.55 | 14.18 | 7,389,864 | 0.69 | (f) | 0.69 | (f) | 1.34 | (f) | 10 | ||||||||||||||||||||||||||||||||||||||||||||
Year ended 11/30/18 | 43.62 | 0.51 | (6.69 | ) | (6.18 | ) | (0.46 | ) | 36.98 | (14.32 | ) | 8,682,910 | 0.69 | 0.69 | 1.20 | 18 | ||||||||||||||||||||||||||||||||||||||||||||
Year ended 11/30/17 | 34.31 | 0.45 | 9.40 | 9.85 | (0.54 | ) | 43.62 | 29.14 | 10,542,873 | 0.69 | 0.69 | 1.15 | 22 | |||||||||||||||||||||||||||||||||||||||||||||||
Year ended 11/30/16 | 37.09 | 0.49 | (2.81 | ) | (2.32 | ) | (0.46 | ) | 34.31 | (6.31 | ) | 6,435,502 | 0.70 | 0.70 | 1.38 | 9 | ||||||||||||||||||||||||||||||||||||||||||||
Year ended 11/30/15 | 36.43 | 0.48 | 0.65 | 1.13 | (0.47 | ) | 37.09 | 3.19 | 4,381,328 | 0.70 | 0.70 | 1.31 | 10 | |||||||||||||||||||||||||||||||||||||||||||||||
Year ended 11/30/14 | 37.41 | 0.55 | (1.11 | ) | (0.56 | ) | (0.42 | ) | 36.43 | (1.51 | ) | 3,763,546 | 0.70 | 0.70 | 1.47 | 12 |
(a) | Calculated using average shares outstanding. |
(b) | Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Does not include sales charges and is not annualized for periods less than one year, if applicable. |
(c) | Does not include estimated acquired fund fees from underlying funds of 0.00% for the eleven months ended October 31, 2019 and the years ended November 30, 2018, 2017, 2016, 2015 and 2014, respectively. |
(d) | Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable. |
(e) | Ratios are annualized and based on average daily net assets (000’s omitted) of $1,595,592, $227,174, $289,473, $5,637,974, $11 and $6,870,876 for Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares, respectively. |
(f) | Annualized. |
(g) | Commencement date after the close of business on May 24, 2019. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
12 Invesco Oppenheimer International Growth Fund
April 30, 2020
(Unaudited)
NOTE 1–Significant Accounting Policies
Invesco Oppenheimer International Growth Fund (the “Fund”) is a series portfolio of AIM International Mutual Funds (Invesco International Mutual 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 the Fund or each class.
The Fund’s investment objective is to seek capital appreciation.
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. 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. |
A security listed or traded on an exchange (except convertible securities) is valued at its last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded, or lacking any sales or official closing price on a particular day, the security may be valued at the closing bid price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued by an independent pricing service they may be considered fair valued. Futures contracts are valued at the final settlement price set by an exchange on which they are principally traded. Listed options are valued at the mean between the last bid and asked prices from the exchange on which they are principally traded. Options not listed on an exchange are valued by an independent source at the mean between the last bid and asked prices. For purposes of determining net asset value (“NAV”) per share, futures and option contracts generally are valued 15 minutes after the close of the customary trading session of the New York Stock Exchange (“NYSE”).
Investments in open-end and closed-end registered investment companies that do not trade on an exchange are valued at the end-of-day net asset value per share. Investments in open-end and closed-end registered investment companies that trade on an exchange are valued at the last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded.
Debt obligations (including convertible securities) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. Pricing services generally value debt obligations assuming orderly transactions of institutional round lot size, but a fund may hold or transact in the same securities in smaller, odd lot sizes. Odd lots often trade at lower prices than institutional round lots. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.
Foreign securities’ (including foreign exchange contracts) prices are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the NYSE. If market quotations are available and reliable for foreign exchange-traded equity securities, the securities will be valued at the market quotations. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become unreliable. If between the time trading ends on a particular security and the close of the customary trading session on the NYSE, events occur that the investment adviser determines are significant and make the closing price unreliable, the Fund may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith using procedures approved by the Board of Trustees. Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities’ prices meeting the approved degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economic upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.
Securities for which market prices are not provided by any of the above methods may be valued based upon quotes furnished by independent sources. The last bid price may be used to value equity securities. The mean between the last bid and asked prices is used to value debt obligations, including corporate loans.
Securities for which market quotations are not readily available or became unreliable are valued at fair value as determined in good faith by or under the supervision of the Trust’s officers following procedures approved by the Board of Trustees. Issuer specific events, market trends, bid/asked quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security’s fair value.
The Fund may invest in securities that are subject to interest rate risk, meaning the risk that the prices will generally fall as interest rates rise and, conversely, the prices will generally rise as interest rates fall. Specific securities differ in their sensitivity to changes in interest rates depending on their individual characteristics. Changes in interest rates may result in increased market volatility, which may affect the value and/or liquidity of certain Fund investments.
Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the issuer’s assets, general market conditions which are not specifically related to the particular issuer, such as real or perceived adverse economic conditions, changes in the general outlook for revenues or corporate earnings, changes in interest or currency rates, regional or global instability, natural or environmental disasters, widespread disease or other public health issues, war, acts of terrorism or adverse investor sentiment generally and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
B. | Securities Transactions and Investment Income – Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income (net of withholding tax, if any) is recorded on an accrual basis from settlement date. Dividend income (net of withholding tax, if any) is recorded on the ex-dividend date. |
The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Statement of Operations as realized gain (loss) for investments no longer held and as unrealized gain (loss) for investments still held.
Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of net realized and unrealized gain (loss) from investment
13 Invesco Oppenheimer International Growth Fund
securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the net realized and unrealized gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and the Statement of Changes in Net Assets, or the net investment income per share and the ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.
The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class.
C. | Country Determination – For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues and the country that has the primary market for the issuer’s securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted. |
D. | Distributions – Distributions from net investment income and net realized capital gain, if any, are generally declared and paid annually and recorded on the ex-dividend date. The Fund may elect to treat a portion of the proceeds from redemptions as distributions for federal income tax purposes. |
E. | Federal Income Taxes – The Fund intends to comply with the requirements of Subchapter M of the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”), necessary to qualify as a regulated investment company and to distribute substantially all of the Fund’s taxable earnings to shareholders. As such, the Fund will not be subject to federal income taxes on otherwise taxable income (including net realized capital gain) that is distributed to shareholders. Therefore, no provision for federal income taxes is recorded in the financial statements. |
The Fund recognizes the tax benefits of uncertain tax positions only when the position is more likely than not to be sustained. Management has analyzed the Fund’s uncertain tax positions and concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions. Management is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the next 12 months.
The Fund files tax returns in the U.S. Federal jurisdiction and certain other jurisdictions. Generally, the Fund is subject to examinations by such taxing authorities for up to three years after the filing of the return for the tax period.
F. | Expenses – Fees provided for under the Rule 12b-1 plan of a particular class of the Fund 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 preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print. |
H. | Indemnifications – Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of the performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements, that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote. |
I. | Foreign Currency Translations – Foreign currency is valued at the close of the NYSE based on quotations posted by banks and major currency dealers. Portfolio securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at the date of valuation. Purchases and sales of portfolio securities (net of foreign taxes withheld on disposition) and income items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. The Fund does not separately account for the portion of the results of operations resulting from changes in foreign exchange rates on investments and the fluctuations arising from changes in market prices of securities held. The combined results of changes in foreign exchange rates and the fluctuation of market prices on investments (net of estimated foreign tax withholding) are included with the net realized and unrealized gain or loss from investments in the Statement of Operations. Reported net realized foreign currency gains or losses arise from (1) sales of foreign currencies, (2) currency gains or losses realized between the trade and settlement dates on securities transactions, and (3) the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign currency gains and losses arise from changes in the fair values of assets and liabilities, other than investments in securities at fiscal period end, resulting from changes in exchange rates. |
The Fund may invest in foreign securities, which may be subject to foreign taxes on income, gains on investments or currency repatriation, a portion of which may be recoverable. Foreign taxes, if any, are recorded based on the tax regulations and rates that exist in the foreign markets in which the Fund invests and are shown in the Statement of Operations.
J. | Other Risks – Emerging markets (also referred to as developing markets) are generally subject to greater market volatility, political, social and economic instability, uncertainty regarding the existence of trading markets and more governmental limitations on foreign investment than more developed markets. In addition, companies operating in emerging markets may be subject to lower trading volume and greater price fluctuations than companies in more developed markets. Securities law in many emerging market countries is relatively new and unsettled. Therefore, laws regarding foreign investment in emerging market securities, securities regulation, title to securities, and shareholder rights may change quickly and unpredictably. In addition, the enforcement of systems of taxation at federal, regional and local levels in emerging market countries may be inconsistent, and subject to sudden change. Other risks of investing in emerging markets securities may include additional transaction costs, delays in settlement procedures, and lack of timely information. |
14 Invesco Oppenheimer International Growth Fund
NOTE 2–Advisory Fees and Other Fees Paid to Affiliates
The Trust has entered into a master investment advisory agreement with Invesco Advisers, Inc. (the “Adviser” or “Invesco”). Under the terms of the investment advisory agreement, the Fund accrues daily and pays monthly an advisory fee to the Adviser based on the annual rate of the Fund’s average daily net assets as follows:
Average Daily Net Assets* | Rate | |||
First $ 250 million | 0.800 | % | ||
Next $250 million | 0.770 | % | ||
Next $500 million | 0.750 | % | ||
Next $1 billion | 0.690 | % | ||
Next $3 billion | 0.670 | % | ||
Next $5 billion | 0.650 | % | ||
Next $10 billion | 0.630 | % | ||
Next $10 billion | 0.610 | % | ||
Over $30 billion | 0.590 | % |
* | 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 April 30, 2020, the effective advisory fee rate incurred by the Fund was 0.66%.
Under the terms of a master sub-advisory agreement between the Adviser and each of Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Canada Ltd. and separate sub-advisory agreements with Invesco Capital Management LLC and Invesco Asset Management (India) Private Limited (collectively, the “Affiliated Sub-Advisers”) the Adviser, not the Fund, will pay 40% of the fees paid to the Adviser to any such Affiliated Sub-Adviser(s) that provide(s) discretionary investment management services to the Fund based on the percentage of assets allocated to such Affiliated Sub-Adviser(s).
The Adviser has contractually agreed, through at least May 31, 2021, to waive advisory fees and/or reimburse expenses of all shares to the extent necessary to limit total annual fund operating expenses after fee waiver and/or expense reimbursement (excluding certain items discussed below) of Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares to 1.10%, 1.85%, 1.35%, 0.85%, 0.74% and 0.69%, respectively, of average daily net assets (the “expense limits”). In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause the total annual fund operating expenses after fee waiver and/or expense reimbursement to exceed the numbers reflected above: (1) interest; (2) taxes; (3) dividend expense on short sales; (4) extraordinary or non-routine items, including litigation expenses; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Unless Invesco continues the fee waiver agreement, it will terminate on May 31, 2021. During its term, the fee waiver agreement cannot be terminated or amended to increase the expense limits or reduce the advisory fee waiver without approval of the Board of Trustees. To the extent that the annualized expense ratio does not exceed the expense limits, the Adviser will retain its ability to be reimbursed for such fee waivers or reimbursements prior to the end of each fiscal year. The Adviser did not waive fees and/or reimburse expenses during the period under these expense limits.
Further, the Adviser has contractually agreed, through at least June 30, 2022, to waive the advisory fee payable by the Fund in an amount equal to 100% of the net advisory fees the Adviser receives from the affiliated money market funds on investments by the Fund of uninvested cash in such affiliated money market funds.
For the six months ended April 30, 2020, the Adviser waived advisory fees of $83,683 and reimbursed class level expenses of $284,924, $44,575, $56,660, $1,103,591, $0 and $0 of Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares, respectively.
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 April 30, 2020, expenses incurred under the agreement are shown in the Statement of Operations as Administrative services fees. Invesco has entered into a sub-administration agreement whereby State Street Bank and Trust Company (“SSB”) serves as fund accountant and provides certain administrative services to the Fund. Pursuant to a custody agreement with the Trust on behalf of the Fund, SSB also serves as the Fund’s custodian.
The Trust has entered into a transfer agency and service agreement with Invesco Investment Services, Inc. (“IIS”) pursuant to which the Fund has agreed to pay IIS a fee for providing transfer agency and shareholder services to the Fund and reimburse IIS for certain expenses incurred by IIS in the course of providing such services. IIS may make payments to intermediaries that provide omnibus account services, sub-accounting services and/or networking services. All fees payable by IIS to intermediaries that provide omnibus account services or sub-accounting services are charged back to the Fund, subject to certain limitations approved by the Trust’s Board of Trustees. For the six months ended April 30, 2020, expenses incurred under the agreement are shown in the Statement of Operations as Transfer 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 “Plans”). The Fund, pursuant to the Class A Plan, reimburses IDI for its allocated share of expenses incurred for the period, up to a maximum 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 shares 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 Plans 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. For the six-month period ended April 30, 2020, expenses incurred under the Plans are shown in the Statement of Operations as Distribution fees.
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 April 30, 2020, IDI advised the Fund that IDI retained $55,977 in front-end sales commissions from the sale of Class A shares and $925 and $2,904 from Class A and Class C shares, respectively, for CDSC imposed upon redemptions by shareholders.
Certain officers and trustees of the Trust are officers and directors of the Adviser, IIS and/or IDI.
NOTE 3–Additional Valuation Information
GAAP defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, under current market conditions. GAAP establishes a hierarchy that prioritizes the inputs to valuation methods, giving the highest priority to readily available unadjusted quoted prices in an active market for identical assets (Level 1) and the lowest priority to significant unobservable inputs (Level 3), generally when market prices are not readily available or are unreliable. Based on the valuation inputs, the securities or other investments are tiered into one of three levels. Changes in valuation methods may result in transfers in or out of an investment’s assigned level:
Level 1 – | Prices are determined using quoted prices in an active market for identical assets. |
15 Invesco Oppenheimer International Growth Fund
Level 2 – | Prices are determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk, yield curves, loss severities, default rates, discount rates, volatilities and others. | |
Level 3 – | Prices are determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Fund’s own assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information. |
The following is a summary of the tiered valuation input levels, as of April 30, 2020. The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Investments in Securities | ||||||||||||||||
Australia | $ | – | $ | 281,622,196 | $– | $ | 281,622,196 | |||||||||
Belgium | – | 106,662,934 | – | 106,662,934 | ||||||||||||
Canada | 638,096,292 | – | – | 638,096,292 | ||||||||||||
China | 187,067,045 | 64,974,136 | – | 252,041,181 | ||||||||||||
Denmark | 59,877,289 | 350,714,947 | – | 410,592,236 | ||||||||||||
France | – | 2,007,083,968 | – | 2,007,083,968 | ||||||||||||
Germany | – | 887,343,523 | – | 887,343,523 | ||||||||||||
Hong Kong | – | 130,073,396 | – | 130,073,396 | ||||||||||||
India | 15,498,083 | – | – | 15,498,083 | ||||||||||||
Ireland | – | 124,570,460 | – | 124,570,460 | ||||||||||||
Italy | – | 81,209,784 | – | 81,209,784 | ||||||||||||
Japan | – | 1,171,928,575 | – | 1,171,928,575 | ||||||||||||
Netherlands | – | 714,776,550 | – | 714,776,550 | ||||||||||||
New Zealand | – | 166,192,231 | – | 166,192,231 | ||||||||||||
Spain | – | 493,319,351 | – | 493,319,351 | ||||||||||||
Sweden | – | 567,595,586 | – | 567,595,586 | ||||||||||||
Switzerland | – | 1,565,952,700 | – | 1,565,952,700 | ||||||||||||
Taiwan | – | 264,914,017 | – | 264,914,017 | ||||||||||||
Thailand | – | 68,146,994 | – | 68,146,994 | ||||||||||||
United Kingdom | – | 944,381,639 | – | 944,381,639 | ||||||||||||
United States | 719,571,291 | 184,323,853 | – | 903,895,144 | ||||||||||||
Money Market Funds | 299,384,826 | – | – | 299,384,826 | ||||||||||||
Total Investments | $ | 1,919,494,826 | $ | 10,175,786,840 | $– | $ | 12,095,281,666 |
NOTE 4–Derivative Investments
The Fund may enter into an International Swaps and Derivatives Association Master Agreement (“ISDA Master Agreement”) under which a fund may trade OTC derivatives. An OTC transaction entered into under an ISDA Master Agreement typically involves a collateral posting arrangement, payment netting provisions and close-out netting provisions. These netting provisions allow for reduction of credit risk through netting of contractual obligations. The enforceability of the netting provisions of the ISDA Master Agreement depends on the governing law of the ISDA Master Agreement, among other factors.
For financial reporting purposes, the Fund does not offset OTC derivative assets or liabilities that are subject to ISDA Master Agreements in the Statement of Assets and Liabilities.
Value of Derivative Investments at Period-End
The table below summarizes the value of the Fund’s derivative investments, detailed by primary risk exposure, held as of April 30, 2020:
The table below summarizes the gains (losses) on derivative investments, detailed by primary risk exposure, recognized in earnings during the period:
Location of Gain (Loss) on Statement of Operations | ||||
Currency Risk | ||||
Realized Gain (Loss): | ||||
Forward foreign currency contracts | $(72,096) |
The table below summarizes the average notional value of derivatives held during the period.
Forward Foreign Currency Contracts | ||||
Average notional value | $15,203,025 |
NOTE 5–Expense Offset Arrangement(s)
The expense offset arrangement is comprised of transfer agency credits which result from balances in demand deposit accounts used by the transfer agent for clearing shareholder transactions. For the six months ended April 30, 2020, the Fund received credits from this arrangement, which resulted in the reduction of the Fund’s total expenses of $15,602.
16 Invesco Oppenheimer International Growth Fund
NOTE 6–Trustees’ and Officers’ Fees and Benefits
Trustees’ and Officers’ Fees and Benefits include amounts accrued by the Fund to pay remuneration to certain Trustees and Officers of the Fund. Trustees have the option to defer compensation payable by the Fund, and Trustees’ and Officers’ Fees and Benefits also include amounts accrued by the Fund to fund such deferred compensation amounts. Those Trustees who defer compensation have the option to select various Invesco Funds in which their deferral accounts shall be deemed to be invested. Finally, certain current Trustees were eligible to participate in a retirement plan that provided for benefits to be paid upon retirement to Trustees over a period of time based on the number of years of service. The Fund may have certain former Trustees who also participate in a retirement plan and receive benefits under such plan. Trustees’ and Officers’ Fees and Benefits include amounts accrued by the Fund to fund such retirement benefits. Obligations under the deferred compensation and retirement plans represent unsecured claims against the general assets of the Fund.
NOTE 7–Cash Balances
The Fund is permitted to temporarily carry a negative or overdrawn balance in its account with SSB, the custodian bank. Such balances, if any at period-end, are shown in the Statement of Assets and Liabilities under the payable caption Amount due custodian. To compensate the custodian bank for such overdrafts, the overdrawn Fund may either (1) leave funds as a compensating balance in the account so the custodian bank can be compensated by earning the additional interest; or (2) compensate by paying the custodian bank at a rate agreed upon by the custodian bank and Invesco, not to exceed the contractually agreed upon rate. The Fund may not purchase additional securities when any borrowings from banks or broker-dealers exceed 5% of the Fund’s total assets, or when any borrowings from an Invesco Fund are outstanding.
NOTE 8–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 October 31, 2019, as follows:
Capital Loss Carryforward* | ||||||||||||
| ||||||||||||
Expiration | Short-Term | Long-Term | Total | |||||||||
| ||||||||||||
Not subject to expiration | $320,622,754 | $– | $320,622,754 | |||||||||
|
* | Capital loss carryforward is reduced for limitations, if any, to the extent required by the Internal Revenue Code and may be further limited depending upon a variety of factors, including the realization of net unrealized gains or losses as of the date of any reorganization. |
NOTE 9–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 April 30, 2020 was $1,560,587,469 and $4,316,891,028, 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 | $ | 4,492,836,903 | ||
| ||||
Aggregate unrealized (depreciation) of investments | (446,274,445 | ) | ||
| ||||
Net unrealized appreciation of investments | $ | 4,046,562,458 | ||
|
Cost of investments for tax purposes is $8,048,719,208.
NOTE 10–Share Information
Summary of Share Activity | ||||||||||||||||||||||||
| ||||||||||||||||||||||||
Six months ended April 30, 2020(a) | Eleven Months Ended October 31, 2019 | Year ended November 30, 2018 | ||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | |||||||||||||||||||
| ||||||||||||||||||||||||
Sold: | ||||||||||||||||||||||||
Class A | 2,845,423 | $ | 115,345,523 | 6,871,447 | $ | 264,050,494 | 13,042,124 | $ | 560,127,026 | |||||||||||||||
| ||||||||||||||||||||||||
Class B(b) | - | - | - | - | 991 | 42,173 | ||||||||||||||||||
| ||||||||||||||||||||||||
Class C | 158,157 | 6,080,058 | 553,040 | 19,733,822 | 1,363,260 | 56,199,892 | ||||||||||||||||||
| ||||||||||||||||||||||||
Class R | 478,065 | 19,249,623 | 1,426,463 | 53,719,770 | 2,704,918 | 114,658,142 | ||||||||||||||||||
| ||||||||||||||||||||||||
Class Y | 17,393,823 | 690,004,707 | 38,196,649 | 1,438,608,285 | 75,558,580 | 3,241,532,895 | ||||||||||||||||||
| ||||||||||||||||||||||||
Class R5(c) | - | - | 258 | 10,000 | - | - | ||||||||||||||||||
| ||||||||||||||||||||||||
Class R6 | 14,139,931 | 543,184,072 | 48,275,973 | 1,845,003,663 | 72,450,594 | 3,098,489,284 | ||||||||||||||||||
| ||||||||||||||||||||||||
Issued as reinvestment of dividends: | ||||||||||||||||||||||||
Class A | 308,046 | 13,550,937 | 502,245 | 18,060,735 | 368,768 | 15,982,424 | ||||||||||||||||||
| ||||||||||||||||||||||||
Class C | 8,380 | 350,394 | 17,797 | 608,658 | - | - | ||||||||||||||||||
| ||||||||||||||||||||||||
Class R | 46,843 | 2,022,225 | 78,761 | 2,781,038 | 45,886 | 1,952,456 | ||||||||||||||||||
| ||||||||||||||||||||||||
Class Y | 1,056,005 | 46,105,173 | 2,617,559 | 93,420,675 | 2,017,447 | 86,851,078 | ||||||||||||||||||
| ||||||||||||||||||||||||
Class R6 | 1,861,159 | 81,220,968 | 3,293,319 | 117,472,702 | 2,213,095 | 95,273,724 | ||||||||||||||||||
|
17 Invesco Oppenheimer International Growth Fund
Summary of Share Activity | ||||||||||||||||||||||||
| ||||||||||||||||||||||||
Six months ended April 30, 2020(a) | Eleven Months Ended October 31, 2019 | Year ended November 30, 2018 | ||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | |||||||||||||||||||
| ||||||||||||||||||||||||
Automatic conversion of Class C shares to Class A shares: | ||||||||||||||||||||||||
Class A | 159,774 | $ | 6,692,449 | 1,171,497 | $ | 47,493,837 | - | $ | - | |||||||||||||||
| ||||||||||||||||||||||||
Class C | (168,513 | ) | (6,692,449 | ) | (1,237,300 | ) | (47,493,837 | ) | - | - | ||||||||||||||
| ||||||||||||||||||||||||
Reacquired: | ||||||||||||||||||||||||
Class A | (9,910,837 | ) | (411,873,024 | ) | (24,582,143 | ) | (955,377,283 | ) | (29,869,620 | ) | (1,279,424,242 | ) | ||||||||||||
| ||||||||||||||||||||||||
Class B(b) | - | - | - | - | (74,086 | ) | (3,139,014 | ) | ||||||||||||||||
| ||||||||||||||||||||||||
Class C | (891,540 | ) | (33,898,237 | ) | (3,071,796 | ) | (112,906,275 | ) | (2,843,103 | ) | (114,374,595 | ) | ||||||||||||
| ||||||||||||||||||||||||
Class R | (1,748,756 | ) | (71,463,035 | ) | (4,253,256 | ) | (163,704,794 | ) | (3,685,874 | ) | (154,013,248 | ) | ||||||||||||
| ||||||||||||||||||||||||
Class Y | (36,250,061 | ) | (1,463,870,460 | ) | (149,109,574 | ) | (5,706,907,010 | ) | (112,942,542 | ) | (4,808,411,697 | ) | ||||||||||||
| ||||||||||||||||||||||||
Class R6 | (44,663,065 | ) | (1,738,041,780 | ) | (108,498,191 | ) | (4,151,887,833 | ) | (81,556,482 | ) | (3,396,952,921 | ) | ||||||||||||
| ||||||||||||||||||||||||
Net increase (decrease) in share activity | (55,177,166 | ) | $ | (2,202,032,856 | ) | (187,747,252 | ) | $ | (7,237,313,353 | ) | (61,206,044 | ) | $ | (2,485,206,623 | ) | |||||||||
|
(a) | There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 44% of the outstanding shares of the Fund. The Fund and the Fund’s principal underwriter or adviser, are parties to participation agreements with these entities whereby these entities sell units of interest in separate accounts funding variable products that are invested in the Fund. The Fund, Invesco and/or Invesco affiliates may make payments to these entities, which are considered to be related to the Fund, for providing services to the Fund, Invesco and/or Invesco affiliates including but not limited to services such as, securities brokerage, third party record keeping and account servicing and administrative services. The Fund has no knowledge as to whether all or any portion of the shares owned of record by these entities are also owned beneficially. |
In addition, 7% of the outstanding shares of the Fund are owned by the Adviser or an affiliate of the Adviser.
(b) | All outstanding Class B shares converted to Class A shares on June 1, 2018. |
(c) | Commencement date after the close of business on May 24, 2019. |
NOTE 11–Coronavirus (COVID-19) Pandemic
During the first quarter of 2020, the World Health Organization declared COVID-19 to be a public health emergency. COVID-19 has led to increased short-term market volatility and may have adverse long-term effects on U.S. and world economies and markets in general. COVID-19 may adversely impact the Fund’s ability to achieve its investment objective. Because of the uncertainties on valuation, the global economy and business operations, values reflected in these financial statements may materially differ from the value received upon actual sales of those investments.
The extent of the impact on the performance of the Fund and its investments will depend on future developments, including the duration and spread of the COVID-19 outbreak, related restrictions and advisories, and the effects on the financial markets and economy overall, all of which are highly uncertain and cannot be predicted.
18 Invesco Oppenheimer International Growth Fund
Calculating your ongoing Fund expenses
Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, which may include sales charges (loads) on purchase payments or contingent deferred sales charges on redemptions, if any; and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees, and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period November 1, 2019 through April 30, 2020.
Actual expenses
The table below provides information about actual account values and actual expenses. You may use the information in this table, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the table under the heading entitled “Actual Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Hypothetical example for comparison purposes
The table below also provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return.
The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads) on purchase payments or contingent deferred sales charges on redemptions, if any. Therefore, the hypothetical information 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 transaction costs were included, your costs would have been higher.
Beginning Account Value (11/01/19) | ACTUAL | HYPOTHETICAL (5% annual return before expenses) | Annualized Expense Ratio | |||||||||||||||||||||
Ending Account Value (04/30/20)1 | Expenses Paid During Period2 | Ending Account Value (04/30/20) | Expenses Paid During Period2 | |||||||||||||||||||||
Class A | $1,000.00 | $937.80 | $5.30 | $1,019.39 | $5.52 | 1.10 | % | |||||||||||||||||
Class C | 1,000.00 | 934.50 | 8.90 | 1,015.66 | 9.27 | 1.85 | ||||||||||||||||||
Class R | 1,000.00 | 936.70 | 6.50 | 1,018.15 | 6.77 | 1.35 | ||||||||||||||||||
Class Y | 1,000.00 | 939.10 | 4.10 | 1,020.64 | 4.27 | 0.85 | ||||||||||||||||||
Class R5 | 1,000.00 | 939.60 | 3.33 | 1,021.43 | 3.47 | 0.69 | ||||||||||||||||||
Class R6 | 1,000.00 | 939.90 | 3.33 | 1,021.43 | 3.47 | 0.69 |
1 | The actual ending account value is based on the actual total return of the Fund for the period November 1, 2019 through April 30, 2020, after actual expenses and will differ from the hypothetical ending account value which is based on the Fund’s expense ratio and a hypothetical annual return of 5% before expenses. |
2 | Expenses are equal to the Fund’s annualized expense ratio as indicated above multiplied by the average account value over the period, multiplied by 182/366 to reflect the most recent fiscal half year. |
19 Invesco Oppenheimer International Growth Fund
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 list appears 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 Form N-PORT filings on the SEC website, sec.gov. The SEC file numbers for the Fund are shown below.
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. This 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. |
SEC file numbers: 811-06463 and 033-44611 | Invesco Distributors, Inc. | O-IGR-SAR-1 |
| ||||
Semiannual Report to Shareholders
| April 30, 2020
| |||
| ||||
Invesco Oppenheimer International Small-Mid Company Fund | ||||
Nasdaq: | ||||
A: OSMAX ∎ C: OSMCX ∎ R: OSMNX ∎ Y: OSMYX ∎ R5: INSLX ∎ R6: OSCIX |
2 | ||||
3 | ||||
5 | ||||
6 | ||||
9 | ||||
12 | ||||
13 | ||||
19 |
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.
For the most current month-end Fund performance and commentary, please visit invesco.com/performance.
Unless otherwise noted, all data provided by Invesco.
This report must be accompanied or preceded by a currently effective Fund prospectus, which contains more complete information, including sales charges and expenses. Investors should read it carefully before investing.
NOT FDIC INSURED | MAY LOSE VALUE | NO BANK GUARANTEE |
Bruce Crockett | Dear Fellow Shareholders: As independent chair of the Invesco Funds Board, I can assure you that the members of the Board are strong advocates for the interests of investors in Invesco’s mutual funds. We work hard to represent your interests through oversight of the quality of the investment management services your funds receive and other matters important to your investment. This includes but is not limited to: monitoring how the portfolio management teams of the Invesco funds are performing in light of changing economic and market conditions; assessing each portfolio management team’s investment performance within the context of the investment strategy described in the fund’s prospectus; and monitoring for potential conflicts of interests that may impact the nature of the services that your funds receive. | |
We believe one of the most important services we provide our fund shareholders is the annual review of the funds’ advisory and sub-advisory contracts with Invesco Advisers and its affiliates. This review is required by the Investment Company Act of 1940 and focuses on the nature and quality of the services Invesco provides as the adviser to the Invesco funds and the reasonableness of the | ||
fees that it charges for those services. Each year, we spend months carefully reviewing information received from Invesco and a variety of independent sources, such as performance and fee data prepared by Lipper Inc. (a subsidiary of Broadridge Financial Solutions, Inc.), an independent, third-party firm widely recognized as a leader in its field. We also meet with our independent legal counsel and other independent advisers to review and help us assess the information that we have received. Our goal is to assure that you receive quality investment management services for a reasonable fee. On behalf of the Board, we look forward to continuing to represent your interests and serving your needs. |
Sincerely,
Bruce L. Crockett
Independent Chair
Invesco Funds Board of Trustees
Andrew Schlossberg | Dear Shareholders: This semiannual report includes information about your Fund, including performance data and a complete list of its investments as of the close of the reporting period. Invesco’s efforts to help investors achieve their financial objectives include providing timely information about the markets, the economy and investing. Our website, invesco.com/us, offers a wide range of market insights and investment perspectives. On the website, you’ll find detailed information about our funds, including performance, holdings and portfolio manager commentaries. You can access information about your account by completing a simple, secure online registration. To do so, select “Log In” on the right side of the homepage, and then select “Register for Individual Account Access.” In addition to the resources accessible on our website, you can obtain timely updates to help you stay informed by connecting with Invesco on Twitter, LinkedIn or Facebook. You can access our blog at blog.invesco.us.com. Our goal is to provide you with information you want, when and where you want it. | |
For questions about your account, feel free to contact an Invesco client services representative at 800 959 4246. All of us at Invesco look forward to serving your investment management needs. Thank you for investing with us. |
Sincerely,
Andrew Schlossberg
Head of the Americas,
Senior Managing Director, Invesco Ltd.
2 | Invesco Oppenheimer International Small-Mid Company Fund |
Performance summary | ||||
Fund vs. Indexes | ||||
Cumulative total returns, October 31, 2019 to April 30, 2020, at net asset value (NAV). Performance shown does not include applicable contingent deferred sales charges (CDSC) or front-end sales charges, which would have reduced performance. |
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Class A Shares | -8.17 | % | ||
Class C Shares | -8.50 | |||
Class R Shares | -8.29 | |||
Class Y Shares | -8.07 | |||
Class R5 Shares | -7.98 | |||
Class R6 Shares | -7.99 | |||
MSCI ACWI ex USA SMID Cap Indexq | -15.22 | |||
MSCI ACWI ex USA Small Cap Indexq | -15.05 | |||
Source(s): qRIMES Technologies Corp. | ||||
The MSCI ACWI ex USA SMID Cap Index is designed to measure the equity market performance of small- and mid-cap developed and emerging markets, excluding the US. |
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The MSCI ACWI ex USA Small Cap Index represents the performance of small-cap stocks in developed and emerging markets, excluding the US. The index is computed using the net return, which withholds applicable taxes for non-resident investors. |
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The Fund is not managed to track the performance of any particular index, including the index(es) described here, and consequently, the performance of the Fund may deviate significantly from the performance of the index(es). |
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A direct investment cannot be made in an index. Unless otherwise indicated, index results include reinvested dividends, and they do not reflect sales charges. Performance of the peer group, if applicable, reflects fund expenses; performance of a market index does not. |
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For more information about your Fund |
Read the most recent quarterly commentary from your Fund’s portfolio managers by visiting invesco.com/us. Click on “Products” and select “Mutual Funds.” Use the “Product Finder” to locate your Fund; then click on its name to access its product detail page. There, you can learn more about your Fund’s investment strategies, holdings and performance. Also, visit blog.invesco.us.com, where many of Invesco’s investment professionals share their insights about market and economic news and trends.
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3 | Invesco Oppenheimer International Small-Mid Company Fund |
Average Annual Total Returns |
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As of 4/30/20, including maximum applicable sales charges | ||||||
Class A Shares | ||||||
Inception (11/17/97) | 11.56 | % | ||||
10 Years | 10.34 | |||||
5 Years | 6.00 | |||||
1 Year | -13.59 | |||||
Class C Shares | ||||||
Inception (11/17/97) | 11.45 | % | ||||
10 Years | 10.13 | |||||
5 Years | 6.40 | |||||
1 Year | -10.09 | |||||
Class R Shares | ||||||
Inception (3/1/01) | 12.25 | % | ||||
10 Years | 10.66 | |||||
5 Years | 6.93 | |||||
1 Year | -8.79 | |||||
Class Y Shares | ||||||
Inception (9/7/05) | 10.73 | % | ||||
10 Years | 11.30 | |||||
5 Years | 7.47 | |||||
1 Year | -8.34 | |||||
Class R5 Shares | ||||||
10 Years | 11.00 | % | ||||
5 Years | 7.28 | |||||
1 Year | -8.26 | |||||
Class R6 Shares | ||||||
Inception (12/29/11) | 13.59 | % | ||||
5 Years | 7.66 | |||||
1 Year | -8.21 |
Effective May 24, 2019, Class A, Class C, Class R, Class Y, and Class I shares of the Oppenheimer International Small-Mid Company Fund, (the predecessor fund), were reorganized into Class A, Class C, Class R, Class Y, and Class R6 shares, respectively, of the Invesco Oppenheimer International Small-Mid Company Fund (the Fund). Returns shown above, prior to May 24, 2019, 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 the predecessor fund because of different expenses.
Class R5 shares incepted on May 24, 2019. Performance shown prior to that date is that of the predecessor fund’s Class A shares and includes the 12b-1 fees applicable to Class A shares.
The performance data quoted represent past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/ performance for the most recent month-end performance. Performance figures reflect reinvested distributions, changes in net asset value and the effect of the maximum sales charge unless otherwise stated. Performance figures do not reflect deduction
of taxes a shareholder would pay on Fund distributions or sale of Fund shares. Investment return and principal value will fluctuate so that you may have a gain or loss when you sell shares.
Class A share performance reflects the maximum 5.50% sales charge, and Class C share performance reflects the applicable contingent deferred sales charge (CDSC) for the period involved. The CDSC on Class C shares is 1% for the first year after purchase. Class R, Class Y, Class R5 and Class R6 shares do not have a front-end sales charge or a CDSC; therefore, performance is at net asset value.
The performance of the Fund’s share classes will differ primarily due to different sales charge structures and class expenses.
Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information.
4 | Invesco Oppenheimer International Small-Mid Company Fund |
Liquidity Risk Management Program
The Securities and Exchange Commission has adopted Rule 22e-4 under the Investment Company Act of 1940 (the “Liquidity Rule”) in order to promote effective liquidity risk management throughout the open-end investment company industry, thereby reducing the risk that funds will be unable to meet their redemption obligations and mitigating dilution of the interests of fund shareholders. The Fund has adopted and implemented a liquidity risk management program in accordance with the Liquidity Rule (the “Program”). The Program is reasonably designed to assess and manage the Fund’s liquidity risk, which is the risk that the Fund could not meet redemption requests without significant dilution of remaining investors’ interests in the Fund. The Board of Trustees of the Fund (the “Board”) has appointed Invesco Advisers, Inc. (“Invesco”), the Fund’s investment adviser, as the Program’s administrator, and Invesco has delegated oversight of the Program to the Liquidity Risk Management Committee (the “Committee”), which is composed of senior representatives from relevant business groups at Invesco.
As required by the Liquidity Rule, the Program includes policies and procedures providing for an assessment, no less frequently than annually, of the Fund’s liquidity risk that takes into account, as relevant to the Fund’s liquidity risk: (1) the Fund’s investment strategy and liquidity of portfolio investments during both normal and reasonably foreseeable stressed conditions; (2) short-term and long-term cash flow projections for the Fund during both normal and reasonably foreseeable stressed conditions; and (3) the Fund’s holdings of cash and cash equivalents and any borrowing arrangements. The Liquidity Rule also requires the classification of the Fund’s investments into categories that reflect the assessment of their relative liquidity under current market conditions. The Fund classifies its investments into one of four categories defined in the Liquidity Rule: “Highly Liquid,” “Moderately Liquid,” “Less Liquid” and “Illiquid.” Funds that are not invested primarily in “Highly Liquid Investments” that are assets (cash or investments that are reasonably expected to be convertible into cash within three business days without significantly changing the market value of the investment) are required to establish a “Highly Liquid Investment Minimum” (“HLIM”), which is the minimum percentage of net assets that must be invested in Highly Liquid Investments. Funds with HLIMs have procedures for addressing HLIM shortfalls, including reporting to the Board and the SEC (on a non-public basis) as required by the Program and the Liquidity Rule. In addition, the Fund may not acquire an investment if, immediately after the acquisition, over 15% of the Fund’s net assets would consist of “Illiquid Investments” that are assets (an investment that cannot reasonably be expected to be sold or disposed of in current market conditions in seven calendar days or less without the sale or disposition significantly changing the market value of the investment). The Liquidity Rule and the Program also require reporting to the Board and the SEC (on a non-public basis) if a Fund’s holdings of Illiquid Investments exceed 15% of the Fund’s assets.
At a meeting held on March 30-April 1, 2020, the Committee presented a report to the Board that addressed the operation of the Program and assessed the Program’s adequacy and effectiveness of implementation (the “Report”). The Report covered the period from December 1, 2018 through December 31, 2019 (the “Program Reporting Period”).
The Report stated, in relevant part, that during the Program Reporting Period:
∎ | The Program, as adopted and implemented, remained reasonably designed to assess and manage the Fund’s liquidity risk and was operated effectively to achieve that goal; |
∎ | The Fund’s investment strategy remained appropriate for an open-end fund; |
∎ | The Fund was able to meet requests for redemption without significant dilution of remaining investors’ interests in the Fund; |
∎ | The Fund did not breach the 15% limit on Illiquid Investments; and |
∎ | The Fund primarily held Highly Liquid Investments and therefore has not adopted an HLIM. |
5 | Invesco Oppenheimer International Small-Mid Company Fund |
April 30, 2020
(Unaudited)
Shares | Value | |||||
Common Stocks & Other Equity Interests–98.42% | ||||||
Australia–4.65% | ||||||
ALS Ltd. | 9,329,367 | $ 40,779,381 | ||||
Ansell Ltd. | 783,340 | 14,378,271 | ||||
Bravura Solutions Ltd. | 5,225,793 | 16,339,519 | ||||
carsales.com Ltd. | 3,557,532 | 32,205,535 | ||||
Cochlear Ltd. | 514,183 | 61,613,576 | ||||
Corporate Travel Management Ltd. | 4,405,734 | 35,698,697 | ||||
IPH Ltd. | 8,754,520 | 41,738,712 | ||||
Technology One Ltd. | 8,607,025 | 52,661,482 | ||||
295,415,173 | ||||||
Belgium–0.95% | ||||||
Galapagos N.V.(a) | 272,340 | 60,231,656 | ||||
Brazil–1.30% | ||||||
Linx S.A. | 4,432,000 | 17,694,095 | ||||
Odontoprev S.A. | 15,592,100 | 43,009,526 | ||||
TOTVS S.A. | 2,030,979 | 22,091,691 | ||||
82,795,312 | ||||||
Canada–1.96% | ||||||
Altus Group Ltd. | 845,555 | 25,531,576 | ||||
Descartes Systems Group, Inc. (The)(a) | 1,343,911 | 56,490,702 | ||||
Morneau Shepell, Inc. | 1,757,200 | 42,479,816 | ||||
124,502,094 | ||||||
China–0.80% | ||||||
TravelSky Technology Ltd., H Shares | 29,361,000 | 50,934,864 | ||||
Denmark–4.88% | ||||||
Chemometec A/S | 518,821 | 23,541,936 | ||||
Chr. Hansen Holding A/S | 1,891,310 | 163,166,503 | ||||
Genmab A/S(a) | 161,728 | 38,945,285 | ||||
SimCorp A/S | 909,080 | 84,227,348 | ||||
309,881,072 | ||||||
Finland–0.47% | ||||||
Nokian Renkaat OYJ | 1,381,477 | 29,605,356 | ||||
France–2.29% | ||||||
Alten S.A. | 409,436 | 29,510,779 | ||||
BioMerieux | 572,193 | 71,088,314 | ||||
Gaztransport Et Technigaz S.A. | 613,797 | 44,601,478 | ||||
145,200,571 | ||||||
Germany–10.59% | ||||||
Amadeus Fire AG(a) | 203,632 | 20,994,668 | ||||
Carl Zeiss Meditec AG, BR | 2,024,385 | 199,794,048 | ||||
Fuchs Petrolub SE, Preference Shares | 1,448,894 | 56,379,567 | ||||
MorphoSys AG(a) | 551,095 | 58,013,228 | ||||
Nemetschek SE | 1,218,704 | 76,812,305 | ||||
New Work SE | 245,773 | 58,524,321 | ||||
PVA TePla AG | 263,907 | 2,892,361 | ||||
Sartorius AG, Preference Shares | 213,010 | 60,004,156 | ||||
STRATEC SE(b) | 692,469 | 65,676,069 | ||||
Symrise AG | 717,733 | 72,859,382 | ||||
671,950,105 |
Shares | Value | |||||
Iceland–3.07% | ||||||
Marel HF(c) | 11,065,504 | $ 47,281,434 | ||||
Ossur HF(b) | 22,965,962 | 147,388,780 | ||||
194,670,214 | ||||||
India–0.42% | ||||||
AIA Engineering Ltd. | 1,241,017 | 26,471,593 | ||||
Israel–3.03% | ||||||
Nice Ltd., ADR(a) | 1,169,278 | 192,112,375 | ||||
Italy–1.76% | ||||||
DiaSorin S.p.A. | 574,824 | 97,955,904 | ||||
Interpump Group S.p.A. | 240,824 | 7,027,615 | ||||
Tinexta S.p.A. | 491,222 | 6,547,366 | ||||
111,530,885 | ||||||
Japan–23.13% | ||||||
Ariake Japan Co. Ltd. | 1,492,000 | 86,388,589 | ||||
As One Corp. | 412,563 | 36,725,877 | ||||
Azbil Corp. | 3,850,800 | 101,498,960 | ||||
Benefit One, Inc. | 3,018,700 | 53,163,675 | ||||
Daifuku Co. Ltd. | 2,533,800 | 176,482,527 | ||||
Disco Corp. | 125,000 | 28,078,087 | ||||
Fujitec Co. Ltd. | 3,351,700 | 48,066,783 | ||||
Fukui Computer Holdings, Inc. | 762,300 | 20,428,477 | ||||
Harmonic Drive Systems, Inc. | 406,500 | 18,887,102 | ||||
Infomart Corp. | 4,167,700 | 29,017,235 | ||||
Japan Elevator Service Holdings Co. Ltd. | 2,000,000 | 51,121,530 | ||||
Mani, Inc. | 322,700 | 7,169,591 | ||||
Meitec Corp. | 912,886 | 40,325,918 | ||||
MISUMI Group, Inc. | 1,047,900 | 25,092,105 | ||||
MonotaRO Co. Ltd. | 3,082,900 | 99,138,821 | ||||
Nippon Shinyaku Co. Ltd. | 1,125,100 | 78,934,238 | ||||
NSD Co. Ltd. | 1,834,900 | 26,236,012 | ||||
OBIC Business Consultants Co. Ltd. | 2,162,400 | 96,757,746 | ||||
Obic Co. Ltd. | 1,424,500 | 213,320,139 | ||||
SCSK Corp. | 1,038,200 | 46,714,796 | ||||
TechnoPro Holdings, Inc. | 839,000 | 47,653,661 | ||||
Trend Micro, Inc. | 1,200,300 | 60,706,621 | ||||
USS Co. Ltd. | 4,790,348 | 75,928,744 | ||||
1,467,837,234 | ||||||
Jersey–0.88% | ||||||
Sanne Group PLC | 6,855,422 | 55,845,398 | ||||
Malaysia–0.37% | ||||||
Hartalega Holdings Bhd. | 13,182,800 | 23,262,038 | ||||
Netherlands–3.28% | ||||||
ASM International N.V. | 606,696 | 66,900,141 | ||||
IMCD N.V. | 1,032,282 | 91,414,268 | ||||
Intertrust N.V.(c) | 3,168,743 | 49,980,845 | ||||
208,295,254 | ||||||
New Zealand–1.09% | ||||||
Fisher & Paykel Healthcare Corp. Ltd. | 4,149,742 | 69,142,686 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
6 | Invesco Oppenheimer International Small-Mid Company Fund |
Shares | Value | |||||
Norway–0.01% | ||||||
TGS NOPEC Geophysical Co. ASA | 65,301 | $ 1,003,572 | ||||
Spain–0.46% | ||||||
Applus Services S.A. | 3,784,471 | 24,886,849 | ||||
Grupo Catalana Occidente S.A. | 231,709 | 4,482,113 | ||||
29,368,962 | ||||||
Sweden–5.48% | ||||||
Addtech AB, Class B | 1,022,460 | 27,950,703 | ||||
Alfa Laval AB(a) | 871,884 | 16,359,127 | ||||
Biotage AB | 2,124,632 | 26,451,534 | ||||
Bravida Holding AB(a)(c) | 4,621,605 | 37,724,646 | ||||
Elekta AB, Class B | 4,653,388 | 43,010,321 | ||||
Hexpol AB(a) | 8,627,143 | 62,865,085 | ||||
Karnov Group AB(a) | 2,040,998 | 11,136,920 | ||||
Lifco AB, Class B | 886,701 | 42,286,355 | ||||
Loomis AB, Class B | 2,092,498 | 51,111,676 | ||||
Mycronic AB | 1,707,219 | 28,673,488 | ||||
347,569,855 | ||||||
Switzerland–12.34% | ||||||
Belimo Holding AG | 15,617 | 103,778,960 | ||||
Bossard Holding AG, Class A | 280,926 | 35,014,063 | ||||
dormakaba Holding AG(a) | 103,640 | 51,874,367 | ||||
Forbo Holding AG | 22,741 | 30,512,134 | ||||
Interroll Holding AG | 14,228 | 27,065,225 | ||||
Kardex AG | 372,893 | 53,753,500 | ||||
LEM Holding S.A. | 36,802 | 47,677,796 | ||||
Partners Group Holding AG | 255,620 | 201,506,372 | ||||
Tecan Group AG, Class R | 503,471 | 162,594,877 | ||||
VZ Holding AG | 994,260 | 69,572,682 | ||||
783,349,976 |
Shares | Value | |||||
United Kingdom–14.63% | ||||||
Abcam PLC | 6,349,060 | $ 101,634,299 | ||||
Ascential PLC(c) | 5,213,753 | 16,625,262 | ||||
Ashmore Group PLC | 7,347,523 | 35,157,312 | ||||
boohoo Group PLC(a) | 19,874,330 | 80,942,977 | ||||
Croda International PLC | 2,063,871 | 127,016,203 | ||||
Diploma PLC | 2,987,649 | 64,988,856 | ||||
FDM Group Holdings PLC | 4,503,070 | 42,459,445 | ||||
Halma PLC | 3,725,333 | 98,169,684 | ||||
IMI PLC | 2,857,314 | 29,806,221 | ||||
Johnson Service Group PLC | 8,369,096 | 13,102,992 | ||||
Lancashire Holdings Ltd. | 665,311 | 5,130,698 | ||||
Ocado Group PLC(a) | 5,044,438 | 102,028,560 | ||||
Restore PLC | 5,560,152 | 27,133,408 | ||||
Rotork PLC | 11,706,811 | 36,697,131 | ||||
Spirax-Sarco Engineering PLC | 980,234 | 107,864,790 | ||||
Victrex PLC | 1,593,318 | 40,079,395 | ||||
928,837,233 | ||||||
United States–0.58% | ||||||
Bruker Corp. | 933,403 | 36,701,406 | ||||
Total Common Stocks & Other Equity Interests | 6,246,514,884 | |||||
Money Market Funds–0.59% |
| |||||
Invesco Government & Agency Portfolio, Institutional Class, 0.20%(b)(d) | 37,319,966 | 37,319,966 | ||||
TOTAL INVESTMENTS IN SECURITIES–99.01% | 6,283,834,850 | |||||
OTHER ASSETS LESS LIABILITIES–0.99% | 62,894,861 | |||||
NET ASSETS–100.00% | $6,346,729,711 |
Investment Abbreviations:
ADR – American Depositary Receipt
BR – Bearer Shares
Notes to Schedule of Investments:
(a) | Non-income producing security. |
(b) | Affiliated issuer. The issuer is affiliated by having an investment adviser that is under common control of Invesco Ltd. and/or the Investment Company Act of 1940, as amended (the “1940 Act”), defines “affiliated person” to include an issuer of which a fund holds 5% or more of the outstanding voting securities. The Fund has not owned enough of the outstanding voting securities of the issuer to have control (as defined in the 1940 Act) of that issuer. The table below shows the Fund’s transactions in, and earnings from, its investments in affiliates for the six months ended April 30, 2020. |
Value October 31, 2019 | Purchases at Cost | Proceeds from Sales | Change in Unrealized Appreciation (Depreciation) | Realized Gain (Loss) | Value April 30, 2020 | Dividend Income | ||||||||||||||||||||||
Investments in Affiliated Money Market Funds: | ||||||||||||||||||||||||||||
Invesco Government & Agency Portfolio, Institutional Class | $ | 588,934,676 | $ | 1,345,524,300 | $ | (1,897,139,010 | ) | $ | - | $ | - | $ | 37,319,966 | $ | 2,385,268 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
7 | Invesco Oppenheimer International Small-Mid Company Fund |
Value October 31, 2019 | Purchases at Cost | Proceeds from Sales | Change in Unrealized Appreciation (Depreciation) | Realized Gain (Loss) | Value April 30, 2020 | Dividend Income | ||||||||||||||||||||||
Investments in Other Affiliates: | ||||||||||||||||||||||||||||
AMG Advanced Metallurgical Group NV * | $ | 49,384,237 | $ | - | $ | (47,635,939 | ) | $ | 42,176,258 | $ | (43,924,556 | ) | $ | - | $ | - | ||||||||||||
Biocartis N.V.* | 21,488,283 | - | (19,106,968 | ) | 18,265,010 | (20,646,325 | ) | - | - | |||||||||||||||||||
Fujitec Co. Ltd.** | 72,759,396 | - | (22,659,963 | ) | (4,103,785 | ) | 2,071,135 | 48,066,783 | 810,085 | |||||||||||||||||||
IQE PLC* | 67,965,522 | - | (43,400,190 | ) | 9,873,006 | (34,438,338 | ) | - | - | |||||||||||||||||||
Istyle, Inc. * | 31,481,282 | - | (25,574,353 | ) | 3,361,004 | (9,267,933 | ) | - | - | |||||||||||||||||||
M&C Saatchi PLC* | 17,167,491 | - | (8,838,107 | ) | 20,522,481 | (28,851,865 | ) | - | - | |||||||||||||||||||
Materialise N.V., ADR* | 59,179,000 | - | (51,708,000 | ) | (7,165,501 | ) | (305,499 | ) | - | - | ||||||||||||||||||
Mycronic AB** | 99,759,667 | - | (47,351,490 | ) | (18,433,791 | ) | (5,300,898 | ) | 28,673,488 | - | ||||||||||||||||||
New Work SE** | 105,106,921 | - | (27,648,499 | ) | (33,008,259 | ) | 14,074,158 | 58,524,321 | - | |||||||||||||||||||
Ossur HF | 166,277,568 | - | (729 | ) | (18,888,249 | ) | 190 | 147,388,780 | 399,434 | |||||||||||||||||||
PVA TePla AG** | 15,135,016 | - | (8,868,307 | ) | (175,671 | ) | (3,198,677 | ) | 2,892,362 | - | ||||||||||||||||||
RaySearch Laboratories AB* | 40,142,140 | - | (28,275,261 | ) | (7,040,464 | ) | (4,826,415 | ) | - | - | ||||||||||||||||||
SLM Solutions Group AG* | 17,981,027 | - | (17,081,772 | ) | 1,024,533 | (1,923,788 | ) | - | - | |||||||||||||||||||
STRATEC SE | 56,755,200 | - | (5,829,347 | ) | 13,689,991 | 1,060,225 | 65,676,069 | - | ||||||||||||||||||||
Tecan Group AG** | 155,905,994 | - | (48,361,054 | ) | 40,817,941 | 14,231,996 | 162,594,877 | 1,237,845 | ||||||||||||||||||||
Ted Baker plc* | 15,781,497 | - | (14,622,683 | ) | 46,995,492 | (48,154,306 | ) | - | - | |||||||||||||||||||
Theratechnologies, Inc* | 15,974,489 | - | (11,567,319 | ) | 11,557,264 | (15,964,434 | ) | - | - | |||||||||||||||||||
UUUM, Inc. * | 81,243,851 | - | (69,645,659 | ) | (4,967,538 | ) | (6,630,654 | ) | - | - | ||||||||||||||||||
WANdisco PLC* | 16,337,599 | - | (13,481,792 | ) | 2,640,616 | (5,496,423 | ) | - | - | |||||||||||||||||||
Zoo Digital Group PLC* | 7,813,467 | - | (6,866,459 | ) | 3,665,763 | (4,612,771 | ) | - | - | |||||||||||||||||||
Zotefoams PLC* | 15,667,998 | - | (23,049,726 | ) | 16,127,980 | (8,746,252 | ) | - | - | |||||||||||||||||||
Total | $ | 1,718,242,321 | $ | 1,345,524,300 | $ | (2,438,712,627 | ) | $ | 136,934,081 | $ | (210,851,430 | ) | $ | 551,136,646 | $ | 4,832,632 |
* | At April 30, 2020, this security was no longer held. |
** | As of April 30, 2020, this security was not considered as an affiliate of the Fund. |
(c) | Security purchased or received in a transaction exempt from registration under the Securities Act of 1933, as amended (the “1933 Act”). The security may be resold pursuant to an exemption from registration under the 1933 Act, typically to qualified institutional buyers. The aggregate value of these securities at April 30, 2020 was $151,612,187, which represented 2.39% of the Fund’s Net Assets. |
(d) | The rate shown is the 7-day SEC standardized yield as of April 30, 2020. |
Portfolio Composition
By sector, based on Net Assets
as of April 30, 2020
Industrials | 26.56 | % | ||
Health Care | 24.06 | |||
Information Technology | 23.77 | |||
Materials | 8.23 | |||
Financials | 5.86 | |||
Consumer Discretionary | 5.59 | |||
Other Sectors, Each Less than 2% of Net Assets | 4.35 | |||
Money Market Funds Plus Other Assets Less Liabilities | 1.58 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
8 | Invesco Oppenheimer International Small-Mid Company Fund |
Statement of Assets and Liabilities
April 30, 2020
(Unaudited)
Assets: | ||
Investments in securities, at value | $6,246,514,884 | |
Investments in affiliated money market funds, at value | 37,319,966 | |
Cash | 3,000,000 | |
Foreign currencies, at value (Cost $10,041,020) | 10,132,146 | |
Receivable for: | ||
Investments sold | 65,483,372 | |
Fund shares sold | 3,173,070 | |
Dividends | 34,723,058 | |
Investment for trustee deferred compensation and retirement plans | 197,634 | |
Other assets | 191,955 | |
Total assets | 6,400,736,085 | |
Liabilities: | ||
Payable for: | ||
Investments purchased | 34,532,927 | |
Fund shares reacquired | 15,602,751 | |
Accrued fees to affiliates | 1,979,662 | |
Accrued interest expense | 594 | |
Accrued trustees’ and officers’ fees and benefits | 28,220 | |
Accrued other operating expenses | 1,664,586 | |
Trustee deferred compensation and retirement plans | 197,634 | |
Total liabilities | 54,006,374 | |
Net assets applicable to shares outstanding | $6,346,729,711 | |
Net assets consist of: | ||
Shares of beneficial interest | $4,926,075,170 | |
Distributable earnings | 1,420,654,541 | |
$6,346,729,711 |
Net Assets: | ||||
Class A | $ | 1,093,923,823 | ||
Class C | $ | 134,369,902 | ||
Class R | $ | 80,631,462 | ||
Class Y | $ | 2,776,760,785 | ||
Class R5 | $ | 90,785 | ||
Class R6 | $ | 2,260,952,954 | ||
Shares outstanding, no par value, with an unlimited number of shares authorized: |
| |||
Class A | 25,936,262 | |||
Class C | 3,549,526 | |||
Class R | 2,023,272 | |||
Class Y | 66,430,763 | |||
Class R5 | 2,146 | |||
Class R6 | 53,885,846 | |||
Class A: | ||||
Net asset value per share | $ | 42.18 | ||
Maximum offering price per share (Net asset value of $42.18 ÷ 94.50%) | $ | 44.63 | ||
Class C: | ||||
Net asset value and offering price per share | $ | 37.86 | ||
Class R: | ||||
Net asset value and offering price per share | $ | 39.85 | ||
Class Y: | ||||
Net asset value and offering price per share | $ | 41.80 | ||
Class R5: | ||||
Net asset value and offering price per share | $ | 42.30 | ||
Class R6: | ||||
Net asset value and offering price per share | $ | 41.96 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
9 | Invesco Oppenheimer International Small-Mid Company Fund |
Statement of Operations
For the six months ended April 30, 2020
(Unaudited)
Investment income: | ||||
Dividends (net of foreign withholding taxes of $4,218,069) | $ | 42,851,666 | ||
| ||||
Dividends from affiliated money market funds | 2,385,268 | |||
| ||||
Interest | (85,276 | ) | ||
| ||||
Total investment income | 45,151,658 | |||
| ||||
Expenses: | ||||
Advisory fees | 35,110,987 | |||
| ||||
Administrative services fees | 554,493 | |||
| ||||
Custodian fees | 456,949 | |||
| ||||
Distribution fees: | ||||
| ||||
Class A | 1,564,509 | |||
| ||||
Class C | 796,692 | |||
| ||||
Class R | 223,136 | |||
| ||||
Transfer agent fees – A, C, R and Y | 3,829,171 | |||
| ||||
Transfer agent fees – R5 | 1 | |||
| ||||
Transfer agent fees – R6 | 38,921 | |||
| ||||
Trustees’ and officers’ fees and benefits | 9,206 | |||
| ||||
Registration and filing fees | 46,949 | |||
| ||||
Reports to shareholders | 316,915 | |||
| ||||
Professional services fees | 66,514 | |||
| ||||
Other | (117,565 | ) | ||
| ||||
Total expenses | 42,896,878 | |||
| ||||
Less: Fees waived and/or expense offset arrangement(s) | (174,813 | ) | ||
| ||||
Net expenses | 42,722,065 | |||
| ||||
Net investment income | 2,429,593 | |||
| ||||
Realized and unrealized gain (loss) from: | ||||
Net realized gain (loss) from: | ||||
Investment securities (includes net gains (losses) from securities sold to affiliates of $(247,323,575)) | (49,026,353 | ) | ||
| ||||
Foreign currencies | 1,187,517 | |||
| ||||
Forward foreign currency contracts | (275,640 | ) | ||
| ||||
(48,114,476 | ) | |||
| ||||
Change in net unrealized appreciation (depreciation) of: | ||||
Investment securities | (694,393,431 | ) | ||
| ||||
Foreign currencies | 359,375 | |||
| ||||
(694,034,056 | ) | |||
| ||||
Net realized and unrealized gain (loss) | (742,148,532 | ) | ||
| ||||
Net increase (decrease) in net assets resulting from operations | $ | (739,718,939 | ) | |
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
10 | Invesco Oppenheimer International Small-Mid Company Fund |
Statement of Changes in Net Assets
For the six months ended April 30, 2020, period ended October 31, 2019, and the year ended August 31, 2019
(Unaudited)
Six Months Ended April 30, 2020 | Two Months Ended October 31, 2019 | Year Ended August 31, 2019 | ||||||||||
| ||||||||||||
Operations: | ||||||||||||
Net investment income (loss) | $ | 2,429,593 | $ | (2,209,265 | ) | $ | 13,988,958 | |||||
| ||||||||||||
Net realized gain (loss) | (48,114,476 | ) | 48,904,956 | 502,388,993 | ||||||||
| ||||||||||||
Change in net unrealized appreciation (depreciation) | (694,034,056 | ) | 304,627,726 | (1,285,912,315 | ) | |||||||
| ||||||||||||
Net increase (decrease) in net assets resulting from operations | (739,718,939 | ) | 351,323,417 | (769,534,364 | ) | |||||||
| ||||||||||||
Distributions to shareholders from distributable earnings: | ||||||||||||
Class A | (68,564,320 | ) | - | (139,080,623 | ) | |||||||
| ||||||||||||
Class C | (9,282,894 | ) | - | (25,956,690 | ) | |||||||
| ||||||||||||
Class R | (4,821,631 | ) | - | (8,517,948 | ) | |||||||
| ||||||||||||
Class Y | (199,590,574 | ) | - | (435,294,440 | ) | |||||||
| ||||||||||||
Class R5 | (1,004 | ) | - | - | ||||||||
| ||||||||||||
Class R6 | (135,725,492 | ) | - | (272,368,594 | ) | |||||||
| ||||||||||||
Total distributions from distributable earnings | (417,985,915 | ) | - | (881,218,295 | ) | |||||||
| ||||||||||||
Share transactions–net: | ||||||||||||
Class A | (139,630,691 | ) | (34,872,319 | ) | (121,699,037 | ) | ||||||
| ||||||||||||
Class C | (18,891,210 | ) | (9,868,630 | ) | (95,796,785 | ) | ||||||
| ||||||||||||
Class R | (2,164,399 | ) | (3,241,275 | ) | 6,368,039 | |||||||
| ||||||||||||
Class Y | (739,120,261 | ) | (68,628,740 | ) | (979,187,194 | ) | ||||||
| ||||||||||||
Class R5 | 71,978 | - | 20,000 | |||||||||
| ||||||||||||
Class R6 | (132,121,944 | ) | (46,716,971 | ) | (63,792,999 | ) | ||||||
| ||||||||||||
Net increase (decrease) in net assets resulting from share transactions | (1,031,856,527 | ) | (163,327,935 | ) | (1,254,087,976 | ) | ||||||
| ||||||||||||
Net increase (decrease) in net assets | (2,189,561,381 | ) | 187,995,482 | (2,904,840,635 | ) | |||||||
| ||||||||||||
Net assets: | ||||||||||||
Beginning of period | 8,536,291,092 | 8,348,295,610 | 11,253,136,245 | |||||||||
| ||||||||||||
End of period | $ | 6,346,729,711 | $ | 8,536,291,092 | $ | 8,348,295,610 | ||||||
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
11 | Invesco Oppenheimer International Small-Mid Company Fund |
(Unaudited)
The following schedule presents financial highlights for a share of the Fund outstanding throughout the periods indicated.
Net asset value, beginning of period | Net investment income (loss)(a) | Net gains (losses) on securities realized and unrealized) | Total from investment operations | Dividends from net investment income | Distributions from net realized | Total distributions | Net asset value, end of period | Total return (b) | Net assets, end of period (000’s omitted) | Ratio of expenses to average net assets with fee waivers expenses | Ratio of expenses to average net assets without | Ratio of net to average net assets | Portfolio turnover (e) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 04/30/20 | $ | 48.20 | $ | (0.04 | ) | $ | (3.62 | ) | $ | (3.66 | ) | $ | (0.18 | ) | $ | (2.18 | ) | $ | (2.36 | ) | $ | 42.18 | (8.17 | )% | $ | 1,093,924 | 1.33 | %(f) | 1.33 | %(f) | (0.17 | )%(f) | 57 | % | ||||||||||||||||||||||||||||||||||||
Two months ended 10/31/19 | 46.25 | (0.03 | ) | 1.98 | 1.95 | - | - | - | 48.20 | 4.22 | 1,417,657 | 1.31 | (g) | 1.31 | (g) | (0.37 | )(g) | 0 | (h) | |||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/19 | 54.54 | (0.03 | ) | (3.81 | ) | (3.84 | ) | (0.22 | ) | (4.23 | ) | (4.45 | ) | 46.25 | (6.21 | ) | 1,394,542 | 1.36 | 1.36 | (0.06 | ) | 28 | ||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/18 | 47.11 | (0.05 | ) | 8.94 | 8.89 | (0.37 | ) | (1.09 | ) | (1.46 | ) | 54.54 | 19.27 | 1,777,990 | 1.38 | 1.38 | (0.10 | ) | 27 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/17 | 38.28 | (0.06 | ) | 8.95 | 8.89 | (0.06 | ) | - | (0.06 | ) | 47.11 | 23.25 | 2,260,943 | 1.41 | 1.41 | (0.15 | ) | 22 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/16 | 36.38 | 0.05 | 1.87 | 1.92 | (0.02 | ) | - | (0.02 | ) | 38.28 | 5.29 | 2,678,644 | 1.29 | 1.29 | (0.14 | ) | 19 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/15 | 33.92 | 0.06 | 2.55 | 2.61 | (0.15 | ) | - | (0.15 | ) | 36.38 | 7.77 | 1,968,434 | 1.19 | 1.19 | (0.18 | ) | 15 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Class C | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 04/30/20 | 43.62 | (0.19 | ) | (3.24 | ) | (3.43 | ) | (0.15 | ) | (2.18 | ) | (2.33 | ) | 37.86 | (8.50 | ) | 134,370 | 2.09 | (f) | 2.09 | (f) | (0.93 | )(f) | 57 | ||||||||||||||||||||||||||||||||||||||||||||||
Two months ended 10/31/19 | 41.91 | (0.08 | ) | 1.79 | 1.71 | - | - | - | 43.62 | 4.08 | 177,238 | 2.07 | (g) | 2.07 | (g) | (1.13 | )(g) | 0 | (h) | |||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/19 | 50.01 | (0.35 | ) | (3.52 | ) | (3.87 | ) | - | (4.23 | ) | (4.23 | ) | 41.91 | (6.91 | ) | 179,992 | 2.12 | 2.12 | (0.82 | ) | 28 | |||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/18 | 43.36 | (0.40 | ) | 8.22 | 7.82 | (0.08 | ) | (1.09 | ) | (1.17 | ) | 50.01 | 18.37 | 323,001 | 2.13 | 2.13 | (0.85 | ) | 27 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/17 | 35.45 | (0.34 | ) | 8.25 | 7.91 | - | - | - | 43.36 | 22.35 | 323,084 | 2.16 | 2.16 | (0.91 | ) | 22 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/16 | 33.92 | (0.21 | ) | 1.74 | 1.53 | - | - | - | 35.45 | 4.48 | 339,118 | 2.04 | 2.04 | (0.62 | ) | 19 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/15 | 31.71 | (0.18 | ) | 2.39 | 2.21 | - | - | - | 33.92 | 6.97 | 281,439 | 1.94 | 1.94 | (0.57 | ) | 15 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class R | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 04/30/20 | 45.70 | (0.09 | ) | (3.42 | ) | (3.51 | ) | (0.16 | ) | (2.18 | ) | (2.34 | ) | 39.85 | (8.29 | ) | 80,631 | 1.59 | (f) | 1.59 | (f) | (0.43 | )(f) | 57 | ||||||||||||||||||||||||||||||||||||||||||||||
Two months ended 10/31/19 | 43.88 | (0.05 | ) | 1.87 | 1.82 | - | - | - | 45.70 | 4.15 | 95,501 | 1.57 | (g) | 1.57 | (g) | (0.63 | )(g) | 0 | (h) | |||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/19 | 52.05 | (0.14 | ) | (3.65 | ) | (3.79 | ) | (0.15 | ) | (4.23 | ) | (4.38 | ) | 43.88 | (6.44 | ) | 94,864 | 1.61 | 1.61 | (0.31 | ) | 28 | ||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/18 | 45.08 | (0.17 | ) | 8.55 | 8.38 | (0.32 | ) | (1.09 | ) | (1.41 | ) | 52.05 | 18.99 | 103,818 | 1.63 | 1.63 | (0.35 | ) | 27 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/17 | 36.67 | (0.15 | ) | 8.56 | 8.41 | - | - | - | 45.08 | 22.93 | 91,019 | 1.66 | 1.66 | (0.39 | ) | 22 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/16 | 34.92 | (0.05 | ) | 1.80 | 1.75 | - | - | - | 36.67 | 5.01 | 73,150 | 1.53 | 1.53 | (0.15 | ) | 19 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/15 | 32.55 | (0.02 | ) | 2.46 | 2.44 | (0.07 | ) | - | (0.07 | ) | 34.92 | 7.53 | 60,908 | 1.44 | 1.44 | (0.07 | ) | 15 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Class Y | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 04/30/20 | 47.75 | 0.02 | (3.59 | ) | (3.57 | ) | (0.20 | ) | (2.18 | ) | (2.38 | ) | 41.80 | (8.07 | ) | 2,776,761 | 1.09 | (f) | 1.09 | (f) | 0.07 | (f) | 57 | |||||||||||||||||||||||||||||||||||||||||||||||
Two months ended 10/31/19 | 45.80 | (0.01 | ) | 1.96 | 1.95 | - | - | - | 47.75 | 4.26 | 4,085,890 | 1.07 | (g) | 1.07 | (g) | (0.13 | )(g) | 0 | (h) | |||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/19 | 54.15 | 0.08 | (3.80 | ) | (3.72 | ) | (0.40 | ) | (4.23 | ) | (4.63 | ) | 45.80 | (5.98 | ) | 3,986,316 | 1.12 | 1.12 | 0.18 | 28 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/18 | 46.82 | 0.08 | 8.87 | 8.95 | (0.53 | ) | (1.09 | ) | (1.62 | ) | 54.15 | 19.57 | 5,811,651 | 1.14 | 1.14 | 0.15 | 27 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/17 | 38.06 | 0.05 | 8.87 | 8.92 | (0.16 | ) | - | (0.16 | ) | 46.82 | 23.55 | 4,125,091 | 1.16 | 1.16 | 0.13 | 22 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/16 | 36.16 | 0.15 | 1.85 | 2.00 | (0.10 | ) | - | (0.10 | ) | 38.06 | 5.53 | 2,239,385 | 1.04 | 1.04 | 0.41 | 19 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/15 | 33.71 | 0.16 | 2.52 | 2.68 | (0.23 | ) | - | (0.23 | ) | 36.16 | 8.05 | 1,397,394 | 0.95 | 0.95 | 0.47 | 15 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class R5 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 04/30/20 | 48.26 | 0.05 | (3.63 | ) | (3.58 | ) | (0.20 | ) | (2.18 | ) | (2.38 | ) | 42.30 | (7.98 | ) | 91 | 0.96 | (f) | 0.96 | (f) | 0.20 | (f) | 57 | |||||||||||||||||||||||||||||||||||||||||||||||
Two months ended 10/31/19 | 46.29 | (0.01 | ) | 1.98 | 1.97 | - | - | - | 48.26 | 4.26 | 20 | 1.01 | (g) | 1.01 | (g) | (0.07 | )(g) | 0 | (h) | |||||||||||||||||||||||||||||||||||||||||||||||||||
Period ended 08/31/19 | 46.97 | 0.04 | (0.72 | ) | (0.68 | ) | - | - | - | 46.29 | (1.45 | ) | 19 | 1.01 | 1.01 | 0.29 | 28 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Class R6 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 04/30/20 | 47.90 | 0.05 | (3.60 | ) | (3.55 | ) | (0.21 | ) | (2.18 | ) | (2.39 | ) | 41.96 | (7.99 | ) | 2,260,953 | 0.94 | (f) | 0.94 | (f) | 0.22 | (f) | 57 | |||||||||||||||||||||||||||||||||||||||||||||||
Two months ended 10/31/19 | 45.94 | - | 1.96 | 1.96 | - | - | - | 47.90 | 4.27 | 2,759,984 | 0.94 | (g) | 0.94 | (g) | 0.00 | (g) | 0 | (h) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/19 | 54.32 | 0.16 | (3.82 | ) | (3.66 | ) | (0.49 | ) | (4.23 | ) | (4.72 | ) | 45.94 | (5.82 | ) | 2,692,561 | 0.96 | 0.96 | 0.34 | 28 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/18 | 46.95 | 0.16 | 8.90 | 9.06 | (0.60 | ) | (1.09 | ) | (1.69 | ) | 54.32 | 19.77 | 3,236,676 | 0.96 | 0.96 | 0.32 | 27 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/17 | 38.17 | 0.12 | 8.88 | 9.00 | (0.22 | ) | - | (0.22 | ) | 46.95 | 23.76 | 2,285,847 | 0.97 | 0.97 | 0.30 | 22 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/16 | 36.23 | 0.21 | 1.87 | 2.08 | (0.14 | ) | - | (0.14 | ) | 38.17 | 5.75 | 1,272,537 | 0.85 | 0.85 | 0.57 | 19 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/15 | 33.76 | 0.21 | 2.54 | 2.75 | (0.28 | ) | - | (0.28 | ) | 36.23 | 8.27 | 1,032,630 | 0.76 | 0.76 | 0.60 | 15 |
(a) | Calculated using average shares outstanding. |
(b) | Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Does not include sales charges and is not annualized for periods less than one year, if applicable. |
(c) | Includes fee waivers which were less than 0.005% per share. |
(d) | Does not include estimated acquired fund fees from underlying funds of 0.00%, 0.01%, 0.01%, 0.01%, 0.01% and 0.01% for the two months ended October 31, 2019 and the years ended August 31, 2019, 2018, 2017, 2016 and 2015, respectively. |
(e) | Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable. |
(f) | Ratios are annualized and based on average daily net assets (000’s omitted) of $1,292,483, $160,214, $89,745, $3,663,297, $20 and $2,591,228 for Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares, respectively. |
(g) | Annualized. |
(h) | Amount represents less than 0.005%. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
12 | Invesco Oppenheimer International Small-Mid Company Fund |
April 30, 2020
(Unaudited)
NOTE 1–Significant Accounting Policies
Invesco Oppenheimer International Small-Mid Company Fund (the “Fund”) is a series portfolio of AIM International Mutual Funds (Invesco International Mutual 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 the Fund or each class.
The Fund’s investment objective is long-term growth of capital.
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. 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. |
A security listed or traded on an exchange (except convertible securities) is valued at its last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded, or lacking any sales or official closing price on a particular day, the security may be valued at the closing bid price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued by an independent pricing service they may be considered fair valued. Futures contracts are valued at the final settlement price set by an exchange on which they are principally traded. Listed options are valued at the mean between the last bid and asked prices from the exchange on which they are principally traded. Options not listed on an exchange are valued by an independent source at the mean between the last bid and asked prices. For purposes of determining net asset value (“NAV”) per share, futures and option contracts generally are valued 15 minutes after the close of the customary trading session of the New York Stock Exchange (“NYSE”).
Investments in open-end and closed-end registered investment companies that do not trade on an exchange are valued at the end-of-day net asset value per share. Investments in open-end and closed-end registered investment companies that trade on an exchange are valued at the last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded.
Debt obligations (including convertible securities) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. Pricing services generally value debt obligations assuming orderly transactions of institutional round lot size, but a fund may hold or transact in the same securities in smaller, odd lot sizes. Odd lots often trade at lower prices than institutional round lots. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.
Foreign securities’ (including foreign exchange contracts) prices are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the NYSE. If market quotations are available and reliable for foreign exchange-traded equity securities, the securities will be valued at the market quotations. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become unreliable. If between the time trading ends on a particular security and the close of the customary trading session on the NYSE, events occur that the investment adviser determines are significant and make the closing price unreliable, the Fund may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith using procedures approved by the Board of Trustees. Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities’ prices meeting the approved degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economic upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.
Securities for which market prices are not provided by any of the above methods may be valued based upon quotes furnished by independent sources. The last bid price may be used to value equity securities. The mean between the last bid and asked prices is used to value debt obligations, including corporate loans.
Securities for which market quotations are not readily available or became unreliable are valued at fair value as determined in good faith by or under the supervision of the Trust’s officers following procedures approved by the Board of Trustees. Issuer specific events, market trends, bid/asked quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security’s fair value.
The Fund may invest in securities that are subject to interest rate risk, meaning the risk that the prices will generally fall as interest rates rise and, conversely, the prices will generally rise as interest rates fall. Specific securities differ in their sensitivity to changes in interest rates depending on their individual characteristics. Changes in interest rates may result in increased market volatility, which may affect the value and/or liquidity of certain Fund investments.
Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the issuer’s assets, general market conditions which are not specifically related to the particular issuer, such as real or perceived adverse economic conditions, changes in the general outlook for revenues or corporate earnings, changes in interest or currency rates, regional or global instability, natural or environmental disasters, widespread disease or other public health issues, war, acts of terrorism or adverse investor sentiment generally and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
B. | Securities Transactions and Investment Income – Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income (net of withholding tax, if any) is recorded on an accrual basis from settlement date. Dividend income (net of withholding tax, if any) is recorded on the ex-dividend date. |
The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Statement of Operations as realized gain (loss) for investments no longer held and as unrealized gain (loss) for investments still held.
Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of net realized and unrealized gain (loss) from investment
13 | Invesco Oppenheimer International Small-Mid Company Fund |
securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the net realized and unrealized gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and the Statement of Changes in Net Assets, or the net investment income per share and the ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.
The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class.
C. | Country Determination – For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues and the country that has the primary market for the issuer’s securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted. |
D. | Distributions – Distributions from net investment income and net realized capital gain, if any, are generally declared and paid annually and recorded on the ex-dividend date. The Fund may elect to treat a portion of the proceeds from redemptions as distributions for federal income tax purposes. |
E. | Federal Income Taxes – The Fund intends to comply with the requirements of Subchapter M of the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”), necessary to qualify as a regulated investment company and to distribute substantially all of the Fund’s taxable earnings to shareholders. As such, the Fund will not be subject to federal income taxes on otherwise taxable income (including net realized capital gain) that is distributed to shareholders. |
Therefore, no provision for federal income taxes is recorded in the financial statements.
The Fund recognizes the tax benefits of uncertain tax positions only when the position is more likely than not to be sustained. Management has analyzed the Fund’s uncertain tax positions and concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions. Management is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the next 12 months.
The Fund files tax returns in the U.S. Federal jurisdiction and certain other jurisdictions. Generally, the Fund is subject to examinations by such taxing authorities for up to three years after the filing of the return for the tax period.
F. | Expenses – Fees provided for under the Rule 12b-1 plan of a particular class of the Fund are charged to the operations of such class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses attributable to Class R6 are charged to such 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 preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print. |
H. | Indemnifications – Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of the performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements, that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote. |
I. | Foreign Currency Translations – Foreign currency is valued at the close of the NYSE based on quotations posted by banks and major currency dealers. Portfolio securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at the date of valuation. Purchases and sales of portfolio securities (net of foreign taxes withheld on disposition) and income items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. The Fund does not separately account for the portion of the results of operations resulting from changes in foreign exchange rates on investments and the fluctuations arising from changes in market prices of securities held. The combined results of changes in foreign exchange rates and the fluctuation of market prices on investments (net of estimated foreign tax withholding) are included with the net realized and unrealized gain or loss from investments in the Statement of Operations. Reported net realized foreign currency gains or losses arise from (1) sales of foreign currencies, (2) currency gains or losses realized between the trade and settlement dates on securities transactions, and (3) the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign currency gains and losses arise from changes in the fair values of assets and liabilities, other than investments in securities at fiscal period end, resulting from changes in exchange rates. |
The Fund may invest in foreign securities, which may be subject to foreign taxes on income, gains on investments or currency repatriation, a portion of which may be recoverable. Foreign taxes, if any, are recorded based on the tax regulations and rates that exist in the foreign markets in which the Fund invests and are shown in the Statement of Operations.
J. | Forward Foreign Currency Contracts – The Fund may engage in foreign currency transactions either on a spot (i.e. for prompt delivery and settlement) basis, or through forward foreign currency contracts, to manage or minimize currency or exchange rate risk. |
The Fund may also enter into forward foreign currency contracts for the purchase or sale of a security denominated in a foreign currency in order to “lock in” the U.S. dollar price of that security, or the Fund may also enter into forward foreign currency contracts that do not provide for physical settlement of the two currencies, but instead are settled by a single cash payment calculated as the difference between the agreed upon exchange rate and the spot rate at settlement based upon an agreed upon notional amount (non-deliverable forwards). The Fund will set aside liquid assets in an amount equal to the daily mark-to-market obligation for forward foreign currency contracts.
A forward foreign currency contract is an obligation between two parties (“Counterparties”) to purchase or sell a specific currency for an agreed-upon price at a future date. The use of forward foreign currency contracts does not eliminate fluctuations in the price of the underlying securities the Fund owns or intends to acquire but establishes a rate of exchange in advance. Fluctuations in the value of these contracts are measured by the difference in the contract date and reporting date exchange rates and are recorded as unrealized appreciation (depreciation) until the contracts are closed. When the contracts are closed, realized gains (losses) are recorded. Realized and unrealized gains (losses) on the contracts are included in the Statement of Operations. The primary risks associated with forward foreign currency contracts include failure of the Counterparty to meet the terms of the contract and the value of the foreign currency changing unfavorably. These risks may be in excess of the amounts reflected in the Statement of Assets and Liabilities.
14 | Invesco Oppenheimer International Small-Mid Company Fund |
NOTE 2–Advisory Fees and Other Fees Paid to Affiliates
The Trust has entered into a master investment advisory agreement with Invesco Advisers, Inc. (the “Adviser” or “Invesco”). Under the terms of the investment advisory agreement, the Fund accrues daily and pays monthly an advisory fee to the Adviser based on the annual rate of the Fund’s average daily net assets as follows:
Average Daily Net Assets | Rate | |||
| ||||
Up to $500 million | 1.000 | % | ||
| ||||
Next $500 million | 0.950 | % | ||
| ||||
Next $4 billion | 0.920 | % | ||
| ||||
Next $5 billion | 0.900 | % | ||
| ||||
Next $10 billion | 0.880 | % | ||
| ||||
Over $20 billion | 0.870 | % | ||
|
For the six months ended April 30, 2020, the effective advisory fee rate incurred by the Fund was 0.92%.
Under the terms of a master sub-advisory agreement between the Adviser and each of Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Canada Ltd. (collectively, the “Affiliated Sub-Advisers”) the Adviser, not the Fund, will pay 40% of the fees paid to the Adviser to any such Affiliated Sub-Adviser(s) that provide(s) discretionary investment management services to the Fund based on the percentage of assets allocated to such Affiliated Sub-Adviser(s).
The Adviser has contractually agreed, through at least May 31, 2021, to waive advisory fees and/or reimburse expenses of all shares to the extent necessary to limit total annual fund operating expenses after fee waiver and/or reimbursement (excluding certain items discussed below) of Class A, Class C, Class R, Class Y and Class R6 shares to 1.38%, 2.13%, 1.63%, 1.14%, 1.01% and 0.96%, 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 the total annual fund operating expenses after fee waiver and/or reimbursement to exceed the numbers reflected above: (1) interest, facilities and maintenance fees; (2) taxes; (3) dividend expense on short sales; (4) extraordinary or non-routine items, including litigation expenses; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Unless Invesco continues the fee waiver agreement, it will terminate on May 31, 2021. During its term, the fee waiver agreement cannot be terminated or amended to increase the expense limits or reduce the advisory fee waivers without approval of the Board of Trustees. The Adviser did not waive fees and/or reimburse expenses during the period under this expense limit.
Further, the Adviser has contractually agreed, through at least June 30, 2022, to waive the advisory fee payable by the Fund in an amount equal to 100% of the net advisory fees the Adviser receives from the affiliated money market funds on investments by the Fund of uninvested cash in such affiliated money market funds.
For the six months ended April 30, 2020, the Adviser waived advisory fees of $165,386.
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 April 30, 2020, expenses incurred under the agreement are shown in the Statement of Operations as Administrative services fees. Invesco has entered into a sub-administration agreement whereby State Street Bank and Trust Company (“SSB”) serves as fund accountant and provides certain administrative services to the Fund. Pursuant to a custody agreement with the Trust on behalf of the Fund, SSB also serves as the Fund’s custodian.
The Trust has entered into a transfer agency and service agreement with Invesco Investment Services, Inc. (“IIS”) pursuant to which the Fund has agreed to pay IIS a fee for providing transfer agency and shareholder services to the Fund and reimburse IIS for certain expenses incurred by IIS in the course of providing such services. IIS may make payments to intermediaries that provide omnibus account services, sub-accounting services and/or networking services. All fees payable by IIS to intermediaries that provide omnibus account services or sub-accounting services are charged back to the Fund, subject to certain limitations approved by the Trust’s Board of Trustees. For the six months ended April 30, 2020, expenses incurred under the agreement are shown in the Statement of Operations as Transfer 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 Y 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 and Class C shares (collectively, the “Plans”). The Fund, pursuant to the Plans, pays IDI compensation at the annual rate of 0.25% of the Fund’s average daily net assets of Class A shares and 1.00% of the average daily net assets of Class C 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 Plans 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. For the six-month period ended April 30, 2020, expenses incurred under the Plans are shown in the Statement of Operations as Distribution fees.
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 April 30, 2020, IDI advised the Fund that IDI retained $23,839 in front-end sales commissions from the sale of Class A shares and $28 and $1,526 from Class A and Class C shares, respectively, for CDSC imposed upon redemptions by shareholders.
Certain officers and trustees of the Trust are officers and directors of the Adviser, IIS and/or IDI.
NOTE 3–Additional Valuation Information
GAAP defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, under current market conditions. GAAP establishes a hierarchy that prioritizes the inputs to valuation methods, giving the highest priority to readily available unadjusted quoted prices in an active market for identical assets (Level 1) and the lowest priority to significant unobservable inputs (Level 3), generally when market prices are not readily available or are unreliable. Based on the valuation inputs, the securities or other investments are tiered into one of three levels. Changes in valuation methods may result in transfers in or out of an investment’s assigned level:
Level 1 | – | Prices are determined using quoted prices in an active market for identical assets. | ||
Level 2 | – | Prices are determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk, yield curves, loss severities, default rates, discount rates, volatilities and others. | ||
Level 3 | – | Prices are determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Fund’s own assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information. |
15 | Invesco Oppenheimer International Small-Mid Company Fund |
The following is a summary of the tiered valuation input levels, as of April 30, 2020. The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Investments in Securities | ||||||||||||||||
Australia | $ | - | $ | 295,415,173 | $- | $ | 295,415,173 | |||||||||
Belgium | - | 60,231,656 | - | 60,231,656 | ||||||||||||
Brazil | 82,795,312 | - | - | 82,795,312 | ||||||||||||
Canada | 124,502,094 | - | - | 124,502,094 | ||||||||||||
China | - | 50,934,864 | - | 50,934,864 | ||||||||||||
Denmark | - | 309,881,072 | - | 309,881,072 | ||||||||||||
Finland | - | 29,605,356 | - | 29,605,356 | ||||||||||||
France | - | 145,200,571 | - | 145,200,571 | ||||||||||||
Germany | - | 671,950,105 | - | 671,950,105 | ||||||||||||
Iceland | - | 194,670,214 | - | 194,670,214 | ||||||||||||
India | - | 26,471,593 | - | 26,471,593 | ||||||||||||
Israel | 192,112,375 | - | - | 192,112,375 | ||||||||||||
Italy | - | 111,530,885 | - | 111,530,885 | ||||||||||||
Japan | - | 1,467,837,234 | - | 1,467,837,234 | ||||||||||||
Jersey | - | 55,845,398 | - | 55,845,398 | ||||||||||||
Malaysia | - | 23,262,038 | - | 23,262,038 | ||||||||||||
Netherlands | - | 208,295,254 | - | 208,295,254 | ||||||||||||
New Zealand | - | 69,142,686 | - | 69,142,686 | ||||||||||||
Norway | - | 1,003,572 | - | 1,003,572 | ||||||||||||
Spain | - | 29,368,962 | - | 29,368,962 | ||||||||||||
Sweden | - | 347,569,855 | - | 347,569,855 | ||||||||||||
Switzerland | - | 783,349,976 | - | 783,349,976 | ||||||||||||
United Kingdom | - | 928,837,233 | - | 928,837,233 | ||||||||||||
United States | 36,701,406 | - | - | 36,701,406 | ||||||||||||
Money Market Funds | 37,319,966 | - | - | 37,319,966 | ||||||||||||
Total Investments | $ | 473,431,153 | $ | 5,810,403,697 | $- | $ | 6,283,834,850 |
NOTE 4–Derivative Investments
The Fund may enter into an International Swaps and Derivatives Association Master Agreement (“ISDA Master Agreement”) under which a fund may trade OTC derivatives. An OTC transaction entered into under an ISDA Master Agreement typically involves a collateral posting arrangement, payment netting provisions and close-out netting provisions. These netting provisions allow for reduction of credit risk through netting of contractual obligations. The enforceability of the netting provisions of the ISDA Master Agreement depends on the governing law of the ISDA Master Agreement, among other factors.
For financial reporting purposes, the Fund does not offset OTC derivative assets or liabilities that are subject to ISDA Master Agreements in the Statement of Assets and Liabilities.
Effect of Derivative Investments for the six months ended April 30, 2020
The table below summarizes the gains (losses) on derivative investments, detailed by primary risk exposure, recognized in earnings during the period:
Location of Gain (Loss) on Statement of Operations | ||||
Currency Risk | ||||
Realized Gain (Loss): | ||||
Forward foreign currency contracts | $(275,640) |
NOTE 5–Security Transactions with Affiliated Funds
The Fund is permitted to purchase or sell securities from or to certain other Invesco Funds under specified conditions outlined in procedures adopted by the Board of Trustees of the Trust. The procedures have been designed to ensure that any purchase or sale of securities by the Fund from or to another fund or portfolio that is or could be considered an affiliate by virtue of having a common investment adviser (or affiliated investment advisers), common Trustees and/or common officers complies with Rule 17a-7 of the 1940 Act. Further, as defined under the procedures, each transaction is effected at the current market price. Pursuant to these procedures, for the six-month period ended April 30, 2020, the Fund engaged in securities purchases of $15,255,238 and securities sales of $284,874,675, which resulted in net realized gains (losses) of $(247,323,575).
NOTE 6–Expense Offset Arrangement(s)
The expense offset arrangement is comprised of transfer agency credits which result from balances in demand deposit accounts used by the transfer agent for clearing shareholder transactions. For the six months ended April 30, 2020, the Fund received credits from this arrangement, which resulted in the reduction of the Fund’s total expenses of $9,427.
16 | Invesco Oppenheimer International Small-Mid Company Fund |
NOTE 7–Trustees’ and Officers’ Fees and Benefits
Trustees’ and Officers’ Fees and Benefits include amounts accrued by the Fund to pay remuneration to certain Trustees and Officers of the Fund. Trustees have the option to defer compensation payable by the Fund, and Trustees’ and Officers’ Fees and Benefits also include amounts accrued by the Fund to fund such deferred compensation amounts. Those Trustees who defer compensation have the option to select various Invesco Funds in which their deferral accounts shall be deemed to be invested. Finally, certain current Trustees were eligible to participate in a retirement plan that provided for benefits to be paid upon retirement to Trustees over a period of time based on the number of years of service. The Fund may have certain former Trustees who also participate in a retirement plan and receive benefits under such plan. Trustees’ and Officers’ Fees and Benefits include amounts accrued by the Fund to fund such retirement benefits. Obligations under the deferred compensation and retirement plans represent unsecured claims against the general assets of the Fund.
NOTE 8–Cash Balances
The Fund is permitted to temporarily carry a negative or overdrawn balance in its account with SSB, the custodian bank. Such balances, if any at period-end, are shown in the Statement of Assets and Liabilities under the payable caption Amount due custodian. To compensate the custodian bank for such overdrafts, the overdrawn Fund may either (1) leave funds as a compensating balance in the account so the custodian bank can be compensated by earning the additional interest; or (2) compensate by paying the custodian bank at a rate agreed upon by the custodian bank and Invesco, not to exceed the contractually agreed upon rate. The Fund may not purchase additional securities when any borrowings from banks or broker-dealers exceed 5% of the Fund’s total assets, or when any borrowings from an Invesco Fund are outstanding.
NOTE 9–Tax Information
The amount and character of income and gains to be distributed are determined in accordance with income tax regulations, which may differ from GAAP.
Reclassifications are made to the Fund’s capital accounts to reflect income and gains available for distribution (or available capital loss carryforward) under income tax regulations. The tax character of distributions paid during the year and the tax components of net assets will be reported at the Fund’s fiscal year-end.
Capital loss carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Fund to utilize. The ability to utilize capital loss carryforwards in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.
The Fund did not have a capital loss carryforward as of October 31, 2019.
NOTE 10–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 April 30, 2020 was $4,220,906,080 and $5,161,629,535, respectively. Cost of investments, including any derivatives, on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end.
Unrealized Appreciation (Depreciation) of Investments on a Tax Basis | ||||
| ||||
Aggregate unrealized appreciation of investments | $ | 1,784,815,837 | ||
| ||||
Aggregate unrealized (depreciation) of investments | (319,316,612 | ) | ||
| ||||
Net unrealized appreciation of investments | $ | 1,465,499,225 | ||
|
Cost of investments for tax purposes is $4,818,335,625.
NOTE 11–Share Information
Summary of Share Activity | ||||||||||||||||||||||||
| ||||||||||||||||||||||||
Six months ended | Two Months Ended | Year ended | ||||||||||||||||||||||
April 30, 2020(a) | October 31, 2019 | August 31, 2019 | ||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | |||||||||||||||||||
| ||||||||||||||||||||||||
Sold: | ||||||||||||||||||||||||
Class A | 1,417,062 | $ | 68,357,062 | 326,229 | $ | 15,360,516 | 4,657,721 | $ | 218,862,059 | |||||||||||||||
| ||||||||||||||||||||||||
Class C | 76,588 | 3,030,594 | 12,336 | 520,604 | 123,498 | 5,197,438 | ||||||||||||||||||
| ||||||||||||||||||||||||
Class R | 126,136 | 5,363,917 | 32,586 | 1,453,412 | 413,022 | 18,375,264 | ||||||||||||||||||
| ||||||||||||||||||||||||
Class Y | 7,317,461 | 322,192,438 | 1,893,257 | 88,237,648 | 15,184,170 | 697,565,533 | ||||||||||||||||||
| ||||||||||||||||||||||||
Class R5 | 1,715 | 71,481 | - | - | 421 | 20,000 | ||||||||||||||||||
| ||||||||||||||||||||||||
Class R6 | 4,448,675 | 194,448,209 | 1,069,455 | 49,949,769 | 11,458,099 | 533,041,328 | ||||||||||||||||||
| ||||||||||||||||||||||||
Issued as reinvestment of dividends: | ||||||||||||||||||||||||
Class A | 1,234,547 | 59,060,716 | - | - | 3,158,390 | 132,304,962 | ||||||||||||||||||
| ||||||||||||||||||||||||
Class C | 194,910 | 8,392,805 | - | - | 646,497 | 24,676,799 | ||||||||||||||||||
| ||||||||||||||||||||||||
Class R | 105,881 | 4,790,061 | - | - | 206,099 | 8,204,796 | ||||||||||||||||||
| ||||||||||||||||||||||||
Class Y | 3,355,855 | 158,933,304 | - | - | 9,781,788 | 405,063,860 | ||||||||||||||||||
| ||||||||||||||||||||||||
Class R5 | 10 | 497 | - | - | - | - | ||||||||||||||||||
| ||||||||||||||||||||||||
Class R6 | 2,728,217 | 129,644,859 | - | - | 6,378,561 | 264,646,520 | ||||||||||||||||||
| ||||||||||||||||||||||||
Automatic conversion of Class C shares to Class A shares: | ||||||||||||||||||||||||
Class A | 121,577 | 5,443,194 | 87,515 | 4,117,033 | - | - | ||||||||||||||||||
| ||||||||||||||||||||||||
Class C | (135,100 | ) | (5,443,194 | ) | (96,619 | ) | (4,117,033 | ) | - | - | ||||||||||||||
|
17 | Invesco Oppenheimer International Small-Mid Company Fund |
Summary of Share Activity | ||||||||||||||||||||||||
| ||||||||||||||||||||||||
Six months ended | Two Months Ended | Year ended | ||||||||||||||||||||||
April 30, 2020(a) | October 31, 2019 | August 31, 2019 | ||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | |||||||||||||||||||
| ||||||||||||||||||||||||
Reacquired: | ||||||||||||||||||||||||
Class A | (6,250,241 | ) | $ | (272,491,663 | ) | (1,153,752 | ) | $ | (54,349,868 | ) | (10,264,731 | ) | $ | (472,866,058 | ) | |||||||||
| ||||||||||||||||||||||||
Class C | (649,684 | ) | (24,871,415 | ) | (147,279 | ) | (6,272,201 | ) | (2,934,301 | ) | (125,671,022 | ) | ||||||||||||
| ||||||||||||||||||||||||
Class R | (298,269 | ) | (12,318,377 | ) | (105,176 | ) | (4,694,687 | ) | (451,678 | ) | (20,212,021 | ) | ||||||||||||
| ||||||||||||||||||||||||
Class Y | (29,812,204 | ) | (1,220,246,003 | ) | (3,360,875 | ) | (156,866,388 | ) | (45,259,264 | ) | (2,081,816,587 | ) | ||||||||||||
| ||||||||||||||||||||||||
Class R6 | (10,907,636 | ) | (456,215,012 | ) | (2,066,823 | ) | (96,666,740 | ) | (18,807,451 | ) | (861,480,847 | ) | ||||||||||||
| ||||||||||||||||||||||||
Net increase (decrease) in share activity | (26,924,500 | ) | $ | (1,031,856,527 | ) | (3,509,146 | ) | $ | (163,327,935 | ) | (25,709,159 | ) | $ | (1,254,087,976 | ) | |||||||||
|
(a) | There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 33% 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. |
In addition, 14% of the outstanding shares of the Fund are owned by the Adviser or an affiliate of the Adviser.
NOTE 12–Coronavirus (COVID-19) Pandemic
During the first quarter of 2020, the World Health Organization declared COVID-19 to be a public health emergency. COVID-19 has led to increased short-term market volatility and may have adverse long-term effects on U.S. and world economies and markets in general. COVID-19 may adversely impact the Fund’s ability to achieve its investment objective. Because of the uncertainties on valuation, the global economy and business operations, values reflected in these financial statements may materially differ from the value received upon actual sales of those investments.
The extent of the impact on the performance of the Fund and its investments will depend on future developments, including the duration and spread of the COVID-19 outbreak, related restrictions and advisories, and the effects on the financial markets and economy overall, all of which are highly uncertain and cannot be predicted.
NOTE 13–Subsequent Event
Effective on or about September 30, 2020, the name of the Fund and all references thereto will change from Invesco Oppenheimer International Small-Mid Company Fund to Invesco International Small-Mid Company Fund.
18 | Invesco Oppenheimer International Small-Mid Company Fund |
Calculating your ongoing Fund expenses
Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, which may include sales charges (loads) on purchase payments or contingent deferred sales charges on redemptions, if any; and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees, and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period November 1, 2019 through April 30, 2020.
Actual expenses
The table below provides information about actual account values and actual expenses. You may use the information in this table, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the table under the heading entitled “Actual Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Hypothetical example for comparison purposes
The table below also provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return.
The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads) on purchase payments or contingent deferred sales charges on redemptions, if any. Therefore, the hypothetical information is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, expenses shown in the table do not include the expenses of the underlying funds, which are borne indirectly by the Fund. If transaction costs and indirect expenses were included, your costs would have been higher.
ACTUAL | HYPOTHETICAL (5% annual return before expenses) | |||||||||||
Beginning Account Value (11/01/19) | Ending Account Value (04/30/20)1 | Expenses Paid During Period2 | Ending Account Value (04/30/20) | Expenses Paid During Period2 | Annualized Ratio | |||||||
Class A | $1,000.00 | $918.30 | $6.34 | $1,018.25 | $6.67 | 1.33% | ||||||
Class C | 1,000.00 | 915.00 | 9.95 | 1,014.47 | 10.47 | 2.09 | ||||||
Class R | 1,000.00 | 917.10 | 7.58 | 1,016.96 | 7.97 | 1.59 | ||||||
Class Y | 1,000.00 | 919.30 | 5.20 | 1,019.44 | 5.47 | 1.09 | ||||||
Class R5 | 1,000.00 | 920.20 | 4.58 | 1,020.09 | 4.82 | 0.96 | ||||||
Class R6 | 1,000.00 | 920.10 | 4.49 | 1,020.19 | 4.72 | 0.94 |
1 | The actual ending account value is based on the actual total return of the Fund for the period November 1, 2019 through April 30, 2020, after actual expenses and will differ from the hypothetical ending account value which is based on the Fund’s expense ratio and a hypothetical annual return of 5% before expenses. |
2 | Expenses are equal to the Fund’s annualized expense ratio as indicated above multiplied by the average account value over the period, multiplied by 182/366 to reflect the most recent fiscal half year. |
19 | Invesco Oppenheimer International Small-Mid Company Fund |
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 list appears 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 Form N-PORT filings on the SEC website, sec.gov. The SEC file numbers for the Fund are shown below. | ||
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. This 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. |
SEC file numbers: 811-06463 and 033-44611 | Invesco Distributors, Inc. | O-ISMC-SAR-1 |
ITEM 2. | CODE OF ETHICS. |
Not applicable for a semi-annual report.
ITEM 3. | AUDIT COMMITTEE FINANCIAL EXPERT. |
Not applicable.
ITEM 4. | PRINCIPAL ACCOUNTANT FEES AND SERVICES. |
Not applicable.
ITEM 5. | AUDIT COMMITTEE OF LISTED REGISTRANTS. |
Not applicable.
ITEM 6. | SCHEDULE OF INVESTMENTS. |
Investments in securities of unaffiliated issuers is included as part of the reports to stockholders filed under Item 1 of this Form.
ITEM 7. | DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES. |
Not applicable.
ITEM 8. | PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT COMPANIES. |
Not applicable.
ITEM 9. | PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS. |
Not applicable.
ITEM 10. | SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS. |
None
ITEM 11. | CONTROLS AND PROCEDURES. |
(a) | As of June 17, 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 June 17, 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. |
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 International Mutual Funds (Invesco International Mutual Funds)
By: | /s/ Sheri Morris | |
Sheri Morris | ||
Principal Executive Officer | ||
Date: | July 8, 2020 |
Pursuant to the requirements of the Securities and Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.
By: | /s/ Sheri Morris | |
Sheri Morris | ||
Principal Executive Officer | ||
Date: | July 8, 2020 | |
By: | /s/ Kelli Gallegos | |
Kelli Gallegos | ||
Principal Financial Officer | ||
Date: | July 8, 2020 |